Investment Philosophy To our stakeholders, be they employees, clients, shareholders or the community-at-large, Capital 1 delivers a high level of discipline and integrity in its financial and business operations.  Utilizing experienced investment professionals focused on a disciplined investment process and rigorous bottom-up approach to risk management, Capital 1 is able to achieve long-term risk adjusted returns through the bulk purchase of real estate.   Bulk real estate investment opportunities continually arise throughout the world.  Capital 1’s relative size, liquidity, transparency and legal framework, together with the expertise and maturity of its professionals and advisors allows for Capital 1 to proficiently recognize and subsequently capitalize on the diversity in location and type of opportunities and to adjust its target market to benefit from the volatile real estate cycle. From its founding, Capital 1’s core philosophy has been characterized by the following components:             Minimize bureaucracy.  Among our strengths is our ability to recognize and to react efficiently to opportunities and trends in the market.  Without the cumbersome bureaucratic delays, our flexibility enables us to take advantage of time-sensitive opportunities to best service our clients.             Find and hire the best talent available.  Our team of professionals and advisors possess legal, accounting, finance, and business training at the highest levels.             Adhere strictly to the highest standards of business ethics.  Over the years, one tenet of our philosophy has stood above all others: our adherence to ethics and professionalism.             Be conservative in risk and maximize safe returns.  Risk management is an important attribute of our bulk purchases and we give a very high priority to protection of our assets from risk, including legal liabilities and other operational or non-operational liabilities. As a result of our core philosophy, Capital 1 has evolved into a strong, prosperous organization with a talented team of professionals capable of delivering the best bulk purchase solution benefiting developers, real estate clubs or brokers.  We welcome the chance to show you personally how we put these important principles into practice.

Investment Strategy Through a bulk purchase, value oriented, event driven investment strategy, Capital 1 is able to target investment opportunities across all major real estate classes.  For Capital 1, our fundamental commitment remains the same within the parameters of our investment strategy, that is, to provide developers, real estate clubs or brokers, with flexible solutions and services, while concomitantly generating attractive risk-adjusted returns, thereby giving rise to continued and long term relationships.  Central principles to Capital 1’s investment strategy include the following:             Diversification.  We strive for diversity in our bulk purchases, thereby maintaining increased returns while reducing the overall risk of the asset class.  As a result, we target a broad range of real estate investments diversified by geography, asset class, lifecycle and quality.  This strategy provides us the flexibility to pursue the most attractive risk-adjusted investment opportunities when they materialize and to enter and exit local markets as market conditions change.             Pursue Privately Negotiated, Smaller and Less Competitive Transactions.  Capital 1 leverages its broad network of contacts within the real estate and business communities to generate privately negotiated investment opportunities.  We also pursue less competitive investment opportunities due to financial, legal or other complications that may deter competing investors.  Further, our focus on smaller and more entrepreneurial investment situations draws less attention from large institutional investors, resulting in more attractive investment opportunities.             Proactive and Creative In-House Deal Sourcing.  Capital 1 has developed an innovative approach to deal sourcing by proactively developing relationships and maintaining consistent contact with potential clients, be they developers, real estate clubs or brokers.  Over 70% of Capital 1’s investments to date were directly sourced by its proactive in-house efforts with each investment professional motivated not only to maintain existing contacts but to regularly uncover new, less traditional deal sources.  By focusing Capital 1’s attention on bulk purchases that are not widely marketed or where Capital 1 has a specific advantage, Capital 1 often has a “first or unique look” at potential acquisitions and, hence, a greater ability to make above market returns.             Focus on Innovative Solutions.  Capital 1 believes that because of their unique, multidisciplinary nature, complex situations can offer exceptional, risk adjusted returns, as they are in need of innovative solutions.  Capital 1 is also willing and able to work closely with developers, real estate clubs or brokers, to tailor and attain the most appropriate and effective solution.              Proven Real Estate Professionals.  Strategic relationships with real estate professionals provide Capital 1 with a competitive advantage in sourcing and executing transactions on a national and international basis as well as specialized asset and geographic expertise.             Highly Disciplined and Rigorous Investment Process. Capital 1 prides itself on a highly analytical and detailed review process of all potential bulk purchases.  Utilizing its entire resources and selecting concise outside advisors, an extremely thorough and stringent analysis of all potential bulk purchases have allowed Capital 1 to remain highly disciplined when pricing potential investments, thereby allowing Capital 1 to avoid loss making investments.