Real Estate Loans Receivable and Related Promissory Note Payable

3 Months Ended

Sep. 30, 2013

Real Estate Loans Receivable and Related Promissory Note Payable

Real Estate Loans Receivable and Related Promissory Note Payable

Note 4 – Real Estate Loans Receivable and Related Promissory Note Payable

Effective September 6, 2013 the Company entered into a Securities Purchase Agreement (the “Agreement”) with Harrison Vickers and Waterman, LLC (“Harrison Vickers”).  Pursuant to the Agreement the Company agreed to purchase from Harrison Vickers certain assets held by Harrison Vickers in the form of real estate loans (the “Loans”).  The purchase price was paid by the Company via the issuance of a secured promissory note in the principal amount of $1,800,000 (the “Note”) due December 31, 2014.

Four loans, $1,800,000 in aggregate, were purchased with one loan of $180,000 being collected during the interim period ending September 30, 2013.  The remaining three loans of $520,000, $550,000 and $550,000 were issued on April 2, 2013, May 15, 2013 and July 15, 2013, respectively. They all bear interest at 12% per annum and are due one year from the date of issuance. The loans are secured by a first lien.

The Note is secured by a Pledge Agreement (the “Pledge Agreement”) entered into between the Company and Harrison Vickers, whereby the proceeds of the Loans are pledged as security for the repayment of the Note.

During the interim period ended September 30, 2013, the Company paid down $180,000 of the Note.