Total Income Property Solutions

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.

Total Property Solutions

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.

Total Property Solutions

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.

We enrich lives through creative and responsible real estate.

The Marmot Team

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. 

The Marmot Team

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.

The Marmot Team

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. 

The Environment

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.

The Rental Decade

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

Low Vacancy

Smaller Markets On The Rise

Reno Is Stabilizing

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.

Reno/Tahoe Population and Employment

• 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

Reno/Tahoe Fortune 100 Companies

• 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%

The Marmot Companies Footprint

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.

Click on map to launch Google site.

Foundations

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”

Foundations: 135/7 Caliente

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

Foundations: 221 West Pueblo

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

Foundations: 308 Vassar

• Wells Avenue Bungalow District, redevelopment overlay

• Duplex, two houses on one lot • $11,000 net operating income• 8.5% CAP

Opportunity: REOF II

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.

104 Arroyo: REOF II

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

128/30 Caliente: REOF II

• 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)

444 Roberts: REOF II

• Wells Avenue Bungalow District, redevelopment overlay

• Fourplex• $21,000 net operating income• 17% CAP

RENO

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.

TMVATION

Why now?

Please Contact UsTo Schedule Your Private Review

Real Estate. Real Simple. tm

Eric Raydon(775) 391-6118 | eraydon@marmotinvestments.com

Gary Raydon(775) 525-0550 | graydon@marmotinvestments.com

Bryan Raydon(530) 448-6530 | braydon@marmotinvestments.com