9. HOW DO I INVEST?
Investment Guide
| 1. | You decide to invest; then you contact us for all the appropriate material. |
| 2. | You meet the Investor Qualifications. |
| 3. | You decide to buy 8 Preferred Member units for $100,000.00. |
| 4. | You receive the sign up documents. |
| 5. | You read and review the sign up documents with your professional advisors. |
| 6. | You return the notarized sign-up documents to the Principal with your check or wire instructions for the $100,000. |
| 7. | The investment is deposited into an escrow account. |
| 8. | The investment is put into the risk mitigation program. |
| 9. | You begin earning interest the day after the 3-day recision period. |
| 10. | When the first estate is sold, you receive 8/600 of the lot sale immediately after closing. |
| 11. | You will receive 8/600 of each lot sale price as each of the land portions of the estate is sold until you receive all of your $100,000.00 back plus the interest up to $24,999.00. |
| | |||||||
| # Units | Pro rata Ownership % | Investment (Preferred Member) | Preferred Return @24.99% | Profit Share | Total Estimated Return | Return % Simple Interest | |
| 1 | .02% | $12,500 | $3,124 | $4,770 | $7,894 | 63.15% | |
| 4 | .08% | $50,000 | $12,495 | $19,080 | $31,575 | 63.15% | |
| 12 | .24% | $150,000 | $37,485 | $57,240 | $94,725 | 63.15% | |
| 40 | .80% | $500,000 | $124,950 | $190,800 | $315,750 | 63.15% | |
| 80 | 1.60% | $1,000,000 | $249,900 | $381,600 | $631,500 | 63.15% | |
| 600 | 12.00% | $7,500,000 | $1,874,250 | $2,862,000 | $4,736,250 | 63.15% | |
Explanation
There are 600 (of a total of 5,000) "Preferred Member" interest (units) which equal 12% of company and project ownership. One (1) "Preferred Member" Interest costs $12,500.00 and represents .02% ownership of the company and project. 600 "Preferred Member" interests (units) equal an aggregate capitalization of $7,500,000. A "Preferred Member" receives 8.3% simple interest per annum on his capital contribution (investment); plus, he will receive a pro rata share (percentage) equal to his interest of the project's profits.
EXAMPLE
An investor with 12 "Preferred Member" Interests ($150,000 investment)
| 1. | Receives his capital contribution (Investment) within 36 months based upon 100% of the land parcel estate sales. |
| 2. | Then, he will receive his "preferred" interest on his investments, i.e., 8.3% x 3 years x $150,000 = $37,485 based upon the next parcel(s) of land sold. |
| 3. | Then, he will receive .24% (12 units x .02%) of the $34.0M projected profits, or $57,240, at project's end. |