Acquisition and Underwriting: Selecting Sound Investments Pacific Capital seeks to acquire properties that will satisfy the following investment goals: • Increased wealth through maximization of capital appreciation • Production of cash flow through property operations • Generation of passive tax losses to offset income from property operations and other passive income • Preservation of wealth and diversification of an investment portfolio in California, Nevada and Arizona real estate This process is a highly selective one, identifying only one out of approximately 200 potential properties as an appropriate investment. As a result, Pacific Capital purchases only the most advantageous properties for inclusion in our portfolio.