Private Mortgage Lending With PropShop Homes, LLC [email protected] 414-999-0300

Agenda 1. Disclaimers 2. How Private Lending Works 3. Benefits of Private Lending 4. Professional Experience 5. Company Overview 6. Property Buying Criteria 7. Operational Systems 8. Common Ways to Fund Deals 9. Flow of a Transaction 10. Case Study 11. Common Questions 12. Next Steps https://www.propshophomes.com • CONFIDENTIAL 2

Disclaimers Confidential CONFIDENTIAL – NOT FOR DISCLOSURE OR DISTRIBUTION Performance Investing in financial and real estate markets involves a substantial degree of risk. There can be no assurance that the investment objectives or returns described herein will be achieved. Past performance is no guarantee of future performance or that such investment opportunities will become available. Solicitation These materials are intended only for discussion purposes and should not be relied upon in evaluating the merits of investing in any securities. Potential investors who express an interest in investing will be provided with additional materials. https://www.propshophomes.com • CONFIDENTIAL 3

Disclaimers Forward-Looking Statements These materials contain certain forward-looking statements regarding the investment objectives and strategies. The forward- looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, political and competitive market conditions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of PropShop Homes. Although PropShop Homes believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in these materials will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by PropShop Homes and/or its affiliates, any placement agent, or any other person, that the objectives and strategies of PropShop Homes will be achieved. Legal / Tax / Investment Advice These materials are not intended to be relied upon as the basis for any investment decision, and is not, and should not be assumed to be, complete. The contents herein are not to be construed as legal, business, or tax advice, and each party that receives these materials should consult its own attorney, business advisor, and tax advisor as to legal, business, and tax advice. In considering any performance information contained herein, parties should bear in mind that past performance is not necessarily indicative of future results. https://www.propshophomes.com • CONFIDENTIAL 4

How Bank Lending Works https://www.propshophomes.com • CONFIDENTIAL 5

How Private Mortgage Lending Works https://www.propshophomes.com • CONFIDENTIAL 6

Benefits of Private Lending — Passive income — Higher rates of return — Leverage our experience — Secured, tangible asset — No management fees — Predictable monthly income — Short term https://www.propshophomes.com • CONFIDENTIAL 7

Benefits of Private Mortgage Lending – Earning Interest Interest paid on a $20,000 Private Money Loan a!er 12 months https://www.propshophomes.com • CONFIDENTIAL 8

Professional Experience Derek Peruo Derek is a cash flow investor. His portfolio includes real estate investment trusts, commercial syndication deals, private loans, precious metals, and rental units. Derek was born and raised in New York City during the height of the real estate boom. He saw the massive growth of luxury real estate in Manhattan, Brooklyn, and Queens. Derek’s lifelong connection to New York gave him an eye for quality and the need for a great “guest experience.” Derek negotiated over $1.1 million in software and real estate contracts. He studied many negotiation techniques, including strategies taught at the University of Michigan Law School and the FBI Crisis Negotiation Unit. Derek is a member of FortuneBuilders Mastery, an international network of real estate entrepreneurs. He believes financial education and understanding history are the keys to financial freedom. https://www.propshophomes.com • CONFIDENTIAL 9

Professional Experience Sara Peruo As a licensed REALTOR©, Sara is dedicated to providing superior customer service, well-organized communication, smart negotiation and authentic representation of her clients’ needs. She considers herself a lifelong learner and is an entrepreneurial advocate for the arts, encouraging artists to effectively negotiate contracts, make a living doing their crafts and build wealth through strategic financial investment. Additionally, Sara is an accomplished performer having worked with entertainment production companies across the country as singer/actor/choreographer and skilled fine artist having successfully launched her own design company specializing in commercial interior branding and event design. Sara was introduced to the world of real estate investment while living in New York City with her husband, Derek. Together, they have pursued auxiliary education as students of the FortuneBuilders Mastery program and relocated to Sara’s native Milwaukee-area home in 2016 to be nearer to family and nature while continuing their pursuits in real estate investment and capital lending. https://www.propshophomes.com • CONFIDENTIAL 10

Company Overview Knowledge & Experience At PropShop Homes, our team is highly motivated, knowledgeable, ethical and resourceful. Qualified to handle any real estate transaction, our dedicated staff is committed to helping people with their real estate needs and making successful deals happen. Our team of professionals has the integrity to follow up on our promises, and the expertise to navigate any transaction to ensure you’re fully informed for making the best decision possible. We have invested a great deal of time, energy and capital investment into our real estate education, attending the nation's premier real estate investing education program - FortuneBuilders Mastery. Beyond the principles of sound investing, we were trained on how to build a successful business based on systems and predictability. Having completed over 1,000 real estate deals, FortuneBuilders coaches and systems have allowed us to strategically invest in real estate, grow and expand our business, and they are available for us to leverage when analyzing our real estate deals. https://www.propshophomes.com • CONFIDENTIAL 11

Company Overview Certifications & Memberships — Licensed REALTOR® with Premier Point Realty — Milwaukee Real Estate Investors Association — Wisconsin Apartment Investors Group — Brew City Real Estate Group — FortuneBuilders Mastery Coaching Program https://www.propshophomes.com • CONFIDENTIAL 12

Company Overview Certifications & Memberships https://www.propshophomes.com • CONFIDENTIAL 13

Property Buying Criteria Target Market – Milwaukee and Waukesha counties https://www.propshophomes.com • CONFIDENTIAL 14

Property Buying Criteria — Residential Rentals — 2 or more units — Tenants in place — Minimum purchase price of $75,000 — 30–50% below market value — Value-Add Opportunities — Potential as a Short-Term Rental (“Airbnb”) https://www.propshophomes.com • CONFIDENTIAL 15

Property Buying Criteria Finding Opportunities https://www.propshophomes.com • CONFIDENTIAL 16

Property Buying Criteria Our Advantage — Market knowledge — Underwriting and due-diligence — Speed and ability to close with cash — Operational systems https://www.propshophomes.com • CONFIDENTIAL 17

Operational Systems 1. Seller / Agent Communication 2. Property Appraisal 3. Back Office 4. Contract Negotiation 5. Final Due Diligence 6. Construction Management https://www.propshophomes.com • CONFIDENTIAL 18

Construction Management System 1. Construction Knowledge 2. Repair Estimates 3. Scope of Work 4. Finding Great Contractors 5. Contractor Bids 6. Legal Protection (“6 Critical Documents”) 7. Project Management https://www.propshophomes.com • CONFIDENTIAL 19

Construction Management System Example Scope of Work https://www.propshophomes.com • CONFIDENTIAL 20

Construction Management System Example Cost Controls https://www.propshophomes.com • CONFIDENTIAL 21

Construction Management System Legal Protection (“6 Critical Documents”) 1. Independent Contractor Agreement 2. Indemnification Insurance Agreement 3. Payment Schedule 4. Contractor Lien Waiver 5. Scope of Work Template 6. W-9 Tax Form https://www.propshophomes.com • CONFIDENTIAL 22

Construction Management System Example Due Diligence Checklist https://www.propshophomes.com • CONFIDENTIAL 23

Common Ways Private Lenders Fund Deals1 — Cash — Home Equity Line of Credit (“HELOC”) — Personal & Business Lines of Credit — Liquidated Securities & Investments — Self-Directed Retirement Accounts — Life Insurance Policies 1 Some of these sources may offer TAX DEFERRED or TAX FREE PROFITS. Always speak with your tax advisor before lending. https://www.propshophomes.com • CONFIDENTIAL 24

Investing with Self-Directed Retirement Accounts1 1. Individual Retirement Accounts (“IRA”) — Traditional — Roth — SEP — SIMPLE 2. 401(k) Plans — “Solo-K” — Qualified Retirement Plans (“QRP”) 3. Educational Savings Accounts (“529 Plans”) 4. Health Savings Accounts (“HSA”) 1 Some of these sources may offer TAX DEFERRED or TAX FREE PROFITS. Always speak with your tax advisor before lending. https://www.propshophomes.com • CONFIDENTIAL 25

Flow of a Transaction 1. Informational webinar 2. Review individual lending opportunity 3. Private lender commits to the deal 4. Lender gets documents to secure the loan 5. Purchase property with lender’s funds 6. Make repairs, add value 7. Lender gets monthly interest payments 8. Refinance or sell 9. Lender gets principle and remaining interest 10. Release of Mortgage https://www.propshophomes.com • CONFIDENTIAL 26

Documents Securing Your Loan 1. Promissory Note 2. Mortgage or Trust Deed 3. Hazard Insurance Policy https://www.propshophomes.com • CONFIDENTIAL 27

General Terms and Conditions2 — 12-month loan term — Interest paid monthly — Principle repaid at end of term — Monthly updates about the project 2 Please see each individual opportunity for specific terms and conditions. https://www.propshophomes.com • CONFIDENTIAL 28

Case Study North 49th St Milwaukee, WI — Acquired: Sept 2020 — Purchase Price: $60,000 — All units rented at market rates https://www.propshophomes.com • CONFIDENTIAL 29

North 49th St Snapshot — Raised rents — Lowered expenses — Made repairs and improvements At Purchase Year 1 Year 2 CAGR Monthly Rents (avg.) $1,375 $1,285 $1,478 + 3.7% Monthly NOI (avg.) $840 $334 $997 + 8.9% Market Value $60,000 $70,000 $95,000 + 25.8% Cap Rate 16.8% 5.7% 12.6% — https://www.propshophomes.com • CONFIDENTIAL 30

North 49th St Repairs And Improvements — Restored Chimney https://www.propshophomes.com • CONFIDENTIAL 31

North 49th St Repairs And Improvements — Updated Units https://www.propshophomes.com • CONFIDENTIAL 32

Common Questions 1. Is this a risk free opportunity? 2. What if I need my money back in three months? 3. Who is paid first? 4. What if the property refinances for less? https://www.propshophomes.com • CONFIDENTIAL 33

Next Steps 1. Contact us today to confirm your interest — ! [email protected] — ☎ 414-999-0300 — # Text LEND to 414-999-0300 2. We'll schedule a time to talk about your lending goals https://www.propshophomes.com • CONFIDENTIAL 34

Thank You PropShop Homes, LLC [email protected] 414-999-0300