MONOPOLY 1, LLC 2nd annual share member meeting on October 4, 2008

As MONOPOLY 1, L.L.C. (M1) completes its second year in business; it is time to analyze our successes and areas in which we can improve. I believe it is also important to revisit our strategic plan ensuring it continues to be viable. With that said, my goal today is to communicate what we have achieved thus far, what we are currently focused on and what we plan to achieve in the short and long-term.

HIGHEST PRIORITY

Attract and retain share members. Until we reach 100 share members, M1 will not fully achieve its stated growth objectives. Therefore, we will continue to accept investor applications until the company reaches its goal of 100 investors. Each investor is expected to be committed to the company’s growth objectives. Investors are asked to provide a minimum initial investment of $200 with subsequent monthly investments of $200. Investors can make annual investments of $2,400. The maximum investment an investor or jointly-held investment account can contribute is $20,000 per year.

We currently have 53 share members and we are short of our goal. In order to accomplish this goal, we all need to proactively solicit investors. Investors will largely come from personal acquaintances (friends and family) of the share members. I ask that each and every one of us make it a point to share our unique financial opportunity with everyone we know until we each bring in one new share member to our company. If every current share member accepts this challenge and achieves it by the end of the year, we as a company will have achieved our highest priority goal of attaining 100 share members.

TARGET MARKET: JOPLIN, MISSOURI

Total Population: 45,566 (White 90.2%, Black 2.7%, Hispanic 2.5%, Other 4.6%)

Median Household Income: $38,002, compared to $51,235 for United States

Median Age: 34.7 60.3% of the population are families.

SUPPLY and DEMAND:

SUPPLY

Joplin’s housing supply statistics (21,362):
· 4,913 or 23% are one-bedroom
· 6,622 or 31% are two-bedrooms
· 9,827 or 46% are three-bedrooms or more

DEMAND

According to Joplin’s population census, 47.6% (13,013) of families and 82% (14,945) of non-families need one-bedroom housing. The total DEMAND for one-bedroom housing is 27,958 people or 61% of the population.

The population census also tells us that 42% (11,482) of the “family” households are 3-4 persons and 14.9% (2,715) of the non-family households are 2 persons needing two-bedroom housing. The total DEMAND for two-bedroom housing is 14,197 people or 31% of the population.
Therefore, 92% of the population desire one- or two-bedroom housing. But only 54% of the housing available are one- or two- bedrooms.

With such a discrepancy between supply and demand, it makes strategic sense to purchase apartment buildings with one-bedroom and two-bedroom apartments to position ourselves for the current and anticipated future increase in demand.

ACQUISITIONS

Today we own 5 apartment buildings and 3 houses totaling 59 units. We continue to experience high demand for one- and two-bedroom apartments. As indicated earlier, we expect to see a greater demand for one-bedroom apartments.

M1’s latest purchase (11-unit apartment building) consisted of 6 one-bedroom apartments, 4 two-bedroom and 1 three-bedroom apartment. We plan to buy a 10-unit apartment building during 1Q09 consisting of 10 one-bedroom apartments. This purchase along with our existing portfolio will give us the following housing allocation:

One-bedroom apartment 16
Two-bedroom apartment 48
Three-bedroom apartment 1
One-bedroom house 1
Two-bedroom house 2
Three-bedroom house 1
TOTAL: 69 Units

Again, moving forward we will continue to look for apartment buildings with one-bedroom and two-bedroom apartments.

PROPERTY MANAGEMENT (written by Woodrow Friel)

It makes sense to keep our units in the best possible shape with maintenance and repairs. Well-maintained properties have a greater value, will allow us to raise our rents, and allow us to keep good tenants in place longer. Also, by performing routine maintenance and repairs, we can avoid major renovations that will occur when small problems go unresolved. To facilitate this goal, we have put into place several mechanisms:

Each unit is inspected monthly during routine exterminations.
Preventative maintenance is done annually on all heating and air conditioning systems. Maintenance and grounds personnel have remained stable since Monopoly’s beginning: this familiarity with the properties is to our advantage.

Along with routine maintenance, it makes sense to improve the quality of the overall properties as well as the individual units. We are implementing a strategy which makes permanent improvements now to eliminate the future need for maintenance and repair. Examples include:
· Replacing carpeting as needed with wood flooring—prevents need for new carpeting in the future. This also stops the need for carpet cleaning as tenant turnover occurs.
· Placing ceramic tile in kitchens and bathrooms—prevents water damage due to malfunctioning sinks, toilets, showers.

The costs of this strategy are a little more now, but overall costs are much lower over the course of several years.

Local Rental Market/Business Strategy

The effects of the housing market crises have been felt in Joplin as in other parts of the country. Foreclosures are occurring regularly. Also, as the country’s economic situation strains lending and investment institutions, lending policies are becoming more restrictive. As unfortunate as this is for many people, it is to our advantage. Both of these situations lead to an increasing need for people to rent, which of course creates a need for our product. Other local factors have also made Joplin, as the areas largest job provider, desirable for renters. The skyrocketing costs of fuel have forced people who reside in the area and work in Joplin to acquire living accommodations within Joplin to make ends meet. Local disasters such as floods and tornadoes have displaced many in local areas and led them to seek available housing in Joplin. Recently, a large gaming and recreation establishment has opened near Joplin, leading to over 1,000 new jobs and bringing many people into Joplin to seek housing. In each of these cases, Monopoly has been a source for living accommodations. As the demand for our product has increased, our rental rates have increased. During the last year, rental rates have increased between 3% and 6%. With occupancy rates at 93 % last quarter and a forecast for continuing high occupancy rates, another planned increase of 5% is planned for November 2008.

Key objectives for upcoming year:
· Continue to improve quality and appearance of properties in a cost efficient manner
· Meet goal of lease renewal rate of 75%
· Continue and improve relations with local housing providers to encourage business

INFORMATION TECHNOLOGY (written by Jon Gossett)

The Technology team will have a focus on getting share members more access to information about their investments as well as working with the Marketing team to give all electronic communications (blog, web site, email etc...) a “Monopoly branded” look and feel.

The current spreadsheet updates may become non-editable PDF files for your information security.

Most recently we added a MONOPOLY 1, LLC group on Facebook. We will utilize Facebook to distribute information on our company’s operations as well as market to prospects. Once we accomplish our share member goal we will close the group to invested share members only. With the addition of Facebook and continued use of our blog we feel that all share members have an opportunity to stay abreast of M1’s success.

I ask that you will utilize these two sites to introduce our company to others as we strive to use these social networks to do viral marketing and help you introduce your friends and family to the M1 opportunity.

Both the blog and Facebook will have updated photos of the properties and information on future purchases, as well as allow for comments and dialogue to be conducted with the M1 executive team and other investors.

Over the course of the next few months the technology team will be looking at other ways to allow for even easier access to your M1 investment information. As we grow, and as the internet continues to provide new and exciting ways to view and share information, we will try to add additional features to the blog site as well as the Facebook group to add to the shareholders’ experience while online with M1.

SUMMARY

It is important to note that to-date we have been able to accomplish all of our goals except for our share member membership. Thanks to all of you, and in particular those who have exceeded their individual share member contribution goal of $200/month or $2400/year, we have been able to meet and exceed our growth goal.

With today’s economy woes and stock market gyrations, NOW is a great time to reduce your investment risk and increase your allocation to M1. With additional capital we can take advantage of the buying opportunities we have available in Joplin.

Another way to raise needed capital to take advantage of today’s buying opportunities is to increase the size of our M1 family. I know that each of you know of at least one person you can contact today and express to them that they need to join our family. We have a very diverse M1 family. Some of us are single, married, with and without children. Some of us have mortgages, car payments, student loans and credit card bills. Some of us have 401K plans, TSP or pension plans available to us. But we all have at least 1 thing in common: We all believe that real estate is a long-term investment that can build wealth and provide a valuable income stream in the future.

I want to make sure that everyone understands that if we do not accomplish our share member goal of 100 by June 30, 2009, it will become very difficult to attain our growth goals. This will then affect our ability to produce the revenue we have projected without adjusting our long-term goals.

With that said, we only have 47 spots available for our friends or family members. Give your friend or family member a chance to say no and invite them to check us out. Odds are they will be like you and realize that our opportunity is truly a chance to reduce investment risk and build wealth. As we say in the army, bottom line up front (BLUF) you have an opportunity to help a friend, help a family member, and help us all accomplish our stated goals by sharing M1’s story!

In two years we have accomplished many great things. We have built a $2 million dollar real estate portfolio and we have positioned 53 families to enjoy a long-term financial income stream and the ability to leave a legacy to their loved ones. Thank you for your continued support and confidence...together we will continue to build a secure financial future through real estate.

God bless,

BILL
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MONOPOLY I, L.L.C. (M1), a limited liability company, is engaged in the acquisition, ownership, management, and redevelopment of rental properties. The company rents and leases its rental units to a diverse base of residents. As of July 1, 2008, M1 owned a real estate portfolio of 8 rental properties containing 59 apartment units located in Joplin, Missouri. M1 was founded in 2006 and is headquartered in Joplin, Missouri. For more information about M1, please visit our blog at http://www.monopoly1llc.blogspot.com/.