1st AAA Commercial Mortgage Lender Databank

For California Residents Only

PROPERTY INVESTOR SUITABILITY STANDARDS

Units will be sold only to “accredited investors” as defined under Regulation D, adopted by the Securities and Exchange Commission under the Securities Act of 1933 (the “Act”) who also meet the additional income and net worth requirements described herein (“Accredited Investors”). All Accredited Investors must be of substantial means with no need for liquidity with regard to this investment and must meet certain eligibility and suitability standards, some of which are set forth below, and must execute a Subscription Agreement in the form attached hereto as Exhibit C (the “Subscription Agreement”). By executing the Subscription Agreement, an Investor makes certain representations and warranties upon which the Manager will rely in accepting subscriptions. Read the Subscription Agreement carefully.

In order to qualify as an Accredited Investor, an individual Investor must satisfy the requirements of either paragraph (1) or (2) below and, in addition, must satisfy the requirements of paragraph (3) below:

(1)        The Investor’s net worth, or joint net worth with such investor’s spouse, at the time of purchase must exceed $1,000,000 (the value of the Investor’s home, furnishings and automobiles may be included for purposes of calculating such investor’s net worth under this paragraph); or

(2)        The Investor’s income exceeded $200,000 in each of the two most recent years, or joint income with his or her spouse exceeded $300,000 in each of those years, and the investor has a reasonable expectation of reaching the same income level in the current year; and

(3)        Each Investor must have either: (a) a net worth of at least $250,000 and an annual gross income of at least $65,000; or (b) a net worth of at least $500,000. (the value of the Investor’s home, furnishings and automobiles may not be included for the purposes of calculating such Investor’s net worth under this paragraph).

Other standards may apply to investors that are not individuals, such as trusts, partnerships or other entities. Specific questions concerning Accredited Investor status should be directed to the Manager.

All Units may be acquired for investment purposes only, and not with a view to, or for resale in connection with, any distribution thereof (see, “Restrictions on Transfer”).

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If you would like to talk to our investment department, please contact Warren More
at 916-338-3232 or 800-606-3232 between the hours of 8:30 a.m. and 5:00 p.m. PST Monday--Friday.Real Estate Broker
California Department of Real Estate -- License Number 829677