Borrw.com is a private real estate fund that aims to purchase 1,000 single family homes in distressed housing markets like Oakland, Riverside, and Phoenix. It plans to rent the homes at above-market rates with lease-to-own options for tenants. After 3-5 years, homes will be sold to tenants with crowdfunded mortgages. The team has experience in real estate, marketing, and distressed housing. Financial projections estimate growing rental income, expenses, and dividends through 2016 as more homes are acquired.

1. Borrw.com
A p r i v a t e r e a l e s t a t e
f u n d

2. US Median Home Prices
2006 to 2012

3. Problem
3.8 million foreclosures since 2008.
Former homeowners need a place to live.
Former homeowners want to buy a house again someday,
and will not be able to get a traditional mortgage for 5-7
years.

4. The Model
Purchase 1000 single family homes.
Focus on distressed markets.
Rent above market rates with lease options.
Sell to tenants in 3-5 years with crowdfunded mortgages.

5. Markets we like
East San Francisco Bay - Oakland, Vallejo, Fairfield
Riverside, CA
San Diego, CA
Las Vegas, NV
Phoenix, AZ
Orlando, FL
Why? These are major metropolitan areas that saw a spike in
prices, and a corresponding crash. The fundamental qualities of
these areas will keep them desirable for the long-term.

6. Team
Jon Sterling
A ten year veteran of the real estate industry, Jon has spent the majority of his career launching new real estate brokerages (during
the boom), and repairing struggling brokerages (after the bust). He was most recently the Director of Marketing at Altos
Research, the leading provider of real-time real estate analytics in the US. He has published a book on distressed housing,
regularly speaks at industry events, and has worked in eleven different real estate markets across the country. His in-depth
knowledge of real estate economics and real estate investing was the catalyst for the launch of Borrw.
Eric Stegemann
Eric has been involved with the startup and ownership of six successful businesses, including the launch and eventual acquisition
of a 185 unit portfolio of residential real estate in the Greater St. Louis area. He is the founder of Tribus Group and speaks at real
estate conferences on various topics, including real estate technology and marketing. Eric also serves on the National Association
of Realtors Federal Technology Policy Sub-Committee.
Leo Pareja
Leo Pareja and his team have sold more than $250 million in residential real estate and he was ranked the #1 Keller Williams
Realty Agent is the US in 2010. He was also chosen as one of the 30 under 30 class of 2011 by Realtor Magazine and was ranked
the #5 team in US according to the Wall Street Journal in 2011. A licensed Broker since 2002 in Washington, D.C., Maryland and
Virginia, Pareja is a high volume broker whose systems are built to minimize loss severity on clients portfolios while adhering to his
selling philosophy of having the shortest days in inventory.
Greg Markov
Greg co-founded AZ Short Sale Experts, LLC, which was specializing in short sales before short sales became mainstream.
Initially, the company was formed to help his own real estate operation, and his team now helps other agents looking to close short
sale transactions as well. Since 2006, Greg has helped close over 500 short sale transactions with dozens of different lenders all
over the country. Prior to real estate, Greg worked in IT and helped take an educational software company from startup to
acquisition.

7. Competition
Waypoint Homes (recently raised $250MM)
Carrington Mortgage Services (recently raised $450MM)
Bank Of America (leasing foreclosures to former owners)
HomeVestors
Independent Real Estate Investors

8. Income Statement2012 2013 2014 2015 2016
Revenue
Rental Income $5,000,000 $10,200,000 $10,404,000 $10,612,080 $10,824,320
Mortgage Interest $0 $0 $0 TBD TBD
Total Income $5,000,000 $10,200,000 $10,404,000 $10,612,080 $10,824,320
Expenses
Accounting $2,500 $2,500 $2,500 $2,500 $2,500
Legal $50,000 $100,000 $100,000 $100,000 $100,000
Licensing Fees $1,000 $1,000 $1,000 $1,000 $1,000
Maintenance $125,000 $250,000 $250,000 $250,000 $250,000
Payroll $50,000 $100,000 $100,000 $100,000 $100,000
Property Management $400,000 $816,000 $832,320 $848,966 $865,946
Rent - Office $0 $0 $0 $2,000 $2,000
Selling Expense $0 $0 $0 $0 $100,000
Taxes $500,000 $1,020,000 $1,040,400 $1,061,210 $1,082,430
Travel $18,000 $24,000 $24,000 $24,000 $24,000
Total Expense $1,176,500 $2,338,500 $2,355,220 $2,394,676 $2,582,876
Net Income $3,823,500 $7,861,500 $8,048,780 $8,217,404 $8,241,444
*Assumptions: $50MM in total property value and a 2% annual rental appreciation rate.

9. Balance Sheet
2012 2013 2014 2015 2016
Assets
Cash & Cash Equivalents $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Income Properties* $24,000,000 $49,000,000 $49,000,000 $49,000,000 $49,000,000
Total Assets $25,000,000 $50,000,000 $50,000,000 $50,000,000 $50,000,000
Liabilities
Accounts Payable $0 $0 $0 $0 $0
Long Term Debt $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0
Members’ Equity
Membership Units Sold 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Management Units 300,000 300,000 300,000 300,000 300,000
Dividends at 95% -$3,632,325 -$7,468,425 -$7,646,341 -$7,806,534 -$7,829,372
Retained Earnings at 2% $76,470 $157,230 $160,976 $164,348 $164,829
Total Members’ Equity $76,470 $233,700 $394,676 $559,024 $723,853
*Assumes zero appreciation.

10. Other Metrics
2012 2013 2014 2015 2016
(half year)
Total Units Outstanding 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Earnings $3,823,500 $7,861,500 $8,048,780 $8,217,404 $8,368,965
Earnings Per Unit $0.38 $0.79 $0.80 $0.82 $0.82
Price Per Unit $5.00 $6.50 $7.00 $7.70 $8.44
Dividends $3,632,325 $7,468,425 $7,646,341 $7,806,534 $7,829,372
Dividends Per Unit $0.36 $0.75 $0.76 $0.78 $0.78
Dividends Per Unit As % 0.72% 11.54% 10.86% 10.13% 9.24%

11. Contact Info
Please direct all inquiries to Jon Sterling.
jon@borrw.com
415-691-7268

12. Appendices and
Supporting Information

13. Estimated Dividends
At Future Values Assets
$10MM $50MM $100MM $250MM $500MM $750MM $1B
$200,000,000
$150,000,000
$100,000,000
$50,000,000
Dividends $0
*These are estimates, not earnings representations. Actual dividends may vary.

14. Foreclosure filings
4,000,000
3,000,000
2,000,000
1,000,000
0
Big Problem & Big Opportunity
2006 2007 2008 2009 2010 2011

15. Stats By Market
Oakland, CA

16. Stats by market
Vallejo, CA

17. Stats By Market
Fairfield, CA

18. Stats By Market
Riverside, CA

19. Stats By Market
San Diego, CA

20. Stats By Market
Las Vegas, NV

21. Stats By Market
Phoenix, AZ

22. Stats By Market
Orlando, FL

23. Sample Property #1
5219 Paradise Valley Drive, Las Vegas, NV
Asking price: $40,500
Estimated value: $44,600
3 bedrooms/2.5 bathrooms
Built in 2002
Estimated rental rate: $850/month
Property taxes: $828/year
Last sold August 2006 for $225,000
2006 cap rate: 4.5%
2012 cap rate: 23%

24. Sample Property #2
1011 W. Saint Kateri, Phoenix, AZ
Asking price: $36,000
Estimated value: $39,300
3 bedrooms/2 bathrooms
Built in 2003
Estimated rental rate: $860/month
Property taxes: $885/year
Last sold October 2007 for $170,000
2006 cap rate: 6%
2012 cap rate: 28%