Landsmith Appreciation Fund, LLC

Investor Presentation
March 2009
WHO WE ARE

 Integrated Real Estate Services

 Fund Management
 Development
 Construction
 Brokerage
 Our first two funds had IRR’s of
204% and 24% respectively.
 Building wealth for 15 years
OUR FUND

Landsmith Appreciation Fund, LLC

Landsmith creates wealth for

individuals through an
aggressively managed,
distressed residential real
estate fund that is uniquely
designed for high returns with
as little as $50,000 invested.
YOU

 Need more wealth to retire or live

 Want projected 20% returns
 Believe California real estate is
near a bottom
 Can invest for 3 to 7 years
 Don’t need current income
 Have at least $50,000 to invest
 Have $200,000 income or
$1,000,000 net worth
 INVESTMENT STRATEGY
 Prices will bottom in 2009
Timing is Right  Prices are 50% to 90% lower
 Recovery and sale in 3 to 7 years provides
high returns

Residential is  First to recover will be entry level residential

Highly Attractive  Commercial real estate still falling

 Investors and first time buyers’ sales way up.

SF/SAC/LA  Homes now affordable.
Stand Out  Jobs, geographies and quality of life
THE TIME IS RIGHT
“Smart Money” Moves In

 Purchase of 2,900 lots in California

 Plans to deploy an additional $200mm in
residential

 Secured $10 billion in capital commitments

in April 2008

 Created distressed real estate group in

2008
 $400 million of commitments for a variety
of distressed assets
THE TIME IS RIGHT

Deal Flow Heating Up!

 Accelerating inbound calls and

opportunities
 Challenge is to sort through
opportunities for best investments
 The number of available opportunities is
large and accelerating – at least for now
RESIDENTIAL ASSETS ARE ATTRACTIVE

 Low costs to maintain

Finished  Ideal for buy & hold strategy
Lots  Deep discounts readily available
Initial Priority

FNMA Bulk  Provides some income

Homes  30% discount to fire sale price
 Provides some diversification
 Will rebound before lots

Individual  Allows for flexibility in portfolio

Opportunities  Potential for very high returns
 Provides some diversification
THREE MARKETS STAND OUT
Initial Focus

 San Francisco Bay Area

 Sacramento Area
 Los Angeles Area

Other Areas of Interest

 California Central Valley

 Phoenix / Arizona
 Las Vegas / Nevada
 THREE MARKETS STAND OUT
Why these markets? People want to live here:

 Superior job growth

 Attractive geographies
 Large, diversified economy
San Francisco

 Ideal climate
 Quality of life
Los Angeles
 First to recover
Sacramento
SAMPLE OPPORTUNITY
Villa Terrassa Subdivision, Sacramento, CA
 Asking 15% of original cost
 $6,000 per lot (expected)
 Infill location
 79 Finished Lots
 3 Model Homes
 Entry Level Homes
 8 Acres
 Low cost for permits/fees
 Attractive demographics
 RETURN OPPORTUNITY
Villa Terrassa Subdivision, Sacramento, CA

Timing Year 0 Years 1 - 5 End of Year 5

Buy
Property for Operating
Costs and Sell Property
Event 15 cents on
the dollar Taxes

Return on
Original
Value Sale Price Return
($1,000,000) ($150,000)
Cash Flow 50 cents $ 3,000,000 261%
75 cents 4,500,000 391%
100 cents 6,000,000 522%
WHY LANDSMITH?

 Perspective Unique insights on the most

desirable California markets
 Access Deep stable of relationships provides
acquisition opportunities
 Discipline Strict investment criteria

 Experience Significant deal experience

 Performance Superior investment performance

history
SOURCING HIDDEN DEALS

Builders Banks Brokers

Builders
Top local,
independent,
brokers
THE LANDSMITH TEAM

James Breitenstein – Fund Manager

• 10 years Wall Street investment banking experience.
• Managed two very successful prior funds.
• 15 years experience in Bay Area real estate finance, construction, and development.

Tony Rosenthal – Acquisition Advisor

• 15 years developing and constructing large scale residential real estate.
• Entitled & developed over 16,000 lots; constructed over 25,000 homes.
• Strategic planner for well-known investment groups.

Thomas Dashiell – Acquisitions & General Counsel

• 30 years real estate law practice; JD Harvard University.
• Partner in large scale California real estate developments.
THE LANDSMITH TEAM

Mark Tiffany – Acquisitions

• 20 years of experience in all aspects of residential lending
• Unique experience in property acquisitions and finance

Jay Weil – Analyst

• Analyst for eight real estate investment funds
• Developed single family real estate
 HISTORY OF SUCCESS

Landsmith IRRs vs. the Markets

250.00% Landsmith
204% Opportunity Fund
200.00%
Landsmith
150.00% Opportunity Fund II
100.00% Residential REITS
50.00% 24%
0.00% NASDAQ

-50.00%
-39% -38% DOW
-57%
-100.00%
“More money is better than less money,” James Breitenstein
 ILLUSTRATIVE RETURNS
Internal Rate of Return Analysis
Assumptions Invest at 25 cents on the dollar and return:
50 cents 100 cents 150 cents

 Purchase finished lots for 25 cents 3 Year 5 Year 7 Year

on the dollar Exit Exit Exit
 1.5% management fee
 Approximately 1.5% in annual
operating expenses
 Customary fees and expenses at
purchase and sale of asset
 7% preferred return and 75% of net
profit distributed to investor

There can be no assurance that the Company will earn this or any positive level of return on investment.
 NEXT STEPS

 Review Private Placement Memorandum

 Follow up questions, diligence
 Execute subscription agreement
 Invest before we miss the opportunity!

Notice: The Issuer has filed a notice with the State of California for the Offering to which this
presentation relates. Before you invest, you should read the Private Placement Memorandum
and related documents about this Offering.
"Be fearful when everyone is greedy, and greedy when everyone is fearful."