We are thrilled to share with you the significant progress and exciting developments that have taken
place since closing. The Hotel to Apartment Conversion Project in Brownsville, TX has already shown
promising potential, and we are confident that it will deliver exceptional returns on your investment.
Below, we highlight the key milestones and achievements so far:

Property Acquisition

We are delighted to announce that we successfully closed on the property on May 15. The
acquisition was made possible under favorable seller finance terms, leading to a low monthly
debt obligation of $12,000. This beneficial financial arrangement ensures a stable and
manageable financial foundation for the project.

Favorable Occupancy

Upon acquiring the property, we were pleased to find it already 60% occupied, with a
prominent restaurant tenant contributing $6,000 in monthly rent. This occupancy level

exceeded our initial projections, which anticipated 20% occupancy in year one. This higher-
than-expected occupancy provides an immediate stream of revenue that supports the

project during the preparatory phase.

Capital Efficiency

Since we inherited the partially occupied property, we have been able to sustain operations
without tapping heavily into reserves while preparing for renovations. Consequently, we have
only called for approximately 25% of the total investor capital required for the project. This
strategic approach is expected to result in a higher Internal Rate of Return (IRR) for our
valued investors.

Property Timeline

Anticipating a construction timeline of 9-12 months, we are committed to having the
property completely renovated and leased by the end of next year. Our dedication to timely
completion ensures that your investment realizes its full potential in a reasonably short
timeframe.

Reputable Commercial GC

We are pleased to announce our partnership with Renu, a highly reputable company with an
extensive track record in hospitality conversion projects. Their expertise and experience instill
confidence that the renovation process will be skillfully executed, ensuring the project’s
success.

Renovation Strategy

Over the next three months, we will be diligently transferring all long-term tenants into one
side of the hotel, allowing for concurrent renovations on the other side. This carefully planned
strategy ensures that cash flow from rents continues smoothly throughout the renovation
period. Additionally, we are confident in our ability to remain within the budget, thus
safeguarding investor returns.

Professional Property Management

Our in-house property management team has taken charge of the property’s operations,
employing a comprehensive property management and leasing strategy. This strategic
approach aims to maintain optimal occupancy rates and achieve the target rents we
envisioned during the planning stage.

In conclusion, the Brownsville Hotel Conversion project continues to show the potential for outstanding
returns. We appreciate your continued trust in our expertise and vision for this venture. Our team is
working tirelessly to deliver superior results, and we are confident in the success of this project.
We value your ongoing support and look forward to keeping you updated on our progress. Should you
have any questions or require further information, please do not hesitate to contact us.