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12 Blackwell and Grand Financial Summary Actual Expenses Actual Income Pro Forma Income *Maintenance ($375 per unit) $8,625 Pest Control ($55 per month) $660 **Gardening $0 ***Management (5%) $10,302 Insurance $5,328 ****New Property Tax (1.25 %) $24,938 Electric $2,500 Gas $2,700 Water $5,960 Sewer $10,450 Trash $3,260 Total Expenses $74,723 Gross Annual Rent $184,440 $206,040 Gross Annual Laundry $1,800 $1,800 Gross Annual Storage $1,020 $1,020 Gross Annual Income $187,260 $208,860 Vacancy (5%) $9,222 $10,302 Effective Gross Income (EGI) $175,218 $195,738 Net Operating Income (NOI) $100,496 $121,016 Sales Price $1,995,000 $1,995,000 Unit Price $90, $90, CAP Rate 5.04% 6.07% GRM Price Per Square Foot $ *Maintenance is an estimate at $375 per unit / per year **Onsite manager takes care of yard for both buildings. ***Property management is an estimate and includes current monthly credit of $500 for onsite manager to manage both properties ****Property tax is an estimate based off $1,995,000 assessor price at appr. 1.25% annual property tax. DO NOT DISTURB TENANTS. PLEASE CALL FOR ADDITIONAL INFORMATION.

13 32986 Blackwell Rent Roll As of Unit BD/BA Tenant Sq. Ft. Market Rent Rent Deposit Lease From Lease To Move-in A 0/1.00 Agosto /01/ /01/2011 B 0/1.00 Wilson , /01/ /30/ /01/2016 C 0/1.00 Mendoza /01/ /31/ /01/2016 D 0/1.00 Herzog , /05/ /28/ /05/2017 E 0/1.00 Pitner /05/ /04/ /05/2014 F 0/1.00 Way /22/ /31/ /22/2016 G 0/1.00 VACANT H 0/1.00 Luna /01/ /28/ /01/2017 I 0/1.00 Cash /07/ /07/2014 J 0/1.00 Murillo /11/ /30/ /11/2017 K 0/1.00 Castaneda , /12/ /31/ /12/2017 L 0/1.00 Dayus /01/ /01/2013 M 0/1.00 Operario /26/ /31/ /26/2015 N 0/1.00 Ontiveros /01/ /28/ /01/ Units 4,424 10, , ,150.00

14 As of Grand Ave Rent Roll Unit BD/BA Tenant Sq. Ft. Market Rent Rent Deposit Lease From Lease To Move-in 01 0/1 Speer /21/ /30/ /21/ /1 *Carter /1 Espinoza /15/ /31/ /15/ /1 Jackson /01/ /31/ /01/ /1 Lambert /20/ /31/ /20/ /1 Rama /16/ /31/ /16/ /1 Sarmiento /01/ /31/ /01/ /2 **FIRE UNIT 1,251 1, , /07/ /07/ Units 3,701 6, , , *Onsite manager is currently staying in Unit #2 until her Unit #8 is repaired. She receives a $500 monthly credit toward her rent for managing Blackwell and Grand. **Unit 8 caught fire. Plans were approved by Riverside County Building and Safey to repair unit. All work will be completed by a licensed contractor and permited thru the county by mid December.

15 Blackwell and Grand Cashflow 2017 Account Name Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Total Operating Income & Expense Income Rent 13, , , , , , , , , , Laundry Machine Income Storage Fees Total Operating Income 13, , , , , , , , , , Expense Maintenance-Unrecoverable Maintenance Supplies Pest Control Plumbing Electrical Cleaning Gardening Management , Insurance , Property Tax 1, , , , , , , , , , Electricity , Gas , Water , Sewer , , Trash Disposal , Total Operating Expense 4, , , , , , , , , , NOI - Net Operating Income 9, , , , , , , , , ,946.47

16 Blackwell and Grand Combined Cashflow 2016 Account Name Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016 Total Operating Income & Expense Income Rent 12, , , , , , , , , , , , , Laundry Machine Income , Storage Fees , Total Operating Income 12, , , , , , , , , , , , , Expense Maintenance-Unrecoverable , Plumbing Flooring Electrical Appliance Repairs/Purchase Window / Glass Repairs Window Coverings Cleaning Painting HVAC (Heat, Ventilation, Air) Gardening Management , Insurance , Property Tax 1, , , , , , , , , , , , , Electricity , Gas , Water , , Sewer , , Trash Disposal , Total Operating Expense 4, , , , , , , , , , , , , NOI - Net Operating Income 7, , , , , , , , , , , , ,973.53

17 Blackwell and Grand Combined Cashflow 2015 Account Name Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Total Income Rent 9, , , , , , , , , , , , , Laundry Machine Income , Storage Fees Total Operating Income 9, , , , , , , , , , , , , Expense Maintenance-Unrecoverable , Maintenance Supplies Pest Control Plumbing Appliance Repairs/Purchase Cleaning Painting HVAC (Heat, Ventilation, Air) Gardening Management , Insurance , Property Tax 1, , , , , , , , , , , , , Electricity , Gas , Water , Sewer , Trash Disposal , Total Operating Expense 4, , , , , , , , , , , , , NOI - Net Operating Income 5, , , , , , , , , , , , ,752.80

18 Overview Southwest Riverside County/Temecula Apartment 12 Mo. Deliveries in Units 12 Mo. Net Absorption Vacancy Rate 12 Mo. Rent Growth % 7.6% Market Analyst: Michael Cobb - mcobb@costar.com With consistent demand to offset the recent new supply additions over the last several years, Southwest Riverside County is a fundamentally healthy submarket and rents have been rising. Little is in the pipeline, and vacancies remain low thanks to strong lease-up in new stock. With high rents in coastal markets, the overall renting cohort is increasing as they choose to commute to the coast. A Metrolink station 10 minutes from the submarket's border with Corona means residents can easily get to job centers in Orange County and LA. Commuters can also drive to San Diego in under an hour from Temecula and Murrieta. Local and institutional investors alike continue to target Southwest Riverside County as units here traded for prices well above those in all other submarkets last year. KEY INDICATORS Current Quarter Units Vacancy Rate Asking Rent Effective Rent Net Absorption Net Deliveries Under Construction 4 & 5 Star 4, % $1,653 $1,636 (29) Star 5, % $1,483 $1, & 2 Star 1, % N/A N/A SUBMARKET 11, % $1,522 $1, Annual Trends 12 Month Change Hist. Avg. Fcst. Avg. Peak When Trough When Vacancy -0.6% 6.7% 3.6% 11.6% 2007 Q4 2.7% 2000 Q2 Net Absorption , Q3 (57) 2001 Q4 Net Deliveries , Q Q4 Rent Growth 7.6% 2.8% 3.2% 10.1% 2001 Q1-4.7% 2009 Q3 Effective Rent Growth 9.1% 2.8% 3.2% 10.1% 2001 Q1-4.7% 2009 Q3 Sales ($ millions) $305 $116 N/A $ Q3 $ Q CoStar Group As of Jun 30, 2017 Page 1

19 Overview Southwest Riverside County/Temecula Apartment FUNDAMENTALS In addition to more than 30 wineries, Southwest Riverside County offers its residents something that no other Inland Empire submarket can: a reasonable commute to San Diego. While premier submarkets like Greater Ontario/Rancho Cucamonga and Riverside/Corona offer access to job centers in LA and Orange County, residents here can drive to San Diego in about an hour from Temecula and Murrieta, where the majority of renters in the submarket work. This is especially important for the increasing number of folks who may be priced out of the San Diego metro. Recent population growth has been the strongest among the Inland Empire submarkets, expanding by nearly 11% from Population growth in the cities encompassing Southwest Riverside County is projected to exceed 1% annually equating to at least 4,700 new residents each year. Although less than 30% of households rent here, that projection would add more than 400 potential new renters annually, based on the average household size of just over three people. Home prices continue to climb, but remain relatively inexpensive for the typical household here, with median income exceeding $73,000. Similar to in its neighbor to the north, Riverside/Corona, median home prices grew by about 9% from , and are now at $288,000. A $230,000 mortgage with taxes, at 4% interest over 30 years, will run about $1,275/month. While this is significantly less than average rents in the submarket, the 20% down payment and lasting memories of the housing bust may continue to thwart many potential homeowners (the homeownership rate remained unchanged from ). In addition, competition for apartment rentals exists in the form of mobile and single-family rentals. Residents who stay inside the submarket for work have a number of options. In Temecula, for instance, most jobs are in professional, education, and technical fields. Two of the largest employers here are Abbott Laboratories and Temecula Valley Unified School District. In September 2015, Glasswerks LA, an architecturalglass-fabrication company, purchased a facility that brought 100 new jobs to the city. In Murrieta, employment is focused on education and healthcare Southwest Healthcare Systems and Murrieta Valley School District are the top two employers. Leasing for recently delivered properties demonstrates the strength of demand for new product. For instance, the Pacific Landing Luxury Apartments delivered in July 2016 and as of May 2017 was about 97% occupied (about 28 units/month). The property is within walking distance of both Antelope Hills Elementary School and Vista Murrieta High School, and several neighborhood outlet centers are a few miles down the road CoStar Group As of Jun 30, 2017 Page 2

20 Overview Southwest Riverside County/Temecula Apartment SUPPLY One thing this submarket does not lack is developable land: Wide-open spaces abound. However, the vast stretches of land connecting cities are not all ripe for supply. Recent construction has been largely focused south of Lake Elsinore, near the nexus of I-15 and I-215, where fundamentals for new units are more favorable. Pacific Landing Luxury Apartments in Murrieta represents the most recent delivery in Southwest Riverside County. The 325-unit community opened in summer 2016 and contains high-end amenities such as a bocce ball court, dog park, spa with cabanas, and washers and dryers in each unit. Lease-up for the project has been impressive, and it reached stabilization in six short months. As of May 2017, the property was about 97% occupied. This is Atlantic/Pacific Companies' first development in the county, and the firm purchased the 24-acre site in an REO sale in 2012 for $4 million ($165,000/acre). The site is approved for 400 units, but the builder is keeping half of the site for a preserve. However, even with few barriers to development, a recent study found that it was nearly impossible to develop multifamily housing for less than $150,000/unit, which includes all development and acquisition costs. Instead, the study, which was conducted by the city of Temecula, estimated development to cost almost $250,000/unit. That price may deter potential developers worried about the prospects of demand for future 4 & 5 Star inventory whose rents would likely exceed median mortgage payments. The only project in the pipeline is the 4 Star 140-unit Solaire. The project broke ground in 16Q2 and after a few delays in construction, is expected to open next year. The community is being developed by ColRich out of San Diego, and upon completion will be managed by Greystar. NET DELIVERIES 2017 CoStar Group As of Jun 30, 2017 Page 4

21 Sale Comparables Summary Blackwell Blvd Sale Comparables 18 Avg. Price/Unit (thous.) $123 Average Price (mil.) $1.6 Average Vacancy at Sale 2.7% SALE COMPARABLE LOCATIONS Sales Attributes Low Average Median High Sale Price $555,000 $1,602,055 $1,147,500 $3,990,000 Price Per Unit $55,416 $123,234 $114,744 $190,357 Cap Rate 4.6% 6.1% 5.8% 8.9% Vacancy at Sale 0.0% 2.7% 0.0% 8.3% Time Since Sale in Months Property Attributes Low Average Median High Property Size in Units Number of Floors Average Unit SF ,119 Year Built Star Rating 2.0 Copyrighted report licensed to Pay It Forward Realty /4/2017 Page 38

22 Sale Comparables Summary Blackwell Blvd Property Information Sale Information Property Name/Address Rating Yr Built Units Vacancy Sale Date Price Price/Unit Price/SF Lakeside Villas % 4/25/2017 $3,990,000 $190,000 $ Paseo Grande Princess Palms % 4/11/2017 $2,700,000 $168,750 $ Via Princessa Atwood Ave % 4/10/2017 $1,155,000 $105,000 $97 Twin Falls % 2/28/2017 $2,000,000 $125,000 $ Magnolia Ave Main Street Apts % 2/22/2017 $2,800,000 $175,000 $ Main St Adrienne Ave % 1/20/2017 $1,140,000 $95,000 $ Ramona Ave % 1/20/2017 $825,000 $117,857 $ S Spring St % 1/9/2017 $890,000 $68,461 $ Bay Ave % 9/19/2016 $902,000 $112,750 $133 Harvill Lane Apartments % 7/1/2016 $700,000 $87,500 $ Harvill Ln French Quarter Apartments % 6/28/2016 $2,665,000 $190,357 $ W 7th St Allies Pl % 5/20/2016 $890,000 $111,250 $ E 10th St % 5/19/2016 $665,000 $55,416 $ S Spring St % 5/10/2016 $555,000 $79,285 $135 Deluxe Madison % 1/20/2016 $2,685,000 $116,739 $ Magnolia Ave Main Street Apts % 10/23/2015 $2,025,000 $126,562 $ Main St 3741 Harvill Ln % 10/8/2015 $1,000,000 $125,000 $136 Devonshire Village Apts % 7/14/2015 $1,250,000 $69,444 $ W Devonshire Ave Copyrighted report licensed to Pay It Forward Realty /4/2017 Page 39

23 Demographic Overview Blackwell Blvd Population (1 mi) 5,000 Avg. HH Size (1 mi) 3.0 Avg. Age (1 mi) 36 Med. HH Inc. (1 mi) $40,514 DEMOGRAPHIC RADIUS RINGS DEMOGRAPHIC SUMMARY Population 1 Mile 3 Mile 5 Mile 2017 Population 5,000 27,492 82, Population 5,327 29,285 87,764 Pop Growth % 6.5% 6.7% 2017 Average Age Households 2017 Households 1,616 8,343 24, Households 1,721 8,898 26,121 Household Growth % 6.7% 6.8% Median Household Income $40,514 $44,533 $59,848 Average Household Size Average HH Vehicles Housing Median Home Value $208,979 $239,191 $274,008 Median Year Built Copyrighted report licensed to Pay It Forward Realty /4/2017 Page 65

24 Age & Education Blackwell Blvd POPULATION BY AGE GROUP IN 1 MILE RADIUS POPULATION BY AGE IN 1 MILE RADIUS POPULATION BY EDUCATION IN 1 MILE RADIUS Copyrighted report licensed to Pay It Forward Realty /4/2017 Page 66

25 Ethnicity Blackwell Blvd POPULATION BY RACE 2017 Population Race 1 Mile 3 Mile 5 Mile White 4, % 23, % 69, % Black % 1, % 4, % Asian % % 3, % American Indian & Alaskan % % 1, % Hawaiian & Pacific Islander 24 < 1% 135 < 1% 388 < 1% Other % 1, % 3, % ,800 2,700 3,600 4,500 POPULATION BY RACE IN 1 MILE RADIUS HISPANIC POPULATION IN 1 MILE RADIUS MILITARY POPULATION 2017 Population 1 Mile 3 Mile 5 Mile Military 1 < 1% 24 < 1% 111 < 1% Non-Military Workforce 2, % 12, % 38, % ,440 1,920 2,400 Copyrighted report licensed to Pay It Forward Realty /4/2017 Page 67