The Direct Lender for Real Estate Professionals

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2 The Direct Lender for Real Estate Professionals PCS is a Southern California based private fund that provides customized debt financing solutions to real estate professionals taking advantage of current market opportunities. Direct Capital: PCS has available capital to fund your real estate transactions PCS Professionals: With 100+ years combined experience in lending, development, & asset management, our principals understand your transaction. Timely & Certain Execution: We offer term sheets within days of reviewing deals and will commit to funding the loan. With PCS, certainty in the availability of capital allows you to focus on the deal and your profits. We can fund loans within 1 week of receipt of complete loan applications. PCS offers real estate professionals a range of solutions including bridge loans, mini-perms, construction loans and secured lines of credit. Customized Terms: We do not work in a box. PCS makes sure our loan fits YOUR business plan and delivers the right amount of capital, for the right length of time to make your transaction work. Partnership with Professionals: PCS is not a loan to own shop. We work with the best operators in our market area and offer our capital to enable your success. Making Profit of Opportunity: Our borrowers excel at finding opportunities in the current market. PCS helps you turn those opportunities into profit by offering professional speed & certainty in execution of funding.

3 Financing Available Real Estate Loans for: Discounted Note Purchase Construction Loans Purchase of individual assets or pools of REO properties Debtor in possession financing Acquisition at foreclosure Tenant Improvement Completion of Stalled Projects Mini-Perm Market Area Loans are offered throughout the western United States Financing available for: Residential Industrial Retail Office Self Storage Medical Office Mobile Home Parks Bridge & Construction Loans Up to 80% LTC Mini-Perm/Refi Loans Up to 65% LTV Rates from 9% Rates from 8.75% Fees from 2 points Fees from 2 points Loans from $1M to $10M Loans from $1M to $10M Timely & Certain Execution Up to 24 month terms No lengthy appraisals Timely & Certain Execution Up to 5 years No lengthy appraisals

4 Secured Revolving Foreclosure Lines of Credit PCS offers secured revolving lines of credit to investors purchasing at Trustee s auctions and from REO, rehabbing, and then selling properties. Our lines of credit are superior to typical hard money loans as fees are paid only once a year on the line amount irrespective of your number of transactions. Double your business for about half the cost of an equity partner Funds available when deed records Pay loan fee once and then borrow, repay and borrow again $1 million to $5 million lines available Interest rate paid on ACTUAL money outstanding Fee on committed line amount (i.e. no points on each transaction) Simultaneous funding loan advance alongside equity in escrow available for REO purchases Collateralization of existing inventory or other properties gives borrowers immediate access to cash Financing Available For: Single Family Residences Condominium Units Residential Income Properties Commercial & Retail Income Properties Markets Served Metropolitan areas of the western United States

5 Foreclosure Line of Credit Sample Terms LOAN AMOUNT: LOAN TYPE: MAXIMUM ADVANCE (LTC) Of total cost to make market ready INTEREST RATE: per year on money out LOAN FEE: Per year on committed line amount MONTHLY PAYMENTS: TERM: PREPAYMENT: GUARANTEES: COLLATERAL: $1,000,000 and up Secured Revolving Line of Credit Program A: Max 65.00% Program B Max 80.00% Program A 12.00% Program B 13.50% Program A Starting 2.00% per year on the committed line amount Program B Starting 3.00% per year on the committed line amount Interest-only on the actual amount outstanding 12 months plus a 6 Month extension option No prepayment penalty Limited to Full Recourse 1 st Priority Lien on each property financed RELEASE PRICE: Repay at par if inventory turnover meets covenants OTHER FEES & COSTS: $2, one time document preparation fee. A $ transaction fee to cover the costs of inspection and appraisal for each property. All third party fees such as title and escrow, recording, reconveyance and title policy costs.

6 Leveraged Verses Unleveraged Returns No Leverage (65% LTC) (80% LTC) Borrower purchases property: $200,000 $200,000 $200,000 Improvements to make sale ready: $ 20,000 $ 20,000 $ 20,000 Loan Amount : $0 $143,000 $176,000 Holding Cost (2): $0 $ 6,800 $ 9,900 Total Cost: $220,000 $226,800 $229,900 Typical Sale: $275,000 $275,000 $275,000 Closing Costs: $ 17,000 $ 17,000 $ 17,000 Net: $258,000 $258,000 $258,000 Profit before tax: $38,000 $ 31,200 $ 28,100 Profit %: 13.8% 11.3% 10.2% Return on Equity: 17.3% 37.2% 65.5% Annualized Return on Equity (1): 46.6% 100.5% 176.9% Notes: 1. Annualized Return on Equity based on total hold time average of 135 days for a portfolio turnover ratio of 2.7 turns per year. 2. Holding Costs include the amortized cost of the up front loan fee and actual interest paid assuming the loan is outstanding for 120 days (135 less 120 days is 15 days the maximum average days it takes to obtain clear title and title insurance).

7 Management Team Gary Leff, President. Mr. Leff has over 40 years experience in real property operations, leasing, financing, management, construction, development, acquisitions and dispositions. Mr. Leff started his development career building single family homes and then diversified his efforts by developing commercial properties. In addition to his development activities, Mr. Leff was a founding investor in ARCS Commercial Mortgage L.P., one of the Nation s largest originators of FNMA multi-family loans. Currently, Mr. Leff and his affiliated entities own or have a controlling interest in over 2 million square feet of commercial, industrial and residential real estate primarily in Southern California. Mr. Leff received his Bachelors Degree from California State University at Northridge. Michael Klein, Managing Director. Prior to joining PCS, Mr. Klein s 27 year tenure in banking has included commercial and real estate finance for local, regional, and money center financial institutions. He has originated, managed, worked out, or approved over $10B in real estate loans. Mr. Klein s also managed credit risk review on an international basis for Chase Manhattan Bank. He is currently the Chairman of the Citizen s Advisory Committee coordinating the development of the new Warner Center Specific Plan for the City of Los Angeles and recently completed a four year term on the Executive Committee of the Building Industry Association of Los Angeles/Ventura. He has served as an Adjunct Professor at the Lloyd Grief Center for Entrepreneurial Studies at the University of Southern California. Stanley J. Kafka, Managing Director. Prior to joining PCS, Mr. Kafka was Executive VP of City National Bank s real estate division. Mr. Kafka has 48 years of experience in the banking industry. Throughout this period, he has originated, managed, worked out, or approved over $10B in real estate loans. Before joining City National in 1992, Mr. Kafka was employed by Union Bank for 25 years as an area executive in real estate loan administration. He also was president of Stanco Properties, Inc., a Union Bank subsidiary that provided specialized real estate services. Mr. Kafka serves on the Executive Committee and as chair of the membership committee of the University of Southern California s Lusk Center for Real Estate, and is a member of the Casden Industry Advisory Council.

8 Case Studies PCS commits to over $25,000,000 in Foreclosure Lines of Credit in PCS closed 10 lines of credit with professional operators buying, renovating, and selling foreclosed & REO properties. These foreclosure specialists are operating in 7 counties and represent some of the largest and most successful operators in the western United States. PCS structured these credit facilities to accommodate the varying strategies of our borrowers who focus on properties ranging from heavily distressed multi-family projects in the inner city, to very clean tract homes in the suburbs. Loans range from 50 to 80% of cost to make market ready. PCS funds 100% of the acquisition costs for 23 completed houses and 250 finished lots in Merced, CA purchased from the FDIC PCS committed to the loan in less than two weeks and was able to structure $4,000,000 in financing by taking a collateral interest in the subject property as well as a cash flowing commercial property. The certainty of PCS s commitment and our ability to structure a unique loan, enabled the borrower to focus on the opportunity and complete the deal. PCS closed a $2,200,000 bridge loan on an Oregon Shell station and convenience store Because of the strong borrower, we were able to quickly underwrite this specialized type of real estate. The $2,200,000 bridge loan allowed the borrower to repurchase equity interests. This 65% LTV, one year term loan represents one of many loans that PCS is currently making on various real estate asset classes. PCS makes loans from $1 million to $10 million on commercial, retail, residential, and industrial properties throughout the western United States.

9 Case Studies cont d. PCS provides a $1,380,000 construction loan for the completion of 10 detached townhouse units in a San Gabriel Valley PUD. PCS closed a $1.38M construction loan to provide funds to complete Phase II of a 52-unit PUD development in the San Gabriel Valley. The borrower approached PCS after their 15 year relationship bank failed to support the request. PCS is an experienced construction lender that is actively making construction loans and seeking quality build to suit and infill residential development projects. PCS closed a $5,500,000 Construction Loan on a Build to Suite municipal facility in San Bernardino County, CA. PCS provided construction financing on a 40,600 square foot municipal facility leased to the County of San Bernardino. PCS responded quickly and closed in three weeks when the borrower s twenty year relationship bank failed to support the request. PCS closes a $3,830,000 Construction Loan for the completion of a build to suit office building for the U.S. Department of Interiors in Cochise County, AZ. PCS provided 75% LTC financing because of the experience of the borrowers and the strength of the GSA lease. The borrower selected PCS over its relationship bank after weighing the modest additional interest lost vs. the benefit of having assuring funding to realize the project for significant profit.

10 NOTES:

11 26901 Agoura Road, Suite #180 Calabasas, CA Phone: ~ Fax: Michael L. Klein Managing Director MKlein@pcs-funds.com Stanley J. Kafka Managing Director SKafka@pcs-funds.com