Lokal Homes

The collateral for this loan consists of seven superpads that will allow for the ultimate construction of eight condos per pad (56 condo units in total) which are located in Colorado Springs, CO (approximately 61 miles south of Denver, CO). These 56 condo units are part of a larger condo project that already has 40 units constructed. Because the project has a stigma as a broken development along with the previously onerous construction defect laws, most developers have steered clear of this project. Lokal Homes has purchased a few of these types of projects throughout the Denver metro area with great success. Loan Type: This Master Loan will be sold in tranches, giving investors the opportunity to invest in one or more buildings in the community. A breakdown of the lots is shown on the next page. Yield: 10.00% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period. Term: 9 months with an optional 9-month extension period at maturity.

The collateral for this loan consists of 44 partially developed townhome lots located in Colorado Springs, CO (approximately 61 miles south of Denver, CO). These 44 lots are part of a larger 221 lot community known as Victory Ridge which the borrower acquired about a year ago. The townhomes will average 1,500 square feet in size with an anticipated sales price averaging over $340,000. This is the second of three takedowns the borrower has elected to take from the seller. Lokal Homes has the option to purchase the remaining lots within Victory Ridge and are slated to do so in the coming months. Directly to the north of the property is a newly opened Icon Cinema in a growing “Interquest Corridor”. Master Loan Amount: $3,124,000 Tranche Loan Amount: $71,000 Loan Type: This Master Loan will be sold in tranches, giving investors the opportunity to invest in one or more lots in the community. A breakdown of the lots is shown on the next page. Yield: 10.00% interest is paid monthly in arrears with payments due on the 1st of each month with a 10- day grace period. Term: 9 months with two optional 9-month extension period at maturity.