General Information:

1. Why invest in the U.S.? Isn't the economy continuing to deteriorate?
2. Why can't I just do this myself? I can avoid sharing capital profits, and eliminate the management fees keeping all the profits for myself?
3. How do I know real estate prices won't go lower in the US?
4. What's management's cut out of this and why do they deserve so much?
5. How does your profit compare to others in the market place?
6. Will I see any returns during the Fund's life and when will I expect to see my ultimate return?

1. Why invest in the U.S.? Isn't the economy continuing to deteriorate?

The United States is the largest economy in the world , and, while it has had some serious problems with its banking and lending systems, it is still, and will remain for the foreseeable future, the last remaining superpower in the world. It is a good time to invest is NOW while the US is going through some turmoil, and before prices begin to rise to previous levels when the economic recovery begins, which should occur in the mid, to longer, term over the next several years. Signs of this recovery are already manifesting itself through the aggressive stimulus measures undertaken by the US government.

2. Why can't I just do this myself? I can avoid sharing capital profits, and eliminate the management fees keeping all the profits for myself?

Yes, it is possible to do it on your own. However, be prepared to spend a lot of time and money on finding the best metropolitan cities in which to invest. Once you have selected a city, it is up to you to deal with real estate agents, lawyers, property managers, title insurance companies, finding tenants, and sorting out the international tax implications.

Optimus has an experienced management team, combined with local and U.S professionals in various industries, to ensure the properties have excellent growth potential at the right price. Optimus can help you with all these aspects and more, and allow you to create a diversified portfolio.

3. How do I know real estate prices won't go lower in the US?

We actually think that in some parts of the US, real estate values will continue to drop. Some metropolitan centers such as Las Vegas have seen residential real estate prices drop by as much as 70% from 2006. Despite this significant decline, we think that the current economy and employment figures don't justify a further major decline in prices, and the long-term prospects are outstanding in centers selected by the Fund.

4. What's management's cut out of this and why do they deserve so much?

• a. Management will make 30% of the profits from the capital appreciation of the real estate assets, plus a 0.75% asset management fee on all properties under management. The Fund will also earn a 1% disposition fee from the sale of the assets IF and WHEN this occurs.
• b. This provides sufficient incentive to bring on and retain the top notched professionals that we have on board.
• c. The incentives are all tied to the profitability of the fund and thus all stakeholders, including the management have the same focus.
• d. Unlike many other real estate based funds, management is not selling its own lands to the fund at inflated prices for a substantial up-front profit to them.
• e. Management is investing alongside of investors to the tune of $2.2 million.

5. How does your profit compare to others in the market place?

Management has reviewed a number of offerings in detail and feels this profit split is very competitive, and at the same time, provides more transparency and accountability to Fund investors.

In addition, we have found that other offerings give their management profits in other ways, some of which are not fully disclosed and as transparent as in our disclosure, such as:

• i. Marking up the price of the property in the offering. This can also be done by not disclosing true values of acquisitions and not providing current or any third party appraisals on properties.
• ii. A series of fees that seem minor but add up to a substantial amount.
• iii. Exchanging shares / units for properties in a manner that is difficult for the average investor to understand, thus making it difficult to ascertain the true value of real estate being contributed.

Some offerings may give the "impression" of a higher profit split for investors, but the management / promoters have already taken their "profit" up front with the contributed property or in fees

6. Will I see any returns during the Fund's life and when will I expect to see my ultimate return?

The Fund is expected to generate cash flow from residential and commercial revenue properties from the monthly rental income fromof tenants, which would be distributed to investors three times per year. As more assets are added and leased out to tenants, cash distributions would continue to increase to the Fund. However, it is the intent of the Fund to seek capital appreciation of these assets before any thought is given to selling them. In some of the residential markets that the Fund is exploring, it is projected anticipated that real estate values would return to 2006 levels in 5 to 7 years, thus providing substantial capital appreciation to the Fund and its investors.

 

Optimus US Real Estate Fund understands you may have more questions that are not addressed here in our general FAQ's. Please contact us for your more specific questions and we will be happy to answer them for you.