We believe the economy is showing strong signs of a slow, but sustained recovery. Consumer spending is increasing--the most encouraging sign of all--and new and existing homes traded hands more briskly than in the previous months, but those levels were down from a year earlier. The stock market is recovering. Earnings are up 16% in 2011. The increase in market capitalization is giving some consumers relief and confidence to also open the wallet. Interest rates are still down and we believe will remain at 60-year lows through 2012-13. The real estate sector is still sluggish and jobs data continues to remain weak, but improving. Interest rates will remain low in the short term followed by an inflationary period. We believe this creates the perfect opportunity for prudent acquisition given the generational opportunity described above. We have been in a prolonged depression with signs of slow but defined, stable recovery. Now is the time to buy low. Investor's poor investment performance in real estate and the stock market coupled with a tough economy has most liquid capital sidelined. Yet, most do not want to miss the recovery. When the money comes off the sidelines it will create substantial appreciation in real estate assets. Now is the time to invest to capitalize on this appreciation opportunity.

To discuss new or existing opportunities, please contact us at 858-775-0169.