Tuesday, September 16, 2008 Mid-Year Report

As we enter the second half of 2008, I thought that I would update you on the continued growth and progress at

The 4th quarter of 2007 marked the eighth quarter of the current housing downturn (as measured by housing’s contribution to GDP), making it already the fourth worst housing downturn in modern times, and many now predict that, before it turns around, it is going to be the longest and deepest since the Great Depression. Non-GSE mortgage lending (i.e., loans not sold to Fannie Mae and Freddie Mac or FHA/VA insured loans) has been devastated by the collapse of the private secondary market. This collapse in late summer was caused by significantly worsening mortgage credit fundamentals and tremendous uncertainty and fear among investors about declining housing prices and future credit losses. As a result of the housing bubble bursting, delinquencies and non-performing home loans increased rapidly in 2007. Importantly, as I write this note nearly all housing industry participants from home builders and home buying and selling consumers, to lenders, to investors are pessimistic about the near-term outlook for the housing and mortgage markets, and, as often happens, market expectations can become self-fulfilling.

Ironically, these same dynamics are what are fueling the dynamic growth and expansion of our business and offerings to our clients. Memphis Invest is uniquely positioned and qualified as the market leader in providing our clients access to inexpensive properties for cash flow opportunities. We see hundreds of buying opportunities each month and continue to help our clients achieve their wealth building goals through these properties.

We understand that purchasing property in this environment of national “hysteria” can be somewhat daunting. That’s why our “turn-key” approach has been so successful and has helped our clients take advantage of unprecedented buying opportunities in Memphis. So far in 2008, our clients have purchased hundreds of homes using our turn-key approach.

Investors recognize that having a team of experts to assist with the complex strategies, techniques, experience, and management of this process is critical in this real estate environment. By working side by side with our clients in the development of their real estate portfolios, we are pleased that we have helped many of them to begin achieving their financial independence.

As more out of state investors rush to Memphis to purchase property, our turn-key approach has had to continue to expand its offerings. As many of you know we currently manage the entire process for our clients if they so desire. This includes property acquisition, assisting with financing, overseeing rehab, placing tenants, and property management. In addition, we are now assisting many of our clients with long term planning and portfolio management. We feel strongly that creating a cohesive plan for both your long-term and short-term goals through your real estate acquisitions is critical.

Lastly, Memphis continues to be the “perfect storm” of opportunity in real estate. As many markets struggle around the country, Memphis Invest and the Memphis real estate market represent a truly unique combination for our clients to take advantage of this phenomenon. Although we certainly cannot predict the future of our market, we do know that historically this market has consistently provided an opportunity for cash flow properties and long-term wealth building. Because of this, we look forward to continued growth and fully understand that now is the time to make the most of this opportunity for our clients.

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