QUARTER 3 PERFORMANCE REVIEW

& INVESTOR NEWSLETTER

2016 Quarter 3 Review • Total # of loans closed: 51

• Average loan amount: $246,266.27

• Quarter 3 volume: $12,559,579.77

We are excited to report yet another record-setting Quarter

here at Washington Capital Partners. Our Q3 numbers continue

to increase across all key performance indicators compared to

2016, with a serious rise in our average loan amount, and our total

volume more than doubling. Our team did an outstanding job

capitalizing on the summer.

2017 Quarter 3 Review • Total # of loans closed: 69

• Average loan amount: $364,101.15

• Quarter 3 volume: $25,487,080.50

Q3 return for WCP’s capital fund: 12.16%

Net return of WCP’s capital fund since inception: 12.39%

SPOTLIGHT DEAL

337 54th Street NE, Washington, DC 1,184 square feet

4 bedroom, 2.5 bathroom

Purchase Price: $152,000

Loan Amount: $169,000

ARV: $310,000

Description: This Northeast Duplex features an added

bathroom and finished basement with its own kitchen.

The finishes throughout were chosen well and the final

product is a universally appreciated style that is both

clean and elegant.

QUARTER 3, 2017

Our August CAZA Investor Meetup was a huge success - we

hosted a panel of experts within the real estate industry to

field questions from our guests. Our food sponsor, Allied Title

& Escrow, LLC, was kind enough to provide refreshments for

all of our 45 attendees plus the representatives from each

organization. This Meetup marks our highest attendance to

date, and shows that more and more local investors are

growing their business by networking with others.

CAZA INVESTOR MEETUP

In the wake of Hurricane Maria, WCP has decided to donate

$15,000 to relief efforts in Puerto Rico. Our hearts and minds

are with all of the victims of the devastating storm and we

hope that our donation can make a real difference. Please

consider making a donation to relief efforts as well.

HURRICANE RELIEF

OUR NEWEST TEAM MEMBERS

Hailey Thomas Loan Processing Assistant

Hailey Thomas has lived in the City of Falls Church her

whole life. As a recent finance graduate of East Carolina

University, Hailey knew that WCP would be the perfect fit

for her. She loves the challenge and excitement of the real

estate business while assisting the accounting and

processing teams here at WCP. When she’s not working

you can find her hanging out with friends, playing tennis,

shopping, or taking her 100+ pound dog to the beach.

Conor Reilly Sales Associate

Conor Reilly is a Connecticut native who graduated from

Salisbury University before finding a new home in the DMV.

After focusing on advertising during college he decided to

instead focus on the real estate industry, specifically

building relationships with clients. This led him to join the

WCP team. He is always willing to be the first to try new

foods, and loves to cook. Conor is always doing something

so you can find him hiking, playing soccer, baseball or

taking a weekend road trip somewhere on a whim.

Stephanie Sejas-Castro Marketing Intern

Stephanie is a Northern Virginia native and a current

Senior at George Mason University. As a Marketing major,

Stephanie makes an excellent addition to our Marketing

Department with ideas and strategies straight out of the

classroom. In addition to interning at WCP and

completing her final semester of college, Stephanie still

finds time to pursue her passion of Bolivian folk dancing.

She is involved in several groups that perform in parades

and events across the DMV.

THE TONY ROBBINS EXPERIENCE

This past June, the entire WCP team went to New Jersey for

Tony Robbins’ Unleash the Power Within conference. The

event was 4 days of intensive training in the psychology of

breaking down barriers to success and utilizing your energy

to the fullest. Each day was filled with 12-15 hours straight of

training, introspective thought, and a heavy dose of pump-

up music and dancing. On the first night the whole team got

hyped up and walked across burning hot coals as a part of

Tony’s unique system of self-motivation. The entire experi-

ence was enlightening for each individual as well as a great

team-building event for WCP.

OUR FAVORITE Q3 PROJECTS

4816 Hayes Street NE, Washington, DC 1,134 square feet

4 bedroom, 3 bathroom

Purchase Price: $210,000

Loan Amount: $232,000

ARV: $360,000

Description: This 1938 Northeast home was in need of

some serious work when our borrower acquired it last

December. After a full-gut rehab, the home now features

classic styles throughout the interior, and a much-needed

paint job on the exterior.

914 N Chambliss Street, Alexandria, VA 3,326 square feet

After-Repair: 4 bedroom, 3 bathroom

Purchase Price: $335,000

Loan Amount: $300,000

ARV: $550,000

Description: This uniquely styled Alexandria home was

one of our most dramatic transformations this quarter.

The sprawling home features an open floorplan with tons

of natural light. The modern, high-end finishes and funky

accents give this home a sleek yet creative style.

OUR NEWEST LOAN PRODUCT This Quarter, WCP introduced our new “Flip-To-Rent” Hybrid

Loan Product. We created this product to allow an investor

to acquire, rehab, and rent out a property all under a single

hard money loan. Once the rehab is complete, the borrower

secures a tenant for the property, WCP confirms the

occupancy, and then modifies the borrower’s loan to a

lower rate and a longer term (typically 1 or 2 additional

years). This new loan product bring tremendous value to

investors, as it allows them to season a property with tenants

during their hard money loan term before refinancing out

through a big bank for an even lower rate. This provides a

win-win scenario for both the borrower and us as the lender.

STEP 1: BUY

STEP 2: REPAIR

STEP 3: RENT

STEP 4: MODIFY

STEP 5: REPEAT

A smarter way to grow your portfolio.

A LETTER FROM OUR CEO

Dear Valued Investor,

As we are fast approaching a new year, I wanted to give

a quick status update of WCP. This past Q3 was our most

successful quarter thus far. We closed 69 loans during the

months of July, August, and September for over $25 million in

funding. Our production during the same period in 2016 was

51 loans for $12.5 million. While our average loan amount has

increased due in large to our focus in gaining market share in

Washington DC proper, our success is heavily accredited to

the new expansion strategies in place by our marketing

team on the front end, and our sales team maximizing the

new opportunities presented to them on the back end.

The strength of the market is a major player as well. This time

of the year presents great opportunities as borrowers are

acquiring properties to have rehabbed and ready for sale

in time for the spring selling market. Historically, Quarter 4 has

been WCP’s strongest period of the year and with strong

market conditions we are on target for an additional $36

million in loans before the end of the year. This will keep us

on track for our overall 2017 goal of reaching $100 million in

originations. Even though everything feels right and the

market remains steady, we are being more and more

cautious by structuring our deals around higher down

payments and seasoned investors with great track records to

ensure that each of our clients are as committed to the

success of their projects as we are.

A LETTER FROM OUR CEO Since its reveal this past August, our new Flip-To-Rent Hybrid

Loan Product has been a big hit with investors looking to

expand their rental portfolio. In addition to new loan

products, we are now able to lend at interest rates as low as

9.5%. This was orchestrated in order to attract savvy real

estate investors and developers that now considering work-

ing with us as opposed to banks. All this is possible with the

partnerships established in a secondary market level and the

interest of institutional capital in the loans originated by WCP.

This is the third quarter that WCP FUND has been fully imple-

mented. Our last quarter saw a return of 12.19% annualized

return to our investors and we are projecting to close the

year with an overall return over 12%.

I’d like to thank you for making this all possible by placing

your trust in us to continue growing and in turn bringing value

to you and your family. We are maintaining the same

intensity as we enter Q4, and look forward to reporting back

to you as we close out an immensely successful year.

Sincerely,

Daniel Huertas

7115 Leesburg Pike, Suite 215

Falls Church, Virginia