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FINDING INNOVATIVE WAYS TO HELP COMMERCIAL PROPERTY OWNERS DURING THECURRENT ECONOMIC CRISIS

OUR APPROACH WILL ENSURE THAT YOU WILL MAINTAIN OWNERSHIP OF YOUR PROPERTY NO MATTER HOW

UNFAVORABLE THE MARKET CONDITIONS MAY BECOME

Commercial mortgage resolution trust company

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The current economic crisis, which has affected theUS real estate values, is projected to further devastatethe commercial real estate market over the next threeyears to the order of three trillion dollars.

MARKET CONDITION SUMMARY

CMARTs Assessment of the Impact of the Economic Crisis on Commercial Real Estate:Twenty years ago, the practice of securitized ING residential and commercial mortgages andinvestment banking firms began, forcing profits in early assigned numbers of these securities.Most consortiums and corporations that purchased these securities are typically basedoverseas, and as such, the current economic stimulus package was developed by thegovernment specifically to provide relief to homeowners by means of mortgage modification.The fact that none of these beneficiaries (overseas holdings corporations) fall within the

realms of the stimulus program, reveals their lack of incentive to discount the principal balanceof these notes, even in the midst of our current market downslide which has devaluated thecurrent real estate market to alarming proportions. Principal mortgage reduction, adjusted tothe current market value of real estate in the United States, is the only actual and validremedy available to the consumer.

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Traditional resolutions no longer

availableREFINANCING

The high vacancy rates experienced by commercial real estate owners has left them with no

other alternative but to subsidize the deferents from their monthly receivables (i.e. rent),

out of their pocket in order to maintain their mortgages. This is the case for the vast

majority of property owners. Most individuals who have purchased commercial real estate

in the last ten years will find that this type of out of pocket expenditure is unavoidable. It is

also unrealistic for even a short period of time. Furthermore, the declining market prices,

coupled with the fact that most commercial loans are due within five to seven years with abuilt in acceleration or balloon payment clause only serves to solidify the bleak forecast

ahead. This scenario eliminates the only traditional solution that commercial property

owners have had -REFINANCING.

Time is running outballoon payment

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Of course you can try to secure a loan modification; however, the question is whatexactly are you modifying? The fact is the only part of your loan a modificationapplies to is your interest and the discounted defiance will be applied to your

principal. The problem with that is the sharp decline in property values have leftmost properties over 100% encumbered, so you will essentially be holding theproperty for the bank in hopes that the market will rebound significantly in order torecoup your loss. The estimated time for a market up trend is approximately fouryears.

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It seems the only available method used by desperate propertyowners to sustain ownership of their property, is negotiating ashort sale with the bank. However, this option is not available forcommercial property owners. Although the majority of the banksclaim that they are willing to consider reducing the principalbalance by means of a short sale, only a small percent seem todo so. Also, a huge challenge is finding a buyer who can afford30% or more as down payment for the property. One must alsoconsider that this is not the worst of it since the commercial

market has just only begun to slip. It leaves the question, what willyou do next year? A short sale again? This is not a practicaloption.

Short Saleis it a remedy or more of aproblem ?

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The only feasible solution, which is obvious to all

commercial property owners, is to reduce their principal

balance by 50% of its current loan amount. By doing so,

the current rental income, which they are receiving, will

more than debt service . The only viable method whichcurrent financial markets offer for discounted principal

is through purchasing of the note at a discount.

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BEAT THE BANKS

We have devised a method that bypasses the veil which has been created by the

servicing companies, i.e. the banks. Once we have effectively determined who the final

holder of the security is, which is backed by your mortgage (most likely by oversea

corporations), we will offer to purchase your note at a discounted price . At this time,

we will have the property owner place their property into an LLC under the umbrella

of a holding corporation (a consortium ). The holding corporation will in turn

guarantee that for the duration that your property is being held by the LLC it will not

go into foreclosure. The holding corporation will obtain permanent financing based

on the discounted purchase price of the note. At anytime, you, the owner of the

property, may terminate the LLC and sell the property at any value above the

encumbrances(i.e. discounted note price), as well as the second note which will be

placed by the holding corporation as a part of its security.

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If the note is not performing and/or in litigation the beneficiary of the note normally would

be willing to sell the note at a 50% discount.

Having the funds available to purchase the note, even at a discounted price is the difficulty

which property owners face. We have this problem solved. Another complication in

purchasing the discounted note is finding the true beneficiary who is the holder of the

note. This is not possible by conventional means.

We have devised a method that bypasses the veil which has been created by the servicing

companies, i.e. the banks. Once we have effectively determined who the final holder of the

security is, which is backed by your mortgage (most likely by overseas corporations), we

will negotiate to purchase your note at a discount.

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Benefits to property owner:

Substantial reduction on mortgage balance

Property will be guaranteed against further chance of foreclosure during the

upcoming market decline

Your property will be managed by a national property management company for

a substantially reduced /negotiated amount

You as the owner continue to hold ownership of the property during the

duration of the venture

All receivables collected during the term of the negotiation , prior to the

purchase of the note ,will be reverted to the owner

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commercial realestate owners

audit loandocuments to find

inconsistencies

start a lawsuit onbehalf of the

property owner

establish a trustaccount

Duringdiscovery, findout name of

beneficiary ofthe note over

seas

Duringmediation,negotiate a

rewrite of loanmines attorney

fees

Litigation isneither

wanted nor

necessary

This step is for the purpose of determining the beneficiary overseas through thejudiciary system. Furthermore, as a non-performing note, we can obtain a greaterdiscount on the purchase of the loan . The receivables placed in the trust account bythe owner is theirs to keep and should we not be able to negotiate an amiable deal forthepurchaseof the note, we can get a discount by mediating with the bank,

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The next step of the process (and please note we have simplified it for presentational purposes)

after the purchase of the note by the investor, we will require the owner to place the property in a

LLC, as a subsidiary of the holding corp. i.e. the consortium. The consortium, having secured an

insurance guarantee, will obtain permanent financing as a take out loan to securitize the instrument

with prearranged terms through a bank and seal the security in the secondary market

The final contract will involve a complex stock swap and leverage financing but for the purpose

of this presentation, which has been highly simplified and summarized. This information will be

disclosed in detail after the final negotiation and approval from the beneficiary, for the purchaseof the discounted note.

CMARTHOLDINGCORP. i.e.

consortium

Take out loan (BANK)UNDERWRITE ANDPIPELINE,CMART

loans

Investment banking firmwill securitize the takeout loan according toinvestor guidelines

LLC.PROPERY

LLC.PROPERY

Ins. companyplacing the

guarantee forCMART.

INVESTORBUYING

PAPER 30DAY BRIDGE

LOAN

BENEFICIARY SELLSNOTE TO

OURINVESTOR