Risk Associated With This Investment

All investments have certain inherent risk associated with the investment, however the sponsors of this investment have taken certain steps to mitigate possible known and unknown risk that may influence the outcome of the investment for each participating investor. The sponsors have implemented procedures to mitigate risk potentially associated with this investment, however there is no certainty that all risk can be avoided, mitigated nor resolved. (see, the Private Placement Memorandum, under risk section for a full disclosure of known and and unknown potential risk associated with this investment) 

• Ths subject property is owned by the LLC fee simple without any encumberances, liens or obligations;
• The Sponsor will setup a sinking fund in an FDIC insured banking institution to repay the principal amount of the notes as they mature and become due and payable from the sale of each cottage home lots sold to homeowners or investors;
• The Sponsors will setup a second reserve sinking fund in an FDIC banking institution to pay each notehiolder the accrued interest that will be due at the end of 60 months;
• In the event noteholders wishes to exercise the Warrant option to invest the principal amount of the note into LLC interest in owership, then the funds in the sinking fund held in the FDIC banking institution will remain in the bank account and used to redeem the LLC interest holders equity in the LLC on a call for redemption by either the holder or Sun Valley.