HISTORICAL PERFORMANCE
Receivables

With one-to-one ratio receivable transactions, the return to purchasers has historically been a predictable yield range from 7% -12%.

Comparison of Returns

*Historical results do not guarantee future performance.

Legal Notice: Each one-to-one ratio receivable has its own characteristics. As such, there are no guarantees that returns will be of any particular yield, or that there will be any returns at all.

There are risks associated with purchasing one-to-one ratio receivables, including but not limited to the following:

1. They are not insured by the FDIC or any other government agency, or any private insurer. Additionally, American Equities, Inc., its principals, and associates do not guarantee the success of the receivables. The receivables involve certain risks and are suitable only for persons of adequate means who anticipate no need for immediate liquidity.
2. The value of the property providing security for a receivable is obtained from an appraiser or real estate agent reflecting his/her opinion of the value at a specific date. There is no assurance that the value will reflect a fair market value, as general and local economic conditions may change.
3. The borrower's ability to repay the loan will depend upon the borrower's financial conditions which could change over time.
4. There are general risks associated with one-to-one ratio receivables, including but not limited to: local economic conditions, neighborhood values, interest rates, real estate tax rates, the supply of and demand for properties of the type involved, the ability of the borrower to obtain necessary alternative financing, governmental rules, and acts of nature.
5. Default by the borrower could interrupt your monthly payments. Under extreme cases, it may be necessary to instruct an attorney to begin foreclosure proceedings or take other actions to protect your rights in the one-to-one ratio receivable. It is possible for the total amount recovered upon foreclosure to be less than the amount the purchaser has paid, with a resulting loss of capital to the purchaser.
6. If a borrower files a reorganization or full insolvency bankruptcy, the foreclosure process could be stalled. Purchasers of one-to-one ratio receivables could incur significant legal fees and costs in attempting to obtain relief from the automatic freeze on collection proceedings provided by the Bankruptcy Code. Relief consists of obtaining court approval to release the property out of the bankruptcy so that the property can be foreclosed upon. Furthermore, the court could modify the terms of the loan by extending the due date, changing the interest rate and payment structure, or causing the priority of the loan to be subordinated to a bankruptcy court-approved financing plan.
7. Receivables could be less liquid than other holdings and involve risks, including loss of principal.