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REEP April Newsletter

Thank you for joining us as we update you on all of the progress we have made at REEP. We started out the year with a strategy meeting on how to make 2022 our best year yet. Now that we are in the second quarter, it is exciting to see all the hard work pay off as we complete those strategic improvements. As we enter the busy buying season, our teams are prepared to rapidly onboard additional properties and provide the high level of service that is REEP.

_{Our last email was shortly after the Avenue M webinar. Since that time, we have closed on 36 Palms Townhomes and Avenue M Townhomes. Next week, we are hosting our next webinar for our next offering, Smoketree Townhomes. These three offerings are significant in that we are the sole sponsors for all three of these offerings, an accomplishment that we are very proud of. If you have not signed up for our next webinar for Smoketree Townhomes, please see the information below on this exciting deep value-add opportunity.

May and June are exciting times for REEP. REEP has now officially been in business for 10 years. We will be announcing details soon for our upcoming 10th Anniversary celebration. Please stay tuned for more information on this event. Until then, we hope you can join us for a networking event on May 12th in Dallas. More details and how to RSVP are provided below.}_{Thank you for being a part of our extended family and we hope you find these company updates helpful. We value you and your continued trust in us.}

Sincerely,

Jacob and Arleen Garza

Please join us for our 2022 Outlook and Networking Event – an exclusive, invitation-only, REEP Network event.

2022 Outlook and Networking Event

Thursday, May 12th from 6:30-8:00 p.m.

Arthur’s Steakhouse, 15175 Quorum Dr, Addison, TX 75001

An exclusive, invitation-only, opportunity to network with your fellow REEP investors. Cocktails and hors d’oeuvres will be served, followed by a brief presentation from Jacob and Arleen, who will share their thoughts on What’s Next for 2022!

RSVP and Reserve your Spot

Property News

Since our last email, we have closed on 36 Palms townhomes and Avenue M. Both of the properties are very unique and represent a significant accomplishment for REEP.

NEW OPPORTUNITY!

Rare Value Add Opportunity| C+ to B+ Asset in Class A Area

Current Rents $300 or 40% Below Submarket Comps

1984 Build | 256 Unit Townhome Community | Not in Flood Zone

Smoketree Townhomes is a 256-unit value-add property in fast-growing Northwest Houston. Smoketree Townhomes is located in the well-regarded Willowbrook/Champions submarket of Houston, a submarket in which REEP has already seen success with two other value-add assets within our portfolio. The rent is less than $1/sq ft, indicative of 2011 rental prices, which is approximately $300 below that of neighboring comps within the submarket according to CoStar. All units are 817 sqft and have full-size washer/dryer connections. The units offer a unique 1 bedroom/1.5 bathroom with a loft, two-story townhome floorplan. We are purchasing this asset at $109k/unit, representative of 2018 pricing!

Built in 1984, Smoketree Townhomes consist largely of classic units, with only 19 of 256 units or 7% featuring light upgrades. These lightly upgraded units average a $71 rental premium. The remaining 237 units have white or almond appliances, outdated counters, flooring, original cabinetry, lighting fixtures, and finishes, allowing significant upside value in the interior renovations of our business plan. Our proforma reflects a $2.5M renovation plan for this property to bring Smoketree Townhomes up to modern standards. All 256 units have full-sized, in-unit washer and dryer connections, very rare for an asset of this vintage. Smoketree Townhomes was well built and exceptionally maintained by the seller who invested over $3 million to modernize the clubhouse, leasing center, fitness center, laundry room, landscape, boilers, and roof that was recently replaced in 2015.

To learn more about this exciting opportunity, you must be a member of the investor email list. If you are not sure if you are on this list, please email marketing@reepequity.com or schedule a call with our Investor Relations Manager to be added to the list.

Want more updates? Follow us on your Favorite Social Media Channel!

We love to share progress photos of how the properties are doing on our Social Media Channels. Our Capex Manager is making amazing strides across the portfolio to implement the business plan. New Paint at Archer! New Pool furniture at Chartwell! New Pool and patio makeover at Flint! Don’t miss out on these exciting updates. Follow us today on your favorite media channel to receive up-to-the-minute news on the properties!

One of our greatest strengths is our vertical integration. We hope you enjoy learning more about what is going on behind the scenes and join us in congratulating January’s top performers.

OCCUPANCY

Across the portfolio, we ended January with an average occupancy of 95.4%! The competition for the top Five was fierce with Chartwell Court, Flint at 290, Knoll Crest, The Camaron, and Stratton Park taking the top spots.

2022 Investment Opportunities are around the corner!

These opportunities are announced exclusively to our Investor Network email list. If you are not sure if you are on this exclusive list, please email us and we can confirm your subscription.

With each new opportunity, we will walk through what makes the property unique and our improvement strategy for how we will impact the bottom line. You will find this information through the property’s executive summary and in the webinar. If you have any questions or would like to join our investor network, please click on these links.

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