Executive Summary

October 19, 2012 Prepared by: Mike Moore, Founder

Management Team

Mike Moore - Business and Sales Manager, Founder

“I am obsessed with re-imagining applications and information distribution.” Mike Moore began his management career at 19 years old, joining a retail telecomm start-up after fielding a print ad for a cellular salesperson. Mike joined Wireless Cellutions Inc. in Ventura County, CA in 1999. Mikes creativity paid huge dividends immediately; Mike developed an internal online application process and provided the groundwork for the first widely recognized multi-carrier retailer that provided: Cingular, AT&T, Sprint, T-Mobile and Nextel. Mikes ideas grew a single retail store to 15 stores with 120 employees in two years. Mike was responsible for operations. Mike is a natural salesperson, an ideas guy. Mike has worked in commercial real estate since 2002 starting with Yardi Systems as a Account Manager and was integral in the development of the Senior Housing module for Yardi Systems, as an Associate Account Executive and Training specialist for CoStar Group working with Marcus & Millichap, CBRE, NAI Capital and is currently a Commercial Asset Manager representing multiple owners at the Park Place Group in Walnut Creek, CA. Michael Attended Santa Barbara City College with an emphasis in Music Composition and Executive Programs Real Estate School while working full time in Commercial Real Estate. Mike is a renaissance man, an avid ice hockey player, proud father and husband to Christina Klopp.

Christina Klopp - Product Manager “We have one instant to capture user attention, if we fail we lose, I don’t like losing” Christina attended the Fashion Institute of Design and Merchandising in San Francisco with a focus on Graphic Design. Her background in design and workflow creation spans 10 years working for a small startup PropertyLinkOnline, Yardi Systems and now for RealPage as the product manager for Craigslist tools and Content Syndication. Christinas organizational workflows, administrative internal dashboard development have helped integrate a bifricated set of marketing products into one unified application. Christina is a project manager, proud mother and Netflix junky,

Peter Marcus, CPA - Financial Manager “Show me the budget…” Pete brings 10 years of private sector accounting and financial management to our team. Is a graduate of CSU-Channel Islands. Pete worked his way through school and up the corporate ladder at Salem Communications while attaining his CPA. Pete is a numbers guy, a proud father and huge Braves fan.

“I get it…It’s like craigslist for commercial real estate professionals”

Product, Philosophy, Industry, and Target Market

What is PropertyAlly? PropertyAlly is a free commercial real estate internet listing service (ILS) built on Flynax classified engine – with an available pay per listing option. No membership required with no membership fees. PropertyAlly will be a network for everyone involved in commercial real estate to advertise. This includes: brokers, vendors, principals and service providers. PropertyAlly is not a Commercial Real Estate information service company. What is our Mission? PropertyAlly will build a professional listing network with the delivery of complete, clear and accurate content to our users and consumers. We want our users and consumers to get all the information from a single screen at a glance in an organized and industry specific format. We will streamline the way listings appear and will develop a standardized taxonomy for posting CRE listings. “Create the first cutting edge marketplace for commercial real estate professionals, their listings and services.”

Business Philosophy: We are building a accessible commercial real estate network. We are building an application that will produce valuable data. We provide a new resource for commercial real estate listings. We will run lean, less human capital. Target Market Overview: Commercial real estate: professionals, service providers, vendors, owners and prospects. This includes but is not limited to: Real Estate: Brokers, Agents, Leasing Agents, Property Managers, Developers. Ownership: REITS, Syndications, ownership groups and individuals who own property. Vendors: Contractors, Architects, Appraisers, Painters and more. Prospects: Business seeking space, owners seeking representation.

Commercial Real Estate - Test Market: Greater San Francisco Bay Area.

Industry Overviews: Commercial Real Estate and Advertising converge. The estimated value of commercial real estate in the US approaches 13 Trillion dollars, internet advertising projects at 35 billion dollars in revenue for 2012 and Commercial Real Estate membership and advertising revenue topped 350 million in calendar year of 2011. Massive industries, massive potential revenue. Commercial Real Estate continues to show signs of recovery year-over-year and internet advertising is show signs of strong growth through six months of 2012.

Commercial Real Estate Industry Recovery Price recovery continues to accelerate across all markets. The two broadest measures of aggregate pricing for commercial properties within the CCRSI — the U.S. Value-Weighted Composite Index and the U.S. Equal-Weighted Composite Index — each posted significant gains in August 2012. The two components of the equal-weighted U.S. Composite Index (Investment Grade and General Commercial) both advanced in August, signifying that the recovery in commercial property pricing has reached across all size and quality dimensions of the commercial real estate sector…(see attachment CCRSI 9/12 for complete detail) Internet Advertising Growth: Spending for Internet advertising reached $17 billion in the first half of the year, up 14% from the same time in 2011, as marketers seem to grow increasingly comfortable with using mobile devices and digital video to communicate brand messages. Search-related advertising still dominates online spending, accounting for 48% of revenues for the first half of 2012, according to a newly released report from the Interactive Advertising Bureau. However, mobile was the area of fastest growth, with spending nearly doubling year over year, to reach $1.2 billion in the first six months of the year, the report said. (see IAB report for more detail)

Commercial Listing and Information Services Revenue 2011: CoStar Group: 251.74M, LoopNet: 86.66M, Xcelligent: 7.6M (est.), CIMLS: 1.4M (est.) Total Estimated Revenue 2011: 350M

(source: sec filings)

Costar Group

LoopNet

Xcelligent

CIMLS

“It can’t just be pretty, at a glance I need to know all my deal points.”

Goals, Objectives, Strength and Challenges PropertyAlly Goals:

Establish a presence as the premier CRE listings network.

Earn brand loyalty through consistent customer communication and outreach

Build a support model where users are self-sufficient via user training system “wizard”.

Provide exceptional quality software, interface, and design. PropertyAlly Startup Objectives: (6 months)

Establish our user base to 1,000 users in the first six months.

Expand our listing base to 60,000 listings within the first 6 months of operation.

Build our site traffic via marketing to 500 unique imprints per day in the first 6 months. PropertyAlly Projected Strengths:

First to market with a craigslist style ILS that includes all the branches of CRE

We have the industry people; proven closers, designers and financial management.

We are passionate about commercial real estate, advertising and software design.

We are aggressive and want to create a successful, lucrative company.

Low operating cost, minimal human capital long-term. PropertyAlly Challenges:

Free listings. The challenge is converting free users into paid users.

Zero user base, promoting early adoption will be challenging.

Not our software, reliance on outside development.

No information service component – we have listings but no data product.

“Show me why I need to pay for a listing, show me the ROI”

Revenue Models Revenue Model Overview: Active Vs. Passive PropertyAlly will use Pay-Per-Listing (PPL) as its active revenue model for year-over-year projections and initial revenue models. The inconsistency in Ad Space and Injected Online Partnership make it very difficult to project estimated revenue, therefore these sources are considered passive revenue sources until metrics can be established. Revenue Model Active Pay-per-listing (PPL) - ACTIVE Pay-per-listings are onetime fee based listings that can be renewed manually each month or setup in a autorenewal format. This is the core of our active revenue model. Pricing below in Table A. Revenue Model Passive Ad Space (ASP) - PASSIVE We will sell banner ad space for our site to our subscriber base on a localized and national level. We can’t quantify or value the ad space until we have metrics on traffic and reach. Injected Online Partnership (IOP) - PASSIVE Through a partnership with Commission Junction (CJ) we will receive set commission on CJ injected vendor clicks and purchases. These vendors will be injected into our vendor listing section as paid listers. CJ clients only allow partnership with companies that meet certain impression, clicks and business criteria. More information is available on the CJ website. A good example of a CJ injection is Vista Print or Blue Host. Google Advertising: - PASSIVE We will utilize pay per click and commission based advertising through Google as a filler for un-used ad space on our site.

Table A Pay-Per-Listing Fees All Listings are 31 days, free listings don’t have an auto renew option, user must login to renew.

Qty.

Listings

Price Price Per Listing Posted 1

Free Listing

$0.00

Yes

1

Listing

$5.00

Yes 5

Listings

$20.00 $4.00 Yes

10

Listings

$40.00 $4.00 Call for rates

50

Listings

$150.00 $3.00 Call for rates

100

Listings

$275.00 $2.75 Call for rates

1000

Listings

$1,000.00 $1.00 Call for rates

Additional pricing will be available or larger establishments, large brokerage firms and owners. These will be negotiated annual rates. Free Vs. Paid We have captured the user, how do we convert free users to paid users? Our core free listing is minimalistic but will function effectively for a small single owner operator, vendor or agent just starting out. Free listings will still allow users to reach a great focused audience. Please see Table B for details. Table B Feature Comparison

Free Vs. Paid

Free

Paid

Images

1 Image

Unlimited Images Documents

No Documents

Unlimited Documents

Offlinking

No Offlinking

Yes Offlinking Video

No Video

3 Videos Allowed

WebStats

No Stats

Stats Granted Local Data

No Data

Grants Access to Local Data Composite

Listing Verification

No Verification

Paid Listings are verified with listing agent

Mapping & Location Not Included

Included Bolded Listings

Not Included

Included

Featured Listing

Not Included

Included Top of Page

Not Included

Included

“Show me why I need to pay for a listing, show me the ROI”

Value Propositions First Value View All Listings For Free. Our competitors don’t allow you to view all of the CRE listings for free, you have to become a premium subscriber or sign up for a monthly membership. We don’t have a membership format. Second Value Simplicity. Current advertising channels focus on a format that is tailored specifically to brokers. These more technical formats present a challenge to the end user. Our listings will be clear, concise and easy to understand and frankly beautiful. Our design as important as our content. Third Value A Marketplace for CRE. This is a listing place for everyone (in CRE). Commercial Real Estate and associated business is massive and untapped. We provide a new way for brokers to connect with clients, vendors to connect with property owners and financial institutions to connect with investment companies.

“Tell me what I can’t do on LoopNet and how this will make me money”

User Stories and Competition User Story A – Ellen Ellen has just been approved for a SBA loan to open a coffee and flower shop in the City. This is her first venture and she is setting out with the support of her friends and family. Ellen wants to find space for lease in the San Francisco’s Financial District, specifically ground floor retail space. Ellen doesn’t know anything about commercial real estate but has a budget and knows what she wants in her space. Ellen searches Google with the top result returning www.showcase.com. Ellen clicks the showcase link, finds 4 listings none of which match her needs. To view the rest of her listings she must “become a subscriber”. Ellen’s pain is ACCESS.

User Story C – Rex, Estate Planner, Broker Rex is a broker seeking a new office space for himself, his clients are aging and he requires handicap accessibility for his property as well as 4 dedicated parking spaces as close to his office as possible. Rex does a quick search on LoopNet for a new 2,000 sq. ft. office space and encounters his first stumbling block:

Rex is taken to property for sale in the same area, Rex digs around and finds the for lease listings, digs some more and finds a property that might work its marked Creative / Loft and in his budget. Rex opens the listing (see below) Rex’s pain is LACK OF INFORMATION

User Story B – Jacob Rowley, Tenant Representative Jacob has secured a contract to represent Chase Bank for retail banking centers in Central California. Chase Banks real estate department has laid out broad criteria for what their expectations are regarding terms, location, tenant improvements, traffic and demographics. Jacob builds his request for proposal documents and begins to distribute via email and his small network. Jacob needs a larger network to tap. Pain Point – NO CHANNEL Competition: PropertyAlly does not require registration to view listings, this immediately sets us apart from any of the other advertising channels and competitors. Below is a detailed breakdown of our three competitors and how PropertyAlly sets itself apart from the competition. Competitive Matrix Blue = Yes Yellow = No

Leasing:

LoopNet Showcase CIMLS PropAlly

For Lease Listings

Request for Proposal - Lease

Sales:

For Sale Listings

Request to Buy

Property Management:

Service Listings

Fee Management Listings

Vendors

Licensed General Contractors

Sub-Contractors

All other service providers

CRE Business Service Directory:

Appraisers

Legal

Banks / Investors

CPA

“How much of an investment are we talking? Give me numbers”

Months 1-6 Operating Budget Using two part time team members and one full time member we can build out PropertyAlly for a beta launch in 90 days. The attached 6 month operating budget covers those 9 days and three additional months of operating expenses. Our goal at six month is that we have a fully operational product and secure phase two funding Please see attached budget for line item details.

Shortform: Seed Funding $150,000

“This idea is great. Let’s make it happen, no excuses, no half measures”

Thank You. I appreciate you taking the time to consider making an investment in our team and our vision: PropertyAlly. I hope that I was able to give a high level overview of our concept in concise manner that describes the what, when, how and why. If you have any questions please feel free to contact me anytime. Respectfully, Michael Moore Founder, PropertyAlly 925-588-1203