© 2009 SmartZip Confidential & Proprietary

The First Investment The First Investment Ratings for Real EstateRatings for Real Estate

June 2009

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SmartZip’s Unique ValueSmartZip’s Unique Value

• First quantitative investment ratings for real estate

• Intelligently finds the best properties in the best markets

• Gives confidence in a time of uncertainty• Opens all real estate listings to a national buyer

pool• Helps people who want to build wealth through

real estate• Expands supply of capital to help grow the

market

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SmartZip ScoreSmartZip Score™™: Quantitative Property : Quantitative Property RatingsRatings

The first analytics-based real estate property RATING

Communities

Compare

Confirm

Confidence Peace of Mind

Real estate

investors

Homebuyers

Properties

Rate

Know if a property is worth buyingKnow if a property is worth buyingTMTM

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What Does a SmartZip ScoreWhat Does a SmartZip Score™™ Mean? Mean?

• Risk-adjusted return over a 10-year holding period

• Relative scale of 1:100

• 80+ equates to a 5-star (*****) rating

• Growth and Income versions

• Over 12 million properties rated

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Growth & Income ScoresGrowth & Income Scores

Every property is rated two ways based on different investment strategies:– Growth Score

• For investors seeking above-average price appreciation, at higher risk of price volatility

– Income Score• For investors looking for steady

monthly cash flow with low risk

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What’s Behind a SmartZip ScoreWhat’s Behind a SmartZip Score™™??

Proven stock & bond rating analytics• Calculated key attributes (appreciation,

fair market value, rent, vacancy, etc.)• Discounted cash flow (10 year)• Risk-adjusted return

Most comprehensive base of attributes ever

• Over 1000 itemized attributes• Lifestyle, government, demographic,

housing, rental, property• Assembled, scrubbed, refined,

maintained

Rigorous – Objective – National in scopeRigorous – Objective – National in scope

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How SmartZip ScoreHow SmartZip Score™™ Creates Value Creates Value

For Investors• Finds best places to invest• Identifies properties with the most value• Establishes the right price range to pay• Computes rent income to expect• Projects long-term cash flow and appreciation• Connects with a local agent who knows investing• Helps easily manage properties they buy• Assesses how to maximize after-tax returns

For sellers or listing agents • Calculates best price for rapid sale• Markets properties to a national buyer pool• Differentiates the value of properties• Instills confidence in the value of a transaction

For lenders• Establishes collateral value of a property (current and future)• Assesses size of potential loss in foreclosure• Simplifies decision to foreclose or modify a loan

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Get the SmartZip Score Rating on Get the SmartZip Score Rating on ANYANY PropertyProperty

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““Heat Maps”: Visual Market ScreenersHeat Maps”: Visual Market Screeners

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Market Research & ComparisonMarket Research & Comparison

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Analyst Picks: Top Investment Markets & Analyst Picks: Top Investment Markets & PropertiesProperties

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