LBC Capital Income Fund, LLC Contents Overview: LBC Capital Income - PowerPoint PPT Presentation

LBC Capital Income Fund, LLC

Contents Overview: LBC Capital Income Fund ………………………………………. 3 The Fund’s Investments and Benefits ………………………………………. 4 A Compelling Market Opportunity …………………………………….… .. 10 The Expertise Factor …………………………………………………….……… 13 The Fund’s Portfolio and Performance ……………………………….… ...17 Key Information for Investors ………………………………………….…… 20 How to Contact Us ……………………………………………………….…….. 25 LBC CAPITAL INCOME FUND, LLC 2

Overview: LBC Capital Income Fund THE PORTFOLIO: DIVERSIFIED, HIGH-QUALITY LOANS INVESTMENT OBJECTIVE: HIGHLY PREDICTABLE CASH FLOW WITH PRESERVATION OF CAPITAL TRACK RECORD: ANNUAL RETURNS OF 8% OR GREATER OVER THE PAST FIVE YEARS * FUND MANAGEMENT: LENDING BEE, A TRUSTED NAME IN THE PRIVATE LENDING INDUSTRY STRONG ALIGNMENT OF INTERESTS BETWEEN FUND MANAGEMENT AND INVESTORS LBC CAPITAL INCOME FUND, LLC 3

The Fund’s Investments and Benefits

Investing for Strong, Steady Return Secured by Quality Residential and Commercial Real Estate ► PREDICTABLE MONTHLY DIVIDEND PAYMENTS ► POTENTIAL FOR SUBSTANTIAL LONG-TERM ACCUMULATION ► THE SECURITY OF REAL ESTATE COLLATERAL OFFERS PRINCIPAL PROTECTION ► NO CORRELATION ► LIQUIDITY LBC CAPITAL INCOME FUND, LLC 5

With a Favorable Sharing Arrangement: 8% Preferred Return for Investors Each Year, Until They Have Investors Receive… Received… 8% 100% First… Preferred Return of Distributions (cumulative, non-compounded) 50% Thereafter… of Distributions LBC CAPITAL INCOME FUND, LLC 6

Maintaining a Well-Diversified Portfolio RESIDENTIAL (1 to 4 units) MULTI-FAMILY HOUSING INDUSTRIAL RETAIL LBC CAPITAL INCOME FUND, LLC 7

Taking a Proactive Approach to Risk Control PRUDENT LOAN-TO-VALUE RATIOS EXPERT SELECTION A Built-in Margin of Safety Property Value CALIFORNIA FOCUS Collateral Value in So even if Excess of Loan The Fund will property value only loan up At least 30% of were to decrease to 70% of a Property Value by 30%, the loan property’s value principal is still completely protected “BUSINESS PURPOSE” LOANS ONLY Maximum Loan Amount 70% of Property Value TITLE INSURANCE The average loan-to-value ratio of the portfolio is under 55%. In case of a foreclosure, the property becomes an asset of the Fund and any rental income collected is distributed to investors. Any extra profit from the sale of the asset is distributed 50%/50% to investors and the Fund Manager. LBC CAPITAL INCOME FUND, LLC 8

Ideal for a Wide Range of Investors INVESTORS SEEKING PORTFOLIO INVESTORS FUNDING A SELF-DIRECTED DIVERSIFICATION RETIREMENT PLAN OR, TOTAL RETURN INVESTORS WHO LIKE REAL ESTATE OR, MONTHLY INCOME MONEY MANAGERS, RIAS, FAMILY OFFICES LBC CAPITAL INCOME FUND, LLC 9

A Compelling Market Opportunity

A Growing Need for Timely Real Estate Financing CALIFORNIA INVESTMENT-GRADE REAL ESTATE: A HUGE AND GROWING MARKET OCTOBER 3, 2016 MASSIVE AMOUNTS OF FINANCING NEEDED BUT BANK FINANCING IS INCREASINGLY DIFFICULT TO OBTAIN MARCH 16, 2017 YOUR MONEY MATTERS Bottom Line: There is a growing unmet need among real estate borrowers for both short-term and long-term real estate financing, particularly in the $100,000 to $2-million range. The LBC Capital Income Fund is well-positioned to meet this need. LBC CAPITAL INCOME FUND, LLC 11

The Fund’s Response: Ready Capital and Streamlined Underwriting EXPERTISE IN OUR MARKETS LESS NEED FOR DEEP DILIGENCE A key reason we can speed up the underwriting process is ON BORROWERS + that we lend primarily in California markets where we know By limiting our lending to moderate loan-to-value ratios, we the demographics, regulations, borrowers, and properties. make sure borrowers lock-in a strong equity position in the In locales where we don’t have deep expertise, we maintain value of the underlying property. This cushion protects our relationships with local real estate agents who are experts in investors’ principal, so it is not necessary for us to perform their area and can give us quick, authoritative property the kind of extensive, time-consuming borrower underwriting valuations. that many of our competitors must. STRONG NEGOTIATION POSITION Because our borrowers typically need to access financing in a hurry, our ability to execute quickly puts us in a strong position to negotiate favorable terms for the benefit of our Fund investors. LBC CAPITAL INCOME FUND, LLC 12

The Expertise Factor 13

A Trusted Name in the Private Lending Industry ► FOUNDED IN 2003 ► TODAY, A LEADER ► A NETWORK OF TRUSTED RELATIONSHIPS LBC CAPITAL INCOME FUND, LLC 14

Experienced Real Estate/Investment Team Boris Dorfman Founder & Fund Manager Vladimir Isperov Chief Lending Officer Kevin Tenin VP Business Development LBC CAPITAL INCOME FUND, LLC 15

Top-Echelon Service Providers LOAN SERVICER ATTORNEY The largest servicer of private mortgage Dennis Doss is the go-to legal expert on loans in the nation California mortgage finance and real estate offerings; a sought-after lecturer CPA / AUDITOR We ventured out of our local geographical area to find the most specialized expertise in mortgage banking LBC CAPITAL INCOME FUND, LLC 16

The Fund’s Portfolio and Performance

The Fund’s Diversified Loan Portfolio As of July 15, 2017 61 Collateral Properties In 40 California Localities # OF # OF OUTSTANDING PROPERTY TYPE PROPERTIES LOCALITIES LOAN BALANCE Residential (1 to 4 units) 49 34 $11,660,925 Multi-Family Housing 3 2 $730,000 Industrial 4 4 $1,411,000 Retail 4 4 $1,200,000 Vacant Land 1 1 $250,000 LBC CAPITAL INCOME FUND, LLC 18

The Fund’s Performance As of May 31, 2017 Growth of a $100,000 Investment in the Fund * When an 8% annual return (Net of fees) is reinvested each year and allowed to compound: $149,108 $150,000 ▪ The initial investment virtually doubles over the first 9 years … ▪ Quadruples over 18 years … ▪ Grows by more than 580% over 25 years. $100,000 2017 2012 2013 2014 2015 2016 Jan. - May 8.58% 8.35% 8.21% 8.09% 8.36% Yearly Returns* LBC CAPITAL INCOME FUND, LLC 19

Key Information for Investors

The Fund Structure INVEST LENDS LBC Capital Fund Investors Income Fund, Borrowers LLC PAYS PAY MONTHLY STEADY DIVIDEND INTEREST Collateral Properties LBC CAPITAL INCOME FUND, LLC 21

A High Level of Investor Service INVESTORS KEPT INFORMED ANNUAL AUDIT ACCESSIBILITY LIQUIDITY LBC CAPITAL INCOME FUND, LLC 22

Fund Facts and Terms The Fund Fund Manager Maximum Fund Size Minimum Investment The Term of the Fund Fees Preferred Return Liquidity LBC CAPITAL INCOME FUND, LLC 23

Disclaimer LBC CAPITAL INCOME FUND, LLC 24

How to Contact Us 6350 Laurel Canyon Blvd. 818.761.7234 Suite 340 info@LBCcapital.com North Hollywood, CA 91606 www.LBCcapital.com BORIS DORFMAN KEVIN TENIN FUND MANAGER V.P. BUSINESS DEVELOPMENT 6350 Laurel Canyon Blvd. c. 323.459.9065 6350 Laurel Canyon Blvd. c. 323.459.8303 Suite 340 o. 818.761.7234 ex. 303 Suite 340 o. 818.761.7234 ex. 306 North Hollywood, CA 91606 North Hollywood, CA 91606 bdorfman@LBCcapital.com ktenin@lendingbeeinc.com www.LBCcapital.com www.LBCcapital.com LBC CAPITAL INCOME FUND, LLC 25

6350 Laurel Canyon Blvd. 818.761.7234 Suite 340 info@LBCcapital.com North Hollywood, CA 91606 www.LBCcapital.com