INVESTMENT STRATEGY

General Partner : Would use RCF capital coupled with borrowed funds to invest in real estate related investment opportunities earning the spread between the yield on assets and the cost of borrowing-accordingly with project specific financial parameters
GP business objectives : Armoured with its 30+ construction industry history track record and expertise are supported by conservative financial posture relative to the industry the extensive experiance of management a comprehensive risk management approach the availability and diversification of financing source
GP Would aim to acquire real property for current cash flow, long term appreciation and earning growth in implementing this strategy GP continually evaluate potential acquisition opportunities these acquisition may come through joint venture interests or from other equity investment

RISK MANAGEMENT

General Partner : Will only engage in risk activities that are expected to enhance value for stockholder based on core expertise
GP's activities focus on capital preservation and income generation through proactive portfolio management supported by a conservative liquidity & leverage posture
RETURN TARGET(Outstrip income oriented market alternatives: BANKS, UTILITIES, &ASSET MANAGERS)
Leverage target: none and or 2X Equity, 3X Equity accordingly with the projects specifics financial
TARGET ASSETS WITHIN THE Confine of the risk appetite statement, GP seeks to generate heighest risk adjusted returns on capital invested after consideration of following

• * The amount, nature, and variability of anticipated cash flow from the asset across a variety of interestrate yeild spread , financing cost , credit loss and prepayment scenarios
• * The liquidity of the assets
• * The ability to pledge the assets to secure collateralized borrowings
• * The cost of financing hedging and managing the assets
• * THE CAPITAL requirements associated with the purchase and financing of the asset

CAPITAL STRUCTURE

RCF Capital structure is designed to offer an efficient compliment of funding source to generate positive risk adjusted return for stockholders while maintaining appropriate liquidity to support the business and meet financial obligation under periods of market stress
RCF and debt financing would provide capital for acquisition and refinancing at higher leverage points in the capital structure on real estate with growth potential
GP would focus on top tier sponsers, operating in prime market location with sound market conditions and rational business plan and loan structure that mitigate risk , IN ADDITION ,GP enlisting of assets with attractive current yields durable income streams and potential upside from appreciation
GP generally expects to maintain RCF ratio of debt to equity of no greater than 4:1 this ratio varies from time to time based upon various factors, including managements opinion of the level of risk of RCF assets and liabilities, liquidity position, level of unused borrowing
GP expects Levarege to vary with market conditions and assessment of risk-return on investment. This leverage in incurred by borrowing against a substantial portion of the market value of assets. Leverage which is fundamental to the investment strategy creates significat risk