7135 W. Tidwell, Bldg. M, Ste. 112AHouston, Texas, 77092

832-431-4488 – office832-200-1594 – fax

Residentialjuanzane@leakproperties.com

CONFIDENTIAL - Residential2 April 2015

No offering is made or intended by this document. Any offering of interests in Leak Properties will be made only in compliance with Federal and State securities laws.

This document includes confidential and proprietary information of and regarding Leak Properties. This document is provided for informational purposes only. You may not use this document except for informational purposes, and you may not reproduce this document in whole or in part, or divulge any of its contents without the prior written consent of Leak Properties, LLC. By accepting this document, you agree to be bound by these restrictions and limitations.

1

1.0 Executive Summary 1.1 Business Concept..................................................................................................................3 1.2 Business Opportunity/Strategy/Vison...................................................................................5 1.3 Target Market........................................................................................................................6 1.4 Competitive Advantage........................................................................................................6 1.5 Business Profit Potential.......................................................................................................6 1.6 Investor Attraction................................................................................................................62.0 Industry......................................................................................................................................7 2.1 Industry Picture.....................................................................................................................8 2.2 Business Concept..................................................................................................................8 2.3 Service Offered.....................................................................................................................8 2.4 Growth Opportunity..............................................................................................................83.0 Market Analysis Summary 7 3.1 Market Segmentation............................................................................................................7 3.2 Service Positioning/Priced/Packaged ...................................................................................8 3.3 Delivery of Services..............................................................................................................8 3.4 Special Marketing Strategies – Websites..............................................................................84.0 Business Strategy 95.0 Organization and Operations.....................................................................................................9 5.1 Organizational Structure.....................................................................................................10 5.2 Service Design and Development 10 5.3 Service Improvement Strategy 10 5.4 Design/Development Costs 10 5.5 Proprietary/Licensing Issues 10 5.6 Facilities and Location Plan 106.0 Management Team 12 6.1 Key Personnel 12 6.2 Ownership Structure 12 6.3 Consultants and Advisors 12 6.4 Strategic Growth through Operations 127.0 Critical Assumptions and Risks 14

2

1.0 Executive Summary

The overall vision for Leak Properties, LLC started 5 years before the name actually

appeared. Since 2005, Juan Zane Crawford has either represented the seller or represented the

buyer on 620 closed real estate transactions. Our company moved the majority of those 620

closed sales, when we represented the seller, with an average of 22 day-on-market (DOM). Leak

Properties generated $71,433,503 directly toward boosting the real estate industry here in the

Houston area. Of that; the Broker has paid out $4,286,010 in direct commissions to local real

estate sales persons both inside and outside of the firm.

We are poised and stand ready for future growth. With an already proven track record

here in Houston, we have shown Asset Managers the security they desire in knowing the finished

product we constantly deliver is inferior to none. San Antonio, with its huge military population,

and Dallas/Fort Worth areas are next on our scope. We can take advantage of our streamline

delivery approach system to move more assets faster through the process. There are today, over

4,800 distressed properties alone in the Houston area; we are now in a position to have a greater

impact and serve many more Veterans throughout Texas.

“Juan Zane has great foresight and impressive long term vison.”Linda Rasmussen, San Antonio Area, Real Estate Broker

1.1 Business Concept

Our Business Concept revolves around the essential need of Asset Management

Companies to move REO (real estate owned) properties quickly through the REO sales process.

A REO property is any property that has been foreclosed upon. In order to manage the holding

expenses, Asset Managers must move REO inventory quickly. We have refined the REO selling

process and are ready to expand our concept throughout Texas. We have mastered everything

from property acquisition through such programs as cash-for-keys, deed-in-lieu, short-sales, and

other disposition strategies to interior/exterior property inspections; property maintenance; buyer

identification; sales price negotiation; and finally closed sell. We have helped close over 600

properties for various Asset Managers in the past 10 years. This has generated $71.4 million

dollars for the real estate industry.

3

Although the majority of these properties have closed in the Houston area, we are now

positioned to open two more real estate offices throughout Texas in 2015. The first new location

will be in San Antonio; this area is highly populated by military personnel and military retirees.

Along with being on the Board of Directors for the Houston Chapter of the National Association

of Real Estate Brokers (NAREB); Leak Properties Broker is now in-line as a Board Member for

the Houston Chapter of Veterans Association of Real Estate Professionals (VAREP). Our San

Antonio office will be committed to placing service men and women and military families alike.

The next location will serve the Dallas/Fort Worth area. This area is one the most

historic areas in Texas and will also serve as one of our first Flagship locations dedicated to

Luxury and Historic home sites. We will partner with city and state entities, through our 6 Texas

certifications, to provide advocacy to homeownership and equal housing rights. This move will

be unlike other “Big Box” companies i.e., ReMax, Keller Williams, and Century 21 who operate

multiple offices throughout Texas cities. These offices are typically driven by different brokers

in the respective cities. Our exceptional business design separates us because each location will

be led by the same broker across the state that possesses proven track record of success.

“This is what sets Juan Zane above the rest; his commitment to help our fellow veterans has seen no wavier sense his entry in the service to our nation”.

Ralph DaVaul, Lt Colonel (ret), Unite States Air Force

1.2 Business Opportunity/Strategy/Vision and Mission

We have a detailed business strategy which is so secure and well-oiled that Leak

Properties is able to move properties through the process; with properties closing within an

average of 22 Days-on-Market (DOM). Our business strategy has helped our firm remain listed

in the top 100 Real Estate Brokerages, by the Houston Association Realtors (HAR). With great

attention-to-detail we have already refined and honed the process many times, making it what it

is today.

We identify our target market has “Asset Management Companies” who have various

levels of property assets they need to liquidate and sell throughout Texas. Instead of being a

brokerage that focuses on individual sellers who need/desire to liquidate property to either

investors or owner occupants; we choose to focus on larger Asset Management companies who

4

have various inventories levels they need moved in Texas. These Asset Management companies

are more concerned with bottom lines, rather than emotions; they want real estate partners who

can meet their needs and their timelines in an expedient manner. Leak Properties, LLC has

previously shown the ability to move these types of properties very expeditiously in the Houston

market area. We are poised and stand ready for growth.

Vision

To be among the Real Estate leaders in the Houston, San Antonio, and Dallas metropolis

covering the Bank/Federal Foreclosure residential home market.

Mission

Our mission is to be the foundation behind an Asset Manager’s next real estate

transaction, to provide clients a unique opportunity to build a lasting relationship with a proven

leader that spans throughout all the client’s real estate transactions. We excel in outstanding

Asset Manager support by doing things right…not just some of the time…but all of the time.

God has challenged us to bless as many as we can with what He’s given us.

“You don’t see many companies who are bold enough to include God in their Mission Statements…way to go Leak Properties.”

Broderick Hill, Former Director, The Church without Walls

1.3 Target Market

Leak Properties, LLC has identified its target market as the 135 Asset Management

Companies with various property inventory levels located throughout the 3 major cities areas in

Texas; Houston Area, San Antonio Area, and Dallas/Fort Worth Area.

1.4 Competitive Advantage

Our competitive advantage is the unique opportunity we provide Asset Managers who

partner with our company to acquire Local, State, and Federal contracts. As a Service-Disabled

Veteran Owned Business, we are among the elitist and most rare Real Estate Brokerage Firm, of

our caliber, that retains 6 significant Local, State, and Federal business certifications. Not only

do we hold certifications as a City of Houston, Minority Business Enterprise (MBE) and a City

5

of Houston, Person with Disability Enterprise (PDBE). We are also City of Houston, Housing

and Community Section 3 certified; City of Houston, Hire Houston First certified; along with

City of Houston, Minority Supplier Development Council certified. Finally, we also hold the

elusive Texas Historically Underutilized Business (Texas H.U.B.) certification as well. These

certifications allow our firm to serve with preference over State, Local, and Federal contracts

which favor larger firms who partner with smaller independent firms to produce mandated

diversity and inclusion quotas. This fact is made evidenced with the new 2015 – 2020, H.U.D.

Marketing and Management (M&M 3.7) contract for all of Region 1D. This particular federal

contract will only be awarded to a single Asset Management Company who partners with a

Small Minority Owned Business. Our certifications allow an Asset Management Company to

use these certifications and our partnership to their competitive advantage; using it to their

advantage instead of taking advantage of it.

“As an innovator, Juan leaves others competitors wandering in the dust.”Harold Carter, Dallas/Fort Worth Area, Real Estate Broker

1.5 Business Profit Potential

We have been able to grow our meager business investment of $25,000, in 2010 to a firm

that has closed over $46.4 million dollars in real estate in just the past 5 years alone. This, alone

has generated close to $2.8 million dollars’ worth of commission paid out, since 2011, to local

real estate agents both inside and outside of our company, this is a significant boost to the local

Houston Real Estate Industry.

1.6 Investor Attraction

The greatest investor attraction is the ability to profit financially and at the same time

change so many lives by helping individuals either sell the property they desperately need to sell

or helping individuals acquire the property they desperately desire. Both aspects are enhanced

when investors are able to make income doing either aspect.

6

2.0 Industry

The real estate industry continues growing faster in Texas, rather than any other state in

our nation. We have gone through many of the ebbs and flows of today’s market. Staying

abreast of the distressed housing market has kept Leak Properties, LLC at the forefront of this 5

year growth; as once purchased properties, now can no longer be afforded, and then suddenly

become affordable to a clearly different market.

2.1 Industry Picture

Over 3,800 REO/Foreclosed properties alone were sold in the Houston area in the past 12

months. However, there are currently over 4,800 properties actively listed which have failed to

close; of that number, over 1/3 have been on the market for more than 100 DOM. There are

approximately 120 REO Listing Brokers in the Houston area. With that said, our company has

closed 620 properties in the past 8 years.

2.2 Business Concept

Our Business Concept is driven by Asset Management Companies and their need to

move their REO inventory much quicker through the REO sales process. As the holding

expenses are necessary, many Asset Managers must move REO inventory quicker to limit these

expenses. Our refined the REO selling process is ready for expansion throughout 2 more major

cities in Texas. We have become skilled at everything from property acquisition and other

disposition strategies to interior/exterior property inspections; sales price negotiation; and finally

closed sell. We have helped close 620 properties for various Asset Managers in the past 8 years.

This has generated $71.4 million dollars for the real estate industry.

We are now in a position to open two more locations throughout Texas in 2015. The first

new location in San Antonio; highly populated by military personal and military retirees and we

will be committed to placing service men and women and military families alike.

7

The next location will serve the Dallas/Fort Worth area. This is the historic areas where

we will launch as our first Flagship office that is also dedicated to Luxury and Historic home

sites; even though real estate offices in each major city are typically driven by different brokers

in the respective cities. Our exceptional business design separates us because each location will

be led by the same broker across the state that possesses proven track record of success.

2.3 Service Offered

As a major REO Real Estate Brokerage Firm, in Houston, we offer Asset Management

Companies the assurance that everything from property acquisition to property sell can be

handled by one company. We now aspire to expand our success further in the Texas market.

2.4 Growth Opportunity

We want to take that type of growth experienced by our firm in Houston to two other

cities in Texas. We plan to open two more Leak Properties offices in Texas; the first new office

the San Antonio area and the next office in the Dallas/Fort Worth area. We choose San Antonio

because our Broker, as an Air Force Veteran, spent 14 of his 21 years active service in San

Antonio, Texas; this area its high population area of military personal and retirees. We want our

pervious success and future vision to set us aside from our competitors in each of the 3 Top 10

cities. The San Antonio office will be committed to helping place service men, women, and

military families alike.

The next location will be primarily committed help Asset Managers and buyers in the

Dallas/Fort Worth area. This area is one the most historic areas in Texas and will also serve as

one of our first Flagship locations dedicated to Luxury and Historic home sites. We are

committed to the growth and development of other large metropolis cities such as Dallas/Fort

Worth and San Antonio.

8

3.0 Market Analysis Summary

There are currently over 85 different Asset Management Companies doing business in

Houston alone. Our firm believes that there are almost 200 different companies operating

throughout Texas. Although, there are similar real estate firms operating in the 3 major cities,

we have not identified any one particular real estate brokerages firm doing REO real estate sales

in all 3 cities. Sure there are Re/Max, Keller Williams, Coldwell Banker all doing REOs in each

of the major cities in Texas, but they all operate under different brokerages with different

procedures and success. Leak Properties, LLC has focused their brokerage directly on the REO

real estate process; this is the reason we have been able to close 620 REO properties. We are

now able to take that same focus and dedication throughout Texas in the next 2 major cities, both

San Antonio and Dallas/Fort Worth.

3.1 Market Segmentation

The current market is segmented by the Asset Manager Companies. The key is to get our

past success and future vision directly in the hands of decision makers at these companies.

3.2 Service Positioning/Priced/Packaged

Our pricing and packaging are typical of competitors in the local real estate market.

3.3 Delivery of Services

Services will be delivered by the Broker of Leak Properties directly to the Asset Manager

who requested the service. We currently have a 98.57 percent on-time delivery for 420

properties, which require a minimum of 3 inspections; an Initial Inspection, a Ready-to-list

Inspection, and a Ready-to-close Inspection; not to mention Routine Monthly Inspection for any

property that remains in inventory for over 60 days, totaling over 1300 property inspections.

9

3.4 Special Marketing Strategies

The Company’s web sites are: 

www.leakproperties.com and www.shortsalesnhouston.com and www.5options.com.

Our properties show up on www.har.com, www.homes.com, www.realtor.com,

www.narrpr.com, and www.hudhomestore.com; along with www.facebook.com.

Our website marketing strategy is to address the different social media aspects of the real

estate. This will allow us to market to both buyers and sellers and use social media to our

advantage.

“This company is leading the way in website marketing as a way to touch potential buyers and sellers who are hurting and looking for some relief. Leak Properties, LLC becomes a beacon of hope in an otherwise dark time for many of these home owners.”

E.J. Simonsen, Managing Director, Lane Law Firm

4.0 Business Strategy

The strategic business strategy we employ for success is that of “Competitive

Advantage.” It is one gained over our competitors by offering Asset Managers a better value for

the services they need accomplished. The value in our proven track record is the easy in placing

assets in each of the 3, Top 10 Cities in Texas under 1 Brokerage Firm. The Firm increases

value by increasing benefits and services located under a Service-Disabled Veteran Owned

Business with the highly level of integrity. Key to these benefits is the ease in covering all 3

major cities from 1 access point.

10

5.0 Organization and Operations

5.1 Organizational Structure

Increase to 15 Realtors by the end of 2015.

5.2 Service Design and Development

Currently, services are being divided up by 3 different individuals, one input person, 2

inspection personnel. These services are then delivered to the Broker, Mr. Crawford. He in turn

delivers the services to the Asset Managers. As a Retired Air Force Captain, he is well familiar

with delegation. Even though services are delegated, he knows that at the end of the day certain

process still requires 1 overall person of responsibility.

11

5.3 Service Improvement Strategy

Services are looked at daily for improvement. Additionally, Asset Managers routinely

send out Best Practices to all Listing Brokerages. These Best Practices are used throughout the

network so they can be implemented for all customers as they apply; regardless of which

customer initialed the Best Practice.

5.4 Design/Development Cost

Design and development cost have been kept to a minimum because the process has been

in place for 4 ½ years. Most of the road block and hiccups have already been experienced by our

management team. We have zero development cost to expand our business concept further.

5.5 Proprietary/Licensing Issues

Proprietary issues are handled by our “in-house” processes. We have been successful by

keeping need-to-know “in-house”. This covers everything from how we handle inspections to

what measures are put in place to deal with buyers. The other 10 real estate agents operate as

buyer agents for the hundreds of buyers who routinely call our office monthly. Acquiring the

right Asset Management Company to list for; is left to the discretion of the primary Broker, Juan

Zane Crawford.

.

5.4 Facilities and Locations Plan

Leak Properties, LLC has been firmly planted in the greater Houston Northside area. The

firm has already identified 3 locations in the greater San Antonio area and 2 locations in the

greater Dallas/Fort Worth area to put boots on the ground in anticipation of expanding

operations. This can be accomplished within a 14 day time frame.

12

6.0 Management Team

Leak Properties, LLC is headed by Real Estate Broker Juan Zane Crawford, a retired

United States Air Force Captain with 21 years active service. He is also an MBA Graduate from

Our Lady of the Lake University in San Antonio, Texas, who is in the dissertation phase of his

PhD in Educational Leadership from Prairie View A&M University. He is currently Goldman

Sachs Scholar from the Goldman Sachs 10,000 Small Businesses Program, who was recently

appointed to the Board of Directors for the local Chapter of The National Association of Real

Estate Brokers (NAREB). In addition Mr. Crawford is also an Adjunct Professor teaching The

Law of Contracts and Principles of Real Estate I and II (2 TREC required real estate licensing

course) at Houston Community College.

“Put together the #1 team, I chose to be a part of.”Sean Gibson, Realtor

6.1 Key Personnel

Scheduling is being managed currently by Patricia Joseph. Her personality along with her

great people skills are of great value in maintaining phone coverage 15 hours per day, 7 days a

week.

Nicole White has been tasked with the training aspect of the company. She reaches out to

individual agents as well as the overall brokerage to determine how training can better service

everyone.

Rowena Miles takes a look at the day-to-day operations of the organization. And she

helps facilitate office meetings, coordinates with agents, and helps the firm maintain a

professional and accommodating work environment.

6.2 Ownership Structure

Juan Zane Crawford is the Sole owner and decision maker for Leak Properties, LLC.

13

6.3 Consultants and Advisory Board

Leak Properties, LLC utilizes an Advisory Board made up of both, a Residential and a

Commercial Lender; an Academic Instructor from Houston Community College; and a Real

Estate Broker familiar with the H.U.D. REO process. The brokerage takes advantage of the real

estate personal coaches to consult with. Our Advisory ensures any remaining gaps are kept to a

minimum.

6.4 Strategic Growth through Operations

In order to grow our Brokerage strategically, management will continue to document and

duplicate the core processes of how they process the Initial, Ready-to-List, and the Ready-to-

Close Inspections. These operational inspections are then tasked into priorities and uploaded

into various on-line data bases, such as Equator, EMS, and Yardi.

Ready-to-List (RTL) and Ready-To-Close (RTC) Inspection

14

Receive Inspection Request

Send request to Speedy Post

Give MLS request to Data Entry

Receive Inspection

Load Pictures in HAR MLS

Load Inspections in

Equator

Load Inspection to

Asset Managers

Receive RTL/RTC Request

Send request to

Speedy Post

Receive Inspection

Load Inspections in Equator

Load Inspection to

Asset Managers

7.0 Critical Assumptions and Risks

Our first critical assumption is that the Texas housing market will continue to rise. The

next critical assumption is that we can help everyone. That God put us down here to make a

difference. We may not be able to help everyone, but that does not stop us from trying to help

everyone. The critical assumption is that even with the current market increase, there will still be

distressed properties, properties Asset Management Company need have liquidated.

15