Executive Summary:

Capstone Capital Partners, LLC

Headquarters Location Key Management Investment Opportunity

13284 Pond Springs Rd, Suite 402
Austin, TX 78729
512-257-1330 Office
1-800-219-8762 Toll Free
Be the Bank
Ray Walter, Founder / Managing Partner
Invest in First Liens
David Yeary, Managing Partner
On Texas Real Estate
Walter Servicing, Admin Support/Servicing
ray@capstonelending.com
8-10% Annualized Returns

Overview: Who is Capstone?

Capstone Capital Partners, LLC (Capstone), a Texas limited liability company, is a full service mortgage banking
company that provides private debt financing via first lien mortgages throughout the state of Texas. With decades of
combined lending and real estate experience, the Capstone team has developed a unique and innovative business
model for the “alternative lending” (hard/soft-money) industry. The alternative lending industry has been around for
decades and has quickly become the new choice for loans due to the banks’ current lending
constraints. Although there is a risk to lending on real estate, our carefully constructed lending
model is designed to not only withstand the ever-changing lending cycles, but it will capitalize
upon a very lucrative, virtually untapped niche within the alternative lending industry that has
been left underserved due to the recent credit crisis. This opportunity has created a growing
need for innovation and change and Capstone intends to lead the way.

Capstone will raise capital through existing relationships and into two models of lending. The
first model, “Individual Ownership”, allows for participating private lenders to act as the bank
with loans backed by hard assets (Real Estate). These transactions will offer consistent 8-10%
annual returns and give the participating lender(s) 100% ownership fully secured by a first lien deed of trust. The
second model, coming available in 2015 for “accredited investors” and “institutional capital” only is for the use of
lending through a “Mortgage Fund”. The Mortgage Fund will also lend on first liens primarily in Texas and will have a
similar lending platform and return of yield, yet with a potential to fund larger (primarily commercial) loan amounts
moving large amounts of capital into solid cash flowing properties. The Fund will also offer transparency,
diversification and security in addition to attractive and consistent yields to its investors.

Everyone Wins – The Capstone Advantage

Our private lending model minimizes risk and maximizes yield that few others in this industry can offer.
Less is more. At Capstone we minimize the cost of private capital to the borrower. Where typical private lending
companies charge as much as 5% (in addition to high rates); Capstone charges on average 2-3% (less than half of
the going standard) and with rates starting in the single digits. With capital costs being less to the borrower than the
typical alternative lending market, borrowers are able to operate more efficiently with better sustainability. In return,
this yields constant and equitable returns to our private lending partners at a more rapid rate ultimately with less risk to
all parties. Furthermore, our business model is engineered for profitability through both the high and low points of the
real estate cycle. The low part of the cycle (such as 2008-2009) has traditionally not been kind to ‘hard money’
investors and has many times resulted in losses. Our model is set to outperform traditional ‘hard money’ because our
rates/costs are much more affordable and sustainable attracting the right borrowers from the beginning. Lowering

Capstone Capital Partners, LLC www.CapstoneLending.com

 Executive Summary:
Capstone Capital Partners, LLC

borrower costs creates certainty, sustainability and loyalty unlike what was witnessed in recent low cycles in ‘hard
money’ where the average return (including losses and gains) was sometimes closer to 5-7% annual yield or less.
Historically, this less attractive lending model has created Borrower hesitancy causing unproductive downtime
between loan funding cycles where the private lender’s capital is sidelined. This is still the case today, where there is a
large amount of capital waiting for the next opportunity, but yielding little profit due to the low demand of high priced
capital. Meanwhile, there is a large pool of qualified borrowers/projects that are ready to be tapped. Capstone’s niche
will meet this immediate demand and offer both lenders and borrowers equitable terms that create a win-win scenario
leading to lasting relationships and mutually beneficial rewards.

Market Analysis
Private Lending (aka Hard Money) is alternative financing that has been around
for decades. It is a secondary market for both individuals and entities that may or
may not qualify for traditional bank financing due to reasons such as previous
credit delinquencies, debt to income ratios, or something highly prevalent in the
market today: lack of available credit. Many times the primary need for private
financing is “speed of financing” even for borrowers that can qualify for bank
financing. A typical bank can take as long as 60 days to fund a loan where
Capstone has the ability to close on funding in a matter of weeks, if not days.

Strategic Niche & Advantage

Capitalizing upon the aforementioned weaknesses and the considerable lending gap between institutional and private
lending, Capstone is strategically positioned as a hybrid lender. Capstone lends monies to qualified borrowers at
interest rates competitive with the primary lending market while being considerably more attractive than the current
private debt financing sector. This gives Capstone a unique competitive advantage that attracts quality borrowers,
better projects and premium properties. Take a look at the diagram below that clearly shows this huge potential:

Capstone’s strategic lending platform (represented in above diagram) will be able to pull the best lending opportunities
from the hard money and even joint venture categories, while being positioned to capture deals that fail to meet heavily
regulated conventional banking guidelines. This gives Capstone’s private lending partners a considerable opportunity to
participate in a market that is virtually untapped and at yields/rates that are both rewarding for the lender and
sustainable for the borrower creating a partnership through Capstone for lasting success.

Capstone Capital Partners, LLC www.CapstoneLending.com

 Executive Summary:
Capstone Capital Partners, LLC

Conservative Lending Model

Each prospective borrower is required to submit a loan application or submission form. We will pull a residential credit
report to determine credit worthiness. Capstone gives consideration to the borrower’s relevant experience, credit
delinquencies and net worth, while also considering project manageability and exit strategies through the eventual
sale or refinance of the property. Because private lending is primarily asset/equity based, more emphasis is placed on
the collateral and equity of the property than the borrower's credit and financial standing when determining the
acceptance or denial of the loan. Each loan is considered on a case by case basis and the final Loan to Value (LTV) is
an essential factor in the decision making process. Each loan request is carefully considered on an individual basis
and will be denied if a potential risk is identified with the project or borrower.
A typical loan or loan to value (LTV) will be anywhere from 50%-70% of the property value backed by a 3rd party
Appraisal and/or Broker Price Opinion. Below is a list of the typical property types that Capstone seeks to fund:

• Commercial Properties (5 units or more) - Office Buildings, Apartment

Complexes, Retail Centers, etc.
• Residential Properties (4 units or less) - Single Family Residences, Condos,
Duplexes and 4-Plexes. Other properties on case by case.
• LTV (Loan to Values): 50-75%
• Loan Sizes- $100,000 - $2,000,000
• Rates- 8.99% - 12.00% on First Liens (sometimes we can get higher rates on
renovation and construction loans).
• Loan Term- 1-2 Years with allowable extensions up to 3 years.

Loan Servicing and Current Performance

Walter Servicing Corp (www.WalterServicing.com) has serviced over $90M in private debt since 2007. Walter
Servicing Corp. has an experienced and very competent team that has serviced hundreds of loans for over 400 private
lenders. This knowledge and experience has been time tested through one of the greatest real estate crisis we have
seen in decades. Starting an impressive portfolio of less than 5% (in default) for years turning into approximately 65%
in default by 2010 after 300 bank failures and the economic bust, Walter Servicing rolled up its sleeves and worked
tirelessly with its private lenders to create the best possible outcome in sometimes bleak situations. Today there are
several portfolios in servicing with minimal loan defaults. Walter Servicing strives for stellar customer service and
customer surveys have reported over 90% satisfaction with
many comments of praise especially for hanging in there
Key Investment Considerations
during the tough times. Walter Servicing has an experienced
(battle–proven) team of professionals that are familiar with all
1. Successful Track Record
aspects of loan servicing, borrower collections, foreclosures & 2. Untapped Market Opportunity
asset management including investor relations, etc. Currently, 3. Crucial Market Experience
Walter Servicing Corp services loans for www.ThriveFP.com 4. Collateralized Loans- 1 st Liens
and www.CapstoneLending.com in addition to other individual
private lenders. WSC is an Accredited BBB Business.

Capstone Capital Partners, LLC www.CapstoneLending.com

 Executive Summary:
Capstone Capital Partners, LLC

Our Team
Ray Walter, Founder and Managing Partner

Before founding Capstone Capital Partners, Ray helped establish and build the private
lending platform of several local Hard Money companies (including Thrive, FP) that
currently have over 10M in loans with Walter Servicing. Ray founded Walter Servicing
Corp, a private lenders loan servicing company that has serviced over 90M in private loans
since 2007. Ray has been in real estate lending for over 15 years and has experienced
several high and low real estate cycles during his career and through many hardship
lessons, especially during the credit crisis. Ray has learned the value of
staying prudent while maintaining and keeping a common sense approach to lending. Ray
has closed and funded over $250 million in lending transactions.

David Yeary, Director of Business Development

Prior to joining Capstone, David served in Business Development at First Capital Funding
(now Thrive FP). He graduated from Texas State University in San Marcos, Texas with a
degree in Finance. Some of David’s experience includes business skills developed during a
15 year career in the energy business in Houston, Texas, as well as partnering with a
successful mortgage lending and the insurance business. David started and ran his own
insurance company until being recruited by Thrive in 2012. David’s technical skills and
marketing experience are a valuable combination for our company. He works with borrowers
to structure loans and equity financing for Commercial and Residential projects. Creatively
meeting the needs of our clients is an area of expertise that makes him a valuable asset to
Capstone.

Jeremy Pate, Loan Originator/Closer

Jeremy Pate, our Senior Loan Processor, brings with him over 20 years of experience in the
mortgage lending industry. Jeremy graduated from Lamar University in Beaumont Texas with
a degree in Mass Communication with a minor in Business. Jeremy is a great asset to
Capstone with his amazing people skills and his mortgage experience developed over the
years making him a valuable contributor to our Capstone Team. He works with borrowers to
obtain necessary items and oversees the closing process for the lenders. Creatively meeting
the needs of our clients is what Jeremy likes best in his role at Capstone. Jeremy is actively
involved with his church as he serves in many different ministries. He is an avid golfer and
enjoys the outdoors.

Capstone Capital Partners, LLC www.CapstoneLending.com

 Executive Summary:
Capstone Capital Partners, LLC

Walter Servicing Corporation- Team

Dorothy Horton, Operations Manager

Dorothy Horton is the Operations Manager for Walter Servicing Corp and has been with
the Walter Companies since 2005. Dorothy oversees the daily business operations
including Loan Servicing, Bookkeeping, Human Resources, Payroll and Office
Management. Dorothy is a real gem and has worked in several departments bringing a
very thorough knowledge to all sides of the business. After very successfully working her
way up through the company, Dorothy took on the operations manager role at Walter
Servicing and has been a true asset. Dorothy has worked closely with borrowers and
private investors over the years and works very efficiently handling a majority of the
operations of Walter Servicing. Prior to moving to Austin, Dorothy gained experience in Loan Processing while living in
Monterey, CA. Her background includes Banking, Human Resources, Benefits Administration, Payroll and Executive
Administrative work. She attended University of New Mexico and University of Phoenix majoring in Business
Administration.

Mindy Walter, Loan Servicing Manager

Before Mindy joined Walter Servicing she was working full-time as a successful Real Estate
Property Manager (and continues this business on the side). Mindy has an extensive
background in Self-Employment and Real Estate which has included Bookkeeping, Real Estate
Sales, Leasing and Property Management. Her experience and skill set in Property
Management has been a particularly strong foundation to her role here at Walter Servicing
where (similar to tenants and landlords) she handles the monthly collections from our borrowers
and the corresponding interest disbursements to our lenders. Mindy also handles all of the
weekly construction and renovation draws and works almost daily with our builders as they add
value to the construction projects in the servicing portfolio. Mindy is a joy to work with and
understands that customer service is priority number one in this industry. When Mindy is not at the office she
continues to work her real estate career. She currently holds a Texas Real Estate Brokerage License and
owns Waterloo Realty. Mindy lives in Austin and owns several rental properties in the Austin area.

Our team is constantly growing and you can see more

Bios on our website

Capstone Capital Partners, LLC www.CapstoneLending.com

 Executive Summary:
Capstone Capital Partners, LLC

Final Overview and Disclaimer:

Our Standards:

• 3rd Party Closings - Every Transaction closes at Bonded Title/Escrow Companies.

• Personal Guarantee - We secure a Promissory Note that is personally guaranteed by the borrower(s).
• 1st Lien - We execute a Deed of Trust (1st Lien Position). This provides for an accelerated
foreclosure should a borrower default.
• Insurance - We obtain Fire, Hazard and Lender’s Title Insurance.
• Appraisal/CMA - We receive independent verifications to confirm value and lend no more than 75%
percent loan to value or less in most cases.

Our Safeguards:

• Underwriting - We conduct in-depth research to make sure the loans meet quality, measurable
standards.
• Asset Based - We invest exclusively in hard assets. In this case, Texas commercial and/or residential
real estate properties.
• Solid Returns - We produce average returns of 8-10% annually and have the history to back it up.
• Experience - We are experienced in real estate lending with a proven track-record in our industry.
• Transparency - We offer a completely transparent process and remain available to discuss new or
current lending opportunities.

You can see

see more about our lending program at www.TexasFirstLiens.com

DISCLAIMER:
DISCLAIMER Our private lenders are earning an average of 8-10% annual return on 1st liens (Trust Deed
Investments) in Texas. Capstone Capital Partners, LLC (Capstone) does not guarantee these annual returns
and past performance does not always guarantee future success. This advertisement is not an offer to sell
or a solicitation for an investment into Capstone Capital Partners, LLC (Capstone). Capstone has not
registered these notes as securities and does not intend to in the future. Capstone is relying upon the
exemptions provided for in Section 5.J of the Texas Securities Act and Section 3(a)(11) and Rule 147 of the
Securities Act of 1933 as well as other exemptions not specifically described in this disclaimer:
http://capstonelending.com/legal-disclaimer/

Capstone Capital Partners, LLC www.CapstoneLending.com

 Executive Summary:
Capstone Capital Partners, LLC

Come Visit Us

Capstone Capital Partners, LLC

and Walter Servicing Corp

13284 Pond Springs Road #402

Austin, TX 78729

O 512-257-1330

F 512-692-1883

Capstone Capital Partners, LLC www.CapstoneLending.com