WE BUILD DREAM COTTAGES — One at a Time!

Table of ContentsOffering Overview

• A) Summary

• B) Use of Proceeds

• C) Risk and Mitigation

• D) Salient Quick Facts

Company Overview

• A) Who we are

• B) Design Principles

• C) Our Communities

• C) Completed Communities

• D) Key Personnel

• E) Market Snapshot

• F) Target Market

• G) We’re Honored

• H) Owner Testimonials

Offering Summary

• Offering 12% annual interest for a 1 year period, with 1% interest paid monthly on outstanding balance.

• $1,000,000 target raise.

• $30,000 minimum investment.

• $500,000 maximum investment.

• This offering is not convertible.

• We can close offering in increments of $60,000.

Use of Proceeds

• Purchase lots in our RiverLights Community project on which we build PRESOLD homes.

• Construction financing source is either: A) Cash from Buyer B) Guidance Line of Credit from regional bank. Neither of these two arrangements require Buyer to purchase lot up front.

• Per agreement, we purchase 2 lots per month at $60,000 per lot from the Developer.

Financial Risk and Mitigation

Risk• Buyer walks from agreement leaving unfinished

construction.• Company ceases operations and lender is left

with unsecured claim.Mitigation• Homes are presold with Buyer having firm

takeout and construction financing in place. The backend risk is reduced to virtually nothing.

• Buyer has paid deposit equal to $5,000 plus 50% of any upgrades before construction starts, so they have skin in the game.

Salient Company Facts• Market value of current Pre-sold homes

under construction exceeds $10MM.

• 2017 YTD: 11 closed, 28 under contract and 11 lots reserved in future phases.

• 135 homes sold during 2014-2016 with average price rising from $299,000 to $342,000 during this period.

• 2017 average sales price is $392,159.

About TheCottage BuildingCompany

• The Cottage Building Company has built custom cottage homes and cottage communities of unparalleled quality and timeless design in southeastern North Carolina over the past decade.

• The mission of The Cottage Building Company is to create close-knit, custom cottage communities that celebrate the cottage lifestyle. Each and every cottage is designed and built to capture the essence, charm, and features of a vintage Craftsman cottage with all of the customization, modern amenities, and options to meet today’s discerning home buyer’s needs and wants.

Design Principles In today’s complex world, the uncluttered and honest design principles that inspired the Arts and Crafts movement—more than a century ago—are the tenants of The Cottage Building Company for creating comforting, welcoming cottage homes.

• Gracious, wide welcoming front porches

• Open floor plans with few hallways

• Craftsman-style architectural details, wainscoting and moldings

• Coffered ceilings; built-in cabinets, shelving and seating

• Gas fireplaces with custom-crafted surrounds

• Modern kitchens with quality appliances and well-organized workspaces

• Distinctive granite countertops and unique tiled backsplashes

• Exotic hardwood floors; luxury ceramic tiled bathrooms

• Designer lighting and plumbing fixtures

• Coastally-inspired , custom paint colors

• Plentiful outdoor living spaces

• Extensive landscapes with indigenous plantings and eco-friendly-irrigation system.

• 1- and 2-story plans from 1,300 sq. ft. to 2,600 sq. ft.

• 15 unique floor plans with endless customization options to meet your needs.

• 35% greater energy efficiency than other new homes.

Two Beautiful Communities –One Award-Winning Builder

• The beautiful Blue Ridge Mountains—less than a ½ days drive.

• The excitement and culture of Raleigh, NC—our state capital, just two hours north.

• Legendary Myrtle Beach, SC—an hour south.

• Historic Wilmington, NC with its attractions and famous riverfront, named “best riverfront” by USA Today.

• Easy driving, affordable living, a colorful culture, and beautiful scenery all add up to an unparalleled quality of life in southeastern North Carolina.

For the Historic Southern Town Aficionado: Located in historic Wilmington, North Carolina, along a 3-mile stretch of Cape Fear River frontage, is a 1,400-acre, river-oriented community with a planned mix of more than 2,500 homes, a 38-acre lake, central amenity center, event lawn, commercial areas, marina, live-work opportunities, shops, restaurants, boardwalk, crab dock, and miles of trails. We’re thrilled to be invited by Newland Communities, the developer of this unique, riverfront community, to build The Cottages at RiverLights. Our complementary coastal cottages with their wide, welcoming front porches, colorful exteriors, craftsman details, charming alleyways, and extensive landscaping.

For the Beach Lover: The Cottages at Ocean Isle Beach is a charming coastal community of new Arts and Crafts inspired cottage homes, developed and built by The Cottage Building Company, situated along the Atlantic Intracoastal Waterway, beneath old-growth oak canopies, in the nostalgic island town of Ocean Isle Beach, North Carolina. Among the gently curving tree-lined streets and refreshing coastal breezes, neighbors know each other by name and the front porches are the place to be. Blending seamlessly with the native woodlands, natural ponds, and meticulously landscaped lots, The Cottages at Ocean Isle is the place people dream of living. Now selling our Final Phase.

The coast of North Carolina is known for its southern hospitality, salt marshes, wetlands, pristine sandy beaches, and endless expanses of indigo waterways. The Cottage Building Company’s communities are perfectly positioned in southeastern North Carolina to give ensure the best in coastal cottage living. All of our locations enjoy a mild four season climate, are easily accessible, and offer a much lower cost of living than northern states. Our communities are also convenient to the very best the region has to offer:

Completed CommunitiesThe Neighborhoods of Holly Ridge

• Located in the town of Holly Ridge in Onslow County, NC, this cottage-style community was developed as The Neighborhoods of Holly Ridge, LLC. As a principal of this limited liability company, and also its managing partner, Scott Cook was the driving force behind the planning and development of this unique community. Scott Cook Construction Company accomplished the site work and installed the infrastructure. The community consisted of 498 lots upon which the Company’s home building entity, Cardinal Builders, built 109 homes. The remaining 389 lots were built by regional homebuilders. It was in this community that Scott and Michele Cook perfected The Cottages community concept.

• These cottage-style homes offered by Cardinal Builders were targeted to the move-up buyers, military officers, and empty nesters. An emphasis was placed on creating unique Craftsman style cottages at a right price with a focus on authentic cottage architecture and a complementary landscape environment. The community quickly became popular among retirees and The Cottages reputation was established.

The Cottages at Southport

• Nestled on the coast of NC, just south of Wilmington, lies the quaint, historic fishing town of Southport. Scott Cook chose this location for his second community, The Cottages at Southport. Just a five minute walk from the historic downtown area and waterfront, The Cottages at Southport consists of 102 home sites, of which 100 have been sold. Absorption in the community has been impressive, with an average of 40 homes sold a year. The average sales price of a cottage is $320,000, and the average square footage of cottages is 2,000 square feet.

• Amenities at The Cottages at Southport include a swimming pool, cabana, outdoor kitchen, ponds, community-wide irrigation system, open green spaces, and extensive sidewalks. This location offers its residents close proximity to Oak Island and Caswell beaches. A plethora of shopping and entertainment abound in and around Southport.

• The majority of the residents who live in The Cottages at Southport learned of the community by word-of-mouth. The Cottage Building Company’s reputation for building quality, custom cottage-style homes and neighborhoods has been its best form of advertising.

Key Company PersonnelScott Cook has assembled an array of experienced professionals who work together as an effective and unified team enabling

The Cottage Building Company to meet its immediate needs and to position the Company for continued growth.

Scott Cook, Owner

Scott Cook is the driving force and visionary behind The Cottage Building Company. Scott has more than 25 years of experience

in new home construction, landscape architecture, land development, operational functions, and real estate sales. Scott is a

graduate of The Ohio State University, where he earned a BS in Landscape Architecture.

Michele Cook, Design and Landscape Manager

Michele Cook works in tandem with Scott on the vision and strategies for The Cottage Building Company. Michele is hands-on

with each buyer to customize their cottage according to their needs and wants—from interior and exterior color selections to

fixtures to space design to custom built-ins. Michele works with the general contractors to ensure homeowner’s selections and

details are incorporated correctly into each home being built. Finally, Michele designs, selects, and oversees the plantings for

each cottage and all common areas.

Mike Ankrum, Land Construction Manager

A 17 year veteran with the Company, Mike Ankrum verses the land development function. Mike has more than 25 year’s

experience in the construction field from site work to handling the entire infrastructure. Mike is responsible for clearing the

land; installing utilities; laying roads, curbs, sidewalks; and prepping lots for building. Mike also works with the State and DOT

on compliance requirements.

Reed Thompson, Building Construction Manager

Reed Thompson manages the vertical construction activities for The Cottage Building Company. Reed’s responsibilities include

home starts; scheduling, production and quality control of subcontractors; and negotiating pricing and controlling project costs.

Reed holds a North Carolina General Contracting License and a BS in Construction Engineering and Management from NCSU.

Ron Wiese, Pre-Construction Manager

Ron Wiese manages all phases of the Pre-Construction at The Cottage Building Company. His responsibilities include working

with buyers to customize their cottage homes, pricing all proposed buyer options, and consulting with the architect and

draftsman to create custom cottage plans according to buyer’s needs and wants. Ron ensures the home plans get approved by

the buyer and that the plans are submitted for building permits. Ron and team also manage the multi-faceted supply chain for

all building materials. Finally, Ron and team coordinate any and all post-buy punch list fixes.

Ronnie Cook, General Contractor

Ronnie Cook is our General Contractor for The Cottages at Ocean Isle Beach. Ronnie’s responsibilities include home starts and

scheduling; production and quality control of the subcontractors; and negotiating pricing and controlling project costs. Ronnie

will be the GC for The Cottages at Riverlights. Ronnie holds a GC license from the State of NC.

Ryan Cook, Chris Murray, Steve Lampros, Kevin Henry, and Julie Chortanoff, Sales Executives

Our prospective buyers and committed buyers are in good hands with our Sales Executives . Ryan, Chris, Steve, and Julie

connect with, track and follow-up with all leads into our communities whether they are online, by phone, or in person. In

addition, this team of professionals refers buyers to each other’s The Cottages communities. Their goals are to turn leads into

buyers and to match buyers with the right home plan, the right lot, in the right community at the right time. Everyone on the

sales team is committed to 100% buyer satisfaction throughout the buying process.

Christine Gower, Finance Manager

Christine Gower manages all aspects of the finance and accounting functions for The Cottage Building Company. She is

responsible for accounts receivable, accounts payable, payroll, the P&L, financial projections, cash flow, and a host of other

financial tasks and projections as needed. Christine holds a B.S. in accounting from xxx.

Mark Ballard, Marketing Consultant

Mark Ballard is our marketing consultant who creates marketing strategies, plans, and materials, in tandem with Scott and

Michele Cook, and drives marketing results for The Cottage Building Company and The Cottages communities—off line and

online—with the goal to create buyers/leads. Mark brings to us a plethora of marketing experience and insights from his

corporate executive work and entrepreneurial work in very successful e-commerce ventures. Mark holds a BS with honors and

an MS in Leadership from Iowa State University.

Market Snapshot-March 2017Our current counties are at the center of growth in not only North Carolina, but the Southeastern United States.

Summary Statistics

NEW HANOVER COUNTY Mar-17 Mar-16 % Chg. 2017 YTD 2016 YTD % Chg.

Average List Price $514,994 $445,039 15.72 $424,350 $388,160 9.32

Median List Price $339,000 $306,510 10.60 $295,000 $270,000 9.26

Average Sale Price $295,938 $264,691 11.81 $287,569 $261,883 9.81

Median Sale Price $240,000 $220,000 9.09 $230,000 $211,998 8.49

Average CDOM 89 96 -7.29 88 N/A N/A

Median CDOM 38 47 -19.15 48 58 -17.24

BRUNSWICK COUNTY

Average List Price $368,549 $339,895 8.43 $345,304 $319,515 8.07

Median List Price $289,000 $272,200 6.17 $265,000 $254,900 3.96

Average Sale Price $252,264 $235,915 6.93 $251,202 $231,087 8.70

Median Sale Price $208,000 $194,500 6.94 $213,671 $193.000 10.71

Average CDOM 131 152 -13.82 133 N/A N/A

Median CDOM 65 96 -32.29 77 N/A N/A

*Source: Wilmington Association of Realtors

Target MarketThe target market for The Cottages communities in Brunswick County and New Hanover County is pre-retirees, retirees, and empty nesters from northern states who seek relief from harsh winters and high property taxes and who have an affinity for the detail and efficiency found in cottage living and a relaxed, coastal lifestyle.

An interesting group augmenting the typical demographic of the area is younger individuals with the ability to telecommute. The lower property taxes and crime rates also add to the appeal to this demographic in addition to the retirees.

The Wilmington Business Journal recently published that the number of homes sold in the tri-county (Brunswick, Pender and New Hanover) increased by more than 27% as compared to March 2016.

We’re Honored

• Two feature stories in The Cottage Journal—Summer 2015 and Summer 2016

• Multiple-year Diamond Award (First Place) in The Brunswick County Parade of Homes—2003 to Present (Including 2016 for Tidewater design)

• Best Floorplans by Ideal-Living—2016

• Best of Houzz Design—2017

• Best of Houzz Service—2017

Owner TestimonialsLife at The Cottages at Ocean Isle Beach is an intoxicating blend of nature and nurture, a celebration of easy shore side life that has lulled me into total relaxation. Southern. Serene. Coastal breezes. Spectacular sunrises and vivid sunsets.

My living room and broad porch are joyful, magical places that lure me into sitting and enjoying the simple pleasures: flowers and trees in rich, vibrant colors, glasses of wine shared with friendly neighbors, views of egrets and herons, geckos sunning themselves on my grill, turtles paddling in the pond, lovely views of the nearby waterways, marshes and woods and, of course, life in flip flops!

Is there anything better?

Jeanette Harrison, Owner of The Seahaven. Relocated from Boston, Massachusetts.

The Cottage Building Company’s reputation for quality has been achieved–once again. We were able to customize our home to our wants and needs. The staff offered much time and consideration and worked with us in making our many decisions. We are pleased with the results!

We’re thrilled about not only the home (which is huge), but also the location, the community, and starting this new chapter in our lives. Finding The Cottages at Southport has put it all together.

Gene and Jean Boutin, Owners of The Seashell. Relocated from Greenville, SC.

We have been vacationing in North Carolina for twelve years (since our daughter moved here). We knew North Carolina would be our home when we retired and started searching for “the perfect ” place about two years ago. Our criteria was pretty simple. We wanted to be close to the ocean. We have spent time at NC beaches from Corolla, Atlantic, and Topsail down to Sunset.

We fell in love with The Cottages of Ocean Isle Beach the first time we drove into the neighborhood. The craftsmanship was the first thing we noticed but that was followed very quickly by the friendliness and professionalism we were met with. We were able to customize our home and were encouraged to visit and watch the progress as much as possible.

We moved in six months ago and are still pinching ourselves everyday. We are within minutes of two amazing beaches–Ocean Isle and Sunset. We love visiting with the great people that have become our neighbors. Our home is exactly what we envisioned–maybe even better.

Gil and Stacey Davis, Owners of The Seaside. Relocated from Pittsboro, Indiana.