IMH — Twin Creeks Development 100k

677 UNIT APARTMENT COMMUNITY ALLEN, TEXAS

PROJECT INVESTMENT SUMMARY

EXECUTIVE SUMMARY Twin Creeks Crossing

Twin Creeks Crossing is a 677-unit value-add investment opportunity located on 28.15 acres in fast-growing Allen, Texas. IMH is accepting additional investors into Twin Creeks Crossing.

Each $100,000 investment will earn a 9% priority return, paid quarterly over the life of the investment and a .35% share of IMH’s profits at the time of sale. The investor’s projected equity multiple is 2.3 with a 20.3% IRR. TOTAL CAPITALIZATION Senior Debt – Fannie Mae

$ 80,000,000

Preferred Equity (Fortress Investment Group)

$ 50,000,000

LP Equity

$ 30,000,000

GP Equity

$

Total Capitalization

$167,000,000

7,000,000

KEY PROJECT INVESTMENT METRICS - 5 Year Hold Purchase Price (Per Unit)

$156,000,000 ($230,100/unit)

Acquisition Cap Rate (Tax Adjusted)

5.2%

Projected Project Profit, IRR & Equity Multiple

$112M, 19.4% IRR and a 2.3x multiple

Stabilized Yield

7.4% PROPERTY OVERVIEW

Address

1090 W Exchange Pkwy, Allen, TX 75013

Year Constructed

2014 & 2016 (42 2 & 3-story buildings + 2 Community Centers)

Unit Mix

442 1-BR & 235 2-BR

Average Unit Size

866 Sq. Ft.

Rentable Square Footage

560,004 Sq. Ft.

Average Monthly Rent

$1,471 (93.5% occupied)

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ACQUISITION RATIONALE Twin Creeks Crossing

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The compelling reasons to acquire Twin Creeks Crossing include, but are not limited to:

STRATEGIC LOCATION § Superior location in Allen, Texas, surrounded by major employment, education, entertainment and a wide variety of recreational facilities. § Texas Health Presbyterian Hospital which employs 26,000 is located 1 mile from Twin Creeks. § Existing average contract rents ($1,464) are significantly below market and significantly below current average asking rents ($1,677). § Additional income opportunities: W/D installation, additional carports and home tech systems § Diversified unit mix appealing to a wide range of residents: § 442 1-bedroom units ranging in size from 660 to 889 sq. ft. § 235 2-bedroom units ranging in size from 1,014 to 1,282 sq. ft. § High Household Income demographic ($148,842 within a 1-mile radius) § A+ rated school district § Easy access to I-75 and Sam Rayburn Tollway § Large spread between rental costs and home ownership costs (average home price is $760,000)

LONG-TERM SUSTAINABLE GROWTH § Continued growth in economic drivers, including McKinney Corporate Center, which is a 163-acre office, medical and retail development within the 2,200-acre Craig Ranch master-planned community. § NOI, cash flow and property value can be significantly increased through the implementation of IMH’s business plan to upgrade community amenities and services, to renovate unit interiors, to expand ancillary income generators and to utilize effective revenue management systems.

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PROPERTY DETAILS Twin Creeks Crossing

Twin Creeks Crossing consists of 442 1-bedroom units and 235 2-bedroom units. Strategically located in the heart of booming North Texas. The community is a well-leased asset of which IMH has identified the potential to significantly increase future revenue through apartment and amenity upgrades. Because the metro area continues to perform strongly when measured by the economic metrics of growth in employment, consumer spending, population and job creation, IMH believes its projection of profitability is realistic and its downside risk is well mitigated.

COMMUNITY AMENITIES Constructed

2014 & 2016

Units

677 Units

Rentable Sq Ft

560,004 Sq Ft

§ 24-hour Fitness Center

Avg Unit Size

866 Sq Ft

§ Community Clubhouse & Resident Lounge

§ Resort-style Swimming Pool § Running & Bike Trail § Courtyard with Grilling/Outdoor Kitchen

§ Business Center & Conference Room Site Size

28.15 Acres

Density

24.1 Units/Acre

§ Garages & Carports for Rent § Children’s Playground § Dog Park

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PROJECT PROFORMA & OPPORTUNITY METRICS Year Year Ending

0 Apr-23

1 Apr-24

2 Apr-25

3 Apr-26

4 Apr-27

5 Apr-28

Operating Cash Flow Total Potential Rental Income Renovation Premium Capex Premium (12 month delay) Loss to Lease Gross Potential Revenue

$12,322,107 $415,048 $0 ($63,686) $12,673,470

$12,999,823 $1,241,650 $284,760 ($72,631) $14,453,602

$13,608,096 $2,144,383 $569,520 ($81,610) $16,240,389

$14,115,316 $2,623,815 $854,280 ($87,967) $17,505,444

$14,609,352 $2,715,649 $854,280 ($90,896) $18,088,385

Vacancy Renovation Downtime Concessions (% of in-place) Non-Revenue (% of Market) Bad Debt (% of Base Rental Rev) Base Rental Revenue

($530,613) ($233,617) ($23,818) $0 ($35,656) $11,849,766

($476,755) ($249,557) ($27,455) $0 ($41,100) $13,658,737

($391,656) ($261,224) ($31,175) $0 ($46,669) $15,509,665

($703,736) $0 ($33,603) $0 ($50,304) $16,717,800

($727,171) $0 ($34,722) $0 ($51,979) $17,274,511

Expense Reimbursements Garage/Parking Storage Yards Other Income Total Other Income

$440,939 $413,381 $27,559 $48,228 $843,985 $1,774,092

$454,168 $425,782 $28,385 $49,675 $869,305 $1,827,315

$467,793 $438,556 $29,237 $51,165 $895,384 $1,882,134

$481,826 $451,712 $30,114 $52,700 $922,246 $1,938,598

$496,281 $465,264 $31,018 $54,281 $949,913 $1,996,756

Effective Gross Revenue

$13,623,858

$15,486,051

$17,391,799

$18,656,398

$19,271,268

Operating Expenses Repair & Maintenance Contract Services Personnel Marketing / Advertising Administrative Turnover / Make-Ready Utilities Insurance Property Mgmt (% of EGR) Franchise Taxes Real Estate Taxes Total Operating Expenses

$124,014 $523,755 $907,842 $120,569 $172,242 $137,794 $551,174 $551,174 $306,537 $0 $2,342,300 $5,737,401

$127,735 $539,468 $935,077 $124,186 $177,409 $141,927 $567,709 $567,709 $348,436 $0 $2,412,569 $5,942,227

$131,567 $555,652 $963,130 $127,912 $182,731 $146,185 $584,741 $584,741 $391,315 $0 $2,484,946 $6,152,920

$135,514 $572,321 $992,023 $131,749 $188,213 $150,571 $602,283 $602,283 $419,769 $0 $2,559,494 $6,354,221

$139,579 $589,491 $1,021,784 $135,702 $193,860 $155,088 $620,351 $620,351 $433,604 $0 $2,636,279 $6,546,089

Net Operating Income Reserves Asset Mgmt Fee (% of EGR) NOI (After Reserves)

$7,886,457 $172,242 $136,239 $7,577,976

$9,543,825 $177,409 $154,861 $9,211,555

$11,238,879 $182,731 $173,918 $10,882,230

$12,302,177 $188,213 $186,564 $11,927,400

$12,725,178 $193,860 $192,713 $12,338,606

$0 $0 $4,975,763 $0 $80,000,000

$0 $0 $4,935,200 $0 $80,000,000

$0 $0 $4,935,200 $0 $80,000,000

$0 ($920,752) $4,909,412 $0 $79,079,248

$0 ($907,026) $4,866,191 ($78,172,221) $0

$0 $2,602,213 $0 $2,602,213

$0 $4,276,355 $0 $4,276,355

$0 $5,947,030 $0 $5,947,030

$0 $6,097,235 $0 $6,097,235

$0 $6,565,388 $173,786,307 $180,351,696

3.0%

4.9%

6.8%

7.0%

Loan Initial Funding Amortization Interest Service End of Loan Repayment Ending Balance

$80,000,000

$80,000,000

Levered Cash Flow Levered Acquisition Cost + FF for Capex & Reno Operating CF Asset Sale Proceeds Equity Cash Flow (levered) Projected Profit Cash on Cash Return IRR Equity Multiple

($86,979,723)

($86,979,723) $112,294,806 19.4% 2.29x

WATERFALL Project Level Profit Calculation Sales Price Less: Selling Costs Net Sales Proceeds Less: Total Project Cost Add: NOI (net) Net Project Profit Institutional Pref Equity Profit IMH Profit

$ $ $ $ $ $ $ $

257,600,000 (3,813,000) 253,787,000 (166,980,000) 25,488,000 112,295,000 85,238,000 26,557,000

7.5%

000’s omitted

Investor Cash Flow & Return Metrics Investor Capital @ Close Priority Return - Year 1 (9.0%) Priority Return - Year 2 Priority Return - Year 3 Priority Return - Year 4 Year 5 Sales Proceeds: Return of Investment Priority Return - Year 5 Share of IMH Profits (0.35%) Net Investor Profit Investor IRR Investor MOIC

$ (100,000) $ 9,000 $ 9,000 $ 9,000 $ 9,000 $ 201,950 $ 100,000 $ 9,000 $ 92,950 $ 137,950 20.3% 2.3

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BUSINESS PLAN HIGHLIGHTS Twin Creeks Crossing VALUE-ADD OPPORTUNITY AND SUMMARY OF BUSINESS PLAN IMH has budgeted $4.7 million for exterior and amenity improvements and interior renovations/replacements.

The interior renovations/replacements are budgeted at $3.2 million and the remaining capital improvement program, summarized below, is budgeted at $1.5 million.

EXTERIOR ENHANCEMENTS

ENHANCE THE POOL/BBQ & TRAIL AREAS

§ Deferred maintenance corrections § Landscaping and security lighting upgrades § Signage upgrades

§ Upgrade/expand the outdoor kitchen § New pool furniture § Expansion of the walking & biking trail and addition of passive lifestyle areas

§ Additional items that may be discovered during due diligence

UPGRADE UNIT INTERIOR FEATURES INCREASE THE AMENITY PACKAGE § § § §

Upgrade the fitness & business centers Upgrade the dog park facilities Add carports Install fenced yards

§ Add washers and dryers to the units § Install home tech systems § Refresh the interior color palette

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HIGH GROWTH LOCATION Twin Creeks Crossing Twin Creeks Crossing has benefitted from and will continue to benefit from Allen and North Texas’s continued growth and reputation as a great place for families and for residents of all ages to live, work and enjoy life.

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CENTRAL LOCATION Twin Creeks Crossing Twin Creeks Crossing is ideally located for today’s live-work-play renter demographic.

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MAJOR EMPLOYER Twin Creeks Crossing Texas Health Presbyterian Hospital Allen is located only 1-mile from Twin Creeks Crossing. Texas Health’s continued growth will only enhance Twin Creeks Crossing as a highly desirable rental residence location.

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AERIAL – DEVELOPMENTS Twin Creeks Crossing Twin Creeks Crossing is located in the midst of existing and ongoing major employment and future employment growth generators.

121 CORRIDOR ALLEN, TEXAS

500 ACRES ALONG THE 121 CORRIDOR ARE CURRENTLY BEING MASTER-PLANNED FOR MIXED-USE CORPORATE CAMPUSES.

MAJOR PROJECTS Twin Creeks Crossing

Allen Gateway at Twin Creeks ■

The 75-acre, master planned mixed-use development will feature 16 acres of open greenspace, office space, urban residences, retail, a common plaza, trails and natural amenities named “Gateway Forest”

■

Apart of the 2,600 master-planned Twin Creeks development

■

An additional 55 acres is currently under consideration

The Avenue ■

The Avenue is an 80-acre mixed-use development including an outdoor plaza, food plaza, office, retail and entertainment space

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1 million square feet of office space, 275,000 square feet of retail/restaurant and entertainment space, 65 single-family homes, 1,600 urban residential units and 3 hotels

Mckinney Corporate Center Mckinney Corporate Center is a 163-acre master planned office, medical and retail development within Craig Ranch ■

Mckinney Corporate Center: 700,000 SF Office space

Collin College Technical Center & Allen ISD STEAM Center ■

Collin College Technical Center: Three-story, 340,000 square foot campus

■

■

Allen ISD Steam Center: 111,000 square-feet facility features numerous classrooms and learning centers, a pond, nature trials and outdoor learning stations

Mckinney Corporate Center I: 120,000 SF Office space

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Mckinney Corporate Center II: 115,000 SF Office space

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Independent Financial- Corporate campus with 1,500+ Employees

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Hub 121-: 85,000 Sf Mixed-Use Development

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SRS Distribution Headquarters: 100,000 SF Office space

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RPM xConstruction: New 90,000 SF Office space

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KOAR Mixed-use Project: 80-Acre Mixed use Project

The Farm ■

The Farm is a 135-acre, mixed-use development

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1.6 million square feet of office space, 142,000 square feet of retail and a 150-key hotel

Monarch City and Fairview ■

■

Monarch City is a 270-acre master planned development will total 9 million square feet of planned space, including Class A Office, Urban Residential, retail and hospitality.

Monarch Fairview is a 242-acre mixed-use development east of US-75

Craig Ranch ■

Craig Ranch is a nationally acclaimed, 2,200-acre master-planned community in Mckinney

■

Home to TPC Craig Ranch private golf club and Byron Nelson PGA tournament

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Current Offerings Click on the thumbnails to view the investment summary.

Reach Out

Highlighted Offerings 2596 Chalcedony St, San Diego, CA 92109

2596 Chalcedony St, Pacific Beach Fully entitled 128 units in San Diego Anticipated 119% ROI

126 Units | Pacific Beach

Next Level Finance 1818 Debt Fund 18% interest. 18 month hold time. Month 12 & 18 payouts. First deed of trust.

4800 LOFTS

371-UNIT MULTIFAMILY PROJECT MURRAY, UTAH

PROJECT INVESTMENT SUMMARY

4800 Lofts 371 units under construction in Murray, Utah | 12% preferred return, paid quarterly | Anticipated 25% annual return (IRR)

2596 Chalcedony St, San Diego, is located west of Interstate 5 in popular Pacific Beach, and offers excellent access to downtown and the north. With San Diego’s thriving economy, Chalcedony St presents high-value rental opportunities, making it a prime choice for those looking to invest in the city’s growth.

The lots can accommodate 126 additional units that are fully entitled. With a two-year hold time, it is anticipated to produce a net operating income (NOI) of $2.9M, an exit of $73Mwith an anticipated 194% ROI for investors.

2675 Palm Avenue, San Diego, CA 92154 36 Units | Palm City

2675 Palm Ave, Imperial Beach Fully entitled 36 units in San Diego Anticipated 74% ROI

2675 Palm Avenue is an undeveloped lot in Palm City, minutes from Imperial Beach and Coronado.

The lot can accommodate 36 units that are fully entitled. There is a $50,000 minimum investment, and a two-year hold time.

The project is anticipated to produce a net operating income (NOI) of $604,800, an exit of $12M, with an anticipated 74% ROI for investors.

IMH Offerings

LAKESHORE LANDING

320-UNIT MULTIFAMILY PROJECT AMERICAN FORK, UTAH

Lakeshore Landing Fully entitled 320 units in American Fork, Utah | 12% preferred return, paid quarterly | Anticipated 21% annual return (IRR)

Boise Residential Portfolio 396-unit portfolio of single family homes and townhomes across 3 projects expected to be completed in 2–5 years | 12% preferred return, paid quarterly | Anticipated 33% annual return (IRR)

Provenza at Windhaven 324-unit value-add opportunity in The Colony, Texas | 12% preferred return, paid quarterly | Anticipated 23% annual return (IRR)

Arioso Apartments 288-unit value-add opportunity in Grand Prairie (Dallas-Fort Worth), Texas | 9% preferred return, paid quarterly | Anticipated 18% annual return (IRR)

PROJECT INVESTMENT SUMMARY

324 UNIT APARTMENT COMMUNITY The Colony, Texas

PROJECT INVESTMENT SUMMARY

Fletcher Cove Offerings Leghorn Ave, San Diego, CA 92114 76 Units | Encanto

SOL

Leghorn Ave is in the Encanto neighborhood less than 10 miles from Downtown San Diego and near to the San Diego Naval Base. The thriving economy in San Diego has sparked a demand for high-value rental properties, such as those on Leghorn Ave. Join the city’s growth and seize this opportunity.

The lot can accommodate 76 additional units that are fully entitled. With a three-year hold time, it is anticipated to produce a net operating income (NOI) of $1,340,640, an exit of $26.8M with an anticipated 119% ROI for investors.

T D OU

Leghorn Ave, Encanto Fully entitled 76 units in San Diego Anticipated 119% ROI

NLH Offerings Frontier Investment Summary St. George – Utah

21 SINGLE FAMILY RESIDENTIAL HOMES

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Frontier Fully entitled 21 single-family residences in St. George, Utah Anticipated 47% ROI

CONFIDENTIALITY & DISCLAIMER This confidential investment memorandum (“memorandum”), including the attached exhibits contains confidential, non-public and proprietary information. The company provides the memorandum solely for confidential use by prospective investors. Without prior written permission from the company, prospective investors shall not release, copy, discuss or use the memorandum for any purpose other than evaluating whether to invest in the company. Each recipient agrees to return the memorandum and any other documents or information furnished by the company if the recipient declines to invest. The memorandum was prepared from information provided by the company. The company’s professional advisors did not independently verify any information contained in the memorandum or otherwise made available by the company, and therefore they do not represent or warrant the accuracy or completeness of such information.

The company has not authorized any offering literature or advertising other than the memorandum. No one is authorized to provide any other information or to make any representation except those contained in the memorandum. Do not rely on any information or representation that does not appear in the memorandum. Prospective investors must rely on their own examination of the company, its proposed business and this offering, including the merits and risks involved. Prospective investors should carefully evaluate the “risk factors” described in this memorandum or in the subscription agreement. The memorandum does not offer investment, tax or legal advice to prospective investors. Prospective investors should consult their own counsel, accountant or investment advisor about the legal, tax and related implications of investing in the company. Prospective investors may ask questions and receive answers about the offering, the company or any other relevant matters. The company will provide other information requested by prospective investors if the company possesses such information or can acquire it without unreasonable effort or expense.

The company offers interests only to accredited investors (as defined in rule 501(a) under the securities act of 1933, as amended, including the rules and regulations promulgated thereunder) and without registration under federal and state securities laws. This memorandum does not offer to sell or solicit an offer to buy securities in any jurisdiction where, or to any person to whom, it is unlawful to make such offer or solicitation. The company may withdraw this offering at any time and reserves the right to reject any subscription, in whole or in part, for any reason. The company will hold a subscriber’s subscription funds until the company accepts or rejects that subscription; rejected subscription funds will be promptly returned to the subscriber without interest. Investments in the company will be illiquid. The transferability and resale of the interests are severely limited by the limited liability company agreement, the federal securities act and applicable state securities laws. There will be no public market for the interests and none is expected to develop. Prospective investors should be aware that they must bear the financial risk of this investment indefinitely and may risk loss of their entire investment.

In making an investment decision, investors must rely on their own examination of the person or entity creating the securities and the terms of the offering, including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. No person has been authorized to give any information or make any representations other than those contained in this memorandum, and, if given or made, such information or representations must not be relied upon as having been given by the offerors. Statements contained herein as to the content of any agreement or other document are summaries and, therefore, are necessarily selective and incomplete and are qualified in their entirety by the actual agreements or other documents. The company will make available to any prospective investor prior to the consummation of the sale the opportunity to ask questions of and receive answers from the company or persons acting on behalf of the company concerning the terms and conditions of this offering, the company or any other relevant matters and any additional reasonable information to the extent the company possesses such information or can acquire it without unreasonable effort or expense. The company does not expect to update or otherwise revise this memorandum or other materials supplied herewith unless there is a material change in the information set forth herein prior to the closing or termination of the offering hereunder. The delivery of this memorandum at any time does not imply that the information contained herein is correct as of any time subsequent to the date of this summary. This summary is submitted in connection with the offering described herein and may not be reproduced or used for any other purpose. We reserve the right to reject the subscription of any prospective investor even if such investor satisfies all suitability standards discussed in this memorandum. If the prospective investor receiving this memorandum does not submit an offer to purchase, or if such offer is submitted but not accepted by us, the prospective investor agrees to promptly return this memorandum and all attached documents.

This memorandum does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized, or in which the person making such an offer is not qualified to do so, or to any person to whom it is unlawful to make an offer or solicitation. Neither the information contained herein, nor any prior, contemporaneous or subsequent communication should be construed by the prospective investor as legal or tax advice. Each prospective investor should consult his own legal and tax advisors to ascertain the merits and risks of the transactions described herein prior to subscribing to securities.

In making an investment decision investors must rely on their own examination of the company and the terms of the offering, including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the securities act of 1933, as amended, and the applicable state securities laws, pursuant to registration or exemption therefrom. Investors should be aware that they will be required to bear the financial risks of this investment for an indefinite period of time.

Securities Disclaimer This memorandum is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the company or any related or associated company. Any such offer or solicitation will be made only by means of the company’s confidential memorandum and/or subscription agreement and in accordance with the terms of all applicable securities and other laws. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this memorandum does not constitute investment advice or counsel or solicitation for investment in any security. This memorandum does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. The company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the memorandum, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.

Notice About Forward-looking Statements This memorandum contains forward looking statements and forecasts concerning the plans, intentions, strategies, expectations, predictions and financial forecasts concerning the future activities and results of operations for the company, as well as other future events or conditions. For this purpose, any statements contained herein that are not statements of historical fact are deemed forward looking statements. Without limiting the generality of the foregoing sentence, words such as “believe,” “may,” “will,” “could,” “intends,” “estimate,” “might,” “continue”, their negatives or comparable terminology indicate forward looking statements. Please understand that the company’s actual results or activities or actual events or conditions could differ materially from those estimated or forecasted in such forward-looking statements due to a variety of factors, some of which may be beyond the control of the company. The potential opportunities (pipeline) shown in this memorandum may not be available at the time the fund is deploying capital. The pipeline represents a sample of specific opportunities that were available at the time the memorandum was published.

Although the company believes that the underlying assumptions and the expectations reflected in such forward-looking statements are reasonable, no assurances can be given that such assumptions and expectations are correct because actual results are uncertain and unpredictable. All assumptions, projections and expectations merely represent the company’s considered opinion. To the extent that actual events differ materially from the company’s assumptions and estimates, actual results will vary from the forward-looking statements. Additional factors could cause actual results to differ materially from the expectations disclosed in this memorandum. See “risk factors” for a discussion of some factors that could cause the company’s actual results, actual activities, actual events or actual conditions to differ from those anticipated. This memorandum reflects the company’s knowledge and information on the date of this memorandum. The delivery of this memorandum or the sale of LLC interests shall not imply that the company’s affairs or prospects have not subsequently changed. All written and oral forward-looking statements attributable to the company or its agents are expressly qualified in their entirety by this discussion.

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