RAISE CAPITAL FINRA COMPLIANT

by
EXPAND INVESTOR BASE PROTECT VALUATION
www.intersectioncapital.com

INTERSECTION
CAPITAL
 THE BIG IDEA
in 142 WORDS
THE CAPITAL MARKETS ARE UNFORGIVING

VELOCITY IS A NEW METHOD for b FINDING A USE FOR CAPITAL is easy. Raising it in the capital markets
is harder.

reaching the minds of the investors. If you don’t differentiate, break through the market clutter, capture
imagination and attention and get investors motivated about your deal,
then capital will raise slowly.

b Why does differentiation matter?

Sometimes it doesn’t. When you are presenting a deal to people you know
and have worked with before, then almost any pitch will do. They’ll talk
to you long enough — hours if necessary — to understand the structure,
capital stack, and value. A discussion is going to happen because you are
known and trusted.

But when you are trying to reach investors you don’t know well, a different
psychology is in effect. It’s harsh but true — the quality of your deal book
and investor package will determine how many people will look at the
deal, consider it, and invest.

The potential pay off is huge.

5 6 7 7 8 9 9
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
THE PROBLEM
CONFUSING IDEAS AND DEALS STRUGGLE TO RAISE CAPITAL TODAY, DEAL PACKAGING IS AN ADVANCED SKILLSET
There is a fundamental disconnect between the way dfa
investor decks are prepared and the way they are received
by investment funds, venture capital and private equity. As
A DISCONNECT FOR YEARS EXECUTIVES HAVE DUTIFULLY PUBLISHED THE BASICS
OF A DEAL IN THEIR OFFERING MEMORANDUM: product/asset;
SPEED EXECUTION
a result, at the crucial moment, when it is most important proforma; price; revenue streams; management bios; and the KNOW-HOW BANDWIDTH
to be convincing, nine out of ten times we are not. Our most important capital stack. This is the standard dealbook checklist. A quick
deal points have a surprisingly low chance of getting through. You need way to know you’ve done your job. If you don’t include these
to understand why this disconnect occurs in order to fix it, overcome it, things, then you have no chance at all.
and successfully raise capital. This book is devoted to telling you how.
The way things used to be, if you included all these items, you were more
likely than not to succeed. But things have changed. Inserting the basic deal
points into the standard template is just not enough.
THE TYPICAL INVESTOR DECK:
There’s a new standard: compelling content that is ruthlessly distilled and
Agenda and Company Snapshot delivered with visual and narrative power.
Agenda Company Snapshot BORING AND COMPLEX
• Background
Business focus
Here’s where you get to put
what you do, who you do it for
Current Customers, Partners, Discussions
and why that matters in one
DEALS DONT DO WELL IN A standard that has suddenly
– Market overview
TODAY’S MARKET become exceptionally important
thin sentence.

There is a new standard: compelling content

List your target customers
– Team C t categories
Customers like and “health Pipeline
Pi li P t
Partners
(today & future) by big-name
Target markets
– NewCo Business and Business Model care,” “IT” or similar
List actual partners and because boring and complex deals
• Company
C &B
Business
i D
Details
t il
Partners & Customers
Financing Details
customers that you’ve
you ve had

have become invisible.

that is ruthlessly distilled and delivered
material conversations with
List FTE and contractors
– Progress & Mile stones Employees separately; note founders vs.
• Existing Investors
employees if appropriate
– Company metrics
Investors Capital
p –Founders seed funded the company for 3 months
Factory,
y, anyone
y else?

with visual and narrative power.

– Competition • Approximately
A i t l $100k invested
i t d by
b founders
f d & family
f il
Founded Q? 2010
• Customers & Pipeline –Raised $20k from Capital Factory
Headquarters Austin, Texas • Common stock, $xyz valuation
• Financial Overview
Bookings: $xyzto
million
2009E Financials • Sales cycles seem be 4 to 6 on average; deal size is $50k-$250k
Revenue: $xyz million
• Financing & Use of Proceeds • Would
• TrainingExpense:
channel partners
$xyz like
thousand to raise
this quarter; $zyxy sales cycles next
1-2 active
–Lasts
• Pipeline filled up throughcompany 12cold-calling
inside sales months
cold calling and email response
–Use of proceeds
4 • Hiring
Hi i 2 people: l ddeveloper,
l sales
l to InvestCoVentures, July 16 2010
Presented

• Incremental server capacity

1 • 16
Critical
Presented to InvestCoVentures, July 2010 tool / service we need to run business
–Timing: would like to close in next 90 days
6
Presented to InvestCoVentures, July 16 2010

YOU MAY HAVE A STRONG OFFERING, BUT BECAUSE THE MARKET HAS
OVERWHELMED INVESTORS with too many of every kind of deal, it’s hard to
get attention. The bottom line: a weak pitch affects the velocity of capital.

5 6 7 7 8 9 9
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
 VELOCITY SOLUTION
Velocity™ is a path-breaking method for packaging deals. When you
prepare your deal with Velocity, even those investors that don’t know you
will instantly recognize you the merits of your deal. Both you and the deal
will be regarded with high status, and the result is investor meetings that
otherwise would not have been possible.
The proper execution of a
capital raise is fundamental WHY NOW TARGET YIELD
CLEAN ENERGY

to your company’s overall b Large developers are selling

smaller assets to finance their off 10.5% b v Renewable Energy Fund
Gamma RENEWABLE ENERGY FUND I $500M

strategy. No growth can truly new projects. That’s an opport

unity.
Full compliance with The market is
(projected)

and clean power assets in North

I. A
investment fund that invests in $500 million diversified
mainstream renewable

be planned without taking into

America.
the Federal man- fragmented in terms of
IT’S EASY TO BE ENTICED by the asset ownership - no
the energy markets dates would require
single company owns
becuase the numbers are so 86 GW of new
huge. Most new more than 2% of
entrants think like this: “Even renewable energy current renewable
if we prevail in just WHILE THERE ARE MANY NEW

account the organization’s

capacity by 2025. installed capacity. clean energy
a tiny fraction of the market, technologies that may not be
a fortune can be The cost of wind energy technologies emerging—each on the cover of
with
made!” But there’s risk here promising energy yields—Gamma extremely
There’s too much
too, just as in every has declined from about Scientific American anytime
fast-growth industry. First, let’s 30-45 cents per kilowatt- volatility in fossil-fuel Energy focuses tested and soon, but they are
look at the size of pricing. Commodity on existing technologies that reliable.
this behemoth market. hour in 1980 to less than 5 are already in the

ability to execute a timely

cents today. prices had a swing of ground and operating, and proven
70% in 2009. to be reliable. When the opportunity presents
itself, the
In the US, the demand for electricity By focusing on acquiring assets Fund will also make selective
is over $250B that corporate-level
annually, and it grows about CLEAN ENERGY MADE SIMPLE techologies, the Fund can produce use proven investments in development
and technology

capital raise.
3 percent a year.
It’s not the demand for energy Renewable energy is energy that comes that come with bond-like credentiacash flows companies - with a rigerous
underwriting
fast, it’s the demand for clean
that is growing from natural resources such as sunlight,
and geothermal heat, which are renewable wind, rain, tides, energy projects include geotherm ls. These clean for quality. The Fund anticipates closing
energy. Fact is, the (naturally replenished).
low impact, run-of-the-river al power plants, approxim
North American electric power ately 15 to 25 equity investme
industry is at the hydroelectric three year period, each ranging nts over a
beginning of a new build cycle. power plants, solar, and wind. from $10 million
More than $100B That’s it. Proven to $50 million.
is being invested in clean-tec In stark contrast to the large
h by the Federal development projects, the
Government. Private industry smaller clean energy assets offer
including venture secure 10-12 percent

VELOCITY is a systematic
capital will invest $2.2 billion. cashflows. For the first time in
Not just in producing history, this type of asset is
projects, but just in new technolog coming to market.
y development.
DEVELOPERS ARE MOVING TO

process to raise capital at a

large-scale projects Again, these are stable projects,
that offer big returns—but also so you’re never going
carry plenty of to get a 40 percent yield or even
risk. So while they might achieve a 20 percent yield from SCREENING PROCESS
a 40 percent them. But for those of us who
focus on steady and stable
IRR in these projects—those cash flow, these assets give us SCREENING THE MARKE
larger than 100
T FOR CLEAN ENERGY ASSET
lower overall cost.
Megawatts—the risk is so high, control of long-term
institutional investors with a
it is suited only for purchase contracts with cities
and states. The good news S
is, they’re rated like bonds and
developing energy projects.
lot of experience in we look for only “A” ratings. HOW TO ANALYZE AN ENER
There’s no new technology risk
here either—we target GY ASSET
operating projects with at least
75
25
We seek out smaller and safer several years of historical VERIFY
projects. performance. approximately

IONS SE POWER ANALYZE

HOURS ISITPURCHA
NUMBER OF ACQU PROJENT
AGREEM TRACK
RECORD
TARGET
ANALYSIS74%
STRESS TEST CASH ECTED FLOWS: INCLUDES UNDERW
RITING OF EQUITY, DEBT AND
HISTORICAL CASH FLOWS
% of NEW BUILDS
THAT ARE CLEAN ENERGY
FUND SIZE (PROJE
CTED) $50The0majority
M of energy TARGET Develop a 7-year hold cash

S
plan and exit strategy.

PROJECTED YIELD
YIELD FOR Secure a bond rating for the asset.
projects that FUND
WABLES are breaking ground today are
CLEAN ENERGY AND RENE focused By focusing on just solar, wind,
on generating clean energy and
renewables. UNDERWRITING
ASSUMPTIONS
2012
10.5% 2012
and on assets that have at least
.
produci 90024ngdistricclean
t
and biomass technologies
two years of track record
energy, the fund creates stable
2012 Located in the
that are backed by “A” or better cash flows
UISITION SIZE 2012
PROJECTED ACQ $132 M credit.
DEAL STRUCTURE GAMM
10.47%A $132 M
$132 M Based on marke
t current PPA

$50M
9.82% $132 M $132 M
9.35% Net Cash Flow

$10M
$132 M to reciepts
9.01% OPPORTUNITY $132 M At a 3x multiple
9.0% WHY NOW
$132 M
t GAMM
KEY DRIVERS

$132 M A
MARKET
Purchase agmn $132 M

We structure the
STRATEGY TEAM
LEASES
BASED ON CURRENT MAX $132 M
YIELD MIN. $132 M Through 2022

DIFFERENTIATION
PROJECTED CASH Fees and OPPORTUNITY WHY NOW
2013 Services $132 M KEY DRIVERS MARKET STRATEGY
2012 $132 M TEAM
2011 $132 M

financial opportunity 2010 4

provided on page Long Term $132 M
2009 e projections are 10.47%
detailed incom Contracts 9.35%
9.82%
9.01%
9.0%

and present it
us
audit of previo S
based on actual CURRENT LEASE
YIELD BASED ON
The
All revenues are t to terms set forth in PPM. ent.
years, and subjecall information in this docum PROJECTED CASH 2013
PPM supersedes 2012
2011 4
2010 provided on page

concisely
2009 e projections are
detailed incom

confidential be with
g: Due to the PPAs will expected
Underwritindocument the following pated that
any counter companies,
Rate: Due nature of this details are placeholder mitigating for the rated Utility credit ratings of “A”
Acquisition - g : Due to
or better— providing to have S&P any counter
Projected nature of this docu underwritin will target
small-to
ing Assets docu- party risk and of cash flow. The mitigating for the
: Due to tial
to confiden wing underwriting deta
ils
only. The Fund wable and clean en- Cash flow lity or better— providing
ing Assets document nature of this highest qua ing Assets: Due to y risk and flow. The
Cash flow ment the follo only. The Fund will mid-sized
rene long-term confidential wing underwriting Cash flow docu-
part
lity of cash
nature of this are lder wable assets with nature of this highest qua ing Assets: Due to
confidential underwriting details are plac eho
mid-sized
rene ergy power s generating durable s ment the follo eholder only. The confidential wing underwriting
the following will target et small-to power assets with (PPA) contract ” predictable cash
flow plac
details are et small-to mid- Cash flow docu-
. Fund targ ment the follo eholder only. The nature of this
only
placeholder -sized renewable and -
gy
and clean ener ) contracts generatin
g
and “Bond
Like
is anticipated Fund will targ le and clean energy plac confidential wing underwriting
eholders. It details are et small-to mid- follo
small-to mid ts with long ble long-term (PPA d Like” predictable to the shar will be with rated Utili it
ty sized renewabwith long-term (PPA
) men t the lder only. The
power asse Fund will targ le and clean energy are placeho
clean energy racts generating dura s “Bon
durable and the shareholders. It
is
that the PPA
s
have S&P cred power asse
ts ble and ) details target small-to mid-
cont expected to rating dura sized renewabwith long-term (PPA Fund will n energy
term (PPA) le cash flow cash flows
to be with companies, or better— mitigatin the
g any contracts gene ictable cash flow
s ts clea
Like” predictabanticipated the PPAs will pow er asse
rating dura
ble and wab le and (PPA)
and “Bond cipated that panies, expected to ratings of “A”y risk and providing for - “Bond Like
” pred
is antici- s sized rene ts with long-term
eho lder s. It is
ty anti lder s. It contracts gene ictable cash flow power asse
to the shar will be with rated Utili it rated Utility comratings of “A” or bet- counter part of cash flow. The Man- to the shar
eho be with “Bond Like
” pred
is antici-
that the PPA
s
have S&P cred it risk lity the PPAs will expected eholders. It
expected to g any have S&P cred g any counter party highest qua the opportunity for supe pated that
companies, to the shar
companies, or better— mitigatin the ter— mitigatinfor the highest quality ager believe sted returns from inve
st- rated Utility credit ratings of “A”
ratings of “A”y risk and providing for - and providing The Manager believe
the
rior risk adju wable assets is uniq
ue to have S&P

The deal book must be remarkable enough

counter part of cash flow. The Man- . sted ity
lity supe
of cash flow
for supe rior risk adju wable ments in rene asset and private equ
highest qua nity for opportunity investments in rene real
the opportu st- t among the
ager believe sted returns from inve returns from ue among the real asse t clas ses

FINANCIALS
ue asse
rior risk adju wable assets is uniq ity asse ts is uniq asse t clas ses
ments in rene asset and private equ equity
real and private
among the
asse t clas ses

Complete
financial picture

to attract attention – but comprehensive

GAMMA
TEAM
STRATEGY
S MARKET
KEY DRIVER
WHY NOW

communicates the
OPPORTUNITY

deal in less than five GAMMA KEY DRIVER

S MARKET
STRATEGY
TEAM

minutes.
WHY NOW
OPPORTUNITY

enough to get through the analyst review.

COMPELLING
The Velocity™
style of offering
memorandum
grabs investor
attention and holds
it.
RAISE CAPITAL FINRA COMPLIANT
by
EXPAND INVESTOR BASE PROTECT VALUATION
www.intersectioncapital.com
 HOT COGNITION by
RAISE CAPITAL FINRA COMPLIANT
EXPAND INVESTOR BASE PROTECT VALUATION
www.intersectioncapital.com

STAGE 1: VELOCITY™ CREATES AN INSTANT POSITIVE REACTION

QUICKLY PASS
THROUGH PRIMARY Research suggests that humans can
categorize others in less than 150 ms.
SCREENS Within moments, they’ve made lasting
judgments about your character, your
status -- and your deal. Before you
even know it, the investor you are

1
VALIDATORS trying to reach has decided what kind
of deal you have and if he’s interested
VALIDATORS at all.
These are conscious
and subconscious
financial markers of
deal quality.

2
RY HOOKS
ENT ENTRY HOOKS
Immediately
overcome rejection
triggers by
confirming why
this deal is worth SIGNPOSTS
spending time on.

3
NARRATIVE NARRATIVE Strategically located

4
Long-form writ- SIGNPOSTS to vector reader to a
ing that is easy to decision to engage
read, intriguing with you.
and novel. Explains
uniqueness and
advantage in plain
english.

5 6 7 7 8 9 9
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
 THE DELIVERABLE
RAISE CAPITAL FINRA COMPLIANT
DEALS ACTIVE WITH VELOCITY $250 M by
EXPAND INVESTOR BASE PROTECT VALUATION
www.intersectioncapital.com

PROJECT FUNDAMENTALS

A REMARKABLE DEAL BOOK AND FINANCIAL PACKAGE SAN DIEGO AIRSPACE: NEARING CAPACITY
UNDERSTANDING THE CITY’S AIR
GROWTH PATTERNSDEAL THE 2020 PROBLEM
Oceanside Airport SAN DIEGO
COUNTY
FINANCIALS
TRAFFIC Ramona AIRPORTS

SUMMARY
Palomar Airport There are seven
THE VELOCITY TRACK RECORD SERIES THREE PORTFOLIO IN APPROXIMATELY TEN YEARS, SAN DIEGO’S COMMERCIAL AIRPORTS McClellan Airport non-military and

VELOCITY™ reflects our deepening belief that

non-private airports
ARE PROJECTED TO REACH CAPACITY SAN DIEGO

4
in San Diego
San Diego International has one of the smallest footprints of any COUNTY County: Lindbergh
In the skies above San Diego, air slots—the space needed for metropolitan airport. Expansion options are limited. And it is in one of Field, McClellan

you must have a deal package that is remarkable

takeoffs and landings for all types of planes—are approaching 70- the busiest and most complex airspace regions in the U.S.
Montgomery
Palomar Airport,
KEY INVESTMENT
80 percent MERITSways, San Diego International Airport
capacity. In many Field
Brown Field,
Gillespie Field
(SDIA) has dominated the conversation about San Diego’s skyways. FLIGHTS AT A GLANCE Lindbergh Oceanside Airport,
Field San Diego
enough to attract attention – but comprehensive
But there are 12 regional airports in San Diego County, five in major Flights into or out of The City of San Diego Montgomery Field,
metropolitan areas: Gillespie Field, Montgomery Field, San Diego Gillespie Field and
CURRENT YIELD 14% Ramona Airport.
International Airport (SDIA), McClellan-Palomar and Brown Field. Brown Field
YEARS
$1.6M

enough and deep enough that it will get through

DEAL SIZE
The skyway
MARKETtraffic
VALUE problem is bigger $1.85M
than just SDIA: With approximately all other
3-6 percent annual growth in air 30%
DISCOUNT-TO-MARKET traffic, it’s only a matter of time ALL OTHER COUNTY AIRPORTS*
before the City’s airport infrastructure reaches full capacity.
a certain amount financial analysis and scrutiny. NUMBER OF ASSETS 10 LIMITED: Operations are small GA aircraft due to the
Depending on who does the math—and many agencies and private
HOLD PERIOD
companies are looking at the numbers 3 YEARS est.
to get this math right—SDIA McClellan- relatively short runway length or other restrictions.
will reach capacity around 2020. Those
SERVICER
conservatively
FCI
think it will be 2025.
who run the numbers more
More aggressive underwriting Brown Palomar
Lindbergh
ESCROW FIDELITY GA &
points to 2018 as the year of full capacity.
Located in the heart of middle america, a community with a 10 percent
Field Commercial

When it is packaged with VELOCITY™, your deal This is

tax growth rebate, the property has fixed-lease tenants each with long-term
important because many of commercial aircraft
contracts through 2013.
jets that land at SDIA can’t easily be pushed off to other runways. Of
the region’s 12 airports, most are limited by lack of service facilities
and heavy
Field General
MCCLELLAN-PALOMAR AIRPORT
LIMITED: Single Runway. Located
approximately 33 miles north of downtown San
includes an offering memorandum that gets and runway length.
foot runway—such
• InvestorsAt
aresome
projectedairports
asoperations
yield in Year 3 of
nearing capacity
to a receivewhere
McCLellan-Palomar
there is at least a 5,000-
a 9 percent
and capture a 5x IRR at—ground
exit
(see chart right.) In other words, there’s limited
resources are COMMERCIAL
Aviation Diego.

through initial filters that investors use to screen

• Management is investing alongside the investor group — SAN DIEGO
space left toand park andtheservice
securing entitlementsaircraft. At the Premier Jet FBO, for
and FAA licensing. The second most populous BROWN FIELD
example, the space available for transient traffic, both ramp and county in the state of LIMITED: GA/FBO facilities do not
hangars,• Theisnewly developed FBO
frequently anticipates leasing
booked. Often, 700,000 sq.ft. prior
multiple planes have to be adequately support the primary

1
California; over 3 million
SUMMARY
out most deals. And supporting the offering
to the opening of Phases IV and V. Lease revenue provides a
carefully positioned in astabilized spaceincome.
designed for one. residents accounting for 8% General Aviation market.
of the state’s population. SITE OF NEW METROPOLITAN AIRPARK
This summary, which contains brief, selected information pertaining to the business and affairs of the Property, has been prepared by MAP
The City of San Diego’s leaders and planners and commissions have LINDBERGH FIELD

memorandum, you are provided the tools to

to provide general information about the Property. This is not an off er to sell, or a solicitation of an off er to buy securities, as such an offer or solicitation

LIMITED: Considered the “busiest

can only come through the offering’s private placement memorandum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM
done their forecasts and projections. They have concluded that San
supersedes this material in all respects. This investment involves various degrees of risk, including the speculative market and financing risks associated
with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk Factors”
Diego doesn’t need another full commercial airport, but it does need
section of the PPM.” single runway” in the U.S. 1.9% annual
more General Aviation services and facilities in place at its existing growth.

deliver your pitch in a compelling manner that

30
runways. LIMITED:Inadequate airfield/taxiway
infrastructure will hinder growth sometime
between 2020 and 2030.

can get the investor to the hookpoint in about

*includes Gillespie Field, Montgomery Field, Oceanside Airport, Ramona Airport

page 7
A READER WILL DECIDE IF YOUR BOOK IS COMPELLING in
10 minutes. When necessary, we also deliver THE PROBLEM FBO/RUNWAY SUMMARY LOCATION FINANCIALS TEAM CONTACT SAN DIEGO METROPOLITAN AIRPARK

SECONDS
financial runs that reduce deal complexity and
make the business models assumptions clear and IF THE READER IS A PRINCIPAL, your pitch book has about thirty DEAL
SUMMARY
DEAL
SAN DIEGO METROPOLITAN AIRPARK

and
YIELD
IRR PROJECTIONS

accessible. seconds to compel him to open it. If the words, images and SUMMARY
1
SUMMARY

structure of the document do not immediately and forcefully KEY INVESTMENT MERITS
tbd% tbd% tbd% tbd% tbd%

communicate value to the viewer, it will be set aside, passed

PROJECTED CASH YIELD BASED ON ALL LEASES AND OTHER REVENUE
PROJECTED
FIRST-YEAR YIELD TBD% 2014 2015 2016 2017 2018
STAGE ENTITLEMENT

off to an underling, or dropped in the recycle bin. Tell the

detailed income projections are provided on page x
VALUE $tbdM
TOTAL EQUITY $tbdM
IN-PLACE DEBT $TBD
YIELD The newly developed FBO anticipates leasing 138,000 sqft prior to the opening of phases IV and V. Lease

financial story investors want to know and need to know.

EQUITY SUBSCRIBED $TBD M revenue provides a stabilized asset and positions for the increasing demand of the
$TBDM
In the next decade the City of San Diego may have too many
EQUITY REMAINING
$TBDM

commercial flights -and not enough runway Located strategically near downtown San Diego and metropolitan centers,
the project is a long term infrastructure addition to the City and is supported
by State, local and City agencies.

This is one of the busiest and most complex DEAL

SUMMARY
DEAL
SAN DIEGO METROPOLITAN AIRPARK YIELD
IRR PROJECTIONS • Investors are projected to a receive a 9 percent
For the year ending December 31, 201x
THIS IS A SAMPLE DISCUSSION OF THE FINANCIALS. This
the development was being completed. the projected
financial yield of Metropolitan Airport is anticipated to

airspace regions in the U.S.

and For the year yield ending
in Year 3December
of operations 31,and 201x capture a 5x IRR at exit
The projected financial yield of Metropolitan Airport is anticipated to report section will be updated with actuals. The projected report Net Operating Income (“NOI”) from leasing activ-
financial yield of Metropolitan Airport is anticipated to ity of tbd million, and tbd million from service and FBO

SUMMARY
1
SUMMARY Net Operating • Management Income (“NOI”) from
is investing alongside leasing activitygroup
the investor of tbd—million, and tbd
million from service and report Net Operating Income (“NOI”) from leasing activ- related revenue. The revenues are primarily the result
and securing theFBO related revenue.
entitlements The revenues are primarily
and FAA licensing. ity of tbd million, and tbd million from service and FBO relative position of the property within the competitive
the result relative position of the property within the competitive set in
SAN DIEGO, CALIFORNIA
the availability of a hangars which is unique within a 50 mile radius of the related revenue. The revenues are primarily the result set in the availability of a hangars which is unique within

1
Introducing the new alternative for General Aviation operations in the City of San Diego: SUMMARY
• The newly developed FBO anticipates leasing 700,000 sq.ft. prior
property. For the projected year ending December 31, 2012, the in-place relative position of the property within the competitive a 50 mile radius of the property. For the projected year
22 Million Passengers are Projected by 2020 SAN DIEGO METROPOLITAN AIRPARK KEY INVESTMENT MERITS
tbd% tbd% tbd% tbd% tbd%
to the opening of Phases IV and V. Lease revenue provides a
revenue streams project a total of tbd million of NOI, an increase over the
stabilized income.
previous year from where they were no operations as the development
set in the availability of a hangars which is unique within
a 50 mile radius of the property. For the projected year
ending December 31, 2012, the in-place revenue streams
project a total of tbd million of NOI, an increase over the

METROPOLITAN AIRPARK
was
This summary, which contains being
brief, completed.
selected information pertaining to the business and affairs of the Property, has been prepared by MAP ending December 31, 2012, the in-place revenue streams previous year from where they were no operations as
PROJECTED CASH YIELD BASED ON ALL LEASES AND OTHER REVENUE to provide general information about the Property. This is not an off er to sell, or a solicitation of an off er to buy securities, as such an offer or solicitation
project a total of tbd million of NOI, an increase over the the development was being completed.
can only come through the offering’s private placement memorandum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM
PROJECTED supersedes this material inThis summary,
all respects. which
This investment involves contains
various degrees ofbrief, selected
risk, including information
the speculative pertaining
market and financing been
risks associatedto the business and affairs of the Property, has previous year from where they were no operations as
FIRST-YEAR YIELD TBD% 2014 2015 2016 2017 2018 with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk Factors”

THE OPPORTUNITY IN 185 WORDS

section of the PPM.” prepared by MAP to provide general information about the Property. This is not an offer to sell, or a solicitation of an
of-
STAGE ENTITLEMENT fer to buy securities, as such an offer or solicitation can only come through the offering’s private placement memorandum
detailed income projections are provided on page x
VALUE $tbdM (“PPM”). This material cannot, and does not, replace the PPM, and the PPM supersedes this material in all respects. This
investment involves various degrees of risk, including the speculative market and financing risks associated with fluctuations
TOTAL EQUITY $tbdM in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk
IN-PLACE DEBT $TBD Factors” section of the PPM.”
YIELD The newly developed FBO anticipates leasing 138,000 sqft prior to the opening of phases IV and V. Lease
San Diego needs additional general aviation services and amenities, on an adequate EQUITY SUBSCRIBED $TBD M
$TBDM
revenue provides a stabilized asset and positions for the increasing demand of the
SAN DIEGO. With City airports becoming more crowded and the airspace more congested, the new page 17
runway, in a central location. Here’s why: EQUITY REMAINING
$TBDM Metropolitan Airpark in Otay Mesa is a much-needed project. We chose to use the word “needed” for a THE PROBLEM FBO/RUNWAY SUMMARY LOCATION FINANCIALS TEAM CONTACT SAN DIEGO METROPOLITAN AIRPARK

Located strategically near downtown San Diego and metropolitan centers, FINANCIALS reason- 2010 marks one of the few times in recent history that The City of San Diego Council, the County
San Diego International Airport (SDIA) is the second busiest single-runway airport in the the project is a long term infrastructure addition to the City and is supported
by State, local and City agencies. of San Diego and the FAA are in agreement and have a common point of view: San Diego needs new general
world, behind London Gatwick. With more than 22 million passengers projected to emplane UNDERWRITING ASSUMPTIONS aviation space and amenities, on an adequate runway, in a central location. And in fact, all have voiced
at SDIA in 2020, it’s nearing capacity. This is increasing the demand for runway space (and • Investors
2012 are projected
2012 to a receive
2012 2012 a 9 percent
For the year ending December 31, 201x
THIS IS A SAMPLE DISCUSSION OF THE FINANCIALS. This
the development was being completed. the projected
financial yield of Metropolitan Airport is anticipated to support for the proposed Metropolitan Airpark at the Brown Field location in Otay Mesa.
aviation services) in the City of San Diego. For the year
Net Cash
The projected
yield ending3December
Flow in Year $132 M of operations
financial $132 M
yield
31,and
201x
$132 M capture
of Metropolitan $132 M a 5xLocated
Airport
IRRinat exit
the heart of middle america,
is anticipated to report
a community with a 10
Located in the heart of middle america,
section will be updated with actuals. The projected
financial yield of Metropolitan Airport is anticipated to
report Net Operating Income (“NOI”) from leasing activ-
ity of tbd million, and tbd million from service and FBO
Net Operating
Occupancy
• Management Income
$132 M (“NOI”)
$132 M
is investing from
$132 M leasing
alongside
$132 Mactivity
the investor ofwithtbd
a community
group
a 10 million, and tbd
—
Located north of the U.S. - Mexico
INVESTORS AND ANALYSTS ARE NO
million from
Rates service $132 M and$132
report Net Operating Income (“NOI”) from leasing activ- related revenue. The revenues are primarily the result
theFBO related
$132 M revenue. The
Market Locatedrevenues are primarily
in the heart of middle america,

PHASE I: THE FBO FACILITIES

for Room Nights and securing entitlements
M
and FAA licensing.
$132 M a community with a 10
ity of tbd million, and tbd million from service and FBO relative position of the property within the competitive
As demand increases, private, charter and corporate aircraft are facing higher costs and the result relative position of the property within the competitive set in
Market Rates
the availability of$132aM hangars $132 M which $132 Mis unique
$132 M within Located in the heart of middle america,
a with
50a 10mile radius of the related revenue. The revenues are primarily the result set in the availability of a hangars which is unique within OTAY MESA border, Brown Field (SDM) is a Port

1
SUMMARY
for Room Nights a community
• The newly developed FBO anticipates leasing 700,000 sq.ft. prior
property. For the projected year ending December 31, 2012, the in-place relative position of the property within the competitive a 50 mile radius of the property. For the projected year
tighter scheduling at SDIA. Ground services and parking availability are also affected. revenue
to the
Located in thestreams
opening
project
heart of middle america,
of Phases
a community witha
IV and V. Lease revenue provides
a 10total of tbd million of NOI, an increase over the
percent tax growth rebate, the property has fixed-lease stabilized
tenants income.
a
set in the availability of a hangars which is unique within ending December 31, 2012, the in-place revenue streams Brown Field in Otay of Entry into the United States for
previous year from where they were no operations as the development 2 miles
a 50 mile radius of the property. For the projected year project a total of tbd million of NOI, an increase over the
Metropolitan Airpark includes the construction of an affordable, Class-A, general aviation coming from Mexico
each with long-term contracts through 2013.

Mesa is positioned near

different than anyone else. They

was
This summary, which contains being
brief, completed.
selected information pertaining to the business and affairs of the Property, has been prepared by MAP ending December 31, 2012, the in-place revenue streams previous year from where they were no operations as
General aviation aircraft operators need alternatives, but they can’t all go north to McClellan- state-of-the-art General Aviation FBO to accommodate charter, private and several highways and into California. Brown Field is also
to provide general information about the Property. This is not an off er to sell, or a solicitation of an off er to buy securities, as such an offer or solicitation
can only come through the offering’s private placement memorandum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM project a total of tbd million of NOI, an increase over the the development was being completed.
supersedes this material inThis summary,
all respects. which
This investment involves contains
various degrees ofbrief, selected
risk, including information
the speculative pertaining
market and financing been
risks associatedto the business and affairs of the Property, has previous year from where they were no operations as
interstates, as well as a used by military, fire fighting and law
FINANCIALS
Palomar Airport — at 33 miles away, that runway is far from San Diego’s Central Business corporate aircraft and aviation related businesses.
with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk Factors”
prepared by MAP to provide general information about the Property. This is not an offer to sell, or a solicitation of an of-

REVENUE
section of the PPM.”
fer to buy securities, as such an offer or solicitation can only come through the offering’s private placement memorandum LEASING FUNDAMENTALS major manufacturing

Pac
District. One solution is our project: the Metropolitan Airpark at Brown Field Airport. enforcement agencies.

want their working hours to be

(“PPM”). This material cannot, and does not, replace the PPM, and the PPM supersedes this material in all respects. This
investment involves various degrees of risk, including SANtheDIEGO
speculative
METROPOLITANmarket
AIRPARK and financing risks associated with fluctuations hub. It is located near

if
in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk
two ports of entry to

ic O
PREPAID LEASING
Factors” section of the PPM.”
NCI PREPAID

3
CAPITAL STRUCTURE. FINA ALS from Brown
Metropolitan Airpark is well located along San Diego’s main commercial routes. The FAA
Infrastructure will be added in four phases as
BUSINESS CENTER Mexico, which
specified in the MAP project document. Financial Assumptions
page 17 are as follows.
AND RENTS LEASES: Hangars

cea
as productive as possible. When a
considers the runway at Brown Field a vital link in the nation’s aviation network. It is a key
This summary, which contains brief, selected information pertaining to the business and affairs of the Property, has been prepared by MAP
to provide general information about the Property. This is not an off er to sell, or a solicitation of an off er to buy securities, as such an offer or solicitation
can only come through the offering’s private placement memorandum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM
supersedes this material in all respects. This investment involves various degrees of risk, including the speculative market and financing risks associated
THE PROBLEM FBO/RUNWAY SUMMARY LOCATION FINANCIALS TEAM CONTACT SAN DIEGO METROPOLITAN AIRPARK
and offices
and first class pilot facilitates importing Field
point of entry to the City of San Diego and plays an important role relieving aircraft traffic
with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk Factors”
facilities are and exporting.

n
section of the PPM.”

Lease Revenue. Based on tenants at Premier Jet FBO, Helicopter FBO and transient hangars.
offered as PPL’s provided
at SDIA. LEED Gold and Silver

pitch book lands on their desk, the

certifications are Detail
This book is dedicated to introducing the Metropolitan Airpark and the opportunity to invest Year 1 YearYear
2 1 Year 32
Year YearYear
4 3 YearYear
5 4 Year Year
6 5 YearYear
7 6 Year 7
anticipated area
in its growth and development. For the Years EndingFor the Years Ending May-10
Year 1
May-10
May-11
Year 2
May-11
May-12
Year 3
May-13
Year 4
May-12 May-13
May-14
Year 5
May-15
Year 6
May-14 May-16
Year 7
May-15 May-16
State-of-the-Art CALIF.
first subconscious reaction they
__________ __________
__________ __________
__________ __________
__________ __________
__________ __________
__________ __________
__________ __________
UNDERWRITING ASSUMPTIONS For
NNNtheLease
YearsIncome
EndingNNN Lease Income 0.00% 0.00% May-10
1,775,705 May-11
1,775,705
1,777,486 May-12
1,777,486
1,810,831 May-13 May-14
1,810,831 1,923,528
1,858,063 May-15
1,858,063 1,968,467 May-16
1,923,528 1,968,467
1,968,467 1,968,467 hangar facilities
MEXICO
Unreimbursable NNNUnreimbursable
Expenses NNN Expenses 1.00% __________
1.00% (52,000) __________(52,000)
(52,000) __________
(52,000) __________
(52,000) (52,000)__________
(52,000) (52,000)__________
(52,000) __________
(52,000)
(52,000) (52,000)
(52,000) (52,000)
NNN Lease Income
Accounting Expenses Accounting Expenses 0.00%
1.00% 1,775,705
1.00% (8,400) 1,777,486
(8,400)
(8,400) 1,810,831
(8,400)
(8,400) 1,858,063 (8,400) 1,923,528
(8,400) (8,400) 1,968,467
(8,400) (8,400) 1,968,467
(8,400) (8,400)
(8,400) (8,400)
Unreimbursable
Net NNN
Operating Income NetExpenses
Operating Income 1.00% (52,000)
1,715,305 (52,000)
1,715,305
1,717,086 (52,000)
1,717,086
1,750,431 (52,000) (52,000)
1,750,431 1,863,128
1,797,663 (52,000)
1,797,663 1,908,067 (52,000)
1,863,128 1,908,067
1,908,067 1,908,067
2012 2012 2012 2012 Accounting Expenses
Annual Impound AnnualReserves
for FF&E Impoundby FF&E Reserves1.00%
forLender by Lender (8,400)
(20,000) (8,400)
(20,000)
(20,000) (8,400)
(20,000)
(20,000) (8,400)
(20,000)
(20,000) (8,400)
(20,000)
(20,000) (8,400)
(20,000)
(20,000) (8,400)
(20,000)
(20,000) (20,000)
Net Operating Income 1,715,305 1,717,086 1,750,431 1,797,663 1,863,128 1,908,067 1,908,067

have is defensive: “This is going to

Description of underwriting metric and Cash Flow Before DebtCash Flow Before Debt Service
Service 1,695,305 1,695,305
1,697,086 1,697,086
1,730,431 1,730,431 1,843,128
1,777,663 1,777,663 1,888,0671,843,128 1,888,067
1,888,067 1,888,067
Net Cash Flow $tbd M $tbd M $tbd M $tbd M financial assumption Annual Impound for FF&E Reserves by Lender (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000)
By Oren Klaff and Richard Sax Cash Flow
Debt Before DebtDebt
Service Service
Service 1,695,305
(1,063,249) 1,697,086
(1,063,249)
(1,063,249) 1,730,431
(1,063,249)
(1,063,249) 1,777,663 1,843,128
(1,063,249) (1,063,249)
(1,063,249) 1,888,067
(1,063,249) (1,063,249) 1,888,067
(1,063,249) (1,063,249)
(1,063,249) (1,063,249)
Tenancy $tbd M $tbd M $tbd M $tbd M Description of underwriting metric and
financial assumption
Debt
Net Service
Cash Net Cash Flow to Owners
Flow to Owners (1,063,249)
632,056 (1,063,249)
632,056
633,837 (1,063,249)
633,837
667,182 (1,063,249)
667,182 (1,063,249)
714,414 714,414 (1,063,249)
779,879 779,879(1,063,249)
824,818 824,818
824,818 824,818
$sq/ft(avg) $tbd M $tbd M $tbd M $tbd M Description of underwriting metric and
financial assumption

FINANCIALS
be worth my time.”
Net Cash Flow
Annualized to Owners
Cash on Annualized Cash
Cash pay rate on Cash pay
to Investors as arate
% of Investors as a % of Equity632,056
toEquity 9.00% 633,837
9.00%
9.02% 667,182
9.02%
9.50% 714,414
9.50%
10.17% 779,879
10.17%
11.10% 824,818
11.10%
11.74% 824,818
11.74%
11.74% 11.74%

Other Revenues $tbd M $tbd M $tbd M $tbd M Description of underwriting metric and
financial assumption
Annualized Cash on
Additional Benefit toCash pay rate
Additional
Investors to Investors
-Benefit of as
to Investors
Amortization a- %
Debt of Equity of Debt
Amortization 9.00%
- 9.02%
- - 9.50%
-- 10.17%
- - 11.10%
- - 11.74%
- - 11.74%
- - -

Additional Benefit Benefit

Total Annualized to Investors - Amortization
Total(Cash
Annualized Benefitof(Cash
+ Amortization Debt + Amortization
of Debt) as % of Equity -
9.00%
of Debt) as % of Equity - 9.00%
9.02% -
9.02%
9.50% - 9.50%
10.17% -10.17%
11.10% - 11.10%
11.74% - 11.74%
11.74% 11.74%
DISCUSSION leasing rates, available sqft, discount to market and leasing costs.
Total Annualized Benefit (Cash + Amortization of Debt) as % of Equity 9.00% 9.02% 9.50% 10.17% 11.10% 11.74% 11.74%
Underwriting specifics. tbd% tbd% tbd% tbd% tbd% UNDERWRITING ASSUMPTIONS
2012 2012 2012 2012

PROJECTED CASH YIELD BASED ON ALL LEASES AND REVENUES Net Cash Flow $132 M $132 M $132 M $132 M Located in the heart of middle america,
a community with a 10

Occupancy $132 M $132 M $132 M $132 M Located in the heart of middle america,
a community with a 10
2014 2015 2016 2017 2018 Market Rates $132 M $132 M $132 M $132 M Located in the heart of middle america,
a community with a 10
for Room Nights
detailed income projections are provided on page x Market Rates Located in the heart of middle america,
$132 M $132 M $132 M $132 M a community with a 10
for Room Nights

Located in the heart of middle america, a community with a 10

percent tax growth rebate, the property has fixed-lease tenants
each with long-term contracts through 2013.

page 3

PREMIER JET FBO

NCI PARKING

3
FINA ALS
Over 1-acre for
short- and
This summary, which contains brief, selected information pertaining to the business and affairs of the Property, has been prepared by MAP
This summary, which contains brief, selected information pertaining to the business and affairs of the Property, has been prepared by MAP to provide general information about the Property. This is not an off er to sell, or a solicitation of an off er to buy securities, as such an offer or solicitation
can only come through the offering’s private placement memorandum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM
to provide general information about the Property. This is not an offer to sell, or a solicitation of an offer to buy securities, as such an offer or solicitation supersedes this material in all respects. This investment involves various degrees of risk, including the speculative market and financing risks associated

long-term
with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk Factors”
can only come through the offering’s private placement memorandum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM section of the PPM.”

supersedes this material in all respects. This investment involves various degrees of risk, including the speculative market and financing risks associated
with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please refer to the “Risk Factors”
section of the PPM.” parking.
page 23
THE PROBLEM FBO/RUNWAY SUMMARY LOCATION FINANCIALS TEAM CONTACT SAN DIEGO METROPOLITAN AIRPARK

page 5
THE PROBLEM FBO/RUNWAY SUMMARY LOCATION FINANCIALS TEAM CONTACT SAN DIEGO METROPOLITAN AIRPARK

5 6 7 7 8 9 9
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
 FRAMING THE DEAL
RAISE CAPITAL FINRA COMPLIANT
by
EXPAND INVESTOR BASE PROTECT VALUATION
www.intersectioncapital.com

STAGE 2: GET THROUGH ANALYSIS The way issues are framed is critical
The Evaluation Stage: When the reader
decides to invest time with your deal
book, a new level of communication
Framing information creates a
convenient mental shortcut for
CATCHING THE BLACK SWAN EVENT
begins. Using a technique called the investor. That’s important SEVEN PERCENT of angel investments generate 70 percent liquidity in the market. Now imagine this market as
because human beings are economists do, as a game of chance.
FRAMING, we simplify and organize by nature “cognitive misers”,
complex material into blocks of meaning they prefer to do as
information that are linked together little thinking as possible.
in a way that guides the reader to
a specific set of conclusions about Framing provide people a
quick and easy way to process
your deal. Those conclusions are: information. So people use
This is a quality deal that deserves frames to make sense of The Game: if you hit a But picking the right Almost no one has Many go 0-for-10. Making it very So how do you get at

consideration, that involves quality Framing helps package information and A frame is a way people have to interpret incoming messages. This
deal, you get 12x
return.
deal is hard. much better than a 1 in
10 hit rate.
risky. the winners?

data in a way that encourages certain information and to understand and re- gives you, the framer of the
people that I should know. I need to interpretations - and discourages others. spond to events. When you set the frame
know more about them. FRAMING information, enormous power
you control the agenda. Every situation to choose how your audience
elevates the status of your deal book can be seen from many different angles. will interpret the message.
from being one among many to being Frame control is about controlling which
something special. angle it is seen from. Frames construct a point of
view that encourages the Enter the Black Swan
Let’s look at the market
Your gut tells you the Will you hit a “Swan” in 5 Will you hit a Swan in But, in 125+ spins you’ll

On the conscious level, Velocity carries facts of a given situation to be Event: rare but very
profitable..
as a wheel of chance.
You only make money
wheel looks like a bad
bet. But the math says
spins? Your gut says “no.” 10 spins? Maybe. hit “Swans” often enough
to earn a consistently
interpreted in a contrarian or on black or gray.
it has a high return. high return.
the reader through the basic things different way. The “Wheel of Chance” in this illustration is set up to behave in similar ways to the angel investing market. In the angel market, you have to “spin” (or invest)

they need to know – the pro forma, enough times to hit some 12X winners. In other words, you have to diversify your risk. How many “spins” do you need to take? Statistical modeling shows that
approximately 125 investments per year are required to mitigate the risk that comes with angel investing in early stage technology startups. At this volume of
underwriting considerations, upside/ If an investor detects subtle investing you smooth out your risk curve because you hit your share of Black Swans.

cues indicating that you have

downsides, assumptions, competition,
sources/uses, track record. It does low status or that the deal is TYPICAL DEAL summary PAGE 5 www.rightsidecapital.com

weak -- the proposal is toast.

this quickly and completely, and in an
intriguing way that complies with FINRA
1
SUMMARY
KEY INVESTMENT MERITS
guidelines.
PROJECTED
FIRST-YEAR YIELD 9.0 %
On the subconscious level, we provide
For the year ending December 31, 2012

UNDERWRITING
GOLDMAN SACHS the projected financial yield of the Fund is anticipated to
EXISTING LOAN
the information flows in a pattern Facts and information have no meaning Your pitch book will receive only a quick DEAL SIZE $24.44M
report Net Operating Income (“NOI”) from leasing activity of
$1.63 million, and $6.52 million from service and FBO related

that is comfortable to the reader, unto themselves. Frames focus your scan at first. This will be triage, at best, as the APPRAISED VALUE $24.47
In every portfolio we acquire M (Aug.for
or target 7 2009)
acquisition – we
revenue. The revenues are primarily the result relative posi-
tion of the property within the competitive set in the avail-

moving concepts and ideas forward attention and that’s how they provide analyst is looking for a fatal flaw –– any fatal TOTAL EQUITY
commit our own capital. It$7.02
stands
M to reason, as principles, over
time, we have identified the crucial difference between notes that VERIFY ASSET VALUE
ability of assets. For the projected year ending December 31,

the meaning. Frames create relevance flaw –– that will justify tossing your pitch IN-PLACE DEBToffer downside protection$17.42 M that don’t.
and those with NEXXICA CAPITAL
2012, the in-place revenue streams project a total of $8.50
to the cognitive part of the brain by including some information – and book into the recycle bin. EQUITY SUBSCRIBED $3.58 M
million of NOI, an increase over the previous year.
b We don’t care what any appraisal says. Here’s how Nexxica

without triggering skepticism or doubt. excluding other.

There’s no more simple truth
EQUITY REMAINING
in this business: the “market
$3.44 Mare mechanical (for example, in
1,000 foreclosures performed by
analyzes an asset prior to investing its own capital:

1
In our first screen, much like anyone else, we
This is another critical point in the value” of an asset doesn’t mean ourselves as managers, 100%
Located in the anything
heart of middle
tax growth rebate,
untilamerica,
the propertywas
you know a community
how the with
hasperformed.
werea 10successful.)
percent
fixed-lease tenants each with long-term
PUBLIC
SOURCES
look at Zillow, Redfin, MLS, Realtor.com. This
helps us get a baseline undestanding of the
underwriting
engagement process – once their contracts through 2013. is more important to us During the holding period of
Nothing
because as managers we have a note, the servicer collects
market and the asset.

natural skepticism is set aside, the performed due diligence on over rent, maintains the file and Next, we find a prominent Real Estate Agent in the

2
5,000 notes, have acquired distributes payments. One local market that understands the nuances of that
LOCAL
reader is inclined to reach a positive more than 1,000 and we know the note refinances, then XYZ
the rigors and discipline that are happens. In the event of default,
AGENT
location. Several hours of conversation may take
place between us and the local agent. In many

conclusion. Which makes the decision needed. AAA company does THIS. These
are mechanical processes that
markets, we have pre-existing relationships.

to move your deal forward a safe and This brings us to thecontains

centralbrief, selected
areinformation
easy to manage.

3
This summary, which A member
pertaining to the business and affairs of the Property, has been prepared by MAP from
to provide the information
general Nexxica team aboutwill
themake a
idea of ourThbusiness
Property. is is not an and
SITE
off er to sell, or a solicitation of an off er to buy securities, as such an offer or solicitation can only come throughphysical
the offering’s private placement
inspection memoran-
ofthe property
dum (“PPM”). This material cannot, and does not, replace the PPM, and the PPM supersedes this material in all respects. This investment involves various degrees of risk, including
and build the
VISIT
logical decision. certainly
important
what must be the most If you talk to investors who
refer to thelesson of thesection
“Risk Factors” current have succeeded with acquiring
of the PPM.”
case file with first-hand evaluation of the asset
the speculative market and financing risks associated with fluctuations in the real estate market including tax status, liquidity, and fees, expenses, and other risk factors. Please
and the market. In many cases the site inspection
will include the Real Estate Agent.
mortgage crises: Residential notes, they’ll tell you, the key is
nexxica mortage notes is a commodity acquiring assets at significant

4
business. There is a large and discount to true market value. Even if Archbay, Wells Fargo dave@nexxicacapitalcorp.com
and Waichovia has
efficient infrastructure to aquire, What truly distinguishes our TITLE previously owned the note (a common scenario)
manage, service, foreclose and assets is the depth of our NOTATION there can still be issues with title. The key to
sell these commodity assets. underwriting process. Here’s finding any glitches is a full review of the conver-
Similar to the purchase of other how we do it: sation logs with the owner - this is heartbeat of
commodities, the key risk is in every note and tells the whole story.

5
pricing, or underwriting. The MERS was established as a clearinghouse and
other functions of the business MERS computer registry that to track ownership
changes in mortgages. Sort of a CarFax for
mortgage title. If there is any issue with title
nexxica transfer and history, it will show up in here.

5 6 7 7 8 9 9
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
ACCESS TO CAPITAL
STAGE 3: EXPAND THE INVESTOR POOL
At this stage, your deal has been VELOCITY is used in these capital markets
screened. The reader has made the
decision to involve others. This is an EARLY STAGE PRIVATE EQ. TECHNOLOGY RENEWABLES
important stage because the decision to
sponsor a prospective investment involves
social and career risk. No one wants
to recommend a low-quality deal, and
Velocity takes the risk out of doing so. The
40 20 15 25
APPROXIMATE
%
APPROXIMATE
%
APPROXIMATE
%
APPROXIMATE
%

quality of your presentation is so unique

and so high that Velocity deal book will be
respected and remembered.
APPROACH
Our experience has shown that in most INVESTOR PITCH MEET TERM SHEET FUND
instances, your Velocity deal book will
be shared and discussed as something
novel, unique and worthy of serious ACCELERATE THE TIMELINE TO CAPITAL
consideration. In most cases, when it
reaches the stage where it is socially
become immediately active in the capital markets

WHAT YOU CAN EXPECT FROM VELOCITY™

shared, you will be contacted. Meetings
will be set.

At this point in the process, the investor

has reached several important and highly VELOCITY DEAL BOOKS INSTANTLY CONVEY QUALITY, SURETY AND TRUST to your
positive conclusions about your deal and new investors. They bring high-priority status and attention to your deals, and
your firm. They hold a preconceived idea makes all this happen within minutes.
that you offer quality deals and that they
should be a member of your investor pool. * Your deal books will pass through initial screens * You will close financings faster and more
successfully and be marked as important materials efficiently than ever before.
Your Velocity deal book has done it’s job, that require evaluation.
and the rest is up to your team. * You will find yourself in the desirable position
* They will successfully pass of being able to select the best
through the review process investors for your pool and your
quickly. INSTANT ATTENTION style of investing. Instead of
ACCEPTANCE taking what you can get, you can
* Your cost to acquire new decide who are the best fit for
investors will dramatically your organization and investment
fall, as the call-back rate INVOLVEMENT MEETINGS opportunities. Imagine that.
from Velocity™ deal books
is much higher than with
conventional OMs.

* Your close rate will be much higher, as investors

will come into your meetings with desire rather than
skepticism. At this stage, it’s yours to lose.

5 6 7 7 8 9 9
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
 RAISE CAPITAL
RAISE CAPITAL FINRA COMPLIANT
by
EXPAND INVESTOR BASE PROTECT VALUATION
www.intersectioncapital.com

VELOCITY PITCHES: OVERVIEW

EXECUTE WITH A STRATEGY EXPERIENCE

We have raised over $400M with VELOCITY
pitches in 27 deals, and are currently raising
$250M.
Many of the neuro-scientific methods
used to produce Velocity™ pitch books
are derived from path-breaking work
done by Intersection Capital founder
McGraw-Hill is publishing our book, PITCH ANYTHING,
COGNITIVE SCIENCE based on these methods, co-authored with a Harvard/ Oren Klaff, and are described in his book,
Columbia/UCSD cognitive psychologist. “Pitch Anything” (McGraw-Hill, 2011).
These deal packages are possible because of our
FINANCE financial acumen and ability to structure the cap
sheet / capital stack.

TOTAL BAJA LLC INVESTORS

STRUCTURE:
principals remain substantially
OWNERSHIP 100% 51% 49% invested alongside investors

Total capitalization of the subject

PRICE $24.44M $12.46M $11.97M property is $125 million

Projected 2012
NOI $1.71M $874K $840K
Principals are placing approximately
$ EQUITY $7.02M $3.58M $3.44M $3.58M of equity alongside
investors.

$ DEBT

% LTV 71% 71% 71% -

ORIGINATING -
LENDER
LLC will manage the asset with its
PROPERTY in-house property management group.
MANAGER

We all like to think that others judge us carefully and

objectively on our merits. They don’t .
In hurried business situations in which make, because negative impressions tend to
executives must evaluate dozens of deals in a be more salient and memorable than positive
week, or even a day, they are rarely willing to ones. To avoid fast of elimination, successful
expend the effort necessary to look into the pitchers - only 25% or less of those we observe
deal and its underwriting. They classify deals do this - turn the tables on the investors in
in a matter of seconds. They use negative ways we describe in this book. By doing so,
stereotyping to rapidly identify the no-go ideas. they induce investors to judge them as high THE FACTORS that determine the speed of a capital Velocity deal books succeed where conventional
All you have to do is fall into the common a low status. Executives who know what they are raise are price, people and execution. Once the OMs fail because they are novel, deeply insightful,
status negative stereotype, and the pitch will doing when pitching a deal to a new contact/ price is set and the deal team is chosen, what intriguing, and answer the important questions
be over before it has begun in fact, many deal investor/corporation deliberately level the matters most is execution: how many qualified before they are even asked. They anticipate the key
evaluations are strictly a process of elimination; status differential between themselves and investors can be shown the deal, agree to take a decision points in the capital raising process, and
in our experience, only 1% of ideas make it people they are pitching to. meeting, and commit to participate. position your offering for early success.
beyond the initial minutes of a pitch. These kind
of elimination’s are too easy for investors to Our methods make it possible to rapidly expand CONNECT WITH US to learn more. +310.359.0779
your investor pool and complete financings in less oklaff@intersectioncapital.com
5 6 7 7 8 9 9 time. Execution - attracting new investors to your
THE BIG IDEA DIFFERENTIATION THE PROBLEM THE PRODUCT THIN SLICING HOW IT WORKS NARRATIVE TRANSPORT COGNITIVE VISUALS DEVELOPMENT FRAMING VISUAL TRIGGERING
deal - is what we’re best at.