MEZZANINE EQUITY

Loan Size: Typically $5,000,000 to $20,000,000

Loan Parameters: MCG to achieve a Minimum IRR which is a combination of Loan fees, Exit Fees and Interest charged on the Loan.
           
Loan Fees: up to 5% of the Loan Amount depending on deal size.

Extension Fees: 1% to 2% of the then outstanding balance of the loan

Current Interest Rate:
Quarterly interest payable on the principal balance of the Loan, ranging up to 16% depending on IRR calculation.

Deferred Interest:

For Home Construction Loans: Exit Fees due upon the sale of homes beginning at 3% of the Gross Sales Price of the Home for the first one to two years and increasing every six months thereafter.

For Land Loans:

Interest accruing on the principal balance of the Loan
up to 16%, due upon sale of the Land.

Release Prices:
the Greater of 100% of the net home sales proceeds after payment to the Senior Lender or the Minimum Release Price, whichever is higher.  Release prices typically ranges from 110-125% of the Mezzanine Loan Amount per home.  Upon pay off of Mezzanine Loan, Exit fees will continue to be paid until all the homes are sold.

Interest Reserve Account:  Interest payments are due monthly, with the first 6 to 18 months funded and retained by Mezzanine Lender in an Interest Reserve Account with interest accruing to the benefit of the Borrower.

Collateral:  A 2nd Trust Deed on the Property, a third party Guarantee for 100% of Principal and Interest and a Pledge of Borrower Ownership Interest.

REAL ESTATE PROJECTS

Mountain Capital Group has provided equity for the following residential subdivisions delineated by location:
                                                            Number            Equity in                       Number
                                                            of Projects        Millions                        of Units
Texas, Las Vegas and Colorado           6                    $ 23,000,000               1,243
Northern California                               11                    $ 38,000,000               1,449
Southern California                              26                    $127,000,000              4,370
                                                            43                    $188,000,000              7,062

In addition, MCG has provided equity for apartment and retail center acquisitions.