This is a sample of how to properly submit your loan request to a HM lender and

get your loan funded. This shows your lender that you have done your homework an
d throughly understand your real estate deal.

EXECUTIVE SUMMARY PROJECT DESCRIPTIONR&H Holdings will acquire Lot 15 Blk B Brook
hollow Sec 1 known as . The purchase price is $85,000 with the closing scheduled
for 02/25/2010. After acquisition, R&H Holdings will rehab the above mentioned
single family home and then market it for resale. The home will be a 3 bedroom,
2 bathroom fully remodeled configuration at 1525 square feet. The finish out wil
l meet or exceed market for that area, featuring quality materials such as grani
te counter tops, hardwood floors and will be the only home in the neighborhood w
ith an inground pool. The fact that we will list the property at the same price
point as average homes in the area, gives us a viably short turn around time and
allows us to move on to the next project. PROJECT LOCATION is located in Pfluger
ville, TX, just two miles from HWY 1825 in zip code 78660. This provides quick a
nd easy access to downtown Pflugerville. The home is located in the center of th
e Pflugerville ISD, which includes Park Crest Junior High School and Pflugervill
e High School. Its also just minutes away from the downtown Pflugerville shopping
and dining area. This area of Pflugerville continues to be a laid back staple o
f everyday life with families, homes and businesses that have been a part of the
community for decades. PROJECT FINANCIAL SUMMARYThe overall development strategy
is to acquire the property and begin remodeling immediately. The closing date f
or the property is on or before February 25th, 2010. The project capital structu
re for a phased rehab plan with incremental draws is based on securing a 12 mont
h, interest only hard money loan in the amount of $110,000.00. R&H Holdings will
have $20,000.00 to contribute to the overall project costs of $130,000.00 and w
ill be the sole guarantor of the hard money loan, with total repayment to be fin
alized on or before February 25th, 2011.
1|Page

AFTER REPAIRED VALUE: $150,000.00 PROJECT COSTS: $130,000.00 TOTAL $85,000.00 PU

RCHASE PRICE $25,000.00 REHAB COSTS $8,500.00 CLOSING COSTS $5,200.00 4 MONTHS L
OAN PAYMENTS $6,300.00 CONTINGENCY/INSURANCE PROJECTED PROFIT: $20,000.00 For th
e $110,000.00 investment, a 13% annual interest only return is being offered wit
h 4 months of payments to be figured in up front. As mentioned in the Project Fi
nancial Summary, R&H Holdings does have $20,000.00 to invest in the project; how
ever, we will consider offering an equity position - subordinate lien position t
o majority lender - in the project for 13% (or $2,600.00). The 13% equity positi
on will be fully paid upon successful execution of exit strategy employed; not to
exceed 12 months. PROJECT EXIT STRATEGIES:
STRATEGY 1: o Rehab, market and sell
o If goal is not achieved within 6 months, execute Strategy 2
STRATEGY 2: o Refina
nce property through conventional means and pay off hard money loan o Give addit
ional 2 months to sell property Make any necessary price adjustments to move pro
perty o If goal is not achieved within 60 days, execute Strategy 3 STRATEGY 3: o M
arket for rental and add to Buy and Hold portfolio. All net positive cash flow wil
l be directed to 13% equity partner while all operational diligence will be appl
ied to manage and maintain the subject propertys value by guarantor.
2|Page

COMPARATIVE MARKET ANALYSISThere is sufficient data to support the projected ARV

as well as a strong LTV analysis. The floor plan for is in the mid range for the
area, which is in strong demand. : SOLD COMPS ADDRESS SqFt 1828 1780 1765 Sold
Price $162,950.00 $147,000.00 $155,000.00 Sold Date 1/11/2010 10/23/2009 08/18/2
009
The average of the recent sales is $154,983.33. There have been adjustments made
for square footage, and it must be taken into consideration that is the only ho
me in the immediate area with an in-ground swimming pool. The decision to list t
he remodeled home at $150,000 is not only within comparable values, but due the
quality of the finished product, will make it the most desirable home in the are
a, prompting multiple offers. ABOUT R&H HOLDINGSR&H Holdings was officially forme
d in September 2009. A Texas general partnership, it is lead by Harvey and Rosa
Ryan. Both leaders have extensive corporate America backgrounds, with Harvey Rya
n having 5+ years of extensive experience in the acquisition, remodel and sale o
f single family homes. R&H Holdings has a close working relationship with H.I.S.
R., Inc. and IFCOM, ran by Bobby R. Howard and will be working closely with him
on all future projects. The geographic focus of the company is strictly in Centr
al Texas, with the greater Austin area the immediate priority. Full resumes and
references available upon request.
3|Page

Short Term Investment Summary for Property Parkview

Property Basics
Address City/State/Zip Bedrooms/Baths Square Feet List Price Market Value Cost P
er Square Foot 3/2.0 1525 $85,000.00 $158,096.00 $55.74
Before
Mortgage Info
Loan-to-Value Ratio Loan Amount Monthly Payment Loan Type Term Interest Rate Mon
thly PMI
First
70.00% $110,000.00 $1,239.33 Hard Money 1 13.00% $0.00
Second
-------Short Term Performance
Acquisition Expenses Repair Expenses Holding Expenses Hedge Expenses Sales Expen
ses Total Expenses Market Value Expenses Total Loan Payments Prepayment Penaltie
s Balloon Payment Mortgage Points Expected Profit Assignment Fee Max Offer $6,00
0.00 $25,095.00 $3,000.00 $2,500.00 $6,000.00 $42,595.00 $158,096.00 $42,595.00
$4,957.32 $0.00 $0.00 $0.00 $20,000.00 $0.00 $90,543.68

Short Term Acquisition Expenses for Parkview

Appraisal Title Exam Title Insurance Document Prep Recording Fees Down Payment L
oan Origination Fees Closing Costs Attorney Fees Pre-Title Search Termite Report
Survey Transfer Fees Prepaid Escrow Inspection House Insurance Other Percentage
Method Total Expenses (using Percentage Method) $6,000.00 $6,000.00

Short Term Repair Expenses for Parkview

Floors - Carpet Floors - Vinyl or Tile Floors - Hardwood Floor Walls - Interior
Patch, Paint, and Trim Walls - Trim and/or Window Area Walls-Wallpaper Kitchen-S
ink and Base Kitchen-Counter Kitchen-Cabinets Bathroom #1- Sink and Base Bathroo
m #1-Vanity/Cabinet/Mirror Bathroom #1- Tub Bathroom #1-Toilet Bathroom #1-Showe
r Bathroom #1-Accessories Plumbing-Kitchen Plumbing-Bathroom #1 Plumbing-Bathroo
m #2 Plumbing-Bathroom #3 Plumbing-Hot Water Heater Plumbing-Miscellaneous Plumb
ing-Washer/Dryer/Hookup Plumbing-Washer Sink Tub Heat-Furnace Heat-Ducts Heat-Th
ermostat Appliances-Stove Appliances-Dishwasher Appliances-Refrigerator Applianc
es-Disposal Electrical-Fuse Box Electrical-Circuit Breaker Electrical-Wiring Fou
ndation-Floor Joist $1,500.00 $475.00 $300.00 $1,050.00 $175.00 $610.00 $270.00
$175.00 $150.00 $225.00 $325.00 $450.00 $1,025.00 $2,000.00 $550.00 $400.00 $275
.00 $1,660.00 $1,230.00 $1,100.00 $2,575.00

Short Term Repair Expenses (continued)

Foundation-Drainage Attic-Water Damage Attic-Ventilation Attic-Insulation Firepl
ace-Gas Fireplace-Wood Alarm System Exterior Roof-Shingles Roof-Sheeting Chimney
Exterior-Siding Exterior-Water Damage Door-Screen Door-Main Door-Patio Window-R
eplacement Gutters and DownSpouts Landscaping Carpentry Garage Driveway Porch De
ck Miscellaneous Window-Glass Window-Treatments Smoke Detectors Mailbox Door-Kno
cker Electrical-Bulbs Exterior-Termite Damage Other $50.00 $50.00 $475.00 $550.0
0 $1,500.00 $375.00 $200.00 $600.00 $1,550.00 $2,525.00 $650.00 $50.00

Short Term Repair Expenses (continued)

Percentage Method Total Expenses $25,095.00

Short Term Holding Expenses for Parkview

Electric/Hydro Water Taxes and Insurance Grass Cutting Snow Removal Inspection C
leaning Other Percentage Method Total Expenses (using Percentage Method) $3,000.
00 $3,000.00

Short Term Hedge Expenses for Parkview

Hedge Expenses Other Percentage Method Total Expenses $2,500.00 $2,500.00

Main File No. 010525 Page #13

Subject Photo Page
Borrower/Client Property Address City Pflugerville Lender
Dr
County Travis
State Tx
Zip Code 78660-2361
Subject Front
Dr
Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Locatio
n View Site Quality Age
N/A 1,525 7 3 2 Average Typical +/- 0.24 Acres Average 27 - Updated
Subject Rear
Subject Street

Main File No. 010525 Page #14

Subject Photos
Borrower/Client Property Address City Pflugerville Lender
Dr
County Travis
State Tx
Zip Code 78660-2361
Pool
Exterior
Interior
Interior
Interior
Interior

Main File No. 010525 Page #15

Subject Photos
Borrower/Client Property Address City Pflugerville Lender
Dr
County Travis
State Tx
Zip Code 78660-2361
Interior
Interior
Interior

Main File No. 010525 Page #12

Location Map
Borrower/Client Property Address City Pflugerville Lender
Dr
County Travis
State Tx
Zip Code 78660-2361

Main File No. 010525 Page #3

SALES COMPARISON APPROACH
File # 010525 comparable properties currently offered for sale in the subject ne
ighborhood ranging in price from $ 90,000 to $ 180,000 . 9 comparable sales in t
he subject neighborhood within the past twelve months ranging in sale price from
$ 85,000 to $ 190,000 . 19 FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE
# 2 COMPARABLE SALE # 3 Address Dr 603 Green Field Cv 1000 Creekbend Dr 801 Broo
khollow Dr 2361 Pflugerville Pflugerville Pflugerville Proximity to Subject 0.30
miles W 0.38 miles NW 0.33 miles NW Sale Price $ $ $ $ N/A 162,950 147,000 155,
000 Sale Price/Gross Liv. Area $ sq.ft. $ $ $ 89.14 sq.ft. 82.58 sq.ft. 87.82 sq
.ft. Data Source(s) MLS # 7289794 MLS # 6745628 MLS # 6809678 Verification Sourc
e(s) CAD CAD CAD VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DES
CRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sales or Financing Cash
Conventional FHA Concessions None None None Date of Sale/Time 1/11/2010 10/23/2
009 8/18/2009 Location Average Average Average Average Leasehold/Fee Simple Fee
Simple Fee Simple Fee Simple Fee Simple Site +/- 0.24 Acres +/- 0.25 Acres +/- 0
.23 Acres +/- 0.25 Acres View Typical Greenbelt -5,000 Average Average Design (S
tyle) Traditional Traditional Traditional Traditional Quality of Construction Av
erage Average Average Average Actual Age 27 - Updated 14 27 - Updated 25 - Updat
ed Condition Good Good Good Good Above Grade Total Bdrms. Baths Total Bdrms. Bat
hs Total Bdrms. Baths Total Bdrms. Baths Room Count 7 3 2 7 3 2 7 4 2 7 3 2 Gros
s Living Area 1,525 sq.ft. 1,828 sq.ft. -12,120 1,780 sq.ft. -10,200 1,765 sq.ft
. -9,600 Basement & Finished None None None None Rooms Below Grade N/A N/A N/A N
/A Functional Utility Average Average Average Average Heating/Cooling Central Ce
ntral Central Central Energy Efficient Items Typical Typical Typical Typical Gar
age/Carport 2 Car Garage 2 Car Garage 2 Car Garage 2 Car Garage Porch/Patio/Deck
CvPorch / Patio Similar Similar Similar Additional Features Inground Pool None
+10,000 None +10,000 None +10,000 Days on Market 25 186 52 4
Uniform Residential Appraisal Report
There are There are
Net Adjustment (Total) + - $ + - $ -7,120 Adjusted Sale Price Net Adj. Net Adj.
4.4 % 0.1 % of Comparables Gross Adj. 16.6 % $ 155,830 Gross Adj. 13.7 % $ I did
did not research the sale or transfer history of the subject property and compa
rable sales. If not, explain
+ - $ Net Adj. 0.3 % 146,800 Gross Adj. 12.6 % $
-200
400 155,400
My research did did not reveal any prior sales or transfers of the subject prope
rty for the three years prior to the effective date of this appraisal. Data Sour
ce(s) CAD & MLS My research did did not reveal any prior sales or transfers of t
he comparable sales for the year prior to the date of sale of the comparable sal
e. Data Source(s) CAD & MLS Report the results of the research and analysis of t
he prior sale or transfer history of the subject property and comparable sales (
report additional prior sales on page 3). ITEM SUBJECT COMPARABLE SALE #1 COMPAR
ABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sale/Transfer 10/6/2009 None None
None Price of Prior Sale/Transfer Foreclosure Data Source(s) CAD & MLS CAD & MLS
CAD & MLS CAD & MLS Effective Date of Data Source(s) Appraisal Date Appraisal D
ate Appraisal Date Appraisal Date Analysis of prior sale or transfer history of
the subject property and comparable sales The Subject property has a foreclosure
on 10/6/2009.
Summary of Sales Comparison Approach Subject and all three comparables are locat

ed in the same market area and are considered to appeal to the same potential bu
yers. Comparables have been adjusted for site locations, gross living area, and
exterior features. No other adjustments are deemed necessary and none are made.
***The attached appraisal report is subject to completion of rehab. See attached
budget / rehab list.***
RECONCILIATION
Indicated Value by Sales Comparison Approach $ 150,000 Indicated Value by: Sales
Comparison Approach $ 150,000 Cost Approach (if developed) $ 158,593 Income App
roach (if developed) $ The Sales Comparison Approach is considered to give the m
ost accurate indication of the current market value. Primary reliance placed on
the Sales Comparison Approach. This appraisal is made "as is", subject to comple
tion per plans and specifications on the basis of a hypothetical condition that
the improvements have been completed, subject to the following repairs or altera
tions on the basis of a hypothetical condition that the repairs or alterations h
ave been completed, or subject to the following required inspection based on the
extraordinary assumption that the condition or deficiency does not require alte
ration or repair: Date of Photographs/Inspection: February 05, 2010. Date of App
raisal: February 05, 2010.
Based on a complete visual inspection of the interior and exterior areas of the
subject property, defined scope of work, statement of assumptions and limiting c
onditions, and appraisers certification, my (our) opinion of the market value, as
defined, of the real property that is the subject of this report is $ , as of ,
which is the date of inspection and the effective date of this appraisal. 150,0
00 February 05, 2010
Page 2 of 6
Freddie Mac Form 70 March 2005
Fannie Mae Form 1004 March 2005

Main File No. 010525 Page #2

File # 010525 The purpose of this summary appraisal report is to provide the len
der/client with an accurate, and adequately supported, opinion of the market val
ue of the subject property. Property Address City Pflugerville State Tx Zip Code
78660-2361 Dr Borrower Owner of Public Record County Travis Legal Description L
ot 15 Blk B Brookhollow Sec 1 Assessor s Parcel # 02744007090000 Tax Year 2008 R
.E. Taxes $ N/A Neighborhood Name Brookhollow Map Reference 12420 Census Tract 0
018.36 Occupant Owner Tenant Vacant Special Assessments $ None PUD HOA $ per yea
r per month Property Rights Appraised Fee Simple Leasehold Other (describe) Assi
gnment Type Purchase Transaction Refinance Transaction Other (describe) Hard Mon
ey Appraisal Lender/Client Walter Capital Funding LLC Address 600 Round Rock Wes
t Drive #601, Round Rock, Tx 78681 Is the subject property currently offered for
sale or has it been offered for sale in the twelve months prior to the effectiv
e date of this appraisal? Yes No Report data source(s) used, offering price(s),
and date(s). The subject is currently listed for sale at $92,500. DOM - 25. MLS
.
Uniform Residential Appraisal Report
SUBJECT CONTRACT
I did did not analyze the contract for sale for the subject purchase transaction
. Explain the results of the analysis of the contract for sale or why the analys
is was not performed. Contract not available Contract Price $ N/A Date of Contra
ct N/A Is the property seller the owner of public record? Yes No Data Source(s)
Is there any financial assistance (loan charges, sale concessions, gift or downp
ayment assistance, etc.) to be paid by any party on behalf of the borrower? If Y
es, report the total dollar amount and describe the items to be paid.
Yes
No
Note: Race and the racial composition of the neighborhood are not appraisal fact
ors. Neighborhood Characteristics One-Unit Housing Trends
NEIGHBORHOOD
One-Unit Housing
Declining Over Supply Over 6 mths
Present Land Use %
PRICE AGE One-Unit 75 % $ (000) (yrs) 2-4 Unit 5% Low Multi-Family 50 0 5% 300+
High 60 Commercial 5% 175 Pred. 25 Other 10 % Neighborhood Description Marketabi
lity and appeal of properties in the neighborhood are average. Shopping and recr
eational facilities, access to employment, schools, fire and police protection,
garbage removal, street maintenance, protection from detrimental conditions and
utility availability are adequate and acceptable. Market Conditions (including s
upport for the above conclusions) General appearance and overall appeal of prope
rties are average. No abnormal financing conditions are known. Neighborhood is p
art of local MLS area PF. Location Urban Built-Up Over 75% Growth Rapid Neighbor
hood Boundaries Property Values Increasing Stable Suburban Rural Shortage In Bal
ance 25-75% Under 25% Demand/Supply Marketing Time Under 3 mths 3-6 mths Stable
Slow Boundaries: City of Pflugerville, Texas and surrounding areas. Dimensions P
lat not available Area +/- 0.24 Acres Shape Rectangular Specific Zoning Classifi
cation A1 Zoning Description Single Family Residential Zoning Compliance Legal L
egal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highe
st and best use of subject property as improved (or as proposed per plans and sp
ecifications) the present use? Yes View Typical

No If No, describe
Utilities Public Other (describe) Public Other (describe) Off-site Improvements
- Type Public Private Street Asphalt Electricity Water Alley Gas Sanitary Sewer
FEMA Special Flood Hazard Area Yes No FEMA Flood Zone X FEMA Map # 48453C0280H F
EMA Map Date 9/26/2008 Are the utilities and off-site improvements typical for t
he market area? Yes No If No, describe Are there any adverse site conditions or
external factors (easements, encroachments, environmental conditions, land uses,
etc.)? Yes No If Yes, describe A survey was not provided and therefore no appar
ent adverse easements, encroachments, special assessments, slide areas, illegal
or legal nonconforming use, are known. The highest and best use of the site and
improvements is considered to be single family residential.
SITE
General Description
Foundation
Exterior Description
materials/condition Interior
materials/condition
IMPROVEMENTS
Floors Foundation Walls Concrete Slab Crawl Space Units One One with Accessory U
nit Wood/Good WdLm/Tile/Cpt/New Walls Full Basement Partial Basement Exterior Wa
lls # of Stories 1 Brick/Siding/Good Sheetrock/Good Trim/Finish Wood/Good sq.ft.
Roof Surface Type Det. Att. S-Det./End Unit Basement Area Composition/Good Bath
Floor % Gutters & Downspouts Typical Existing Proposed Under Const. Basement Fi
nish Tile/New Bath Wainscot Fiberglass/Exclnt Window Type Outside Entry/Exit Sum
p Pump Design (Style) Traditional Metal/Good Evidence of Infestation None Ntd St
orm Sash/Insulated Typical Year Built Car Storage None 1983 Screens Dampness N S
ettlement Effective Age (Yrs) 12 Driveway # of Cars Typical 2 Heating FWA Attic
None Driveway Surface Woodstove(s) # HWBB Radiant Amenities Concrete Drop Stair
Stairs Garage # of Cars Fence Wd Pvcy Other Fireplace(s) # 1 Fuel Gas / Elec 2 F
loor Scuttle Carport # of Cars Porch Patio/Deck Patio Cooling Central Air Condit
ioning Finished Heated Att. Det. Built-in Other Pool Inground Individual Other A
ppliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Oth
er (describe) Finished area above grade contains: 7 Rooms 3 Bedrooms 2 Bath(s) 1
,525 Square Feet of Gross Living Area Above Grade Additional features (special e
nergy efficient items, etc.). Subject to completion appraisal. See updates / bud
get list. Describe the condition of the property (including needed repairs, dete
rioration, renovations, remodeling, etc.). The functional utility of the subject
floorplan is considered to be typical for the area. No items of physical, curab
le functional or external depreciation noted.
Are there any physical deficiencies or adverse conditions that affect the livabi
lity, soundness, or structural integrity of the property?
Yes
No If Yes, describe
Does the property generally conform to the neighborhood (functional utility, sty
le, condition, use, construction, etc.)?

Yes
No If No, describe
Freddie Mac Form 70 March 2005
Page 1 of 6
Fannie Mae Form 1004 March 2005

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