8% Preferred Return. Plus profit participation

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1 Investing in residential Real Estate in the Southwest United States 8% Preferred Return Plus profit participation

2 Capstone Real Estate Synonymous with successful real estate investing. Cementing a solid reputation since 2004, the name Capstone Real Estate has been synonymous with successful real estate investing. Established to provide a turnkey solution to creating wealth in real estate, Capstone works to help investors participate in real estate investing without the hassle of management responsibilities. With nine previous projects and decades of expertise under their belt, the Capstone management team has created many positive investing experiences. Capstone Real Estate is a market leader helping Canadian investors participate in Phoenix real estate; acquiring over 200 single family revenue properties since early Investors can be confident knowing that Capstone has the expertise, infrastructure, and proven track record of success investing in U.S. real estate.

3 WHY INVEST IN REAL ESTATE Many of the world s wealthiest individuals, pension and endowment funds hold sizable allocations of real estate. Investing in real estate can provide the rare combination of both cash flow and capital appreciation. Real estate investors call this getting paid to wait. By carefully targeting real estate that produces positive cash flow as well as the potential for significant capital appreciation, investors can realize the best of both worlds while holding a tangible asset. Many of the world s wealthiest individuals, pension and endowment funds hold sizable allocations of real estate. Unfortunately, other than their principle residence, most investors have little to no allocation to this valuable asset class. Every Canadian investor with a truly diversified investment portfolio will have an allocation to real estate.

4 WHY THE OPPORTUNITY EXISTS IN U.S. REAL ESTATE During the early half of the 2000 s, lowered lending standards and higher-risk mortgage products helped drive a booming housing market throughout the United States. These infamous sub-prime/adjustable rate mortgages were a major contributing factor that helped trigger the collapse of the U.S. housing market. In 2006/07, many of these sub-prime/adjustable rate mortgages were due for a Reset to a higher rate or payment. With the consumer s inability to afford higher payments or re-qualify for new financing, payment delinquencies skyrocketed and foreclosures soared. This dramatic increase of foreclosures caused home prices to plummet. It also turned many former homeowners into renters. The sub-prime/adjustable rate mortgage crisis was a defined event that contributed to this housing correction. But as the number of mortgage s with pending resets dwindled by early 2012, areas such as Phoenix saw less foreclosures, an improving economy and home price appreciation. With the improving U.S. housing market still near historic lows, the window of opportunity to invest is now. Monthly Average Sales Price Per Square Foot - Greater Phoenix January 8, Jun. $ PRICE PER SQUARE FOOT Normal Growth Dec. $ SINGLE FAMILY DETACHED ARMLS RESIDENTIAL RESALE MEASURED MONTHLY

5 SOUTHWEST OPPORTUNITY TRUST

6 Southwest opportunity trust The Southwest Opportunity Trust will invest in residential real estate in the Southwest United States. The Capstone management team will use their existing infrastructure and expertise to identify and purchase undervalued or under-utilized residential properties in the Southwest United States with a focus on greater Phoenix, Arizona. Investors will receive a preferred return of 8% per annum, cumulative and non-compounded, with income distributed semi-annually. Investors will also receive 40% of the net proceeds at time of liquidation, after the return of 100% of their invested capital. The target holding period is 3-7 years. The Southwest Opportunity Trust will generate returns via 2 methods: 1. Buy, renovate and rent. Purchase residential properties, renovate and upgrade them in order to maximize their rental revenue. The properties will be held for a short to medium term before re-selling for a profit. 2. Buy, renovate and sell. Purchase residential properties that are under-valued and/or under-utilized for the purposes of renovating to enhance their value and repositioned within the market for future sale (3 to 6 months) to third party purchasers.

7 Key Features Investor Returns Investors Paid First 8% per annum preferred return, cumulative & non-compounded (income distributed semi-annually) + profit participation equal to 40% of the net proceeds at time of liquidation. In addition to the 8% per annum preferred return, upon liquidation, investors are returned 100% of their invested capital prior to Capstone participating in any profits. Time Horizon 3-7 year target. Minimum Investment $10,000 Eligible for RRSP, TFSA, LIRA, RRIF, RESP and Cash investments. Additional Information Hassle free investment with no landlord responsibilities or properties to manage. No personal U.S. taxation. Track record of success.

8 #210, 200 Quarry Park Blvd SE Calgary, Alberta T2C 5E3 Phone: Fax: capstonerealestate.ca This document is for information purposes only and shall not constitute an offer to sell or a solicitation to buy any securities. This real estate investment is described in greater detail in the Southwest Opportunity Trust offering memorandum. Projected returns and the timing thereof involve substantial known and unknown risks and uncertainties, some of which are beyond the Trust s control. Past performance should not be seen as an indicator of future performance, and the value of investments and the income from them can go down as well as rise. The Trust s actual results and performance or achievements could differ materially from those expressed on this document. You may not get back the amount originally invested. For more information, please contact Capstone Real Estate or a licensed Dealing Representative to obtain the Southwest Opportunity Trust offering memorandum and seek financial or legal advice prior to investing.