Acquisition and Underwriting: Selecting Sound Investments Real estate investment has created wealth for a greater number of people than any other investment strategy. Although simply buying real estate today is not a guarantee of success, we believe that selective property acquisitions can provide investors with unparalleled returns. Pacific Capital seeks to acquire properties that will satisfy the following investment goals: • Increased wealth through maximization of capital appreciation • Production of cash flow through property operations • Generation of passive tax losses to offset income from property operations and other passive income • Preservation of wealth and diversification of an investment portfolio in California, Nevada and Arizona real estate The secret to our success is that we make wise investment decisions based on an established process of due diligence. Our process starts with uncovering and meticulously assessing critical information and data. We then measure potential investment properties against a proven set of criteria that guide the selection and purchase of a new property. This process is a highly selective one, identifying only one out of approximately 200 potential properties as an appropriate investment. As a result, Pacific Capital purchases only the most advantageous properties for inclusion in our portfolio. Our portfolio contains approximately 30 properties at any given time.