Real Estate Opportunity

Distressed Properties

The Premier Wholesaler of Distressed Properties

CONFIDENTIALITY AGREEMENT

www.thesolutiongroup.net

THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES

This is a confidential memorandum intended solely for your own limited use to determine whether you wish

to participate in the TSG Distressed Properties Purchase Program.

This document is not a public offering. It contains brief information regarding the business model prepared

by TSG Realty and The Solution Group Corp. It has been developed based on information developed by

the company. It does not purport to be all-inclusive nor does it contain all the information which a

prospective buyer may desire. Neither TSG, nor any of its members, directors, managers or employees

make any representation or warranty, expressed or implied, as to the accuracy or completeness of this

memorandum or any of its contents, and no legal liability is assumed or is to be implied by any of the

aforementioned with respect thereto.

The information in this memorandum has been gathered from sources that are deemed reliable, but neither

the promoter nor any of its members warrant or represent that the information is true and correct.

Prospective buyers are advised to verify the information independently. TSG reserves the right to change

any information in this memorandum or withdraw the properties from the market at any time, without notice.

This memorandum, is not be construed as an offer or as any part of a contract to invest in any properties or

to acquire any equity interest in the promoter thereof.

By you reading this presentation, you agree that it and the information contained herein is of a confidential

nature and that you will not disclose this memorandum or any part of the contents to any person, firm, entity

without the prior written authorization of the developer.

If you do not wish to pursue this matter, kindly return this confidential memorandum to The Solution Group

Corp.

Photocopying or other duplication is not authorized.

THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES

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INDEX

01

02

03

04

05

06

TSG Track Record

Opportunity

Business Process

Properties

Property Map

Analysis

1,028

44.7%

U$201,570,190

38

582

75,223

Distressed properties acquired

b y T S G b y f o r e c l o s u r e

programs in Miami-Dade, Broward

& P a l m B e a c h C o u n t i e s .

Debt amount acquired

by TSG in the last 24 months.

Average price of TSG properties

that last less than 60 days in the market.

The average time that TSG

properties take before being

delivered to the commercial

department.

All remodeled properties

by TSG are delivered with

the best standards for rent.

The number of properties analyzed

by TSGs acquisition department during the last year.

TSG is a vertically integrated company which has identified a unique opportunity within the US housing market

crisis and has developed a unique program to take advantage of it, particularly in South Florida. Through this

Distressed Assets Program, TSG, after diligent inquiry and analysis, acquires "distressed" properties, defined

as residential real estate which either have been acquired by foreclosing mortgage lenders, or are REO's and

Short Sales. After acquisition, TSG rehabilitates the properties, rents and stabilizes them and then packages

them for sale individually or in groups.

With a multidisciplinary team with over 50 years of collective experience, TSG identifies submarkets where to

participate, taking into account the median household income, the demand of the market and its potential

appreciation. Having identified the opportunity, TSG proceeds to the acquisition and stabilization of the property.

TSG's Construction Division administers and supervises the rehabilitation process, pursuant to established

standards and upon completion delivers the properties to the Leasing Division which is responsible for renting

them.

Once the properties are sold by TSG Realty, the company's Property Management Division provides property

administration services to its customers.

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01 TSG Track Record

The fundamentals of the real estate

industry have never aligned themselves

the way they have done so, with properties

selling for less than their replacement

value; rent values going up, low

unemployment indexes and the best

forecast for market rebound and prices

regaining value again.

Historic

Opportunity

02 Opportunity

THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES

www.thesolutiongroup.net

S&P/Case-Shiller U.S. National Home Price Index

200

180

160

140

120

100

80

60

20%

15%

5%

0%

-5%

-10%

-15%

-20%

-25%

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

10%

US National, index level (left)

US National, %chya (right)

Nationally, home prices are back

to their 2003 levels

Record low decline of 18.9% in

2009 Q1 (solid line)

The chart shows the behavior of house values over time, based on the 10-City and 20-City

Composite Indices. As of July 2011, average home prices across the United States are back

to the levels where they were in the summer of 2003.

0 Business Process

www.thesolutiongroup.net

THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES

TSG

TSG selects the best properties

after an extensive analysis

Property yields

between an estimated

return of 6% to 8%

Property ready

for sale

Clean

Title

EQUIPO DE RENTA

TSG

TSG Leases

the property

TSG MANAGEMENT TEAM

TSG is responsible for:

Rent collection

Expense payments

Supervise potential repairs

Prepare annual reports

Renovated Property

with clean title

TSG ACQUIRES THE PROPERTY

TSG Construction Team

TSGs Financial

Analyist Team

Property 1

Property 2

Property 3

Property 4

Property 5

Property 6

Property 7

Property 8

Property 9

TSG Financial Analyst Team

TSG assembles a

diversified portfolio

Properties

Foreclosed, REO and Short Sale

Properties

TSG se encarga de:

Take possession of property

Change of locks

Removal of any illegal tenant

Remodeling

Secure the property

COURT / BANK

Properties0

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TSG REF: SCD 4

Breeze of Galloway

20930 SW 87 AVE #202 Cutler Bay FL 33189

TYPE: CONDO

2 Bed / 2 Bath

$ 107,000

Sq. Ft. 991

$

$

$

$

$

1,150

114

240

80

716

8.03%

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

$0Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$0

$200,000

$150,000

$100,000

$50,000

$25,000

$195,000

$107,000

$163,515

$115,000

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

www.thesolutiongroup.net

TSG REF: HCB 1

Lakewood at Emerald Hills

3700 N 56 Ave #1013 Hollywood, FL 33021

TYPE: CONDO

1.5 Bed / 1 Bath

$ 79,900

Sales Price:

Sq. Ft. 749

Completely Renovated

$

$

$

$

$

950

93

234

80

543

8.15%

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

$200,000

$150,000

$100,000

$50,000

$25,000

$0Historic

High

$188,556

$79,900

$123,585

$90,884

Replacement

Value

Fair Market

Value

TSG Sales

Price

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TSG REF: HCD 15

Villas del Campo

10921 SW 244 Terr #10921 Miami, FL 33032

TYPE: Townhome

3 Bed / 2 Bath

$ 129,000

Sq. Ft. 1,298

$

$

$

$

$

1,189

143

119

80

847

7.88%

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$0

$300,000

$250,000

$200,000

$150,000

$100,000

$304,428

$129,000

$214,170

$146,733

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TSG REF: BVD 14

Mandarin Lakes

14045 SW 272 St #14045 Homestead FL 33032

TYPE: Townhome

2 Bed / 2.5 Bath

$ 105,000

Sq. Ft. 1,580

$

$

$

$

$

1,100

145

239

80

636

7.27%

0505

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$0

$250,000

$200,000

$150,000

$100,000

$50,000

$245,282

$105,000

$240,700

$108,585

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TSG REF: NGD 1

Caribbean Isles Villas

2733 NE 3rd Court #106 Homestead, FL 33033

TYPE: CONDO

3 Bed / 2 Bath

$ 89,500

Sq. Ft. 1,194

$

$

$

$

$

949

161

249

80

459

6.16%

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$0

$250,000

$200,000

$150,000

$100,000

$50,000

$211,212

$89,500

$197,010

$101,803

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TSG REF: HFD 2

Biscayne Beach Club

10500 SW 155 CT #1026 Miami FL 33196

TYPE: CONDO

1 Bed /1 Bath

$ 79,900

Sq. Ft. 747

$

$

$

$

$

950

115

236

80

519

7.80%

05

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$250,000

$200,000

$150,000

$100,000

$50,000

$0

$250,000

$79,900

$123,255 $115,000

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TSG REF: SCD 6

Venetia Gardens

2911 SE 13 Ave #102-49 Homestead FL 33035

TYPE: CONDO

2 Bed / 2 Bath

$ 67,300

Sq. Ft. 822

$

$

$

$

$

775

64

229

80

402

7.16%

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$250,000

$200,000

$150,000

$100,000

$50,000

$0

$235,000

$67,300

$135,630

$85,000

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TSG REF: SCP 1

Waterways Taheri

1211 Imperial Lake RD West Palm Beach, FL 33413

TYPE: Townhome

2 Bed / 2 Bath

$ 129,000

Sq. Ft. 1,384

$

$

$

$

$

1,150

147

162

80

761

7.08%

05

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$300,000

$250,000

$200,000

$150,000

$100,000

$0

$220,000

$129,000

$228,360

$109,000

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TSG REF: TDP 5

La Hacienda

18308 NW 68 AVE No. J Miami Lakes, FL 33015

TYPE: CONDO

1 Bed / 1 Bath

$ 81,620

Sq. Ft. 715

$

$

$

$

$

950

95

176

80

599

8.81%

to the documents required by section 718.503, Florida Statutes, to be furnished by the developer to a buyer or leasee. Not an offer where prohibited by state statutes.

Equal Housing Opportunity. Oral representations cannot be relied upon as correctly stating representations of the developer. For correct representations, reference should be made

Sales Price:

Completely Renovated

Property Management:

Estimated Monthly Rent:

Estimated R/P Taxes/Mth:

HOAs:

NOI:

CAP:

Real Estate Opportunity

Historic

High

Replacement

Value

Fair Market

Value

TSG Sales

Price

$200,000

$150,000

$100,000

$50,000

$25,000

$165,000

$81,620

$117,975

$89,500

Location

Location

Location...

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0 Property Map

THE PREMIER WHOLESALER OF DISTRESSED PROPERTIES

www.thesolutiongroup.net

Jupiter

West Palm

Beach

Lake Worth

Boynton Beach

Delray Beach

Boca Raton

Pompano

Beach

Fort

Lauderdale

Hollywood

Hialeah

Miami

Biscayne

Bay

INTERSTATE

06

www.thesolutiongroup.net

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

109,956

(12,912)

(22,605

(8,640

65,796

7.58%

12,217

(1,435)

(2,512

(960)

7,310.67

Annual Rental Income

Total

Estimated Rental Income

Estimated Taxes

Estimated HOSs

Estimated Property Management

Total

CAP / (Ratio)

Per Unit

Number of Units

Area (Sq Ft)

Historic High

Sq Ft Value

Fair Market Value

Sq Ft Value

TSG Distressed Price

Sq Ft Value

Discount over Historic Value

Sq Ft Value

Percentage

Discount over Fair Market Value

Sq Ft Value

Percentage

9,480

Total Per Unit

1,053

9

2,022,093

934,845

868,220

1,153,873

66,6,25

224,677

213.37

103,872

98.64

96,469

91.61

128,208

121.76

7.13%

7,403

7.03

57.06%

Analysis