EFTA02708332.pdf

Company Background: Real Time Investments has been operating in the US residential housing market since 2008, buying, refurbishing and tenanting/managing single family homes. The company has been selling these homes to clients investing between $60,000- 300,000. $60,000 is our approximate average sale price for a single unit. All of the properties on our books are fully owned by the company and are tenanted prior to sale to investors. This gives us an added assurance in detailing projected rental yields to our clients. Our target rental yield per property is currently 14% per annum. The demand for rental properties in the areas we operate in has given us the capacity to back our clients' investments under Escrow to provide a 12% net rental yield for the first 2 years of ownership. Gains of 12.1% in US house prices (Case-Shiller) in April (year-on-year) have also made this a good capital appreciation prospect in the longer-term, given prices are still far from their pre-crisis peaks. There are four core departments of the business: property research and acquisition; property refurbishment; property management; sales & client relations. (1) Research and Acquisition: we focus on markets that meet three general criteria- rental yields are high, rental demand is high and there are prospects for capital appreciation. Our focus is currently on the Suburbs outside of Detroit where we have selected a number of neighbourhoods that realise these investment objectives. To read more about these specific areas refer to our attached 2013 'Michigan Portfolio' brochure. In addition to regular trips to Michigan by our Managing Directors, boots on the ground are important. We have an infrastructure of personnel in Metro Detroit sourcing units from banks (foreclosures) and private landlords. It it is important to pinpoint target areas on a street-by-street basis, which is why we never buy a package of properties without having done the necessary due diligence on each individual unit. A desirable residential location and projected refurbishment costs are two imperative elements considered in every acquisition. This process is ongoing, so we typically monitor between 30-40 properties at any one time. Currently we are unable to take full advantage of this level of high quality stock and see potential to significantly ramp up our acquisition. (2) Property Refurbishment: again, we do not deal with third parties. Our construction team does the work for each of the properties we have refurbished. Apart from pushing down costs, this provides a procedural consistency, meaning we can be confident that our properties are liveable and durable when tenants move in. The level of refurbishment we implement varies from property to property- our refurbishment team is capable of comprehensive construction work as well as small-scale touch-ups. (3) Property Management: our partnership with Peerless Properties in Detroit provides us with a professional residential management team with online services to track rental income. Regular property inspections and tenant assessments have led to Peerless delivering an outstanding rental consistency within our portfolio and those of our clients. Initial rental contracts are set in place for a 12month period, after which we negotiate a contract EFTA R1_02109410 EFTA02708332  extension or line-up new tenants to minimise the time during which the property will be vacant. Section 8, US social housing, accounts for approximately 60% of our property rentals. This provides an added regularity of payment and also means that rental rates for these properties are predictable. (4) Sales & Client Relations: apart from our office in Southfield (Metro Detroit) - the operational headquarters for the company- we have a sales and administration base in London. Currently we have affiliated agents (working on commission) in the UK, Spain, Dubai Malaysia, Sri Lanka, Singapore and Hong Kong. We look to expand sales operations in line with future stock increases. Suburbs outside of Detroit (Metro Detroit): Metro Detroit covers an area of 3,888 square miles, the majority of which lies outside the borders of Detroit City. While Detroit City has suffered from declining employment and population loss over the last decade the wider Metro area contains satellite municipalities with healthy socio-economic profiles. For example, Southfield is home to the offices of more than 100 Fortune 500 companies, and Troy was ranked the 22nd Best Place to Live in the USA by CNN Money. We buy in areas that have viable local economies, providing jobs, infrastructure and leisure activities for their inhabitants: Redford, Bagley, Eastpointe, Rosedale Park, Warren, Southfield, Sherwood and University City. However, Detroit city should not be written off. We are bullish on Detroit City's long-term emergence from decline, something which we believe has already started. The change in fortunes for the Big Three carmakers (GM, Ford and Chrysler increased combined market share in the first quarter for the first time in 20 years) has led to the creation of new jobs in information and technology roles. Cars are now released with a sophisticated array of software applications, the development of which requires a skilled IT labour force. GM is in the process of quadrupling its IT department, while Ford and Chrysler are also taking on a significant number of new hires. This has transferable benefits to technology start-ups in the city, providing demand for their products and local expertise in product design. We believe Detroit will cease to be a one-trick pony, relying solely on Auto, and will develop a more diversified, high-tech economy. That's not to say that manufacturing is dead. The US added 500,000 jobs in the manufacturing sector from 2010-2012, putting an end to the period of decline between 2000-2010. Michigan is the centre for US manufacturing, adding more jobs than any other state during the period (88,000). There is one key driver for a sustained growth in manufacturing- the cheap energy revolution. No other country in the world can compete with the shale resources and resource infrastructure which the US is currently exploiting. Manufacturers are beginning to repatriate their operations to the US, finding it cheaper despite the higher labour costs. Chrysler, GE and Caterpillar are three notable companies that have recently repatriated manufacturing operations. With added investment and new jobs comes more demand for housing. Properties in strategic commuter locations offer bright prospects for long term capital growth on the back of a resurgence in Detroit commerce. EFTA R1_02109411 EFTA02708333