iintoo

NPL6

Short-Term Senior Debt Fund

NPL-6 Senior Debt Fund

Participate in a highly-selective short-term fund to acquire a portfolio of non-performing real estate backed loans.

Investment Type

Short-Term Senior Debt Notes

Exit Strategy

Default Interest + Servicing Fees

Estimated Holding Period

24 Months

Collateral

First Lien Position

LTV

70%

Expected # of Loans in Fund

1-3

Asset Types

Multifamily, Retail, Mixed-use, Industrial

Geographic Markets

NYC and East Coast Markets

Investment Strategy

Opportunistic

NPL Pipeline

Notes Closed To Date (NPL-1, NPL-2, NPL-3, NPL-4, NPL-5)

Debt Note	Date Closed	Status	Details
1. Lincoln Highway, Edison, NJ	3/08/2022	Active	Default interest 19.75%.
2. 89th Ave, Queens, NY	6/07/2022	Exited	The borrower refinanced the loan, and the sponsor successfully exited the deal, yielding an IRR of 22.02% to the iintoo partnership. Since this deal was exited earlier than expected, on 8/10/22, funds were partially rolled over to the Vyse Ave debt note, and the remaining funds were held in an interest-bearing escrow account until the close of Sanford Ave on 3/23/23.
3. Vyse Ave, Bronx, NY	7/21/2022	Active	Default interest 20.0%.
4. Sanford Ave, Kearney, NJ	3/23/2023	Active [Partial Distribution]	The sponsor and the borrower agreed that the tenant will pay rent with half of the proceeds going towards paying down the accrued interest. After reserving funds for future legal expenses, the sponsor has distributed $200,000 to investors. Default interest 18.0%.

(1) Date mortgage was assigned

NPL Pipeline Contd

Notes Closed To Date (NPL-1, NPL-2, NPL-3, NPL-4, NPL-5)

Debt Note	Date Closed	Status	Details
5. Sterling Place, Brooklyn, NY	6/6/2023	Exited	The borrower refinanced the loan, and the sponsor successfully exited the deal, yielding an IRR of 21.76% to the iintoo partnership.
6. West 31st St, NY	12/28/2023	Exited	The property was sold at foreclosure auction on 3/1/24, yielding an IRR of 79.28% to the iintoo partnership.
7. Decatur St, Brooklyn, NY	12/28/2023	Active	Default interest of 9.71%, approved because the accrued interest owed is substantially higher. The total accrued interest is ~330K while the loan balance is 1.26m.

(1) Date mortgage was assigned For further details, see Appendix, page 10

Investment Highlights

Fund Strategy

Through the fund, investors will gain exposure to 1-3 defaulted senior debt notes (known as non-performing loans, or NPLs), and will potentially benefit from high default interest.

• Risk mitigation includes first lien right on the asset and a maximum LTV of 70%.
• The title on the asset must be clear, and all loans must be in material default due to non payment or loan maturity, with notice already served, and cure period complete.
• The average holding period for each loan is expected to be up to 2 years.

Once a note is acquired, the sponsor will file for foreclosure and in parallel negotiate with the borrower.

There are three typical outcomes:

• The borrower successfully refinances, and the sponsor collects principal, default interest and fees;
• The sponsor completes the foreclosure process. The property is sold at auction and the proceeds are collected, including the principal, default interest, and fees;
• The sponsor takes ownership of the property, selling the asset on the open market.

Investment Criteria

Criteria	Benchmark
LTV*	70%
Default Interest Rate*	Minimum 18%
Location & Asset Type	Sponsor must have prior experience in location and asset type
Default Status	Uncontested Material Default Due to Non Payment or Loan Maturity (Notice already served, cure period complete)
Title	Clean
Liens	Any lien above ours (e.g. tax lien) must be within LTV of 70%

The investment committee will evaluate notes on a case-by-case basis and may approve parameters that deviate from this range, if deemed suitable.

Sponsor Expertise

Specialized Sponsor

Kassin Sabbagh Realty (KSR) is a fully-integrated real estate services and investment firm that focuses primarily on East Coast markets but has a presence nationally where opportunities are identified.

The sponsor has a strong relationship with originating institutional lenders who want to sell their NPLs, giving them access to deals that are otherwise unavailable. The sponsor has a proven track record in closing on NPLs, managing the legal process, and negotiations with the borrower. This is iintoo's sixth NPL fund and ninth commercial real estate project with the sponsor.

In addition to their core commercial brokerage business, they are actively engaged in real estate acquisition, financing, property management, development, and construction management.

Sponsor Track Record

Exited NPLs

Property	Purchase Date	Sale Date	IRR*	Purchase Price	Sale Price
West 31st St, NY – iintoo deal	12/28/23	03/01/24	238%	$2,211,693	$2,738,705
Sterling Place, Brooklyn, NY – iintoo deal	06/06/23	09/07/23	25%	$2,104,077	$2,225,839
89th Ave, Queens, NY - iintoo deal	06/07/22	08/31/22	40%	$1,903,165	$2,032,623
W Highway 89A, Sedona, AZ	09/25/21	11/17/22	51%	$1,325,000	$1,794,478
Rutland, Brooklyn, NY	07/08/21	05/31/22	26%	$381,600	$510,550
Concord Avenue, Bronx, NY	04/14/21	02/28/22	35%	$3,500,000	$4,549,147
Carroll Street, Brooklyn NY	08/07/20	12/17/21	25%	$2,700,000	$3,593,000
Erasmus Street, Brooklyn, NY	01/16/20	11/09/21	20%	$3,768,706	$4,750,000
Broadway, NY, NY	05/20/21	06/29/21	167%	$2,320,000	$5,567,930
Route 111, Hauppage, NY	08/23/18	08/23/20	73%	$500,000	$1,500,000
Wythe Ave, Brooklyn, NY	08/13/20	08/14/20	4%	$3,844,727	$4,000,000
Mill Rd, Westhampton Beach, NY	07/30/19	08/01/20	30%	$100,000	$140,000
Bedford Avenue, Brooklyn, NY	05/10/19	06/29/20	28%	$16,500,000	$20,703,060
S. Dixie, West Palm Beach, FL	03/08/18	06/19/20	10%	$588,750	$873,146
Lenox, NY, NY	05/22/18	03/12/20	11%	$1,900,000	$2,334,136
Atlantic Ave, Brooklyn, NY	11/13/19	03/04/20	48%	$7,351,267	$8,203,666
Old Country Road, Carle Place, NY – Mezz Loan	12/18/19	02/19/20	82%	$16,585,250	$18,036,474
Old Country Road, Carle Place, NY – Senior Loan	10/23/19	02/19/20	23%	$2,450,000	$2,661,585
39th Street, Brooklyn, NY	08/16/19	12/19/19	22%	$1,593,451	$1,770,601
Jamaica Ave, Jamaica, NY & Farmer's Boulevard, St. Albans, NY	11/05/19	11/26/19	254%	$2,500,000	$2,796,638
Route 37 East, Toms River, NJ	12/20/18	11/25/19	14%	$362,122	$435,457
Grand Street, Brooklyn, NY	06/25/19	11/12/19	25%	$1,541,767	$1,743,508
MacDougal St & 88th Street, NY, NY	05/22/18	10/29/19	19%	$739,683	$1,067,423
East 53rd Street, NY, NY	02/20/19	08/20/19	24%	$2,071,000	$3,200,000
Seiler Road, New Haven, IN	07/03/19	07/30/19	1184%	$1,320,000	$1,765,876
Ave A & 1st Ave, NY, NY	01/30/19	06/19/19	31%	$9,300,000	$10,837,915
Middle Country Road, Smithtown, NY	02/08/19	06/13/19	397%	$1,380,038	$2,390,038
3rd Ave, Bronx, NY	02/15/19	04/29/19	12%	$805,763	$835,527
Keyland Court, Bohemia, NY	04/27/18	04/09/19	129%	$170,000	$373,075
Meadow Lane, Southampton, NY	03/18/19	03/28/19	18%	$3,500,000	$4,130,000
Greene Ave, Brooklyn, NY	12/01/14	02/01/19	17%	$1,300,000	$2,500,000
Jefferson Avenue, Brooklyn, NY	12/12/18	01/03/19	62%	$1,119,277	$1,180,112
Merrick Boulevard, Jamaica, NY	07/17/18	12/28/18	312%	$225,000	$425,000
East 170th Street, Bronx, NY	09/27/18	11/19/18	157%	$4,684,100	$5,372,307
West 127th Street, NY, NY	02/20/18	11/02/18	387%	$775,000	$968,954
Lafayette Avenue, Brooklyn, NY	12/14/17	10/22/18	31%	$2,650,000	$3,329,956
103rd Avenue, Jamaica, NY	08/13/18	09/20/18	540%	$847,000	$1,027,587
Boston Road, Bronx, NY	05/30/17	05/09/18	189%	$530,000	$1,440,530
East Shore Road, Great Neck, NY	04/01/17	04/09/18	20%	$5,000,000	$6,000,000
Van Burren Street, Nashville, IN	05/01/17	11/01/17	21%	$4,000,000	$4,400,000
Norwood Avenue, Long Branch, NJ	10/01/16	11/01/17	43%	$700,000	$1,000,000
Liberty Avenue, Jamaica, NY	04/28/17	08/23/17	97%	$535,000	$665,058
Grand Concourse, Bronx, NY	12/01/14	07/01/17	55%	$3,000,000	$9,300,000
Arthur Ave, Bronx, NY	05/20/16	05/24/17	74%	$6,000,000	$10,500,000
East Bay Ave, Manahawkin, NJ	11/01/16	05/01/17	26%	$4,150,000	$4,650,000
137 Street, Bronx, NY	08/04/16	02/01/17	535%	$800,000	$2,000,000
Dianes Ct. Dix Hills, NY	01/01/15	11/15/16	80%	$310,000	$935,000
Union Street, Brooklyn, NY	09/01/14	10/31/16	49%	$575,000	$1,370,000
Convent Avenue, Manhattan, NY	07/22/14	08/12/16	22%	$610,000	$913,000
Plainfield Pike, Cranston, RI	01/13/16	05/20/16	97%	$3,550,000	$4,500,000
East 30th Street, NY, NY	09/01/14	04/01/16	13%	$6,000,000	$7,298,000
Great Pasture Road, Danbury, CT	02/26/16	03/26/16	73%	$5,600,000	$5,850,000
Building Portfolio, Ridgewood, Queens, NY	03/01/16	03/22/16	77%	$4,100,000	$7,600,000
Avenue X, Brooklyn, NY	09/01/15	03/01/16	29%	$370,000	$420,000
CVS & FedEx, NY	08/01/15	02/01/16	38%	$18,025,000	$21,225,000
West 95th Street, NY, NY	10/22/15	11/24/15	1208%	$6,387,737	$8,059,101
Flatlands Ave, Brooklyn, NY	09/01/15	09/08/15	22%	$475,000	$525,000
SW College Road, Ocala, FL	03/01/15	09/01/15	35%	$9,000,000	$9,700,000
Jefferson Ave, Brooklyn, NY	09/23/14	05/20/15	102%	$1,500,000	$2,375,000
East 58th Street, NY, NY	05/01/12	03/12/15	30%	$3,000,000	$6,300,000
Henry Street, Brooklyn, NY	06/01/14	12/16/14	131%	$1,175,000	$1,850,000
Nostrand Ave, Brooklyn, NY	10/01/14	12/12/14	187%	$1,950,000	$2,400,000
Pulaski Street, Brooklyn NY	05/01/14	05/22/14	724%	$1,550,000	$1,750,000

All data provided by the Sponsor. * IRR received on project level

Active NPLs

Property	Purchase Date	Purchase Price
Decatur St, Brooklyn, NY - iintoo deal	12/28/23	$1,300,000
Sanford Ave, Kearny, NJ – iintoo deal	03/23/23	$3,950,000
Vyse Avenue, Bronx - iintoo deal	07/21/22	$1,000,653
Lincoln Highway, Edison, NJ – iintoo deal	03/08/22	$1,500,000
Santa Rosalia Dr, Los Angeles, CA	03/23/23	$1,380,000
37th Street, Queens, NY	09/29/22	$3,264,060
Atlantic Ave, Brooklyn, NY	01/31/22	$875,000
West 169th St, NY, NY	11/30/21	$4,002,794
Rockaway, Queen, NY	07/08/21	$378,400
Bushwick Avenue, Brooklyn, NY Dekalb Avenue, Brooklyn, NY
38th Avenue, Flushing, NY	01/16/20	$29,239,280
62nd Avenue, Flushing, NY	11/26/19	$6,080,000
Macon Street, Brooklyn, NY	03/19/19	$1,131,042

Deal Structure

Estimated Cash Distributions

Ongoing cash distributions and distributions from sale or refinance. Repayment of Capital Contributions of iintoo and the Sponsor pro rata; Then Hurdle Distributions (7.5%) to iintoo and the Sponsor pro rata; remainder until iintoo receives 17.5% IRR pro rata in accordance with ratio of 25% to Sponsor (Promote) and 75% to iintoo and Sponsor pro rata; remainder flips 70% to the Sponsor and 30% to iintoo and Sponsor pro rata. For further details see Schedule of Key Business Terms.

Legal Structure

SPV LLV NPL 6 LP — 90.01% SPONSOR — 9.99% NPL Asset

Ownership

The iintoo investor entity is expected to hold an 90.01% stake in the special purpose entity that owns the asset. The principal of the Sponsor provides a personal undertaking of the obligations of the Sponsor under the JV agreement. iintoo will oversee and monitor the project until its completion and provide investors with semi-annual progress reports. See Private Placement Memorandum for further details.

Buyout

Starting at 12 months until 24 months from the acquisition of the asset, Sponsor is entitled to exercise a buyout right that should amount to a cash return to iintoo totaling its Closing Capital Contribution plus the target IRR of 16%, plus 5% of iintoo's Closing Capital Contribution amount.

Deal Structure / Capital Stack

• iintoo Preferred Equity Investors*: $1,667,500
• iintoo Equity Investors: $1,667,500
• Sponsor: $370,000
• Deal Initiation Costs: $67,500
• Total Targeted Capital Raise: $1,735,000 / $1,765,000
• Total Capital: $3,500,000

Raised by overseas investors +Includes $30,000 Partnership expenses held in reserve (1) Schedule of Key Business Terms is included in the Appendix of the JV Feeder Agreement

Appendix – NPL Progress as of Apr 2024

Debt Note	Current Status
1. Lincoln Highway, Edison, NJ	In March 2024, the sponsor moved for summary judgement again and is expecting a decision by June 2024.
2. 89th Ave, Queens, NY – Exited	The sponsor sought foreclosure proceedings, but the borrower successfully refinanced the loan. While the borrower refinanced the loan, the sponsor was able to still collect default interest and fees, resulting in a 22.02% IRR to the iintoo partnership. Since this deal was exited earlier than expected, on 8/10/22, funds were partially rolled over to the Vyse Ave debt note, and then the remaining funds were held in escrow until the close of Sandford Ave on 3/23/23. At this time, all escrow funds are deployed.
3. Vyse Ave, Bronx, NY	In April 2024, the judge granted the motion to confirm the referee's report which details the amount to be paid for the note, and are now one step closer to foreclosure auction, which is not yet scheduled.
4. Sanford Ave, Kearney, NJ	In April 2024, the sponsor released a cash flow distribution to investors, equivalent to a 3.19% CoC to investors. The sponsor obtained foreclosure judgement in March 2024, with their motion for a money judgement pending for April 2024. The sponsor is also in negotiations with the borrower regarding a potential forbearance agreement.
5. Sterling Place, Brooklyn, NY - Exited	The sponsor began foreclosure proceedings in June 2023. However, the borrower was able to successfully refinance their loan and the exit occurred on September 7, 2023, resulting in a 21.76% IRR to the iintoo partnership. The judge granted the motion for summary judgement, bringing the note closer to the foreclosure sale.
6. West 31st St, NY - Exited	The fund purchased the note in December 2023 with a foreclosure auction already scheduled. The auction was conducted, and the note was exited in March 2024, resulting in a 79.28% IRR to the iintoo partnership.
7. Decatur St, Brooklyn, NY	The fund purchased the note in December 2023 with a foreclosure auction already scheduled. The borrower declared bankruptcy, and the case is currently before the bankruptcy courts.

Disclaimer

The indicative performance notifications herein above were determined based on the following stipulations: An investment's Estimated Operational Net Operating Income (NOI) amount that is generated to Equity Investors amount is determined by deducting fees and expenses from the current rent roll and other cashflows. We confirm these numbers by comparison with comps received from appraisers. The performance notifications are hypothetical based on the methodology herein above indicated and the actual performance of an investment as stated will vary over time and might not be attained.

The above may contain forward-looking statements. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in the above depending on a variety of factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable laws, we undertake no obligation to update any information contained above or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of the publishing of the above.

Private placements of securities accessible through the iintoo™ social network real-estate investment platform (the "Platform") are intended for accredited investors. Such private placements of securities have not been registered under applicable securities laws, are restricted and not publicly traded, may be subject to holding period requirements, and are intended for investors who do not need a liquid investment. These investments are not bank deposits (and thus are not insured by the FDIC or by any other federal governmental agency), are not guaranteed by and iintoo Investments Ltd. ("iintoo") or any third party working on our behalf, and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the Platform. Investors may lose heir entire investment.

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