Where do you invest your money?

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1 A few past projects

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5 Where do you invest your money? Savings account 1.5% Money Market 1.6% 1 year CD 2.07% 2 year CD 2.5% 5 year CD 5.0% REAL ESTATE DEVELOPMENT Average 2 year hold 20 to 35% return

6 Market Opportunity - Hamptons Q Elliman Report Median Sales Price 7.6% Absorption Rate Closed Sales 5.3% Total Inventory 11.6% Days On The Market 0.5 month 13 Days Hamptons Mix Sales Share Year-Over-YearChange >$5M 6.9% 2.7% $1M - $5M 41.3% 14.0% <$1M 51.8% -0.3% Number of sales ranged from stability to modest growth throughout 2017 Listing inventory declined annually for the tenth consecutive quarter Median sales price increased year over year for fourth consecutive quarter

7 What really matters We have found seven lots on an existing street with utilities Looking for an investment of $11.5MM with 50% of net profit going to investor Land cost: 7 1,200,000 each $8,400,000 Build Cost $1.5MM each Sell Out $25.9MM (Seven homes with no customization) 50% to investor $3.5MM or over 18% if all built together THE BEST & MOST CONSERVATIVE APPROACH Do site work on all the lots Build two houses Total Investment $11.4MM Same $3.5MM to investor or over 30% Past performance does not guarantee future returns

8 HOW IT WORKS Invest 11.4MM or 18.9MM Investment $11,400,000 +/- Purchase lots $8,400,000 Build two houses $3,000,000 Investment $11,400,000 +/- Two sales return $7,400,000 (Conservative assumption of $3.7MM per house) $1,000,000 developers profit, $6,400,000 builds four more houses, sale of third house funds the building of the seventh house With this scenario there is room for upside sales pricing and a quicker return on investment Preparing all lots allows for customized finishes at higher price points Lots are held in 2 LLC companies. We would buy LLCs to bypass most of the transfer fees and taxes

9 HOW IT WORKS Investment $18,900,000 +/- Purchase lots $8,400,000 Build seven houses $10,500,000 Investment $18,900,000 +/- Seven sales averaging $3,700,000 net commissions Gross $25,900, Profit $7,000, % to investor $3,500, Over a 18% return approx month investment Lots are held in 2 LLC companies. We would buy LLCs to bypass most of the transfer fees and taxes

10 Our homes will be priced at $3.995MM They will be /- Square Feet 2017 NEW CONSTRUCTION SALES 7700 SqFt $ 5,647, SqFt $ 4,332, SqFt $ 3,900, SqFt $ 4,050, SqFt $ 5,100, SqFt $ 4,740, SqFt $ 4,050,000

11 WHAT S FOR SALE Built SqFt $6,995,000 Built SqFt $7,495,000 Built SqFt $4,850,000

12 Developer Christopher Tufo Hamptons and South Florida development for over 15 years. Has an eye for detail and knows the importance of quality construction One of the fastest most proficient spec home developers having built and sold 7,000 Sq. Ft. estates in just under 7 months 233 Old Sag Harbor Rd was chosen as the 2015 Hampton Designer Showhouse Built and sold over 40 million dollars of Spec homes

13 Sales and Marketing Hedy Tufo Licensed Real Estate Sales Person The diversity of professional responsibilities, people and cultures Hedy Tufo has encountered over the years has granted her a skill set that enables her to work well with others, and really listen to what people have to say. That, she believes, is the first key to being successful in a service business like real estate. Hedy's business acumen, commitment to excellence and eye for detail are complemented by an extensive knowledge of the real estate business having long managed family-owned commercial buildings, residential homes and apartment complexes. Her experience in new home construction acquired while working alongside her husband, Christopher Tufo, a prominent Hamptons and South Florida Developer, on all stages of construction and property development. Hedy and her husband build two to three multi-million dollar homes per year. With sales in the multi-millions and listings in the multi-millions real estate has become 2 nd nature to her. Constant contact with other brokers and using her background as an International marketing analyst at Giorgio Armani she will design a marketing plan specific to each home and it's specific target audiences. Having a degree in computers helps her use todays social media and target marketing programs to reach buyers internationally and to stay on top of the market. Prior to joining Douglas Elliman Hedy spent years working for Sothebys International Realty, Corcorran and Coldwell Banker.

14 Sales and Marketing Richard Stein Licensed Real Estate Associate Broker Rick brings with him a strong analytical and financial background as a former full service Investment Banker. He also brings a strong understanding of the technology that is in use today to market properties as a Microsoft Certified System Engineer. I strive to cut to the chase and not waste anyone's valuable time. My business management and negotiation talents, developed from years in the real estate industry & my previous careers, also come into play when guiding others in the most important financial venture of their life - the purchase or sale of property. Honest, Professional, Confident, Strong Negotiator. Rick believes that staying on top of the market with education is a must his certifications include Realtor GREEN - NAR's sustainable property designation SFR - Short Sale & Foreclosure Resource CBR - Certified Buyer Representative ecertified

15 Contact info Richard Stein Licensed Real Estate Associate Broker New York: Florida: ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.