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          Detroit Michigan USA

                        (Draft H3)

Providing excellent returns and affordable housing

•   Essential FEATURES                                          3
•   The OPPORTUNITY                                             4
•   The NUMBERS                                                 5
•   EXPENDITURE                                                 6
•   EXIT STRATEGIES                                             7
•   PROCESS                                                     8
• THE MANAGEMENT                                                9

           »   Who are BerkleyTRIO?                        11
           »   US taxation, case studies.                  12
           »   Re-finance, example.                        13
           »   LLC, Q & A.                                 14
           »   HCV Program.                                16
           »   Detroit.                                    17
           »   US dept of Housing and Urban Development.   18
           »   Homes, selection of 3 & 4 bedroom houses.   19
                ESSENTIAL FEATURES


–   Pre Tax NET yields 16%+ (with equity of 30%+)

–   An Ethical investment, Recycling Foreclosed empty Homes.

–   An Ethical investment, housing low income Families

–   Mortgage Re-Finance available

–   Properties are US Department of Housing Approved (HUD)

–   3year + Investment strategy (ideally)

–   Secure Government Backed Rental Payments

–   Fully Managed & Regularly Inspected

–   Inspection reports every year

–   No shortage of Tenants

–   FREE Appraisals

–   Real EXIT strategies

–   Staggered Re-Sale Commissions

                                    The OPPORTUNITY
We are a collaboration of Property, Finance, Investment and contracting professionals from both sides of the Atlantic. Through
combining our talents, we offer clients great yields with an ethical platform.

We ‘recycle’ houses, turning foreclosed and uninhabitable houses, in the US, into refurbished, clean, safe homes for low income and
often homeless family rental. These families are homeless, in many instances due to landlord foreclosures. We provide a much required
service to a region struggling with a shortage of 30,000 rental homes.

We offer all our investors the benefit of a ‘hands free’ investment. For the first 24 months we will completely maintain the property at
NO COST to the investor. The owner will only be required to pay property tax and insure the property throughout the ownership.
We refurbish all our investors’ properties at outset, within one all encompassing cost. We know the property, we know its’ standard, we
can GUARANTEE NO MAINTENANCE costs to the owner, whatsoever, for the first 24 months of ownership.

This project is designed for investors looking for a medium to long term investment, ideally 3 years plus. To show our long term
commitment to this project, we make our real profit when you do, on the Re-Sale. We make nominal profits via the initial sale and
management, but our real profits are made when you make yours, on Re-Sale. We charge you a commission to negotiate and manage
the Re-Sale, most often back to the tenant, which is a long process started from the day they move in. Our profit is related to the price
achieved. We do not charge any commission if your property is sold below $60000. Thus we only profit if you do.

Due to the experience of our team working with US banks, we are able to bulk buy. We have to move quickly
to get the best deals. Our strategy is to buy the best properties available for our investors and then refurbish immediately,
keeping costs down. The buying process takes up to 2 weeks. Once ‘closed’ (completed) we then refurbish all within one price.
Refurbishment monies are held by a US attorney in Escrow until works are completed. Once fully refurbished and turned into a ‘home’
these houses are between 30% and 45% below current appraised market prices, as confirmed by an independent appraiser. This is not
a discount from a developer that cannot sell his development, or new homes that are ‘left over’ or failed to sell. All properties are REO’s
(Real Estate Owned), foreclosures, (repossessions), with the aim of getting secure tenants backed by the US Department of Housing
and Urban Development (HUD), or an appropriate housing authority funded by HUD.

We are working with and assisting local authorities in the US with their housing shortages. We are providing working families with clean
quality homes in their own neighborhoods, at prices that are affordable. We concentrate our efforts in the 3 and 4 bedroom housing
market which are in far greater demand. This avoids problems that can sometimes be associated with single or dual occupancy homes.

Our investors receive excellent yields with the additional benefit of knowing that they are helping to solve a housing crisis, assisting low
income families in US, often not as fortunate as themselves, with the security of the Section 8 HCV Program backed by the US

We try to focus on ‘65%’ Section 8 HUD program. Our tenants are mostly employed, but earning less than 65% of the median income
for the government statistical area. This also means that we are recycling homes in stable working neighbourhoods, helping to keep
family communities alive. Our program is set to purchase and refurbish 5200 family homes in the Detroit area during 2009/10.

In Summary

•       Maintenance FREE for 24 months. GUARANTEED.
•       3 year+ Investment strategy (ideally)
•       Refurbished to HUD standards and subject to their approval.
•       Once refurbished property will have 30%+ equity approx.
•       Excellent pre tax net yields of approx 16%.
•       Independently appraised and valued.
•       Secure, vetted Tenants, working on low incomes in the majority of cases.
•       Secure rental payments backed by HUD or similar authority.
•       Fully Managed and regularly inspected.
•       An ample waiting list of approved Tenants with Vouchers.
•       This is not an ‘off plan’, a ‘holiday let’ or ‘new town’ development,
•       Easy IRS dealings, as annual account provided.
•       Discounted LLC set up.
•       Re-Sale Commissions from 0%. If you don’t make a profit, neither will we.
•       Cash purchase only.
•       Re-finance available, subject to acceptance.

                                                      The NUMBERS
We look to attract families and are therefore targeting single family occupancy dwellings rather then apartments, or
duplex units. We DO NOT include „White Goods‟ unless specifically requested which is at the discretion of the Landlord
and could increase rent**

Houses are 3 or 4 bedrooms only. This ensures family occupancy, with a greater possibility of equity growth, higher
yields and the added security that a family brings. 3 and 4 bedroom properties are in rental demand.

These are examples of 3 and 4 bedroom homes.

                                                                         3 Bed                                    4 Bed

                                 *Buy Price
                                                                         $45500                                   $47000
                                 **Rent Per Month                        $900                                     $950

                                 Per Annum
                                 (Net of Management
                                                                         $9,720                                   $10260

                                 Gross Yield                             21.36%                                   21.82%
                                 ***Annual                               $2500                                    $2500

                                                                         $7220                                    $7760
                                 Pre Tax Yield
                                                                         15.86% 16.51%
                                    WE DO OUR UTMOST TO GET THE HIGHEST RENT POSSIBLE.

                            up to 60% of Purchase Price, Non-Status basis, full quotation and pre approval available****
                                          contact us for more information
* Sale Prices quoted are based on the purchasing of a portfolio of 10 properties
** Rents quoted are Fair Market Rents, laid down by HUD . Actual rents vary and are dependent on the Housing Authority, Tenant, Actual property and Zip Code. If Tenants
request the supply of White Goods rents will be increased accordingly. The landlord can supply these or if not, these can be supplied by B3 subject to agreement.
*** The annual deductions include Property Tax, Insurance.
****Mortgage Re-Finance ONLY available at the Lenders‟ discretion. Mortgages are in US dollars. There will be fees payable. Mortgages are NOT regulated by The Financial
Services Authority.

Rental income is subject to US income tax, at a rate determined by your total US income. Depending on your circumstances you may be required to pay a percentage of local
income tax in your country of residence. You will be liable for personal income tax in the UK. The USA and the UK have a taxation agreement currently. Seek advice from a
qualified individual. Other countries may have similar arrangements, We would recommend individual local country, and client specific taxation advice. For the UK we have
arranged a Chartered Accountant who will organise a tax return for you at significantly reduced rates. All costings are based on expenditure for a single property; discounts on
expenditure may be available for multiple ownerships. We have other arrangements in other European countries.

While each State in the US conducts real estate transactions to their own guidelines, the overall purchase process
surrounding buying a property in the US is still quite similar to the UK. For the State of Michigan, your transaction will be
conducted with the assistance of a US Lawyer, working on your behalf.

You can use our lawyers at a negotiated reduced rate, or use an alternative lawyer at your own additional expense.

Once the purchase process has completed, „closed‟, each property is registered in the name of your name or perhaps a new
US LLC. You will then receive a Warranty Deed, Free and Clear Title, Title Insurance and all related legal documentation.

Expenditure based on a 4 bed house price                                                       $47000
Pre Closing/Exchange, Stage 1 costs,
Discounted Lawyers Costs                                                                       $300
10% Property Secure Fee                                                                        $4 700                         ($400 for LLC set up and filing, paid now if applicable)
STAGE 1 TOTAL                                                                                  $5 000                         (inc LLC $5400)

The property will now be secured with your property secure fee, and documentation for closing prepared.

CLOSING: Stage 2 balance plus fees and charges. (known as, „‟Completion Cost‟, in the UK)
Purchase costs
City Tax                                                                                       $63
Recording Tax                                                                                  $25
Title Insurance Fee                                                                            $455
Bank Charges                                                                                   $100
Ongoing annual costs
Property Tax *                                                                                 $1800
Buildings Insurance *                                                                          $700

Purchase and Annual Stage 2 sub Total                                                          $3143
Balance of Purchase Funds                                                                      $42300

Stage 2 total                                                                                  $45443
Stage 1 total                                                                                  $5000
FINAL TOTAL                                                                                    $50443                         (inc LLC $50843)

TOTAL PURCHASE FEES                                                                            $3443                          (inc LLC costs $3843)

We will supply an independent Appraisal after full refurbishment at our expense.

The Building‟s Insurance and the Property Tax figures are accurate but are subject to change. They are payable every year
by the owner and may vary year on year. All other expenses above are „one off‟ expenses, only paid on the initial purchase.

These can all be treated as a tax deductible expense prior to paying US Income tax on the rental profit.

**Limited Liability Company (LLC) set up                                                       $300 plus $100 filing fee
** Delaware/Nevada LLC set up                                                                  $400 plus filing fee

*Property tax and Insurance costs quoted are estimated and will vary. These figures are based on a 4 bed house.
** LLC have an annual member return fee, currently $150 per member for standard related income. LLC, Delaware/Nevada are quoted individually.

                                     EXIT STRATEGIES
Currently there are 5 exit strategies. As this is a medium to long term investment, we advise holding the properties for 3 years
or more. However, subject to liaison with the Management, you are not tied to any specific term.
The property can be sold mid tenancy, but only to the Tenant or another investor. Alternatively, you can wait until the tenancy
is due for renewal and choose not to renew.

The main EXIT strategy is to sell to your tenant. From day 1 of the tenancy our advisors prepare your tenant for the eventual purchase of
your property at market rates. This involves considerable effort from both sides and is part of our on going management support. There is
obviously no guarantee that your tenant will want to purchase their rented home, and at the same time no guarantee that you in turn will
want to sell.

If you don’t make a profit, other than rental income, neither will we.
The Management company, have a team of experienced licensed Real Estate Professionals, who on your instruction, will organise the
disposal of your single property or portfolio. Remember, we recommend a 3 years or more investment strategy to maximise returns.
To show our commitment to this project and our continued business partnership, we have a structured sales commission based on Profit.
It is in our long term interests to manage and maintain your property consistently selecting properties and areas with the greatest potential
for capital growth. So confident are we that you will profit from capital growth, our resale fee structure benefits us only as we increase your
profit and should you not make any profit on sale we will not charge you a penny, a dime or a cent!.

Re-Sale Price achieved            to $60k                       then BTM Commission 0%
Re-Sale Price achieved            $60-75k                       then BTM Commission 5%
Re-Sale Price achieved            $75-100k                      then BTM Commission 10%
Re-Sale Price achieved            $100-125k+                    then BTM Commission 15%
It is therefore in our interests to get the very highest price possible for your Re-Sale and Exit of this investment.

Exit Options.
1.      Sell at Market Value to your Tenant. We actively manage your property and your tenant, getting them organised and ready, once
        they qualify, for a government backed mortgage. This is your main built-in exit strategy.

2.      Sell on the Open Market. As the general market picks up, we have links to agents around the city.

3.      We match sellers together so single units are bunched by the Management Company and sold off as Portfolios to investors.
        Portfolio clients‟ can sell to Investors, both have the advantage of confirmed track record of rental return.

4.      A blend of 1, 2 and 3 will allow for a faster exit based on a portion of tenants taking up the mortgage guarantee offer as well as
        open market sales and portfolio sales.

5.      Subject to availability, Re-Finance your portfolio and generate capital, tax free.

Alternatively you can always retain ownership of your property and continue to benefit from excellent yields,
or choose to sell before year 3, by simply instructing us and we will source a buyer.

This is a Cash investment. Although, subject to status Mortgage re-finance is available
There are no „up front‟ mortgages available at the moment. This is mainly due to the nominal levels of borrowing that would be required
and lenders minimum loan levels being on average 60% with a minimum loan of $75k for non US residents.

HOWEVER, for US and Non-US residents refinance is available on a non-status basis, subject to lenders discretion. This is currently to a
Maximum of 60% of the purchase price paid and available after 1 months rent can be proven and takes a further 4 weeks to release of
funds, although for an additional charge this can be brought forward to 5 days!

Call us now for a bespoke quotation.
If your satisfied with the quote, we can get your Pre-approved even before you purchase

This product is not regulated by the Financial Services Authority in the United Kingdom, and as such is not subject to FSA regulations

                         Contact us now for more information
                       •    We confirm availability, time frames and properties available
                       •    Our experts will recommend or you can select your property
                       •    10% or 100% of price, plus fees transferred to Escrow Client Account., LLC set up
                       •    Contracts are signed and we then secure your property using your 10% property secure fee.
                       •    Taxation codes applied for, US bank account opened
                       •    Lawyer conducts all necessary searches and title transfers
                       •    Balance of funds are transferred to Escrow Client account
                       •    US lawyers request balance, this is transferred to the US lawyer Escrow account
                       •    Closing. The property is now yours
                       •    Refurbishment starts, funds issued on completion of works by US lawyer
                       •    HUD re-inspection/ tenant confirmed
                       •    Independent appraisal conducted
                       •    Tenants move in
                       •    Rent Paid

Money Transfer You can use your own US Dollars or FX company.. Alternatively Global Currency Exchange
Network (GCEN), a market leading currency dealer endeavor to offer the best rates available. On the day of Transfer,
they will contact you directly to organise the transfer and „book‟ the exchange rate, then you transfer the equivalent
funds from whatever currency you choose into US$ to our Escrow Client Account for onward transmission to the US
lawyers on request. With bulk buying power our clients get excellent rates.

Purchase Document Pack           We send through to you, by email or courier, all the paperwork and contracts for your
completion. You will need to check you are happy with all the conditions of the contract, and sign accordingly. You can
at any time ask the US lawyers any questions you may have or appoint your own lawyer in the UK or US to check
things for you. Any other Lawyer‟s advice will be at your own additional expense.
The purchase pack will contain the following documents:
Confirmation Form / Bank Account Application /GCEN Application / Tax registration form / Management Contract

Property Secure Fee Once all paperwork is received the 10% property secure fee (deposit) plus legal costs lodged
are now paid in order to secure the property. From this point onwards the secure fee and legal fees are non refundable.
In many cases we are able to secure and close within a week or two. We then liaise with the lawyers and clients in
relation to the management and tenants contracts, US bank account, and tax registration. We also organise property
insurance and ID confirmation. The balance of funds and fees outstanding are then transferred to the Client Account.

Closing (completion) Closing takes place within 1-2 weeks. You will be advised of the time frames prior to paying the
property secure fee. Time frames can be longer and are sometimes staggered dependant on your portfolio. The total
balance required is then transferred to the US lawyer Escrow account for closing to take place. Refurbishment will start
immediately and funds released by the Lawyer as work is completed.

Closing Pack Investor client will receive a pack containing an independent appraisal condition report, full details of
each property along with title deeds and insurance. (we store a copy of all these documents) There are no negative
appraisals, as all properties are refurbished to a high standard so that they meet the HUD code. However in the
extremely unlikely event of any defects being detected by HUD or the appraiser these will be rectified, repaired, and
reappraised at no additional cost to the investor. This condition is for your security within the sales contract. Properties
are occupied within a further 3-6 weeks. Our aim is to have a tenant in residence within 35 days of closing. Due to
unforeseen circumstances this could be longer, although rare. We keep you fully informed of progress.
Where possible the tenant will pay 1 months Security deposit held in a client account, this is refunded to the Tenant
upon leaving, subject to Michigan Law and satisfactory inspection.

Optional Extras
LLC Set up $300, Filing fee $100, ongoing Member IRS returns $150 each member (BT only)
Non LLC Annual IRS return $150
Delaware/Nevada or Michigan LLC company set up $400. plus filing fee.
Use of own Lawyers (incurs their costs on average $500 per property, plus additional liaison charges of $250)

Once your tenant has moved in, the Management company take over…….
                         PROPERTY MANAGEMENT
We recognise that the prospect of owning and operating a rental property can be somewhat daunting (regardless of the yields), for
investors who are thousands of miles and a 9 hour flight away.

Our Property Maintenance & Management Services are part of your investment package. We have put together, a team with a
tremendous amount of expertise in this area. The two main drivers of the management company have over 65 years of combined
experience and have actively rehabilitated, sold, leased and managed in the Detroit area for over 25 years. One of our principals is a
licensed real estate broker and we also have licensed residential appraisers.

The Management agreement will include the following services:

•   HUD Approval and code compliance
•   Securing a Tennant
•   Storage of all tenancy agreements, guarantees and documents
•   Storage of all copies of legal documents, transmission originals to clients.
•   Tenant liaison
•   HUD liaison
•   HCV liaison
•   Production of an annual account statement for IRS return/CPA use
•   Organisation of IRS return with our CPA at discounted rates
•   Errors and Omissions Policy (like malpractice insurance)
•   Securing any replacement Tenant
•   Collection and monitoring of Section 8 HCV rent
•   Collection of Tenant top up and monthly inspection. (if applicable)
•   Regular inspections visits and reports a every year
•   Rent reviews
•   Tenant deposit store
•   Active Management
•   Active Re Sale strategy.

For the first 24 months we will repair any and all required maintenance at absolutely
no cost whatsoever to the investor. We refurbish and look after the property in an
active way. We know we do an excellent job and can therefore offer this ‘expense
free’ guarantee. This is all confirmed in the sales and management contract.

We, receive the „coupon‟ or „voucher‟ rent direct from HCV on or about 1st of each month, we also collect any top up due by the tenant
within 4 days. Top up‟s are always paid by some recordable means, Cheque, Money Gram/Order, Credit/Debit Card or Transfer.
To ensure there can never be any misunderstandings with tenants or landlords, we do not accept cash payments from tenants for their
part of any rent due. We only accept some kind of recordable means. The total rent net of fees, after collection is paid directly to the
investor‟s US bank account. This is your account. We have no access to the funds, only the ability to make deposits.

The total annual income you receive, the Gross, is then reduced by deducting all your annual expenses, including any maintenance,
property tax, insurances, tax adviser costs, and depreciation, this will give you the Pre Tax Net profit which is subject to US income tax
currently ranging between 10% - 35%. Dependant on your circumstances you may also be liable to a proportional amount of income tax
in your country of tax residence.

We have tax accountants at favorable rates who can deal with this for you or you can source your own.

The Management Company is fully aware of the realities of business.
To protect all its clients, and ensure additional security we are fully insured against errors and omissions. This specifically handles
employee or financial negligence, errors, theft or dishonesty.


• US taxation, case studies.                       12

• Re-finance, example.                             13

• LLC, Q & A.                                      14

• HCV Program.                                     16

• Detroit.                                         17

• US dept of Housing and Urban Development.   18

• Homes, selection of 3 & 4 bedroom houses.   19
                              TAX CASE STUDIES
Mr Allen buys a 4 bed property at $47000. He has no other US taxable income whatsoever.
After paying management fees, property tax and insurance he is left with a pre tax profit of $7760
The US IRS gives a tax free allowance in the form of ‘depreciation’ which is based on 90% of the purchase
price divided by 27.5 years. This is known as straight line depreciation. This is a deduction of $1538.18
This leaves taxable income of $6221.18
The total US tax due on Mr Allen’s investment is $622. Deduct this from the pre tax profit of $7760, leaves
a balance after US income tax of $7138

Therefore the yield is $47000 / $7138 =   15.18% return after US tax
Miss Johnson bought a portfolio of 5 properties all 4 bedrooms for a total of $235000. Each property produces
a pre tax profit of $7760x 5 = $38800. This is his only US taxable income.
Using the same straight line depreciation calculation reduces this by $1538.18 per property, that’s a total
depreciation allowance of $7690.90, This leaves taxable income of $31109.10
$4249 is the total US income Tax due on Miss Johnson’s portfolio. Deduct this from the pre tax profit, leaves
a balance after US income tax of $34557

Therefore in this example the yield is $235000 / $34557=    14.70% net return after US tax
Mr Michaels bought a portfolio of 10 properties. All 4 bedrooms at $47000 each for a total cost of $470000,
producing a pre tax net return of $77600. This is his only US taxable income.
Using the straight line depreciation calculation this reduces the taxable profit by
$1538.18 per property, so the total allowance is $15381.80
This leaves taxable income of $62218.20
The total US tax due on Mr Michael’s portfolio is $11742. Deduct this from the pre tax profit of $77600,
leaves a net balance after US income tax of $65858

Therefore in this example the yield is $470000 / $65858 =   14.01% net return after US tax


                     Example of MORTGAGE RE-FINANCE

1. About this illustration
This product is not regulated by the Financial Services Authority in the United Kingdom, and as such is not subject to FSA regulations.
This product is only available for Re-Finance purposes on Let/Tenanted Properties with at Least 1 months confirmed proved rent.
Lending criteria, rates and charges are all subject to change. This is for EXAMPLE purposes only.

2. What you have told us
Property valuation:                                                                     $47,000
Amount of loan required: (60% of Purchase Price)                                        $28,200
Term of mortgage contract:                                                              30 Years
Repayment method:                                                  Interest Only or Repayment

4. Description of this mortgage
Interest Only rate:                                                                       9.99%
Re-Payment rate:                                                                          9.99%

5. What you will be paying each month
360 Payments:                                                                       $234.77 Interest Only
360 Payments:                                                      $247.27 Full Payment

6. What fees will you pay and when? (paid Upfront Non Refundable = PU or on Closing= C)
Application Fee, inc valuation PU                                                          $895
Closing Costs. C                                                                           $500
Legal Fees. C                                                      $500
Administration fee PU                                                                      £295.00 (payable in UK £’s)
Closing Fee, payable on offer                                                              $1000
7. Insurance
Buildings Insurance is required, the lenders interest must be noted., Life Insurance is always recommended

8. What happens if you don’t want this mortgage anymore?
Early repayment charges: 5% of balance in first 3 years.

If you do not want any early repayment charges, interest rates will be increased by 1%.
Interest only loan will cost $258.27 and a Repayment loan over 30 years will cost $268.34

9. Nationality.
This mortgage is available to US and Non-US and Uk Non-UK residents.


                                    CONTACT US FOR A PERSONALISED ILLUSTRATION


                                                  THE FINANCIAL SERVICES AUTHORITY.

                               Should I set up an LLC?
                                                (Limited Liability Company)

Whats best for me? Should I buy in my sole name or as a company?
What kind of problems am I going to have?
Who will help?
Here are some questions, answers by our CPA, that will dispel some of the myths and help you make a
decision on the structure of your purchase.

1.              Whats the advantage of Purchasing/selling with an LLC, Tax implications and tax rates etc, Capital gains tax?
LLC's are used to purchase investment property as they provide protection to it’s members from debts
or liabilities incurred (slip and fall, etc.). The protection offered by the LLC is exactly the same as if a
corporation was used, except the property is not subject to double taxation. The gain to the corporation
on the sale and the gain to the shareholders over their cost basis in their

2.            What is the structure? How many people must be involved in an LLC?
An LLC can be structured, tax-wise, as a sole proprietorship (single member) or a partnership (multiple members),
without sacrificing the limited liability not afforded to actual sole proprietorships or partnerships. All of the attributes,
(income, loss gain, etc ), flow through to the members and are reflected on their individual returns, so only one level of
tax. Therefore, the LLC can be tax transparent.

3.             What are the Tax Rates for the LLC and for me if I own1 or a portfolio 15 properties?
The LLC itself pays NO tax, only the members are liable for tax. The rate applied is based on all US taxable income so
for this discussion we will assume there is no other form of income that is taxable in the US. Tax is based on the
individual members share of profits received, current rates are between 10% and 35%. For a single member owning
1 property a rate of 10% would apply. For a portfolio of 15 properties, the rate will be more likely to be 28%. This could
be more or less, and the actual rate would be determined on the actual rent received, which will vary depending on the
number of 3 or 4 bed properties owned.

4.            Is there Capital Gains Tax on sale?
The sale of the homes, assuming a profit, will involve capital gains tax treatment. If the homes sold are owned for
more than 12 months, a 15% rate may apply. Prior to any sale, discuss this with us so we may assist you in
planning the most efficient sale strategy.

5.           How does the ‘Limited Liability’ protect me?
Members of LLC's enjoy the same limited liability as corporate shareholders for the debts and obligations of the
Company. For example, if someone slipped and fell on the property due to the negligence of the LLC or if the LLC
defaulted on an obligation, only the assets of the company could be held for payment of damages not member assets.

6.            Is the calculation and the Tax return in the US a hassle to me?
Taxes are relatively simple. A sole member of the LLC will pay income tax on the net income received generated by
the home (gross rental income minus deductions, and depreciation). On the sale the net amount realised, after
expenses of sale, less the adjusted cost basis in the property (the original cost basis less accumulated depreciation)
will be subject to tax. May sound complicated, but it isn’t, as we do all the hard work for you. Included in the
management fee is the cost maintaining your account, our CPA will charge $100 per member per return. There may
be additional charges for complex situations, which will be advised. Property investment funds or portfolios of 20 or
more, are subject to individual quotation)

7.             Will I also be Liable for tax in my own country?
Every country has its own rules and regulations, and we would therefore advise you to speak to a suitably qualified
person in your country. As an example; In the UK, due to the Taxation agreements, there is no double taxation. A UK
resident, will be required to pay the balance of his UK tax rate. This amount will depend on the individuals ‘domiciled
residency’ and UK income tax band. The information, copy of IRS receipt would be supplied to the UK inland revenue
along with your tax return in the normal way. If profits are not distributed outside the LLC, currently UK tax will not be
applicable, although this could change.
                                                                        More Questions? ......answered…..!

8.            Can you advise what involvement I will have with IRS?
Almost none. Our Management company record every event, income and expenditure. This is part of the management
structure and within the monthly management fee. These accounts are provided to our CPA, (Subject to the client
wanting to use our CPA) who then completes the IRS tax return, for a nominal fee currently $100 per return, subject to
the client confirming no other US activities. If there are chargeable activities outside BerkleyTRIO then this additional
work will be charged for. Alternatively we will provide the client account information to a CPA of your choice.

9.          What are the main advantages of an LLC above buying in my own name?
LIMITED LIABILITY, if problems arise the liability goes as far as the LLC assets/insurance NOT the members.

10.           Are there any alternative vehicles such as a corporation or other entity I should be considering?
The LLC can be a corporation, if so elected, but it is not normally advisable for real estate to be put into a corporation
because of the double taxation issues. The LLC is a state creation, tax-wise, it can be either a corporation, partnership
or sole proprietorship, as elected by the member or members. There is no other vehicle which provides such flexibility
while at the same time providing corporation like protection.

11.           What is the advantage of a Nevada/Delaware LLC rather than say a Michigan LLC, I have heard there are tax
              advantages, what are they?
There are no real tax advantages to the use of a Delaware or Nevada LLC over a Michigan LLC. The Income and
Capital Gains tax laws are federal and apply across the board. Generally, companies (corporations) contemplating
large public offerings will incorporate in Delaware or Nevada because those states do not charge a franchise fee on
the millions of authorised shares needed for a public offering. So if a client intend to offer/sell shares in an LLC rather
than the underlying investments, such as a property fund, perhaps it would be an advantage for the LLC to be Nevada
or Delaware. This would be advised on an individual basis.

12.          I am concerned about the US ‘lawsuit society’ and need to know how I’m protected?
Insurance will cover casualty (replacement cost in the event of fire or other casualty) and liability coverage for events
occurring on the premises (usually $1m per occurrence and $3m in the aggregate per premium year, these rates can
be increased at additional cost, but not normally necessary). Rent interruption insurance is also an option, and we can
advise you of the cost.

13.            Who is liable after that limit is exceeded?
If a law suit claim occurred and the insurance policy limits are exceeded, then the LLC will be liable. But only to the
extent of its assets, which may have to be sold or refinanced. Members themselves are not be liable.

14.          Do the management company have their own insurance against Lawsuits etc?
We carry the usual company business insurances required including public liability,
Errors and Omissions and employee dishonesty insurances.

15.            What does an LLC cost to set up?
The initial set up cost of your Limited Liability Company is $300*, plus filing fee of $100 and needs to be paid straight
away as no contracts can be issued before the company is formed. Ongoing is currently $150 per member per year

16.            Now I know I want an LLC, What do I do?
Just tell us the company name you want then transfer the total $400 reduced set up and filing fee, and subject to
company name availability, and your signature, we will do the rest!

                   For more personal advice, email your questions

*for Michigan based LLC. Delaware/Nevada LLC is $400 plus filing fee.

                        ONE STRIKE — YOU’RE OUT!
Our program has a „one strike‟ policy. Unlike the UK and other parts of Europe where unruly tenants just seem to get re-housed; this
does not happen in the USA under HUD and HCV.
Tenants that are evicted from a HUD home lose any future right to join a HUD or HCV program anywhere in the USA, for life – thereby
securing your investment property. That also goes for any other occupants in the property above the age of 18. Harsh yes, but this
ensures that Tenants do not abuse the property and treat it like their own home, which it is. This stance has resulted in an extremely
low percentage of evictions and higher quality tenants.

To ensure the above, HUD conducts annual inspections of all properties within the program. They will then re-issue guarantee
vouchers. Another aspect of the HUD inspection is to make sure the landlord / the Management are maintaining the property in a
satisfactory manner. Thus avoiding previous „slum‟ landlord issues.
We do not wait for HUD‟s annual inspection. The Management company is set up to inspect your property or portfolio every quarter,
and report to you. In cases where the Tenant is paying a portion of the rent themselves, due to an 80% or 90% voucher, we will
collect the remaining 20% or 10% for the investor each month as part of our management agreement. Most commonly this is a
monthly personal collection including a quick property inspection, if we are going to make a collection, we will make use of the visit,
thus further insuring the viability of your investment, and keeping the tenant happy.

Further, if we think there is a problem and the property is being mistreated in some way, the Tenant will have 30 days to rectify the
issue. At this point, if there is still a failure by the Tenant to comply, the HUD authorities are then notified and brought in. This also
includes non payment of any top up rents required. By the nature and set up of the programme and the continued inspections from
our Management cpmpany, your investment is monitored closely, thus ensuring peace of mind to an out of state or overseas investor.

Currently, the city of Detroit has a waiting list of more than 9,200 pre-approved families with Housing Choice Vouchers (HCV) who are
currently in unsuitable, emergency or temporary accommodation, some simply can not find a suitable home. The majority of these
vouchers are for Tenants on 100%, 90% and 80% programs. Throughout Wayne and Oakland county there are 37 HUD approved
and funded authorities with over 30000 people waiting to rent suitable homes.

With our program, the government, HUD, pays the Tenant‟s percentage, which could be 100%, of the rent directly to our
Management company Additional amounts collected from each Tenant will also go into our client account. From here, the rents
collected on each and every home will be sent directly to the investor‟s established US Bank Account. The management company‟s
10% monthly fee will automatically be deducted from the monthly rental amount. In this way, we can provide the additional service of
record keeping for the investor.

Currently the Detroit Housing Associations are looking to provide as many HUD homes as possible, there are over 30000 people
within the tri-county needing rental accommodation. The figures in the Detroit Metro area are as follows:

           HUD HOUSING CHOICE                                   9176                               100%
     Extremely Low Income                                         7,764                             84.61%
     Families with Children                                       8,345                             90.90%
     Elderly Families                                              632                               6.80%
     Families with Disabilities                                    896                               9.76%

This breakdown is the totals by number and percentage, individuals will and most commonly do fall into 2 or sometimes more
categories. Taken from Hud Web site.
Detroit is the largest city in the State of Michigan, located in the upper Eastern portion of the United States. This major industrial
centre is also a port city on the Detroit River and located North of Windsor, Ontario. In fact, Detroit is the only major US city that
looks South to Canada. It was founded in 1701 by the Frenchman „Antoine de la Mothe Cadillac‟ and is home to in excess of 5.4
million people.

The State‟s nine county areas have a workforce of nearly 2.8 million people, with approximately 240,000 businesses. Metro Detroit
has made Michigan's economy a leader in information technology, life sciences and advanced manufacturing; Michigan ranks fourth
nationally in high tech employment with 568,000 high tech workers, including 70,000 in the automotive industry.

Michigan typically ranks second or third in overall Research & Development (R&D) expenditures in the United States. Metro Detroit
is an important source of engineering job opportunities. The domestic auto industry accounts, directly and indirectly, for one of ten
jobs in the United States.

Metro Detroit also serves as the headquarters for the U.S. Army Tank-Automotive and Armaments Command, known as TACOM,
located at Selfridge Air National Guard Base. Detroit Metropolitan Airport (DTW) is one of America's largest and most recently
modernized facilities, with six major runways, Boeing 747 maintenance facilities and an attached Westin Hotel and Conference

Detroit has major port status and an extensive toll-free expressway system. A 2004 Border Transportation Partnership study showed
that 150,000 jobs in the Detroit-Windsor region and $13 billion in annual production depend on Detroit's international border
crossing. A source of top talent, the University of Michigan in Ann Arbour is one of the world's leading research institutions, and
Wayne State University in Detroit has the largest single-campus medical school in the United States.

In 2004; led by Metro Detroit; Michigan ranked second nationally in new corporate facilities and expansions. From 1997 to 2004,
Michigan was the only state to top the 10,000 mark for the number of major new developments.

This is a sprawling industrial area, full of industry, technology, small business to multi nationals and most importantly full of people!

In the past year we have seen over 35,000 foreclosures in the area. We group our investors together and Bulk-Buy direct from banks
at fantastic discounts. These properties once sold, are then refurbished to the HUD standard and rented out to tenants with
We have a team of experienced builders, electricians, plumbers, decorators etc, who are registered and comply with all local, state,
and national legal and safety requirements.Your property will be maintenance free for 24 months. We know we do an excellent job
in both refurbishing and managing your investment. We therefore GUARANTEE that for the first 24months of your investment we
will maintain and repair the property no matter how big or small and completely no cost at all to the investor.

So all in all a city in need of rental units, a trouble free investment with high yields and good potential for capital growth.

                       SECTION 8 HOUSING CHOICE VOUCHER (HCV)

Our project seeks to take advantage of the affordable housing program formally put in place by the US Department of Housing and
Urban Development (HUD) in co-operation with the State of Michigan. The Housing Choice Voucher Program (HCV) is seen as the best
in the United States, benefiting both tenants and landlords alike.

Section 8 has been around since 1937, it has been amended many times, but is the backbone of federally funded assisted housing.
Currently, the main Section 8 program involves the Voucher Program. A voucher may be either "project“ or "tenant” based, we focus
solely on Tenant based vouchers. This is where the tenant is free to choose a unit in the private sector, is not limited to specific
complexes, and may reside anywhere in the United States or Puerto Rico where a PHA operates a Section 8 program, though in
practice such portability is very difficult.

HCV has been developed to assist qualified families by providing them with a housing voucher guarantee. This is provided to a
Landlord so the monthly rent is guaranteed by the State and HUD for 12 months. (Subject to ongoing qualification and condition)

Qualifications for the citizens of Michigan fall under the following categories:
1. Those who do not qualify for a mortgage to purchase or refinance a home
2. Families that cannot afford to rent on their current income
3. Families who, due to economic hardship, cannot find adequate housing for themselves.
Under the voucher program, individuals or families with a voucher, find and lease a unit complex and pay a portion or all of the rent
(based on income, but generally no more than 30% of the family's income). The Public Housing Authority (PHA) pays the landlord the
remainder of the rent, subject to a cap referred to as "Fair Market Rent" (FMR) which is determined by HUD.

Fair Market Rent (FMR) is determined by several factors, including:
the geographic area (city or county) where the unit is located (generally, a unit in a metropolitan area will have a higher FMR),
the unit size (in terms of the number of bedrooms; generally, the more bedrooms the higher the FMR, while a studio apartment would
be at the low end), and
whether the owner or tenant will pay utilities (generally, FMR is higher for units where the owner pays utilities).
We do not recommend our investors pay utilities, although rents can be lower, it gives less liability to the landlord/investor and more
responsibility to the tenant which we feel is important and experience proves that the more responsible the tenant the less problems
seem to occur.

Some landlords will not accept a Section 8 tenant. This can be attributed to such factors as:
• not wanting the government involved in their business, such as having a full inspection of their premises for HUD's Housing Quality
Standards (HQS) and the possible remediation required,
• fear that a Section 8 tenant will not properly maintain the premises,
• a desire to charge a rent for the unit above FMR,
• unwillingness to initiate judicial action for eviction of a tenant

However, we feel that there are major advantages using the Section 8 program, and can take advantage of the benefits as seen by
many other landlords willingly accept Section 8 tenants, due to:
• a massive available pool of potential renters (the waiting list for new Section 8 tenants is 9,000+ in Detroit metro area alone)
• generally prompt regular payments from the PHA for its share of the rent, and/or
• a perceived higher quality of tenants, since a tenant can be permanently removed from the Section 8 program if s/he damages the
rental unit and/or fails to pay his/her share of the rent.

All voucher based units must meet High Quality Standards, thus ensuring that the family has a healthy and safe place to live. This
improvement in the housing stock is an important by-product of this program, both for the individual families and for the larger goal of
community development. In many localities, the PHA waiting lists for Section 8 vouchers may be thousands of families long, waits of
three to five years to access vouchers is common, and many lists are closed to new applicants.

Once you have completed the purchase, the homes are then fully refurbished up to „code‟ and subsequently inspected by HUD. A
Certificate of Occupancy and Proof of Compliance with HUD requirements is then issued.

At this point, the Detroit Housing Commission will provide vouchers to the prospective Tenants to be utilized with each lease
agreement. The Tenant is placed in each home normally on a 3 year lease which is subject to renewal upon annual inspections for
Code Compliance with HUD. This may be extended beyond 3 years as desired by both tenant and landlord.

Rents paid vary from zip code to zip code, tenant, property etc. Our experts „cherry pick‟ properties, to get the best overall deal for our
clients, as always the key is Location.

Currently, there are no time limits for family participation in the program, though occasionally reform bills are introduced in Congress
that suggest time limiting the program


$45500             $45500                           $45500


$45500             $45500            $45500


$45500             $45500            $45500

ARLINGTON PK       BUILDERS                         EDWARD

$47000             $47000            $47000

MAYFAIR            REDFORD                          RUGBY

             $47000                                                             $47000                                                               $47000

             DETACHED 4 BEDS                                                     DETACHED 4 BEDS                                                         DETACHED 4 BEDS
             SULLIVAN                                                            BERLINGAME                          BAKERS COLLEGE

             $47000                                                              $47000                                                               $47000

             DETACHED 4 BEDS                                                   DETACHED 4 BEDS                                                         DETACHED 4 BEDS
             GARDEN                                                            OAKHAM                                                                  COLLINGWOOD

             $47000                                                            $47000                             $47000

             DETACHED 3 BEDS                                                     DETACHED 3 BEDS                                                       DETACHED 3 BEDS
             UNIVERSITY      GARDEN HOMES                                                                           ARLINGTON PK

All of the information contained within this documents is provided in good faith and was correct at the time of research and going to press March 2009. Investors must be aware that any investment in Property has a degree of risk.
The Company Guarantee that there will be no maintenance or repair charges whatsoever levied in the first 24 months. Investors are required to have Buildings insurance arranged by the Company at the investors expense. Property
values can rise and fall. The rents quoted are factual at the time of going to press and do vary according to zip code area. We will try to achieve the highest rents available. Rental values can rise and fall. No calculations or
assumptions are made for any vacant rental periods. There may be times when your property is vacant which will affect the overall returns and % achieved. We can accept no responsibility for events beyond our control such as
market conditions, government decisions increases or new taxations or legislations. An investor must therefore be prepared to bear the economic risks for an indefinite period. Investors are solely responsible for US tax payments
relating from rental income and other taxes that may be due in their own country of residence. Your ability to re-sell can be affected by market forces. Current finance arrangements may be withdrawn changed postponed and
amended at any time at the discretion of the lender. We cannot guarantee the continuation of any Government policy, strategy or initiative. All the figures costings examples taxations expenses and other financial information is
subject to change and amendment at any time and is beyond our control. The financial information is supplied in good faith and was correct at the time of release. Mortgages are not regulated by The Financial Services Authority.
The availability of finance is not guaranteed and is client specific .Every picture within this document is produced with the agreement of the deemed image owner.

Every image depicts a scene, building, or view of Detroit Michigan USA. Always seek Independent Legal Advice.


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