SDRE Investment Profile Presentation

LEGAL DISCLAIMER

This information is for illustration and discussion purposes only. It is not intended to be, nor should it be construed or used as investment, tax, or financial advice, any recommendation, or an offer to sell, or a solicitation of any offer to buy an interest in any security, including an interest in this company or in any other investment or project managed or advised by SDRE Homebuyers LLC Any offer or solicitation of an investment may be made only by delivery of the SDRE Homebuyers LLC and its affiliates confidential offering documents (collectively, the "Offering Documents") to accredited and/or sophisticated investors. Prospective investors should review carefully and rely solely on the Offering Documents in making any investment decision. Targeted returns discussed in this presentation are used for measurement or comparison purposes and only as a guideline for prospective investors, shareholders or other to evaluate this opportunity. Targeted returns should be evaluated over the time period indicated and not over shorter periods. No representation is made that SDRE Homebuyers LLC will or is likely to achieve its objectives, that SDRE Homebuyers LLC's business plan will be successful or that an investor in SDRE Homebuyers LLC, and its affiliates will or is likely to achieve results comparable to those shown or will make any profit or will not suffer losses or loss of principal. An investment in SDRE Homebuyers LLC involves risks, as disclosed in any final offering docs.

THIS PRESENTATION INCLUDES OR MAY INCLUDE CERTAIN STATEMENTS, ESTIMATES, AND FORWARD-LOOKING PROJECTIONS WITH RESPECT TO THE ANTICIPATED FUTURE PERFORMANCE OF THE COMPANY. SUCH STATEMENTS, ESTIMATES, AND FORWARD-LOOKING PROJECTIONS REFLECT VARIOUS ASSUMPTIONS OF THE MANAGER THAT MAY OR MAY NOT PROVE TO BE CORRECT OR THAT MAY INVOLVE VARIOUS UNCERTAINTIES. NO REPRESENTATION IS MADE, AND NO ASSURANCE CAN BE GIVEN, THAT THE COMPANY CAN OR WILL ATTAIN THE MANAGER'S PROJECTED RESULTS ACTUAL RESULTS MAY VARY, PERHAPS MATERIALLY, FROM SUCH PROJECTIONS.

Any statements made in this presentation are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements

All investments, including real estate, is speculative in nature and involves a risk of loss. We encourage any investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor, CPA or other trusted financial advisor and to make independent investigations before acting.

IT IS IMPORTANT YOU UNDERSTAND THAT WHILE WE ARE PROVIDING PROJECTIONS BASED ON THE FACTS AND FIGURES AVAILABLE, NO ONE CAN TRULY PREDICT THE FUTURE

The innovative development solution to the California housing crisis.

OUR ASK

We are seeking an initial investment of $75 million to finish funding the rest of our active deals. We are offering investors a 15% preferred return and targeting a 30% internal rate of return. We have the largest pipeline built up, ready to execute on future deals with additional funding in upwards of $150 million +.

MEET CHRISTIAN SPICER: FROM CRAIGSLIST TO DEVELOPMENT

Early Beginnings:

Started in property management at 18, responding to a Craigslist ad in San Diego.

Rapid Progession:

By 20, Spicer managed properties independently, making a swift rise in the real estate world.

Skill Development:

Gained extensive experience in repairs and maintenance, leading to successful house flipping ventures.

Expansion:

Progressed from flipping houses to initiating ground-up construction projects.

Self Education:

Committed to learning city regulations to enhance development strategies.

Personal Interests:

Enjoys spending time with his dog Scooby and exploring San Diego's dining scene.

CHRISTIANSPICER

FOUNDERANDCEOOFSDRE

CO-FOUNDEROFVERTICALMVMT

CO-FOUNDEROFPRO-CALDESIGN

COMPANY PROFILE

DRAFTING & DESIGN

ENGINEERING

REAL ESTATE TEAM

ACCOUNTING

PROPERTY MANAGEMENT

PROJECT DEVELOPMENT

TECHNOLOGY

PROJECT MANAGEMENT

FULL-SCALE CONSTRUCTION

WE ARE THE ONE-STOP SHOP FOR REAL ESTATE DEVELOPMENT

MEET THE TEAM

SDRE Homebuyers is led by Christian, who himself has over 15 years of San Diego real estate experience. Beginning from simple property management, he has built his business over the years by expanding his repertoire to include residential sales, property flips, and now includes full-fledged investor-based projects.

Rick ties the team together as the Director of Operations and the glue that organizes the company together. He coordinates between the contractors, investors, and the rest of the team to ensure projects are completed in a timely manner, and works hard to proactively avoid hiccups and problems along the way.

Shane is a pivotal figure in our financial success. With meticulous attention to detail and unwavering commitment, they expertly manage all financial transactions, ensuring seamless cash flow. Implementing precise strategies for optimal stakeholder returns, Shane's strategic financial leadership propels us towards a prosperous future, driving sustained growth and prosperity.

MEET THE TEAM

Eileen assists with our in-house design and project coordination needs. With her keen eye for detail and aesthetics, she seamlessly navigates both fields, bringing a unique blend of creativity and analytical skills to her work. Outside of work, Eileen likes to spend time outdoors hiking, climbing, and taking leisurely walks with her dog, Luna.

Jose, a versatile web design and IT expert, excels in creative problem-solving, delivering highquality projects from user-friendly websites to troubleshooting printer issues. Passionate about technology, he stays ahead of industry trends and offers innovative solutions, making him an invaluable asset to our team.

Emily researches neighborhoods and market trends to best suit the housing needs for the people of San Diego. Her personable approach with each individual she comes into contact with makes every experience memorable.

Zach, our Staff Accountant, excels in accounting and financial management. He processes invoices, maintains accurate records, and prepares insightful reports. Outside work, he enjoys electric skateboarding, reggae concerts, and California beaches. With diverse interests and dedication, Zach embodies financial proficiency and a passion for life beyond the office.

Director of Interior Design & Project Coordination

Director of Digital Design and IT Director of Real Estate Acquisitions

Accounting Assistant

Eileen Molloy

Jose Verdin

Emily Jones

Zach Ertzner

MEET THE TEAM

Avery Evans

Director of Marketing

Eileen assists with our in-house design and project coordination needs. With her keen eye for detail and aesthetics, she seamlessly navigates both fields, bringing a unique blend of creativity and analytical skills to her work. Outside of work, Eileen likes to spend time outdoors hiking, climbing, and taking leisurely walks with her dog, Luna.

Matthew Bonnes

Director of Property Management

Jose, a versatile web design and IT expert, excels in creative problem-solving, delivering high-quality projects from user-friendly websites to troubleshooting printer issues. Passionate about technology, he stays ahead of industry trends and offers innovative solutions, making him an invaluable asset to our team.

MEET THE TEAM

with the zoning and building codes of all the jurisdictions within San Diego County. He has processed over 1,500 permits throughout the county of San Diego.

CAMERON ETIENNE, EIT

Engineering Designer Operations Manager

In November 2013, Cameron began his career as a pipeline specialist with Kerr Engineered Sales in Pennsylvania. Transitioning to renewable energy in May 2015, he joined SolarCity in Maryland as an Energy Consultant By January 2016, he was in Hawaii piloting a smart inverter system. Relocating to San Diego in 2016, he pursued engineering, securing a drafter role at Reverence Engineering. Over 5 years, he evolved into a designer and team leader. Joining PRO-CAL in November 2022 as an Engineering Designer, he swiftly advanced to operations manager crucial in fulfilling commitments.

MEET THE TEAM

Yahaira Ibanez

With over 8 years in Architectural, Structural, Design Consulting, and Drafting fields, Yahaira brings a blend of leadership, project management, and expertise. Leading teams at Cabrera and Associates, and contributing to Marengo Morton Architects, Yahaira's experience spans residential, mixed-use, and commercial projects. Her knowledge of codes and local permitting processes is an invaluable asset to PRO-CAL, complemented by her involvement in community programs and leadership training.

Luke Nazaroff

M o Liendo

Luke, a Cal Poly SLO graduate, boasts 7 years in structural engineering. He spent 5 years at San Diego's premier firm, diversifying his expertise with wood, concrete, and steel projects, including The Society Apartments. Luke excels in wood structure design, spanning ADUs to commercial complexes. Notable contributions encompass Navy projects, San Diego Zoo Safari Park, and Hotel Del Coronado renovations, showcasing his multifaceted skills and specialization.

Denisse launched her career in her hometown, Washington DC. She then moved to San Diego, channeling her energies into crafting residential spaces that blend aesthetics and functionality. With a background in metal fabrication and product design, Denisse's expertise enriches her role as a Residential Designer. Proficient in Revit, she adeptly produces designs, documents, and 3D visuals. Her precision, organization, and commitment ensure timely project completion.

In 2021, Mary began her career as a Junior Architect in the Philippines, working on diverse projects. Partnered with a junior engineer in 2022, she managed residential and commercial projects, honing planning, design, and permitting skills. Relocating to San Diego in 2022, she secured a role as an Architectural Designer at PRO-CAL Design and Engineering, showcasing her talent and competence since May 2023.

Architectural Designer Project Manager

Architectural Designer

Residential Designer g g ad/ Project Manager

MEET THE TEAM

Jody Watkins CEO/RME

In his extensive 30-plus years of construction experience, Jody has amassed a comprehensive portfolio of achievements. His journey spans landmark projects like Petco Park, Indian Wells Tennis Garden, and the Hotel Del Coronado, as well as diverse multi-family and hospitality ventures across Southern California. Holding both California State License Board A (General Engineering Contractor) and B (General Building Contractor) licenses for the past 18 years, Jody’s expertise covers all sectors of the construction industry. His ascent from laborer in the late 1980s to his current role at Vertical MVMT reflects his profound understanding of every facet of project development.

MEET THE TEAM

WeRevive's founder, Brian Daly, stands as a real estate stalwart. His journey began in 2005 in real estate and 2012 in construction management, with a legacy encompassing 2,500 real estate deals, 600 construction projects, and $600 million in personal real estate investment. From REO asset management to infill developments, Brian's dynamic presence emphasizes business and team cultivation, underlining his transformative impact in the industry.

Starting his career as a safety officer overseeing heavy civil construction, Michael moved into Project Management and has overseen the construction of over 600 residential renovations for two of San Diego's largest RE Investment companies. In the past year, he has managed a team of project managers as well as managing the build out of a range of ADU projects, from small garage conversions to multi-unit ground up construction.

Brian Daly Co-Founder/Partner

Michael Ferris

Senior Project Manager

MEET THE TEAM

A veteran construction superintendent, shaped by Marine Corps discipline, he excels in leadership, strategy, and precision, consistently delivering timely, budget-conscious projects.

Morgan, our lead estimator, combines structural engineering expertise with a passion for building client and vendor relationships to create detailed cost projections.

Superintendent

Nick Woolsey

Lead Estimator

Morgan Lyew

PROFESSONIAL AFFILIAT

Tommy Hinson

Fletcher Cove Capital

Mr. Hinson is a partner and director at national multifamily and single-family development firm, where he oversees capital markets and investor relationships. He also previously served as the Chairman of a debt fund used for land development and construction. He has been responsible for real estate underwriting and analysis, as well as capital structuring for several companies. Additionally, Mr. Hinson is the Chief Executive Officer at Investors 1031 Exchange. He has been in the fiduciary services industry since 1996 and has executed over $500M of various real estate investments, as both an employee and a Principal.

homer@homerkambrosecpa.com

PROFESSONIAL AFFILIATES

Real Estate Attorney

Schuyler Hoffman leads the residential real estate practice group at Hoffman & Forde, a real estate practice group located in San Diego. He represents clients throughout Southern California, focusing on legal matters involving residential real estate disputes, real estate non-disclosures, homeowners’ association conflicts, landlord/tenant disagreements, delays and liens, and fraud claims.

shoffman@hoffmanforde.com

Real Estate Attorney

Daniel Forde leads the civil litigation practice group as well as the commercial real estate and finance practice group. Mr. Forde represents clients in matters involving business and commercial litigation, complex commercial transactions, development, leasing, secured lending transactions, acquisition, disposition, options, and title disputes.

dforde@hoffmanforde.com

Schuyler Hoffman

Daniel Forde

CALIFORNIA HAS A HOUSING AFFORDABILITY & SUPPLY CRISIS

THE SAN DIEGO HOUSING CRISIS

“The San Diego housing market remains robust, characterized by strong demand and limited inventory. Despite rising prices and competition, the city's desirable lifestyle and diverse housing options continue to attract buyers.”

2023 Annual Report on Homes

“Mr. Spicer’s turn of fortune was a byproduct of California’s efforts to fill its housing shortage. Over the past five years the Legislature has passed a halfdozen laws that make it vastly easier to build accessory dwelling units (A.D.U.s).”

Read the NYT Article Here

THE SAN DIEGO HOUSING COMMISSION REPORTS:

“Housing affordability is an issue for at least half of San Diegans”

50% of San Diegans cannot find market-rate rental housing they can afford

60% of San Diegans cannot afford home ownership

Housing affordability impacts 100% of low-income residents and a large portion of moderate-income households

~70% of moderate-income households cannot afford home ownership, and >30% cannot afford rent

Source: SDHC

HOUSING INVENTORY IS DECREASING

California, especially San Diego, is facing an unprecedented housing supply shortage. Over the past few years, inventory of both rentals and homes for sale has been steadily declining.

SAN DIEGO RENTAL RATES OVER 16 YEARS

Source: Costar

Low supply creates an unprecedented rise in asking rents over the last decade. High demand means potential renters WILL pay premium prices to secure housing.

More prospective home buyers are turning to indefinite renting due to an ultra-competitive seller’s market.

Apartment Rent Growth Soars to Record High in San Diego

San Diego Rent Growth and Rent Levels

SAN DIEGO HOUSING DEMAND OVER THE LAST 12 YEARS

Demand Is On the Rise For San Diego Apartments

Source: Costar

San Diego Is Outpacing Rent Growth vs Coastal Southern California Counterparts During 2022

Source: Costar

SAN DIEGO IS GROWING FAST...

INCREASE IN HIGH PAYING JOBS MEANS AN INCREASE IN HIGH VALUE RENTAL DEMAND

5,000

New Apple jobs with a new 43 acre campus

3,500

New biotech jobs from IQHQ, a 200,000 sq. ft. Class A office development

3,000

New jobs at Horton Plaza, a mall to office development in Downtown San Diego

700

New high paying jobs at Amazon in a 123,000 sq. ft. space in UTC

Redfin data states that “millennials and Generation Z are becoming less likely to become first-time homebuyers and are more likely to rent indefinitely.”

- San Diego Union Tribune

SAN DIEGO IS A UNIQUE MARKET

Source: Brian Daly, Real Report - 1/24/23

San Diego was the only one of these 21 major markets to have a Year-Over-Year decline in active inventory.

THE GOVERNMENT IS INCENTIVIZING

DEVELOPMENT

SAN DIEGO HAS SUFFICIENT HOUSING POTENTIAL TO MEET 10-YEAR NEEDS

IF ALL CAPACITY SOURCES ARE FULLY UTILIZED

San Diego can exceed its housing needs by ~30,000 units over 10 years if all potential housing capacity is fully captured.

Potential units will come from:

1. Rezoning to increase density around transit opportunity areas (47,000-146,000 units)

2. Redeveloping underutilized parcels of land (56,000-73,000 units)

3. Adapting disused industrial zones and City sites (11,000-20,000 units)

4. Infilling vacant lots (5,000-6,000 units)

5. Utilizing detached Accessory Dwelling Units (ADUs) (2,700-5,500 units)

Source: SDHC

DEVELOPMENT INCENTIVES WITH NEW LAWS

CALIFORNIA - STATE WIDE

SB 9 - The California H.O.M.E. Act

SB 10 - Housing Development: Density

SB 6 - California Legislature Allows Housing Development on Commercial Property

AB 1033 promotes home ownership by allowing ADU's to be converted into and sold individually as condos

AB 2221 - Accessory Dwelling Units

AB 2011 - Approval for Affordable Housing on Commercially-Zoned Land

SAN DIEGO - CITY WIDE

City of San Diego Executive Order 2023-1 -

30 day moderate income plan check approval

New Zoning Laws - SDA & TPA (Affordable Home Density Bonus Program)

Affordable Home Density Bonus Program

Source: City of San Diego

“San Diego is the only city in the region that updates its zoning code annually with a large batch of policy changes”

Source: San Diego Union Tribune

DEVELOPMENT INCENTIVES (CONT.)

Governor Newsom recently signed into law five bills that aim to further remove local barriers to ADU development, as well as to incentivize owners of both single-family and multi-family homes to add much-needed additional units to their properties.

AB 68 & AB 881 – Streamlining ADU Approvals

Streamlines and improves the ADU process in order to facilitate the development and construction of ADUs

SB 13 – Owner Occupancy and Fees

Prohibits the enforcement of parking standards for ADUs within ½ mile of public transit

AB 670 & AB 671 – HOA and General Plans

Prevents homeowners’ associations from banning or unreasonably restricting the construction of ADUs on single-family residential lots

Any ADU approved before January 1, 2025 (when the legislation is up for review) will be exempt from any potential future owner-occupancy restrictions San Diego City Council approved SDA (Sustainable Development Area) expansion of TPA (Transit Priority Area) on 2/14/23

Source: Ruben Law

ADU LAWS HAVE CHANGED TO PERMIT MORE UNITS

“I can say the state of our city is rising[...] Rising to build more housing. Rising up against the urge to say ‘no’ because change is scary. Rising to meet the expectations of all our neighborhoods.”

- Todd Gloria, Mayor of San Diego

Source: City of San Diego

Accessory Dwelling Unit Homes Permitted- City of San Diego

TRANSIT AREAS - DENSITY GOLD MINE

“The proposed rule changes would make an additional 5,224 acres close enough to transit to be eligible for developer density bonuses. The changes would also increase by 4,612 the acreage eligible for the backyard apartment ‘bonus’ program.”

Source: San Diego Tribune

SUSTAINABLE DEVELOPMENT AREA

Sustainable Development Area (SDA): There is a new process through which you can apply for your property to be in the Transit Priority Area (TPA) to make use of the bonus ADU program. This process is the SDA.

Source: San Diego City

YELLOW - EXISTING TRANSIT PRIORITY AREA (TPA) PINK - NEW AREAS ADDED INTO SUSTAINABLE DEVELOPMENT AREA (SDA) - EFFECTIVE MARCH 1, 2023

Source: San Diego City

TRANSIT OPPORTUNITY AREAS FAVOR GROWTH

We can use the city’s Transit Opportunity Areas to our advantage to create more dwellings and alleviate the housing shortage in San Diego.

Source: SANDAG

DENSITY NEEDED SITES IN SAN DIEGO

Vacant Lots That Can Support Single or Multifamily Dwellings

(WIth Illustrative Example of Southeastern Neighborhood)

Source: SANDAG

Redevelopment Of Underutilized Land

(With Illustration of Hillcrest Neighborhood)

Source: SANDAG

FEASIBILITY

COASTAL OVERLAY

Most development in the coastal overlay has to go through the coastal commission and get approved by them. However, if the property is in the coastal area and falls under the “Non Appealable Area” (N-APP-2), the building permits can skip the coastal commission review, saving a significant amount of time and money.

13.20.107 Coastal development permit review of accessory dwelling units (non appealable).

Any proposed accessory dwelling unit located within the Coastal Zone but located outside of the appealable area, as described in SCCC 13.20.040, that does not qualify for a coastal development permit exclusion or exemption shall require a coastal development permit, requiring no public hearing, processed concurrently with a building permit, subject to the following noticing requirements:

(A)Within 10 calendar days of accepting an application for a non-appealable coastal development permit for a proposed accessory dwelling unit, the County shall provide, by first class mail, a notice of pending permit decision action.

Source: City of San Diego

WHY DO SOME INVESTORS REFUSE TO BUY REAL ESTATE IN CALIFORNIA?

AB 1482 - California Tenant Protection Act of 2019

Took effect on January 1, 2020 and expires on January 1, 2030

Imposes rent caps on multi-family rental properties.

Limits annual rent increases

No more than 5%+ local Consumer Price Index, or 10%, whichever is lower

Requires the landlord to have “just cause” in order to terminate the tenancy.

“Just cause” includes:

Failure to pay rent (requires an eviction)

Breach of lease (requires an eviction)

Being a nuisance (requires an eviction)

Criminal activity (requires an eviction)

Assigning or subletting (requires an eviction)

Intent to demolish or remodel a unit (requires a permit)

Intent of owner or family of owner moving back into the unit (may require an eviction)

AB 1482 DOES NOT AFFECT NEW CONSTRUCTION FOR 15 YEARS

CONTROL:

We control our product because we are not subject to AB 1482

Our projects are exempt for 15 years from completion date

The rule is only in effect for 10 years before it has to be voted back in

(e) This section shall not apply to the following types of residential real properties or residential circumstances:

Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.

1. Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.

2. Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.

3. Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.

4. Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.

5. A duplex in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.

6. Housing that has been issued a certificate of occupancy within the previous 15 years.

7. Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:

8. The owner is not any of the following:

a. A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. i. A corporation. ii. A limited liability company in which at least one member is a corporation. iii.

Source: California Legislative Information

SDRE HOMEBUYERS IS THE SOLUTION

San Diego’s Premier Infill Developer: The In-House Advantage:

Maximize potential of every lot we acquire

Make zoning rules & new development laws work for us

We are on the forefront of new legislation allowing us to generate as much housing as possible

Utilize our connections with different jurisdictions to expedite and streamline development

Target different renters/audience

Moderate income for faster permitting timeline

High income for high-end/luxury units

Acquisition experts to source deals Inhouse architecture/engineering

Permits submitted by PRO-CAL First-name basis with city officials

Full control of construction from start to finish

In-house team of real estate agents to sell finished product

In-house property management for properties held for rent

PARTNER ORGANIZATIONS

KAPPA Surveying and Engineering, Inc., located in La Mesa, CA, has been a premier land surveying and civil engineering company since 1979. We are a second generation land surveyor, family owned company, performing land survey and civil engineering work throughout San Diego County and Southern California.

Flores Engineering employs state of the art software programs, energy efficiency and environmental design. We handle everything from start to finish, from conception, design, coordination with other project disciplines, preparation of design and construction drawings.

THE DRY UTILITY GROUP

The Dry Utility Group, led by Abrhil Arvizu, is a dry utility planner. They offer detailed layouts that are not only approved by SDG&E, but also designed to cut down on development costs as much as possible by providing the most effective solution.

SDRE

HOMEBUYERS HAS BEEN FEATURED IN:

Credit: Sandy Huffaker for The New York Times

“A single family home from the 1950s is now a rental complex and a vision of California’s future.”

The New York Times

Business Insider

The New York Times Podcast

The accessory dwelling unit at 5120 Baxter Street.

4601 ALMAYO AVE, SAN DIEGO, CA 92117

4601 Almayo Ave is a large lot at the end of a cul-de-sac with an existing SFR. 17 one bedroom units will be built featuring in-unit laundry, private outdoor space and A/C. This lot sits in the centrally located and quiet neighborhood of Clairemont, close to major freeways and schools.

24 MONTH PROJECT EXPECTATION

Purchase Price: $1,426,000

Total Cash Needs: $1,234,000

Soft Costs: $1,085,000

Expected Investor Returns: $1,175,000

Hard Costs: $2,832,000

Expected Investor IRR: 57.86%

Total Costs: $5,342,000

Equity Multiple: 1.96x

2675 PALM AVE, SAN DIEGO, CA 92154

2675 Palm Ave is a .82 acre vacant just inland from Imperial Beach. 36 one-bedroom units will be built with in-unit laundry, private outdoor space and A/C. This property will also include parking and a common area that will have views of both the ocean and downtown.

24 MONTH PROJECT EXPECTATION

Purchase Price: $1,069,000

Total Cash Needs: $1,878,000

Soft Costs: $1,630,000

Expected Investor Returns: $2,120,000

Hard Costs: $5,565,000

Expected Investor IRR: 72.87%

Total Costs: $8,263,000

Equity Multipler: 2.14x

674 LEGHORN AVE, SAN DIEGO, CA 92114

674 Leghorn Ave is Leghorn is a 1.8 acre vacant lot in an underdeveloped part of San Diego. 76 one bedroom units will be built with in-unit laundry, private outdoor space and A/C. The complex will be complete with a community pool and views extending out to San Diego Bay and Downtown.

36 MONTH PROJECT EXPECTATION

Purchase Price: $535,000

Total Cash Needs: $4,678,000

Soft Costs: $4,110,000

Expected Investor Returns: $5,975,000

Hard Costs: $12,367,000

Expected Investor IRR: 48.46%

Total Costs: $17,021,000

Equity Multipler: 2.28x

2596 CHALCEDONY ST, SAN DIEGO, CA 92109

2596 Chalcedony is a 2.9 acre lot in Pacific Beach with 2 existing rental units. After demolishing the existing units, 126 new one bedroom units will be built with in-unit laundry and AC.

Community pools and lounge areas will complement the proximity to local restaurants, shops and beaches with views of Downtown and Sea World fireworks.

36 MONTH PROJECT EXPECTATION

Purchase Price: $6,108,000

Total Cash Needs: $10,830,000

Soft Costs: $8,923,000

Expected Investor Returns: $15,969,000

Hard Costs: $23,530,000

Expected Investor IRR: 51.18%

Total Costs: $38,561,000

Equity Multipler: 2.48x

CURRENT PROJECTS IN NEED OF FUNDING

CURRENT FUNDED PROJECTS PART 1

CURRENT FUNDED PROJECTS PART 2

SDRE FINISHED PROJECTS

MARCUS & MILLICHAP PROPERTY EVALUATION

Marcus & Millichap (M&M) is a reputable broker selling multifamily housing in San Diego for 52 years M&M provides conservative rental values based on transactional values rather than rental income

The $13M difference in our total expected sales price vs M&M’s comes down to a $192/month difference in rent per unit.

This is a 5.6% difference in average rent per unit.

Comparatively, our data is based on higher rental valuations due to our 15+ years of property management expertise.

We are able to maximize rental values by customizing our design based on tenant needs in that immediate area using historical knowledge of the rental market.

This is how we are able to acquire our 5.6% average higher rents.

EXPANSION PLAN & OUR COMPANY’S FUTURE

The Winning Combination

CURRENT TEAM STATUS

Currently SDRE Homebuyers consists of nine full-time employees

Acquired $30+ million in property, with expected sale price over ~$250 million

Scheduled to begin construction of 150+ units within the next 12 months

EXPANSION PLAN

New legislation would allow for exponential growth in terms of planning and construction, potentially 1000’s of new units per year

Addition of human resources

Expansion of current departments to accommodate increased workload

Infusion of new skills and talent

New technology

Expedite processing of pertinent data to stay ahead of competition

Custom-developed platform for full investor transparency including construction updates and financial reporting

Active and aggressive pursuit of deals

If another investor buys and under-develops a property, it is no longer profitable for us to acquire it. We rapidly and aggressively pick up properties to prevent this Multiple exit strategies for each project in order to ensure portfolio is not overloaded

LAND RACE: FILLING IN THE GAP

San Diego needs to triple its annual home production to 14,715 new homes per year to reach its 2029 housing target The City of San Diego is working on new reforms and policies to promote housing development

2021 Breakdown by Income Level

San Diego Housing Production Progress Report

Source: Voice of San Diego

LAND RACE: THE OPPORTUNITY IS NOW

Land value exceeds current house value.

Traditional homeowners assess their properties based on values from websites such as Redfin and Zillow, not realizing development potential

After this ADU craze fully catches on, prices will dramatically increase as awareness of development potential increases

We have a unique opportunity to acquire these properties now before homeowner awareness and prices jump

“San Diego has embarked on a massive housing experiment and the region’s future may be riding on how it turns out.”

California is looking to San Diego as a model for the state’s solution to the housing crisis

If San Diego succeeds, the state’s laws will soon follow to match

Source: The San Diego Union Tribune

“ALWAYS HAVE AN ESCAPE PLAN.”

Desmond Llewelyn as Q

The World Is Not Enough (1999)

PROJECT COMPLETED?

SELL FOR PROFIT HOLD FOR RENT

“PRESSURE RELIEF VALVE”

If, for any reason, our portfolio is overloaded, multiple exit strategies will all generate profit:

Completed projects - sell or hold for rent

Entitled land - sell property with approved plans for development

Wholesale - everything else

LIST ENTITLED PROPERTY ENTITLEMENTS?

WHOLESALE

IMPENDING CRASH? WE ARE NOT WORRIED! (WE ARE HEDGED BY RENTAL GROWTH)

Between 2007 and 2011, the worst years of the 2008

Recession, rental prices increased. - Forbes

Housing market is volatile, especially in San Diego

Rent prices steadily and predictably rise, even through massive economic downturns.

Our investments are safe due to rental income based valuations

We are opportunists. We hold if the market is low, and sell if the market is high

WE ARE THRIVING

We are the largest company doing this type of development in San Diego

We keep our work internal with our in-house drafting and engineering firm, property management firm, real estate agents, and more

Significant capacity and plan to expand

Exit strategies for the best and worst case scenarios to keep us in the game Connections to acquire permits quickly and build in volume

We provide extensive market analysis and expertise that foster innovative solutions and rewarding real estate opportunities.