Financial Comparison

Typical Cash-Flow Model
Cost-per-Day Analysis	Luxury Residence Club	Ownership	RGPRC
Purchase Price	$395,000	$3,000,000	$295,000
Down Payment	$0	$600,000	$0
Cost of Furnishing (10%)	$0	$300,000	$0
Total Cash at Closing	$395,000	$900,000	$295,000
Total Mortgage on Property	$0	$2,400,000	$0
Annual Operating Cost	$0	$90,000	$0
Annual capital reserves(1%)	$0	$30,000	$0
Annual Dues	$20,000	$0	$14,400
Annual Mortgage Payment (6%)	$0	$144,000	$0
Operating cost on cash at closing (4%)	$15,800	$36,000	$11,800
Yearly cost (including investment return)	$35,800	$300,000	$26,200
Daily operating cost based on 45 days
per year average usage	$795.56	$5,867.00	$582.22

10Year Liquidation Analysis
Original Investment	$395,000	$3,300,000	$295,000
Less memebrship transfer fee(20%)	$79,000	$0	$0
Pre-tax annual appreciation (5%)	$0	$2,075,352	$207,535
Proceeds from sale at the end of term	$316,000	$5,375,352	$502,535
Less real estate commissions (6%)	$0	$322,521	$30,152.10
Net Gain/(loss) after liquidation	($79,000)	$1,752,831	$472,382.90
Total annual operating cost	($358,000)	$3,000,000	$262,000
Total net gain/(loss) after operating cost	($437,000)	($1,247,169)	$210,382.90
Average cost per day based on 45/year	$971	$2,771	$467.52

Assumptions
Model assumes no increase in Annual Dues or operation cost each year
Model does not take into account tax treatment
Operating cost account for insurance, utilities, cleaning, taxes, maintenance, HOA fees
Real Estate appreciation is based on original price plus furnishings

Non-Cash Benefits
Personal consierge services	Extra	Yes	Yes
Daily housekeeping	Extra	Extra	Yes
Number of residences available	245	1	1000+
Number of locations	36	1	1000+

The accepted methodology for fractional sales is to base the unit prices on the value of luxurious wholly owned resort products,

on a per-square-foot basis, applying a 1.5 to 2.0 multiplier to this value and divide by the number of shares per unit to obtain the price for a fractional share.

An example of typical costs would be as follows: RGPRC

Average value of wholly owned vacation homes in area: US$ 600/sq. ft.

Times average unit size of home: 2,000 sq. ft 5400 sq.ft

Equals wholly owned value: $ 1,200,000. $ 3,240,ooo

Times (1.75) equals unit value as a fractional:

$ 2,100,000. $5,670,000

Divided by number of fractional (1/10 fractional):

10 10

Equals average fractional price for 4 weeks ownership which the (5 wks)

owner will be able to sell, lease or will over the life of the investment:

US$210,000. $567,000

Current Price of River Gables PRC? $295,000

Price of River Gables is subject to change without notice.

Note: This leaves two weeks for maintenance and incidentals. (2 wks)

"Finally….A private riverfront estate near Lake Tahoe that offers complete privacy and seclusion without having to drive "way out of town". Enjoy the private pool or beach….it is our own 5.16 acre private resort!"

DISCLAIMER: River Gables is listed with Keller Williams Realty, (Faith Pace), listing expires 6/30/08