Portfolio Overview

Ken Steele, the managing member and shareholder of our general partner, has over 35 years experience in the buying and selling of residential, commercial and land properties. The following table provides summary information regarding his experience:


Date Purchased Type of Property Purchase Price Sale Price Date Sold Notes

1985 72 Unt., Westside Villa $978K $2.8M 1987 HUD rehab program w/

in San Bernardino, CA Sec. 8 subsidies; city of SB

deeded street to partnership

and helped pressure banks

LIMITED PARTNERS EARNED $500K+ to sell foreclosures to

partnership; invested

$375K for rehab costs =

$1.45M realized gain

1989 122 Unt., Highland Village $6.8M $9.6M 1991 Purchased partially

in Rialto, CA finished project and

completed construction;

brought litigation against

contractor for faulty


$1M+ realized gain

1989 Shopping Center in $170K $340K 1992 Purchased at trustee sale;

Norwalk, CA sold to ambulance co.

1977 3400 Overland Ave., $175K $550K 1985 Completely remodeled

Los Angeles, CA (Palms) triplex; used one unit as

office for past foreclosure


1995 Redlands Blvd. in $175K $550K 2001 3-story, 13K sq. ft. retail

Loma Linda, CA center assumed from MD

group; successful in getting

100% rented; sold to dental


1990 Tradewinds Counterpoint $1.288M Current Negotiated $1.1M loan

in Laguna Beach, CA down to $600K; currently

has 4.5% cap rate and

value of $7M+

Date Purchased Type of Property Purchase Price Sale Price Date Sold Notes

1975 904 E. H St. in $48K $115K 1995 First purchase at age 18;

Ontario, CA Used $200 down and

borrowed $2K for $2200

deposit; fixed and resold

1976 823 Cider St. in $340K $395K 1976 Sold in 40 days

Santa Monica, CA

1977 Norwalk, CA $44K $95K 1977 First foreclosure home;

sold in 30 days

1980 2175 Summitridge in $170K $210K 1980 Repurchased 2 year later;

Beverly Hills, CA then re-sold to same owner

for $30K more

1981 2025 Hutton Dr. in $170K $330K 1981 Former residence of

Beverly Hills, CA Natalie Cole; also lived in

residence for short time

1989 2701 Duffey St. $35K $175K 1990 Purchased deed from

in San Bernardino, CA owner who was about to

lose house to foreclosure

for $35K; re-sold front

property back to previous

owner for $90K; fixed

back property and sold for


Date Purchased Type of Property Purchase Price Sale Price Date Sold Notes

2002 1st and Whitter Blvd. $2500 $54K 2003 Purchased at tax sale;

in Loma Linda, CA property now has house

2001 1800 Hilltop Dr. in $2K $55K 2002 Parcel now has house listed

Grand Terrace, CA for $640K

1998 2700 Waukenshaw in $100 $68K 2008 Sold portion for $5K

San Bernardino, CA within 90days of purchase;

sold other portion to Cal-

Trans for $63K on

condemnation action

1998 Hwy 138 in Lake $9K $140K 2003 Rented to Sec. 8 for several

Gregory, CA years

1998 706 Rialto Ave. in $6K $100K 1998 Re-sold within 6 months

San Bernardino, CA

1998 Spectrum Lot in $25K Current .92 acre lot in a regional

Perris, CA Wal-Mart anchored

shopping center; soon to be

completed interstate exit

within 200 feet; listing for


1995 Baseline Rd. in $25K $145K 1995 Purchased lot at tax sale;

San Bernardino, CA lot was 1/3 of land for

Taco Mexico restaurant;

resold to restaurant within

90 days