RENOvation Presentation, 3/25/2012

1. Real Estate. Real Simple.tm
Historical and projected performance are not guarantees of future returns, particularly when reviewing short-term
performance. Property prices, rents, occupancy, expenses, yields, internal rate of return, and return on investment will
fluctuate, and you may have a gain or loss when you sell your investment. Since-inception returns for less than one year and
year-to-date returns are annualized. The Offering Memorandum describes Marmot REOF II, including investment
risks, objectives and strategies, projected performance, and management. To download a prospectus, please contact
Marmot to qualify for a username and password, and then visit http://marmotinvestments.com/Development-login.asp and
log in. Investment objectives, risks, charges, expenses, and other important information about REOF II are contained in the
Memorandum; read and consider it carefully before investing.

2.  Marmot Companies are a diversified family of real estate companies
uniquely active in
 Multi-Family and Mixed-Use Property Investment, Rehabilitation, and
Redevelopment,
 Resort Property Work-Outs, Development, and Consulting,
 Single- and Multi-Family Residential Sales,
 Design, Staging, Remodeling and
 Luxury Vacation Rentals, Estate and Asset Management.
 Headquartered at Lake Tahoe, Nevada, Marmot is strategically focused
on the capital and population-dense region that reaches from Greater
Reno/Tahoe to Sacramento.

3. We enrich lives through creative and responsible real estate.
 Marmot Companies creates and optimizes our clients’ real property
value through our high-touch, personalized service and our
deep, decades-long understanding of all critical aspects of the real
estate value chain.

4. Bryan Raydon (left)
Bryan Raydon brings over 15 years of real estate
development, investment, management, consulting, and analyses
experience to the team.
Bryan earned an MBA in Real Estate Finance from Southern Methodist
University, and a Bachelor's in Business Administration/Real Estate
Finance at the University of Southern California.
Bryan has extensive real estate
development, acquisitions, consulting, and financial experience, with an
emphasis on investment and resort real estate.

5. Gary Raydon (center)
Gary Raydon has over 13 years of experience in commercial real
estate, including work in acquisitions, development, consulting and
financing.
He received an undergraduate business degree from the University of
Southern California, focusing primarily on entrepreneurial venture
management and financing, and earned his MBA from Southern
Methodist University in Dallas with an emphasis on finance and real
estate.
Gary has acquired over $1 Billion in income producing assets on behalf
of investors, directed the development and re-development of multi-family
housing projects, and structured real estate investment syndications.

6. Eric Raydon (right)
Over 15 years of experience in real estate
development, management, strategy, and finance.
Eric received his MBA in Finance and E-Business from Purdue University
and his Bachelor's in Management and Real Property Development from
the University of Southern California.
Eric’s real estate career is focused on development and investments, and
Eric has strong experience in residential and mixed-
use, resort, commercial, and industrial real estate.

7.  Greater Reno/Tahoe is truly “Far From Expected”
 Strategically located city within the San Francisco Mega-Urban Region
(San Francisco, Sacramento, Reno/Tahoe)
 West Coast hub for advanced logistics and
manufacturing, mining, renewable energy, tourism, health
care, corporate treasury, and government
 33 miles to beautiful Lake Tahoe
 Outdoor activity center for west coast (four seasons)
 Growing population, currently 616,070
 Real estate market bottomed, but stabilizing
 Between 2007 and 2010, the median home value in Reno-
Sparks, Nevada declined 37.4%, the 13th biggest drop in the country
among metro areas.

8.  Per CBRE, December 2011, the years 2010 - 2020 are “The Rental Decade.”

11. Per CBRE Q4 2011 Reno Multi-Housing Viewpoint:
• Two consecutive quarters reflect a decrease in vacancy and an increase in
rent rate.
• Nevada Department of Employment Training and Rehabilitation, pegs
Washoe County’s year end unemployment rate at 11.9%, down from
14.1% last year. Moody’s Analytics reports that construction payrolls
remain higher than they were a year ago.
• Apartment occupancy and rents declined slightly in Q4 due to
seasonality. Prior to Q4, vacancy decreased 8 of 9 previous quarters.
Rental rate declined quarter over quarter, but increased for 2 consecutive
prior quarters. The last 2 consecutive quarters reflected a decrease in
vacancy coupled with an increase in rents, signifying a solidified bottom
in apartment fundamentals.
• The last 2 consecutive quarters reflected a decrease in vacancy coupled
with an increase in rents, signifying a solidified bottom in apartment
fundamentals.

12. • Reno/Tahoe’s MSA population is 616,070, expected to grow to 657,629 by 2023.
• Two universities and colleges, three community colleges, three career colleges, and one
research center, including the highly ranked University of Nevada, Reno:
 17,679 students and 941 faculty
 >50 undergraduate degrees and more than 50 masters programs, including: Biotechnology;
Natural Resources; Business; Education; Engineering; Medicine; and the Division of Health
Sciences.
 Nevada’s largest research portfolio
 New medical school
 New teaching and research facilities and the Mathewson-IGT Knowledge Center, one of the most
technologically advanced libraries in the country
• Five major hospitals:
 Carson Tahoe Regional Healthcare
 Northern Nevada Medical Center
 Renown Health
 Saint Mary’s Regional Medical Center
 Veteran’s Administration Sierra Nevada Health Care System

13. • Reno/Tahoe is host to 44 Fortune 100 Companies
• Largest private non-gaming employers:
 Renown Health 2,000 - 2,499
 International Game Technology 2,000 - 2,499
 St. Mary’s Regional Medical Center 1,500 - 1,999
 United Parcel Service 1,000 - 1,499
• Largest industry sectors:
 Wholesale Trade, Transportation, & Utilities 22.7%
 Leisure and Hospitality 17.5%
 Government 15.4%
 Professional and Business Services 12.6%

14. Click on map
to launch
Google site.
Portfolio currently includes 12 properties containing 32 dwelling units, representing a total investment of $3
Million, including $500K in cash ready to deploy; 3 properties were recently harvested and outperformed REOF
target returns, and 2 properties were recently acquired and are in escrow.

15.  REOF I
 Offer commenced December 2009.
 Successful investment in 13 properties in the core downtown Reno
neighborhoods of Midtown, West of Wells, West University, Old
Southwest, and Wells Avenue Bungalow District.
 Outperforming the broader rental market with 100%
occupancy, higher rents, and larger tenant share of utilities.
Examples include:
▪ 135/7 Caliente, located in Old Southwest
▪ 221 West Pueblo, located in Old Southwest
▪ 308 Vassar, located in Wells Avenue Bungalow District
Totaling $2.4M To Date
“From Junkies to Hipsters in 90 Days”

16. • Old Southwest neighborhood, redevelopment overlay
• Triplex, two houses on one lot
• $20,000 net operating income
• 9.9% CAP

17. • Old Southwest neighborhood, redevelopment overlay
• Fiveplex, single family in front, fourplex in back, one lot
• $25,000 net operating income
• 8.9% CAP

18. • Wells Avenue Bungalow District, redevelopment overlay
• Duplex, two houses on one lot
• $11,000 net operating income
• 8.5% CAP

19.  Acquire income producing, cash flow positive multi-family and mixed-use
residential properties with value-add and redevelopment upside potential, in
under-valued markets with strong permanent economies and healthy geographic
and demographic fundamentals.
 Value investing and opportunistic approach that seizes upon the current
dislocation in the residential and mixed-use property and capital markets to
deliver high returns to our investors.
 Achieve robust IRR and ROI via rental income, active hands-on
management, smart leverage, opportunistic dispositions, and redevelopment.
 Invest in the greater Reno/Tahoe and Sacramento region, with a special emphasis
on the dense urban infill redevelopment cores of Reno and Carson City, Nevada.
 Fund Size: $5,000,000.
Investment Unit Size: $25,000. Minimum Investment Unit Quantity: 4.

20. • Old Southwest neighborhood, redevelopment overlay
• Single family residence
• $7,000 net operating income
• 6.7% CAP
• SOLD February 2012

21. • Old Southwest neighborhood, redevelopment overlay
• Duplex, assemblage with neighboring REOF I property, allows for
at least 10 additional units with minimum density of 15 units per
acre
• $8,000 net operating income
• 6.5% CAP (assemblage)

22. • Wells Avenue Bungalow District, redevelopment overlay
• Fourplex
• $21,000 net operating income
• 17% CAP

23. VATION TM
Why here?
Reno/Tahoe is one of the only locations in the Far West with the
critical combinations of low taxes, permanent economic drivers, pro-
business local and state leadership, proximity to the booming Bay
Area AND rational prices on residential income properties.
We believe that we are witnessing a perfect storm in an overlooked
market where rents are stable to rising yet prices on residential
investment properties have flat lined.
One has to believe that this opportunity cannot last forever.
Why now?

24. Eric Raydon
(775) 391-6118 | eraydon@marmotinvestments.com
Gary Raydon
(775) 525-0550 | graydon@marmotinvestments.com
Bryan Raydon
(530) 448-6530 | braydon@marmotinvestments.com
Real Estate. Real Simple.tm