Strategy & Implementation

A DEDICATED APPROACH

Genova Capital’s management team works through industry relationships to create
opportunities to acquire portfolios. Mortgage and REO portfolios are reviewed based on
levels of discounts offered, property quality and type, geographic location, diversification
of properties, portfolio size, and overall estimated returns. Additionally, on note
acquisitions, the status of loans (performing, non-performing, etc.) and overall borrower
credit worthiness are evaluated.

After identifying a portfolio that meets the minimum criteria, Genova Capital completes
an initial analysis before deciding to make a conditional offer. Upon reviewing
opportunities, we will typically have just a few days before a bid/offer must be submitted.
A bid, or conditional offer to buy, specifies the terms under which we will acquire the
portfolio. This bid/offer will also specify a window for us to complete a detailed due
diligence on the loans or properties.

Genova Capital typically has two to three weeks to complete detailed due diligence and
fund the transaction. Our bid/offer will detail the conditions under which we will purchase
the portfolio.

Once due diligence has been completed, and closing documents are executed,
the portfolio will be acquired and the required documentation will be recorded and
exchanged.

The funding capital is secured by a first trust deed on the underlying real estate. Each
of these properties will be acquired at a substantially discounted rate, providing another
layer of security and the opportunity for substantial returns.