Hedge Fund/Trust Fund Direct Agent Source A

New Source A April 26, 2008

HEDGE FUND DIRECT AGENT

WE DEAL DIRECT WITH HEDGE /JV/PRIVATE INVESTORS/ MERCHANT BANKERS ETC.  THE PLATFORMS THAT SOURCE A  REPRESENTS ARE NOT AVAILABLE FOR PUBLIC VIEW.  THESE GROUPS WORK THROUGH AN APPOINTED POSITION THAT SOURCE A HAS ORDAINED.

PLEASE REMEMBER THAT WE HAVE A FULLY_EARNED NON_REFUNDABLE CONSULTANT FEE OF $25,000 PER PROJECT.

THESE ARE HIGH END COMMERCIAL PROJECTS, REFINERIES, DRILLING, ORE MINES, MILLS, WIND FARMS, ETHANOL PLANTS, CASINO’S MARINAS, RESORTS, INCOME PRODUCING PROPERTIES ETC.

LOAN AMOUNTS FROM $10M TO NO LIMIT.  THEY WILL DO 100% LTV WE DON’T NEED CREDIT OR FINANCIALS FOR MOST PROJECTS.  AND THE PRINCIPAL(S) DO NOT HAVE TO HAVE ANY $$$ IN THE PROJECT AND NO IT’S NOT HARD $ – WE FUND ON THE TOTAL PROJECT AS LONG AS ITS INCOME PRODUCING.

THESE ARE NON-REPAY LOANS AND /OR NON-RECOURSE LOANS.

WE FUND ALL OVER THE WORLD AS LONG AS THE COUNTRY IS NOT AN ENEMY OF THE US/COMMUNIST COUNTRY OR INVOLVED IN A CIVIL WAR.

THE PRINCIPAL(S) MUST PROVIDE BUSINESS PLAN/EXECUTIVE SUMMARY/PROFORMA/ BREAKDOWN OF FUNDS WITH A DETAIL USE OF FUNDS WITH EXIT STRATEGY.

IF THERE IS MORE THAN ONE PHASE THAN WE WILL NEED THE BREAK DOWN OF EACH PHASE.  .  .  THE PLATFORMS WOULD BE INTERESTED IN FUNDING THE ENTIRE PROJECT AT 100% OF THE TOTAL COST TO DEVELOP THE PROJECT.  HOW MANY PHASES?  COST FOR EACH PHASE?

THERE ARE MANY PRODUCTS AND PROGRAMS AND DEPENDING ON THE WANTS AND NEEDS OF THE PROJECT AND THAT OF THE PRINCIPALS, THE FUNDING WOULD VARY IN ACCORDANCE TO THAT OF THE PLATFORM MANAGER IN RESPECT AS TO WHICH GROUP WILL PICK IT UP AND WHAT INSTRUMENTS WILL BE USED FOR THE FUNDING.  FOR EXAMPLE:

THE JV REQUEST WILL TAKE 30% AND FUND THE WHOLE PROJECT.  THE PRINCIPAL(S) WILL NOT HAVE TO REPAY THE LOAN.

THE CD/ BOND/ CIP/ ETC. PROGRAM WILL BE 100% @ 10 OR MORE YEARS DEPENDING ON THE PROGRAMS.  AND OR INSTRUMENTS USED TO LEVERAGE.  PAYMENTS MADE FROM 2 TIMES PER YEAR OR OTHER, NO INTEREST.  ALL PROGRAMS WILL FUND TOTAL PROJECT ALL PHASES AT THE SAME TIME
THIS IS SOME OF THE MANY PRODUCTS THAT WE OFFER

10% LEVERAGE HEDGE

You will be required to escrow the sum of 10 %( as leveraged from owned assets) of the requested loan amount into your established account.  This SUM will go under management and will be refunded back into the loan request as the (Hedge fund) will over fund so that you get the 10% back in the funding.  The 100% is loan to cost not to exceed 70% loan value of future completion value.  The terms are LIBOR or LIBOR + 1.50% x20 to 30 year AMT. with 18 to 24 months deferred payments.  Non-Recourse FUNDS IN 30 TO 45 DAYS

STRAIGHT HEDGE

No liquid cash required can use other assets if needed but not required for most projects

Terms would be 6% to 8% -20 TO 30 YEAR AMT with 18 to 24 months deferred payments.  Nonrecourse. FUNDS IN 30 TO 45 DAYS

JV 100%

100% Joint Venture Commercial Funding.  This is a project based loan, not borrower based, and the joint venture funds 100% plus most costs.  The borrower does not need to show assets or net worth.  The joint venture takes between 30%-40% of the equity.  No payments and no pay back.  Minimum Loan Size: $20 Million – No Maximum (involves Life Settlements).

Equity Hedge Leverage Wrapped by SLS’

100% Financed

Amount must be over $20M

No Debt, No Interest, No repayment

Must give up 30% equity

Funds in 60-120 days

CD Leverage Jumbo Fund

100% Financed

Amount must be over $10M

Borrower must have liquid funds of $125K DOES NOT CHANGE HANDS this insures a borrower can even qualify for this program

No debt, No Interest, No repayment

Funds estimated 45 + days per done in Trances

Straight Hedge LIBOR Fund (3 Funds Currently Utilized)

100% Financed

Amount must be over $500M- NO Limit

Must be a strong, viable, project and borrower.  ANY TYPE of project is considered as long as the borrower and exit strategy is VERY strong

Libor + 2-3% must have an exit strategy showing a 36 MONTH or LESS payback

No equity needs to be given up.

Funds in 45 – 60 Days

SBLC AND PROOF OF FUND SERVICES

SBLC and POF products, with instruments available from $10M to $100M.  The instrument will be issued from a Top 25 rated world bank and are to be used for collateral enhancement only, with our own confirmed tombstones on these (as recently as November).  If you or clients have any need for such a service, please do let us know.

NEW SUBSTITUTION OF COLLATERAL PROGRAM

Pension fund-backed SOC program that is picking up speed.  Projects of all types are accepted, and at most places, internationally.  Minimum submission amount is for $100M and the project will be free-and-clear, with no debt-service, once fully funded.  The equity share with the lender will be in the 35 to 50% range.

HEDGE FUND
PROGRAMS PROVIDE 100% FUNDING –HOTELS /MOTELS –RESTAURANTS-MALLS-THEME PARKS- CASINOS- RESORTS- MARINAS-ENERGY PROJECTS, REFINERIES-WIND FARMS-ETHANOL PLANTS –MINES-MILLS- OFFICE – RESIDENTIAL RELATED PROJECTS.

JOINT VENTURES

WILL TAKE-20%- 30% AND FUND THE WHOLE PROJECT.  THE PRINCIPAL(S) WILL NOT HAVE TO REPAY THE LOAN.

SUBMISSION PROCEDURES:

SOURCE A Business Development Department does not have the time to read all information sent by each broker or principal(s)

In an effort to streamline the review process for these projects, this is the way we NEED to receive information.

Please encapsulate the project summary in a short narrative in simple terms as to what the deal is including LTV and money that has been put into the deal.  Attach all pertinent information that has been provided including the borrower information so we can set conference calls.

PLEASE FOLLOW SUBMISSION PROCEDURES IN FUTURE PROJECTS

ALL DOCUMENTS MUST BE WITH CLIENTS INFO AND NOT THAT OF OTHERS. ALL FORMS MUST BE COMPLETED BY THE PRINCIPAL(S)

ALL FORMS FROM SOURCE A MUST NOT BE CHANGED OR ALTERED. NO OTHER LOGO’S OR CONSULTANTS/BROKERS NAMES MUST APPEAR IN FORMS

PLEASE INCLUDE PRINCIPAL(S) OR BORROWING ENTITY FINANCIAL STATEMENT AND BREAKDOWN OF ASSETS

E MAIL OR CALL FOR SUBMISSION FORMS

ANSWER THESE QUESTIONS FOR YOUR PROJECT:
WHAT KIND OF TRANSACTION IS THIS?

LAND

RAW LAND

HOW MANY ACRES?

WHAT IS THE CURRENT VALUE?

WITH EXISTING STRUCTURE- WITHOUT STRUCTURE

LAND AND BUILDING ACQUISITION

IS THERE A REHAB /IMPROVEMENT OR REPAIRS/ADDITION OR DEMOLITION AND REBUILD?

NEW BUILDINGS CONSTRUCTION

IS THERE A PAYOFF BANK LOAN OR PRIVATE/HOW MUCH WHEN IS IT DUE?

HOW MANY PHASES ARE THERE?

IS THE PROJECT FULLY ENTITLED/COMMISSIONED?

IS THERE A CURRENT APPRAISAL?

IS THERE AN AFTER MARKET/SUBJECT TO APPRAISAL OR A HYPOTHECATED APPRAISAL?

IS THERE A CURRENT PURCHASE CONTRACT?

HOW MUCH IS THE CONTRACT FOR?

HOW MUCH MONEY IS FOR THE BINDER DEPOSIT?

HOW LONG IS THE CONTRACT FOR?

WHEN DOES IT EXPIRE?

WHAT IS THE PHYSICAL ADDRESS OF THE PROJECT –LOCATION STATE/COUNTRY?

HOW MUCH MONEY HAS BEEN INVESTED INTO THE PROJECT AND WHAT WAS THE MONEY USED FOR?

IS THE BUILDER/DEVELOPER/PRINCIPAL(S) EXPERIENCED?

DO THEY HAVE FINANCIALS?

WHAT IS THEIR LIQUID ASSETS?

1. WHO –   ARE YOU?  PRINCIPAL/BUILDER/DEVELOPER/ ETC.  IF YOU ARE NOT THE PRINCIPAL- WE NEED THE LIST OF ALL OTHERS INVOLVED.
2. WHAT – TYPE OF PROJECT ARE YOU TRYING TO GET FUNDED?
3. WHEN – DOE’S THE PROJECT HAVE TO CLOSE?  IS THERE A CONTRACT DATE?

4.  WHERE- IS THE PROJECT LOCATED?  ADDRESS/COUNTRY
5.  WHY – YOUR PROJECT SHOULD BE FUNDED?
6. HOW – MUCH MONEY IS REQUESTED?
7. HOW – MUCH MONEY HAS THE   PRINCIPAL INVESTED INTO THE PROJECT?
8. HOW – MUCH   NET WORTH/ASSETS DOES THE PRINCIPAL/COMPANY HAVE?  (Both liquid and fixed)

EXAMPLE SHORT SUMMARY.

.  1. THIS PROJECT CONSIST OF LAND/EXISTING BUILDING/ ACQUISITION AND CONSTRUCTION OF, RESIDENTIAL/COMMERCIAL DEVELOPMENT TO INCLUDE, ETC, ETC.

2. THE PRINCIPAL/OR MY NAME IS AND I AM A XXXXX IN CALIFORNIA.  MY CLIENT/THE PRINCIPAL/ I HAVE- BEEN A DEVELOPER/BUILDER ETC. FOR XYZ YEARS – HAVE/HAS    ACCOMPLISHED  XYZ PROJECTS .THE XYZ PROJECT LOCATED IN XYZ WAS VERY SUCCESSFUL AND THE XYZ PROJECT WAS ETC,ETC,ETC (SHORT HISTORY/BIO)

3.  PROJECT NEEDS TO BE FUNDED BY XYZ DATE
4. PROJECT IS LOCATED AT XXX  MAIN ST. ST. CONCORD CALIFORNIA.
5. THIS PROJECT IS VERY LUCRATIVE BECAUSE THE DEMOGRAPHICS AND THE LOCATION IS IN HIGH DEMAND.  THE PROJECT CURRENTLY HAS XXX PRESALES AND COMMITMENTS THAT ARE IN ESCROW.
6. $XYZ million USD IS THE REQUESTED LOAN AMOUNT FOR THE TOTAL TO COMPLETE THE PROJECT FOR ALL THE PHASES.
7. THE PRINCIPAL HAS INVESTED   $X XXX, 000 THIS INCLUDED PERMITS, ENTITLEMENTS, APPRAISAL, ENGINEERING, BUILDING PLANS/ARCHITECTURE/ATTORNEY/MARKETING.
8. THE PRINCIPALS NET WORTH IS $ XYZ MIL, IN REAL ESTATE HOLDINGS $XYZ, 000 CORPORATE/BUSINESS ACCOUNT, $XYZ, 000 PERSONAL CHECKING/SAVINGS, $XYZ STALK ETC, ETC,

SUBMISSION PROCEDURES

Name of the PROJECT?  Need a BUSINESS PLAN- EXECUTIVE SUMMARY-PROFORMA with detailed use and break down on funds for each phase if more than one.

ALWAYS PUT THE NAME OF THE PROJECT ON THE SUBJECT LINE OF YOUR EMAIL.

PLEASE INCLUDE ALL PRINCIPALS CONTACT INFO

PLEASE DO NOT REMOVE SOURCE A LOGO/INFORMATION ON FORMS- DO NOT REPLACE WITH ANY OTHER BROKER/COMPANY INFORMATION ON THESE FORMS

Please use the name of the project in the subject area, and be consistent in referring to each project and further, please submit only one project per email.  Multiple emails for file delivery for the same project is fine, be sure to note part 1 of 2 etc.

SAMPLE SUMMARY

1. NAME OF PROJECT

2. THE PROJECT IS LAND ACQUISITION AND CONSTRUCTION WHICH INCLUDES RESIDENTIAL AND COMMERCIAL DEVELOPMENT.  THE CONTRACT EXPIRES ON- XYZ DATE.
4. THE PROJECT IS LOCATED.  (WE NEED THE ACTUAL PHYSICAL ADDRESS)
5.  THIS PROJECT IS VERY PROFITABLE BECAUSE, ETC, ETC, (show presales) AND/OR (commitments from buyers), (SHOW ESCROW HOLDINGS)
6.  THE TOTAL LOAN REQUEST TO COMPLETE THIS PROJECT (include all phases if more than one) is$XYZ million (USAD) is needed for the entire project.
7. PRINCIPAL HAS INVESTED $XXXXXXXX (TOTAL TO INCLUDE: PERMITS, ENTITLEMENTS, ARCHITECTURE, / BUILDING PLANS, / ENGINEERING, BINDER DEPOSIT ON ACQUISITION.  AND ANY OTHER RELATED FEES.
8. PRINCIPALS NET WORTH =XYZ MIL, -$XYZ MIL IS IN REAL ESTATE HOLDINGS, AND $XYZ IN ABC CHECKING/SAVINGS/BUSINESS/PERSONAL ACCOUNT

10. BUSINESS PLAN

11. EXECUTIVE SUMMARY

12. PRO FORMA-(To include total break down and detail use of funds).  (If more than one PHASE, need all phases)

13. EXIT STRATEGY

14. TOTAL LOAN REQUEST – 100% (cost to develop/ Build.)

15. TOTAL COST @ 100% INCLUDING ACQUISITION PLUS THE TOTAL COST OF EACH PHASE IF MORE THAN ONE (not including Binder Deposit, Entitlements, Permits, or Appraisal, etc.)