|                                                                                                         |   |                                                                                          |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|
| þ                                                                                                       |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
| For the fiscal year ended June 30, 2014                                                                 |
| OR                                                                                                           |
| o                                                                                                            |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from __________ to __________         |
|                                                           |   |                              |
|----------------------------------------------------------------|--------|-----------------------------------|
| Maryland                                                       |   | 45-4355424                        |
| (State or Other Jurisdiction of Incorporation or Organization) |   | (IRS Employer Identification No.) |
|                                                           |   |                              |
| 1640 School StreetMoraga, California                           |   | 94556                             |
| (Address of Principal Executive Offices)                       |   | (Zip Code)                        |
|                |   |                                      |
|---------------------|--------|-------------------------------------------|
| Title of Each Class |   | Name Of Each Exchange On Which Registered |
| None                |   | None                                      |

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|     |                                                                                                         |   |
|----------|--------------------------------------------------------------------------------------------------------------|--------|
| PART I   |                                                                                                         |   |
| Item 1.  | Business                                                                                                     |   |
| Item 1A. | Risk Factors                                                                                                 |   |
| Item 1B. | Unresolved Staff Comments                                                                                    |   |
| Item 2.  | Properties                                                                                                   |   |
| Item 3.  | Legal Proceedings                                                                                            |   |
| Item 4.  | Mine Safety Disclosures                                                                                      |   |
|     |                                                                                                         |   |
| PART II  |                                                                                                         |   |
| Item 5.  | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |
| Item 6.  | Selected Financial Data                                                                                      |   |
| Item 7.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                        |   |
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk                                                   |   |
| Item 8.  | Financial Statements and Supplementary Data                                                                  |   |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |   |
| Item 9A. | Controls and Procedures                                                                                      |   |
| Item 9B. | Other Information                                                                                            |   |
|     |                                                                                                         |   |
| PART III |                                                                                                         |   |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                       |   |
| Item 11. | Executive Compensation                                                                                       |   |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |   |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence                                    |   |
| Item 14. | Principal Accountant Fees and Services                                                                       |   |
|     |                                                                                                         |   |
| PART IV  |                                                                                                         |   |
| Item 15. | Exhibits and Financial Statement Schedules                                                                   |   |
|     | Signatures                                                                                                   |   |

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| · | the operation of real property is subject to the general competitive conditions in the relevant real estate markets, which have suffered in the recent economic crisis; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | downturns in local economies, overbuilding and other general economic conditions may adversely affect the operations of real property, especially with the current economic conditions; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | indebtedness secured by a portfolio of real properties may bear a variable interest rate that could result in increased debt service payments (and reduced cash flow) if interest rates rise; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the lack or uncertainty of availability or high cost of financing, especially in current markets, may adversely affect the ability of the real estate owners to sell their properties and the terms of any such sales; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the availability and cost of financing or refinancing is uncertain, especially in current markets, and may adversely affect the ability of the real estate owners to sell their properties and the terms of any such sales (for example, some of the REITs in which previous funds have invested have struggled to refinance their existing indebtedness, resulting in a depressed stock price, and, in some cases, causing issuers to file for bankruptcy protection); |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the real properties may be damaged and suffer losses which are not adequately insured; |
|--------|----------------------------------------------------------------------------------------|

| · | property tax reform, rent control, and other regulatory and governmental action may adversely affect the value of the real properties; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| · | energy shortages and allocations and increased energy prices in the areas where the real properties are located may adversely affect their operations or otherwise reduce their value. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We will be at risk of defaults by the borrowers on those mortgage loans.  These defaults may be caused by many conditions beyond the control of us or our Adviser, including interest rate levels and local and other economic conditions affecting real estate values, including the turmoil in the credit markets that began in 2007 and has continued.  Our Adviser will not know whether the values of the properties securing the mortgage loans will remain at the levels existing on the dates of origination of those mortgage loans. If the values of the underlying properties drop, our risk will increase because of the lower value of the security associated with such loans; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | If an issuer in which we invest relies on originating, holding, or servicing mortgage loans for a significant portion of its income, defaults on such mortgage loans could impair the value of the issuer itself and consequently put our investment in such issuer at risk (for example, previous funds managed by our Adviser suffered losses investing in mortgage companies or originators); |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Fixed-rate, long-term mortgage loans could yield a return that is lower than the then-current market rates if interest rates rise.  If interest rates decrease, we could be adversely affected to the extent that mortgage loans are prepaid because we may not be able to generate equivalent reurns upon reinvestment of the funds; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Declines in real estate values may induce mortgagors to voluntarily default on their loans, increasing the risk of foreclosure and loss of capital (for example, some of the hotel REITs have just "walked away" from the hotels they owned); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Issuers may file for bankruptcy if they cannot meet the demands of their debt service, and bankruptcy judges have wide latitude to modify the terms of indebtedness, which could result in lower than expected returns on our investment; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Delays in liquidating defaulted mortgage loans could reduce our or an issuer's investment returns.  If there are defaults under those mortgage loans, we or the issuer may not be able to repossess and sell the underlying properties quickly.  The resulting time delay could reduce the value of our or the issuer's investment in the defaulted mortgage loans.  An action to foreclose on a property securing a mortgage loan is regulated by state statutes and regulations and is subject to many of the delays and expenses of other lawsuits if the defendant raises defenses or counterclaims.  Further, given the recent economic events, foreclosure actions may flood the courthouses, causing further delays in prosecuting such actions.  In the event of default by a mortgagor, these restrictions, among other things, may impede our or an issuer's ability to foreclose on or sell the mortgaged property or to obtain proceeds sufficient to repay all amounts due to us or the issuer on the mortgage loan. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                            |   | Year Ended June, 30 |       |        | For the period from Inception (Jan 25, 2012) - |        |
|---------------------------------------------------------------------------|--------|---------------------|------------|--------|------------------------------------------------|--------|
| Statement of operations data:                                             |   | 2014                |       |   | 2013                                           |   |  | June 30, 2012 |  |
| Investment income                                                         |   |                     |       |   |                                                |   |  |  |  |
| Dividend and distribution income                                          |   | $                   | 597,847    |   |                                           | $      | 77,011 |   |  | $ | -  |  |
| Interest and other income                                                 |   |                | 26,097     |   |                                           |   | 889 |   |  |   | -  |  |
| Total investment income                                                   |   |                | 623,944    |   |                                           |   | 77,900 |   |  |   | -  |  |
|                                                                      |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Operating expenses                                                        |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Investment advisory fees                                                  |   |                | 233,599    |   |                                           |   | 72,822 |   |  |   | -  |  |
| Administrative cost reimbursements                                        |   |                | 60,000     |   |                                           |   | 32,000 |   |  |   | -  |  |
| Organization costs                                                        |   |                | -          |   |                                           |   | 74,410 |   |  |   | 52,759  |  |
| Amortization of deferred offering costs                                   |   |                | 389,423    |   |                                           |   | - |   |  |   | -  |  |
| Professional fees                                                         |   |                | 121,387    |   |                                           |   | - |   |  |   | -  |  |
| Other general and administrative                                          |   |                | 110,122    |   |                                           |   | 10,249 |   |  |   | 182  |  |
| Total operating expenses                                                  |   |                | 914,531    |   |                                           |   | 189,481 |   |  |   | 52,941  |  |
|                                                                      |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Net investment loss                                                       |   |                | (290,587   | )      |                                           |   | (111,581 | ) |  |   | (52,941)  |  |
|                                                                      |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Net realized gain on sale of investments                                  |   |                | 632,703    |   |                                           |   | 56,219 |   |  |   | -  |  |
| Net unrealized gain on investments                                        |   |                | 192,524    |   |                                           |   | 120,065 |   |  |   |    -  |  |
| Total net realized and unrealized gain on investments                     |   |                | 825,227    |   |                                           |   | 176,284 |   |  |   | -  |  |
|                                                                      |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Income tax provision                                                      |   |                | 373,580    |   |                                           |   | - |   |  |   | -  |  |
| Net increase (decrease) in net assets resulting from operations           |   | $                   | 161,060    |   |                                           | $      | 64,703 |   |  | $ | (52,941)  |  |
|                                                                      |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Net increase (decrease) in net assets resulting from operations per share |   |                | 0.21       |   |                                           |   | 0.24 |   |  |   | (1.47)  |  |
| Weighted average common shares outstanding                                |   |                | 763,813    |   |                                           |   | 269,268 |   |  |   | 36,000  |  |
|                                                                      |   |                |       |   |                                           |   |   |   |  |   |   |  |
|                                                                      |        | June 30, 2014       |            |        | June 30, 2013                                  |        |  | June 30, 2012 |  |
| Statement of Assets and Liabilities Data:                                 |   |                |       |   |                                           |   |   |   |  |   |   |  |
| Investments at fair value                                                 |   | $                   | 5,905,995  |   |                                           | $      | 6,855,708 |   |  | $ | -  |  |
| Cash and cash equivalents                                                 |   | $                   | 3,522,751  |   |                                           | $      | 262,806 |   |  | $ | 161,069  |  |
| Total assets                                                              |   | $                   | 9,546,162  |   |                                           | $      | 7,593,598 |   |  | $ | 367,412  |  |
| Capital pending acceptance                                                |   | $                   | 380,200    |   |                                           | $      | - |   |  | $ | -  |  |
| Total liabilities                                                         |        | $                   | 781,373    |        |                                                | $      | 299,666 |  |  | $ | 60,353  |  |
| Total net assets                                                          |   | $                   | 8,764,789  |   |                                           | $      | 7,293,932 |   |  | $ | 307,059  |  |
| Shares outstanding at end of the year                                     |   |                | 893,807.67 |   |                                           |   | 728,217.00 |   |  | $ | 36,000.00  |  |
| Net asset value per share of common stock                                 |   | $                   | 9.81       |   |                                           | $      | 10.02 |   |  | $ | 8.53  |  |
| Dividend per Share                                                        |   | $                   | 0.175      |   |                                           | $      | - |   |  |   | -  |  |

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|             |   | June 30, 2014 |      |   | June 30, 2013 |   |
|------------------|--------|---------------|-----------|--------|---------------|--------|
| Asset Type       |   | Cost          |      |   | Fair Value    |   |   | Cost |   |   | Fair Value |   |
| Public REIT      |   | $             | 1,595,485 |   |          | $      | 1,698,515 |   |   | $ | 1,062,727 |   |   | $ | 1,032,257 |   |
| Non-traded REIT  |   |          | 180,101   |   |          |   | 257,584 |   |   |   | 88,291 |   |   |   | 71,637 |   |
| LP Interest      |   |          | 2,587,115 |   |          |   | 2,680,542 |   |   |   | 4,143,699 |   |   |   | 4,334,345 |   |
| Investment Trust |   |          | 714,915   |   |          |   | 764,560 |   |   |   | 1,190,927 |   |   |   | 1,167,469 |   |
| Note             |   |          | 515,791   |   |          |   | 504,794 |   |   |   | 250,000 |   |   |   | 250,000 |   |
| Total            |   | $             | 5,593,407 |   |          | $      | 5,905,995 |   |   | $ | 6,735,644 |   |   | $ | 6,855,708 |   |

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| ● | the nature and realizable value of any collateral; |
|---------|----------------------------------------------------|

| ● | the portfolio company's ability to make payments; |
|---------|---------------------------------------------------|

| ● | the portfolio company's earnings and discounted cash flow; |
|---------|------------------------------------------------------------|

| ● | the markets in which the issuer does business; and |
|---------|----------------------------------------------------|

| ● | comparisons to publicly traded securities. |
|---------|--------------------------------------------|

| ● | private placements and restricted securities that do not have an active trading market; |
|---------|-----------------------------------------------------------------------------------------|

| ● | securities whose trading has been suspended or for which market quotes are no longer available; |
|---------|-------------------------------------------------------------------------------------------------|

| ● | debt securities that have recently gone into default and for which there is no current market; |
|---------|------------------------------------------------------------------------------------------------|

| ● | securities whose prices are stale; |
|---------|------------------------------------|

| ● | securities affected by significant events; and |
|---------|------------------------------------------------|

| ● | securities that the Adviser believes were priced incorrectly. |
|---------|---------------------------------------------------------------|

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| Name and Age                    | Position(s) Held with MRC          | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------------|------------------------------------|------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| C.E. "Pat" Patterson†, 73 | Chairman of the Board of Directors | Since 2012                               | Mr. Patterson is co-founder and president of MacKenzie and the Adviser, and a director of their general partner, and a beneficial owner of all three companies, all since 1982.  Mr. Patterson has spent his entire business career in the financial services industry.  In 1982, Mr. Patterson founded Patterson Financial Services, Inc. (now MCM Advisers) with Berniece A. Patterson as a financial planning firm.  As president of the Adviser, Mr. Patterson is responsible for all investment counseling activities.  He supervises the analysis of investment opportunities for the clients of the firm.  In February 1988, Mr. Patterson co-founded the predecessor of MacKenzie, which acts as the general partner and Manager to a number of prior investment funds.  Mr. Patterson is the president of MacKenzie.  Mr. Patterson is a former Certified Financial Planner, has completed the College of Financial Planning's Due Diligence course, and is a past member of both the Institute of Certified Financial Planners and the International Association for Financial Planning. |
| Tim Dozois, 52                  | Director                           | Since 2012                               | Mr. Dozois has been the Vice President and Corporate Counsel for Pendrell Corporation, a NASDAQ-listed company specializing in intellectual property solutions, since June of 2010. He has 23 years of experience supporting leading corporations in securities law compliance, mergers, acquisitions, and real estate acquisition, financing, and management. From 1996 until 2010, Mr. Dozois served as an equity partner of Davis Wright Tremaine LLP, a Seattle-based law firm of approximately 500 lawyers.  Mr. Dozois received his B.S. in Financial Management from Oregon State University and his J.D from the University of Oregon School of Law, where he was Order of the Coif.                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Tom Frame, 72                   | Director                           | Since 2012                               | Mr. Frame was a co-founder of TransCentury Property Management and solely founded Paradigm Investment Corporation.  TransCentury began in May of 1973 and has syndicated and managed over 10,000 residential units. During the last 35 years, Mr. Frame has been a principal in the acquisition, financing, restoration, and sale of over $500,000,000 in residential and commercial real estate.  Paradigm was founded in June 1986 to sponsor and manage private, closed end "mutual funds."  The last of the funds successfully liquidated in December of 2000.  Mr. Frame received a BA degree from the University of Kansas in Mathematics in June 1964, a Juris Doctor degree from the San Francisco Law School in June 1975, and a MBA with honors from Pepperdine University in April 1986.  Mr. Frame is currently managing his own investments which include residential units, commercial property, and a portfolio of securities.                                                                                                                                                                |

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| Name and Age               | Position(s) Held with MRC             | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------------------------|---------------------------------------|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert Dixon, 43           | Chief Executive Officer and President | Since 2012                               | Robert E. Dixon has been the senior vice president and co-chief investment officer of  MacKenzie and the Adviser since 2005, and a director of their general partner, and a beneficial owner of all three companies since 2005.  Mr. Dixon is C.E. and Berniece Patterson's son-in-law.  Robert Dixon served as an officer and director of Sutter Holding Company, Inc. from March 2002 until 2005.  Mr. Dixon has been president of Sutter Capital Management since its founding.  Mr. Dixon received his Master of Business Administration degree from Cornell University in 1998 and has held the Chartered Financial Analyst® designation since 1996.  Mr. Dixon received his bachelor's degree in economics from the University of California at Los Angeles in 1992.                                                                                                                                                                                                                |
| Paul Koslosky, 52          | Chief Financial Officer and Treasurer | Since 2012                               | Mr. Koslosky has been the chief financial officer and treasurer for the Adviser and MacKenzie since 2004.  He owns a beneficial interest in each MacKenzie, the Adviser and their general partner.  He is responsible for accounting and reporting for MacKenzie, the funds it manages, and other related business interests.  Mr. Koslosky graduated from California State University, Hayward in 1983 with a Bachelor of Science degree in Business Administration.  Prior to joining MacKenzie in 1997, he spent five years with Zellerbach Paper Company, a billion-dollar paper distributor, as staff accountant and, eventually, financial reporting manager. He worked for Doric Development, an Alameda, California real estate developer with numerous related business interests.  At Doric he served as accounting manager responsible for the accounting and reporting for commercial development and construction.  From 1995 to 1997 he served as controller at Doric. |
| Glen Fuller, 41            | Chief Operating Officer               | Since 2012                               | Mr. Fuller has been senior vice president and secretary of MacKenzie since 2000 and the Adviser since 2000, and a director of their general partner, and a beneficial owner of all three companies since 2000.  Mr. Fuller is Berniece Patterson's son and C.E. Patterson's stepson.  Prior to becoming senior vice president of MacKenzie, he was with MacKenzie for two years as a portfolio manager and research analyst.  Prior to joining MacKenzie, Mr. Fuller spent two years running the over the counter trading desk for North Coast Securities Corp. (previously Morgan Fuller Capital Group) with responsibility for both the proprietary and retail trading desks.  Mr. Fuller was also the registered options principal and registered municipal bond principal for North Coast Securities Corp., a registered broker-dealer. Mr. Fuller previously held his NASD Series 7, general securities registration.  Mr. Fuller has a Bachelor of Arts in Management.                        |
| Chip Patterson, 43         | General Counsel and Secretary         | Since 2012                               | Chip Patterson has been the senior vice president and general counsel of MacKenzie and the Adviser since 2003, a director of their general partner since 2003, and a beneficial owner of all three companies since 2003.  Chip Patterson is C.E. Patterson's son and Berniece Patterson's stepson.  Chip Patterson graduated magna cum laude from the University of Michigan Law School with a Juris Doctor Degree and with high distinction and Phi Beta Kappa from the University of California at Berkeley with a Bachelor of Arts Degree in Political Science.  Prior to joining MacKenzie in July 2003, he was a securities and corporate finance attorney with the national law firm of Davis Wright Tremaine LLP.                                                                                                                                                                                                                                                                                      |
|  Jeri Bluth, 39  | Chief Compliance Officer              | Since 2012                               | Ms. Bluth has been the Chief Compliance Officer for MacKenzie and the Adviser since 2009. She owns a beneficial interest in each MacKenzie and the Adviser. Mrs. Bluth oversees compliance for all the funds advised by the Adviser, and she will oversee MRC's compliance with its Code of Ethics, Bylaws, Charter, and applicable rules and regulations. Mrs. Bluth began her career with MacKenzie Patterson Fuller, Inc. in July of 1996 in the Investor Services Department. During Mrs. Bluth's career with MacKenzie, she graduated from St. Mary's College of California in June 2001, with a Bachelor of Arts degree in Business Management.                                                                                                                                                                                                                                                                                                                                                                        |
| Christine Simpson, 49      | Chief Portfolio Manager               | Since 2012                               | Mrs. Simpson has been employed by MacKenzieand its affiliates since 1990, and has been the Adviser's Vice President of Research and Trading since 2005. Mrs. Simpson is responsible for handling the day-to-day operations of The Adviser's research department. During Mrs. Simpson's career with MacKenzie, she graduated: with a Bachelor of Arts degree in Business Management from St. Mary's College of California in October 2004 (with honors), with a Masters of Science degree in Financial Analysis and Investment Management in September 2006, and a Masters in Business Administration in June 2008.                                                                                                                                                                                                                                                                                                                                                                                                           |

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| Name & Position  |   | Fiscal Year 2014 Fees (1) |   | Fiscal Year 2013 Fees (1) |
|----------------------|--------|--------------------------------|--------|--------------------------------|
| C.E. "Pat" Patterson |   | $0                             |   | $0                             |
| Tim Dozois           |   |   $23,000            |   |  $1,500                   |
| Tom Frame            |   |   $23,000            |   |  $1,500                   |
| Total Fees           |   |   $46,000            |   |  $3,000                   |
| Title of Class | Name of Beneficial Owner                          | Amount and Nature of Beneficial Ownership | Percent of Class |
|----------------|---------------------------------------------------|-------------------------------------------|------------------|
| Common Stock   | MP Income Fund 16, LLC                            | 98,317 (directly held)                    | 8.2%             |
| Common Stock   | MP Income Fund 18, LLC                            | 79,790 (directly held)                    | 6.7%             |
| Common Stock   | MP Income Fund 19, LLC                            | 58,710 (directly held)                    | 4.9%             |
| Common Stock   | MP Value Fund 5, LLC                              | 103,970 (directly held)                   | 8.7%             |
| Common Stock   | MP Value Fund 7, LLC                              | 139,220 (directly held)                   | 11.6%            |
| Common Stock   | MPF Flagship Fund 9, LLC                          | 143,730 (directly held)                   | 12.0%            |
| Common Stock   | MacKenzie Patterson Special Fund 6, LLC           | 67,230 (directly held)                    | 5.6%             |
| Common Stock   | All officers and directors as a group (6 persons) | 10,000 (indirectly held)                  | 0.8%             |

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| Fee Category       |   | Fiscal Year 2014 Fees |   |   | Fiscal Year 2013 Fees |   |
|--------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| Audit Fees         |   | $                     | 77,500 |   |                  | $      | 70,500 |   |
| Audit-Related Fees |   | $                     | -      |   |                  | $      | - |   |
| Tax Fees           |   | $                     | -      |   |                  | $      | - |   |
| Total Fees         |   | $                     | 77,500 |   |                  | $      | 70,500 |   |
|               |   |                  |   |   |                  |   |   |   |

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| 1. | The Financial Statements listed in the Index to Financial Statements on Page F-1. |
|----|-----------------------------------------------------------------------------------|

| 2. | The Exhibits listed in the Exhibit Index below. |
|----|-------------------------------------------------|

| Exhibit No. 1 |   | Description of Document                                                                                                                                                                                                      |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |        |                                                                                                                                                                                                                              |
| 3(i)          |   | Articles of Amendment and Restatement (incorporated by reference to Registrant's Post-Effective Amendment No. 1 to the Registration Statement on Form N-2, filed on August 2, 2013)                                          |
|          |        |                                                                                                                                                                                                                              |
|  3(ii)   |        | First Amended and Restated Bylaws (incorporated by reference to Registrant's Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2, filed on July 19, 2013)                                                |
|          |        |                                                                                                                                                                                                                              |
| 10.1          |        | Investment Advisory Agreement with MCM Advisers, LP dated February 28, 2013 (incorporated by reference to Registrant's Post-Effective Amendment No. 2 to the Registration Statement on Form N-2, filed on September 5, 2013) |
|          |        |                                                                                                                                                                                                                              |
|  10.2    |        | Amendment to Investment Advisory Agreement (incorporated by reference to Registrant's Post-Effective Amendment No. 4 to the Registration Statement on Form N-2 filed on August 6, 2014                                       |
|          |        |                                                                                                                                                                                                                              |
|  10.3    |        | Form of Investment Adviser Introducing Agreement (incorporated by reference to Registrant's Post-Effective Amendment No. 2 to the Registration Statement on Form N-2, filed on September 5, 2013)                            |
|          |        |                                                                                                                                                                                                                              |
|  10.4    |        | Marketing Services Agreement with ARI Financial Services, Inc. (incorporated by reference to Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2, filed on May 30, 2013)                    |
|  10.5    |        | Marketing Services Agreement with Arete Wealth Management, LLC (incorporated by reference to Registrant's Quarterly Report on Form 10-Q filed on May 9, 2014)                                                                |
|          |        |                                                                                                                                                                                                                              |
|  10.6    |        | Form of Amended Marketing Services Agreement with Arete Wealth Management, LLC (incorporated by reference to Registrant's Post-Effective Amendment No. 4 to the Registration Statement on Form N-2 filed on August 6, 2014)  |
|  10.7    |        | Form of Sales Agent Agreement (incorporated by reference to Registrant's Post-Effective Amendment No. 2 to the Registration Statement on Form N-2, filed on September 5, 2013)                                               |
|          |        |                                                                                                                                                                                                                              |
|  10.8    |        | Form of Amended Sales Agent Agreement (incorporated by reference to Registrant's Post-Effective Amendment No. 4 to the Registration Statement on Form N-2 filed on August 6, 2014)                                           |

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| 10.9       |  | Form of Sales Agent Agreement (for use after August 6, 2014) (incorporated by reference to Registrant's Post-Effective Amendment No. 4 to the Registration Statement on Form N-2 filed on August 6, 2014)                                   |
|------------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |  |                                                                                                                                                                                                                                             |
| 10.10      |  | Form of Investor Services Agreement with ACS Securities Services, Inc. (incorporated by reference to Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2, filed on May 30, 2013)                           |
|       |  |                                                                                                                                                                                                                                             |
| 10.11      |  | Form of Administration Agreement with MacKenzie Capital Management, LP (incorporated by reference to Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2, filed on May 30, 2013)                           |
|       |  |                                                                                                                                                                                                                                             |
| 14         |  | Code of Ethics for Principal Executive Officer and Principal Financial Officer ("Officer Code") (incorporated by referenced to Registrant's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2, filed on May 30, 2013) |
|       |  |                                                                                                                                                                                                                                             |
| 31.1       |  | Section 302 Certification of Robert Dixon (President and Chief Executive Officer)                                                                                                                                                           |
|       |  |                                                                                                                                                                                                                                             |
| 31.2       |  | Section 302 Certification of Paul Koslosky (Treasurer and Chief Financial Officer)                                                                                                                                                          |
|       |  |                                                                                                                                                                                                                                             |
| 31.3       |  | Section 1350 Certification of Robert Dixon (President and Chief Executive Officer)                                                                                                                                                          |
|       |  |                                                                                                                                                                                                                                             |
| 31.4  |  | Section 1350 Certification of Paul Koslosky (Treasurer and Chief Financial Officer)                                                                                                                                                         |

----

| Report of Independent Registered Public Accounting Firm                                                                                               | F-2                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Statements of Assets and Liabilities as of June 30, 2014 and 2013                                                                                     | F-3                                                                         |
| Schedule of Investments as of June 30, 2014                                                                                                           |             F-4 |
| Schedule of Investments as of June 30, 2013                                                                                                           |             F-5 |
| Statements of Operations for the Years Ended June 30, 2014 and 2013, and for the Period from Inception (January 25, 2012) to June 30, 2012            | F-6                                                                         |
| Statements of Changes in Net Assets for the Years Ended June 30, 2014 and 2013, and for the Period from Inception (January 25, 2012) to June 30, 2012 | F-7                                                                         |
| Statements of Cash Flows for the Years Ended June 30, 2014 and 2013, for the Period from Inception (January 25, 2012) to June 30, 2012                | F-8                                                                         |
| Notes to Financial Statements                                                                                                                         | F-9                                                                         |

----

----

|                                                                                                                                |   | June 30, 2014 |      |   | June 30, 2013 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
|                                                                                                                                |   |               |      |   |               |   |
| Assets                                                                                                                              |   |               |      |   |               |   |
| Investments, at fair value (cost of $5,593,407 and $6,735,644, respectively)                                                        |   | $             | 5,905,995 |   |          | $      | 6,855,708 |   |
| Cash and cash equivalents                                                                                                           |   |          | 3,522,751 |   |          |   | 262,806 |   |
| Accounts receivable                                                                                                                 |   |          | 12,869    |   |          |   | 9,219 |   |
| Other assets                                                                                                                        |   |          | 69,145    |   |          |   | 41,040 |   |
| Deferred offering costs (net of accumulated amortization of $389,423 and $0, respectively)                                          |   |          | 35,402    |   |          |   | 424,825 |   |
| Total assets                                                                                                                        |   | $             | 9,546,162 |   |          | $      | 7,593,598 |   |
|                                                                                                                                |   |          |      |   |          |   |   |   |
| Liabilities                                                                                                                         |   |          |      |   |          |   |   |   |
| Accounts payable and accrued liabilities                                                                                            |   | $             | 58,378    |   |          | $      | 264,273 |   |
| Income tax payable                                                                                                                  |   |          | 160,362   |   |          |   | - |   |
| Capital pending acceptance                                                                                                          |   |          | 380,200   |   |          |   | - |   |
| Due to related entities                                                                                                             |   |          | 57,915    |   |          |   | 35,393 |   |
| Deferred tax liability                                                                                                              |   |          | 124,518   |   |          |   | - |   |
| Total liabilities                                                                                                                   |   |          | 781,373   |   |          |   | 299,666 |   |
|                                                                                                                                |   |          |      |   |          |   |   |   |
| Net assets                                                                                                                          |   |          |      |   |          |   |   |   |
| Common stock, $0.0001 par value, 80,000,000 shares authorized; 893,807.67 and 728,217.00 shares issued and outstanding respectively |   |          | 89        |   |          |   | 73 |   |
| Capital in excess of par value                                                                                                      |   |          | 8,591,878 |   |          |   | 7,282,097 |   |
| Retained earnings                                                                                                                   |   |          | 172,822   |   |          |   | 11,762 |   |
| Total net assets                                                                                                                    |   | $             | 8,764,789 |   |          | $      | 7,293,932 |   |
|                                                                                                                                |   |          |      |   |          |   |   |   |
| Net asset value per share of common stock (note 6)                                                                                  |   | $             | 9.81      |   |          | $      | 10.02 |   |
|                                                                                                                                |   |          |      |   |          |   |   |   |

----

| Name                                            |   | Asset Type       |  Shares/Units                                                                                                                                                     |  Cost Basis                                                                                                                                    |  Total Fair Value                                                                                                                       | % ofNet Assets                                                                                                |
|-------------------------------------------------|--------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
| Agree Realty Corporation                        |   | Public REIT      |                   4,200.00                                                   |  $             117,893                                                                                      |  $         126,966                                                                                             |               1.45                      |
| Apartment Investment and Management Company     |   | Public REIT      |                   3,888.00                                                   |                   115,163                                 |              125,466                                                        |               1.43                      |
| Ashford Hospitality Prime, Inc.                 |   | Public REIT      |                 12,800.00                                                              |                 224,201                                             |              219,648                                                        |               2.51                      |
| Associated Estates Realty Corporation           |   | Public REIT      |                   4,000.00                                                   |                  69,920                                        |               72,080                                                   |              0.82                            |
| CBL & Associates Properties Inc.            |   | Public REIT      |                   5,000.00                                                   |                  95,057                                        |               95,000                                                   |               1.08                      |
| CommonWealth REIT                               |   | Public REIT      |                   8,450.00                                                   |                 213,363                                             |             222,404                                                              |              2.54                            |
| Empire State Realty OP, L.P.                    |   | Public REIT      |                  19,176.00                                                        |                 255,281                                             |             303,940                                                              |              3.47                            |
| Empire State Realty OP, L.P. - Series 250       |   | Public REIT      |                    1,757.00                                             |                  24,728                                        |               27,426                                                   |               0.31                      |
| Empire State Realty OP, L.P. - Series 60        |   | Public REIT      |                   4,974.00                                                   |                   64,081                                  |                 78,191                                       |              0.89                            |
| Empire State Realty Trust, Inc. Class A         |   | Public REIT      |                   4,832.00                                                   |                   64,217                                  |               79,728                                                   |               0.91                      |
| FelCor Lodging Trust Incorporated               |   | Public REIT      |                   6,300.00                                                   |                   51,604                                  |                66,213                                             |              0.76                            |
| Lexington Realty Trust                          |   | Public REIT      |                 10,800.00                                                              |                 123,452                                             |               118,908                                                  |               1.36                      |
| Rouse Properties Inc                            |   | Public REIT      |                   9,500.00                                                   |                 176,525                                             |              162,545                                                        |               1.85                      |
| Total Public REIT                               |   |             |                                                                                                                                                                   |             1,595,485                                                                   |           1,698,515                                                                        |             19.38                                 |
|                                            |   |             |                                                                                                                                                                   |                                                                                                                                                |                                                                                                                                         |                                                                                                          |
| Apple Hospitality REIT, Inc.                    |   | Non-traded REIT  |                 21,539.39                                                              |                  116,937                                       |               194,931                                                  |              2.22                            |
| BellaVista Capital, Inc.                        |   | Non-traded REIT  |               123,987.00                                                                         |                  49,595                                        |               49,595                                                   |              0.57                            |
| Hines Real Estate Investment Trust, Inc.        |   | Non-traded REIT  |                    2,692.31                                             |                   13,569                                  |                13,058                                             |               0.15                      |
| Total Non-traded REIT                           |   |             |                                                                                                                                                                   |                   180,101                                 |             257,584                                                              |              2.94                            |
|                                            |   |             |                                                                                                                                                                   |                                                                                                                                                |                                                                                                                                         |                                                                                                          |
| Brown Palace Hotel Associates, LP               |   | LP Interest      |                           0.25       |                       1,913           |                   1,932                            |              0.03                            |
| Del Taco Income Properties IV                   |   | LP Interest      |                   2,296.00                                                   |                  59,696                                        |               64,472                                                   |              0.74                            |
| Del Taco Restaurant Properties I                |   | LP Interest      |                       417.00                             |                 306,918                                             |             330,798                                                              |              3.77                            |
| Del Taco Restaurant Properties II               |   | LP Interest      |                      632.00                                   |                 120,803                                             |               152,129                                                  |               1.74                      |
| DRV Holding Company, LLC                        |   | LP Interest      |                      500.00                                   |                500,000                                                   |             500,000                                                              |              5.70                            |
| El Conquistador Limited Partnership             |   | LP Interest      |                           2.00       |                  80,976                                        |               94,754                                                   |               1.08                      |
| Hotel Durant, LLC                               |   | LP Interest      |                            7.10 |                577,299                                                   |              367,461                                                        |               4.19                      |
| Inland Land Appreciation Fund II, L.P.          |   | LP Interest      |                       210.97                             |                     8,667                       |               26,234                                                   |              0.30                            |
| Inland Land Appreciation Fund, L.P.             |   | LP Interest      |                       149.37                             |                    18,166                            |                 19,418                                       |              0.22                            |
| MPF Pacific Gateway - Class B                   | *      | LP Interest      |                         23.20                  |                     6,287                       |                  6,264                                  |              0.07                            |
| National Property Investors 6                   |   | LP Interest      |                           7.00       |                         145 |                        95 |                   - |
| Post Street Renaissance Partners Class A        |   | LP Interest      |                            9.10 |                    16,981                            |                 16,981                                       |               0.19                      |
| Post Street Renaissance Partners Class D        |   | LP Interest      |                           11.60      |                  56,729                                        |                58,319                                             |              0.67                            |
| Rancon Realty Fund IV                           |   | LP Interest      |                      997.00                                   |                 179,266                                             |              312,659                                                        |              3.57                            |
| Rancon Realty Fund V                            |   | LP Interest      |                     1,150.00                                       |                  212,541                                       |             245,629                                                              |              2.80                            |
| Secured Income, LP                              |   | LP Interest      |                26,600.00                                                                    |                232,732                                                   |             249,242                                                              |              2.84                            |
| Uniprop Manufactured Housing Income Fund II, LP |   | LP Interest      |                47,304.00                                                                    |                207,996                                                   |              234,155                                                        |              2.67                            |
| Total LP Interest                               |   |             |                                                                                                                                                                   |              2,587,115                                                             |         2,680,542                                                                                    |            30.58                                       |
|                                            |   |             |                                                                                                                                                                   |                                                                                                                                                |                                                                                                                                         |                                                                                                          |
| Coastal Realty Business Trust, REEP, Inc.       | *      | Investment Trust |                72,320.00                                                                    |                  73,555                                        |               90,400                                                   |               1.03                      |
| Coastal Realty Business Trust, Secured Income   | *      | Investment Trust |                37,577.00                                                                    |                 327,671                                             |             352,096                                                              |              4.02                            |
| Coastal Realty Business Trust, Series H2        | *      | Investment Trust |                 47,284.16                                                              |                 246,351                                             |             254,389                                                              |              2.90                            |
| Coastal Realty Business Trust, Series L2        | *      | Investment Trust |                   7,950.00                                                   |                   18,444                                  |                  17,411                                 |              0.20                            |
| Coastal Realty Business Trust, Series Q         | *      | Investment Trust |                          10.00            |                  48,894                                        |               50,264                                                   |              0.57                            |
| Total Investment Trust                          |   |             |                                                                                                                                                                   |                  714,915                                       |             764,560                                                              |              8.72                            |
|                                            |   |             |                                                                                                                                                                   |                                                                                                                                                |                                                                                                                                         |                                                                                                          |
| BR Cabrillo LLC Promissory Note                 |   | Note             |              275,795.44                                                                               |                275,795                                                   |             275,794                                                              |               3.15                      |
| TTLC  Note                                 |   | Note             |              250,000.00                                                                               |                239,996                                                   |             229,000                                                              |               2.61                      |
| Total Note                                      |   |             |                                                                                                                                                                   |                  515,791                                       |             504,794                                                              |              5.76                            |
|                                            |   |             |                                                                                                                                                                   |                                                                                                                                                |                                                                                                                                         |                                                                                                          |
| Total Investments                               |   |             |                                                                                                                                                                   |  $       5,593,407                                                                                                         |  $    5,905,995                                                                                                               |            67.38                                       |

----

| Name                                                                                                                                                                                                                                                                    |   | Asset Type       |  Shares/Units                                                                                                                                                     |  Cost Basis                                                                                                                                                                  |  Total Fair Value                                                                                                            | % ofNet Assets                                                                              |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| Agree Realty Corporation                                                                                                                                                                                                                                                |   | Public REIT      |                   4,200.00                                                   |  $                 117,894                                                                                                      |  $        123,983                                                                                        |            1.70                      |
| Apartment Investment and Management Company                                                                                                                                                                                                                             |   | Public REIT      |                   3,888.00                                                   |                       115,163                                       |              116,796                                             |            1.60                      |
| Ashford Hospitality Trust, Inc.                                                                                                                                                                                                                                         |   | Public REIT      |                 19,000.00                                                              |                    223,630                                                         |             217,550                                                   |           2.98                            |
| Associated Estates Realty Corporation                                                                                                                                                                                                                                   |   | Public REIT      |                   4,000.00                                                   |                       69,920                                        |               64,320                                        |           0.88                            |
| CommonWealth REIT                                                                                                                                                                                                                                                       |   | Public REIT      |                 16,900.00                                                              |                    426,725                                                         |            390,728                                                         |           5.36                            |
| FelCor Lodging Trust Incorporated                                                                                                                                                                                                                                       |   | Public REIT      |                   9,900.00                                                   |                       52,642                                        |               58,509                                        |           0.80                            |
| Rouse Properties Inc                                                                                                                                                                                                                                                    |   | Public REIT      |                   3,077.00                                                   |                       56,753                                        |                60,371                                  |           0.83                            |
|                                          Total Public REIT |   |             |                                                                                                                                                                   |                  1,062,727                                                                   |          1,032,257                                                                   |           14.15                           |
|                                                                                                                                                                                                                                                                    |   |             |                                                                                                                                                                   |                                                                                                                                                                              |                                                                                                                              |                                                                                        |
| BellaVista Capital, Inc.                                                                                                                                                                                                                                                |   | Non-traded REIT  |               123,987.00                                                                         |                       74,392                                        |                59,514                                  |           0.82                            |
| Hines Real Estate Investment Trust, Inc.                                                                                                                                                                                                                                |   | Non-traded REIT  |                    2,692.31                                             |                        13,569                                  |                 11,900                            |            0.16                      |
| USA Real Estate Investment Trust                                                                                                                                                                                                                                        |   | Non-traded REIT  |                           6.57       |                             330       |                     223       |            0.01                      |
|              Total Non-traded REIT                                                                                                                                                                     |   |             |                                                                                                                                                                   |                        88,291                                  |                71,637                                  |           0.99                            |
|                                                                                                                                                                                                                                                                    |   |             |                                                                                                                                                                   |                                                                                                                                                                              |                                                                                                                              |                                                                                        |
| 60 East 42nd St. Associates L.L.C                                                                                                                                                                                                                                       |   | LP Interest      |                           0.38       |                       56,700                                        |              107,431                                             |            1.47                      |
| 250 West 57th St. Associates L.L.C.                                                                                                                                                                                                                                     |   | LP Interest      |                           0.67       |                       66,670                                        |               95,087                                        |            1.30                      |
| AEI Net Lease Income & Growth Fund XX Limited Partnership                                                                                                                                                                                                           |   | LP Interest      |                          16.00            |                         11,432                            |                  11,100                      |            0.15                      |
| Brown Palace Hotel Associates, LP                                                                                                                                                                                                                                       |   | LP Interest      |                           0.25       |                       35,750                                        |               35,628                                        |           0.49                            |
| Civic Center, LP                                                                                                                                                                                                                                                        |   | LP Interest      |                           2.00       |                     163,994                                                   |              160,186                                             |           2.20                            |
| CRI Hotel Income Partners, LP                                                                                                                                                                                                                                           |   | LP Interest      |                  15,961.00                                                        |                       64,642                                        |               55,864                                        |           0.77                            |
| Del Taco Restaurant Properties I                                                                                                                                                                                                                                        |   | LP Interest      |                      287.00                                   |                    207,358                                                         |            222,385                                                         |           3.05                            |
| Del Taco Restaurant Properties II                                                                                                                                                                                                                                       |   | LP Interest      |                      273.00                                   |                       60,459                                        |                62,315                                  |           0.85                            |
| Del Taco Restaurant Properties III                                                                                                                                                                                                                                      |   | LP Interest      |                      628.00                                   |                     125,983                                                   |             139,303                                                   |             1.91                |
| Del Taco Income Properties IV                                                                                                                                                                                                                                           |   | LP Interest      |                   2,296.00                                                   |                       59,696                                        |               65,459                                        |           0.90                            |
| Divall Insured Income Properties 2, LP                                                                                                                                                                                                                                  |   | LP Interest      |                      830.33                                   |                      211,926                                             |            222,220                                                         |           3.05                            |
| DRV Holding Company, LLC                                                                                                                                                                                                                                                |   | LP Interest      |                      500.00                                   |                    500,000                                                         |            500,000                                                         |           6.86                            |
| El Conquistador Limited Partnership                                                                                                                                                                                                                                     |   | LP Interest      |                           2.00       |                       80,976                                        |                88,761                                  |            1.22                      |
| Empire State Building Associates L.L.C.                                                                                                                                                                                                                                 |   | LP Interest      |                           2.50       |                     449,150                                                   |            562,500                                                         |            7.71                      |
| Hotel Durant, LLC                                                                                                                                                                                                                                                       |   | LP Interest      |                            7.10 |                    577,299                                                         |             529,512                                                   |           7.26                            |
| Inland Land Appreciation Fund, L.P.                                                                                                                                                                                                                                     |   | LP Interest      |                       149.30                             |                         18,166                            |                19,600                                  |           0.27                            |
| Inland Land Appreciation Fund II, L.P.                                                                                                                                                                                                                                  |   | LP Interest      |                        211.00                       |                        27,951                                  |               25,936                                        |           0.36                            |
| Madison Place Associates, LLC                                                                                                                                                                                                                                           |   | LP Interest      |                           6.80       |                       77,943                                        |             105,530                                                   |            1.45                      |
| MPF Pacific Gateway - Class B                                                                                                                                                                                                                                           | *      | LP Interest      |                         23.20                  |                         6,287                             |                 6,960                             |            0.10                      |
| National Property Investors 6                                                                                                                                                                                                                                           |   | LP Interest      |                           7.00       |                              145 |                      129 |                - |
| NCP-Seven Liquidating Trust                                                                                                                                                                                                                                             |   | LP Interest      |                         79.00                  |                          1,694                       |                   1,691                 |           0.02                            |
| Post Street Renaissance Partners Class A                                                                                                                                                                                                                                |   | LP Interest      |                            9.10 |                     177,844                                                   |             163,094                                                   |           2.24                            |
| Post Street Renaissance Partners Class D                                                                                                                                                                                                                                |   | LP Interest      |                          11.60            |                      542,115                                             |             481,488                                                   |           6.60                            |
| Rancon Realty Fund IV                                                                                                                                                                                                                                                   |   | LP Interest      |                      975.00                                   |                     173,706                                                   |            220,565                                                         |           3.02                            |
| Rancon Realty Fund V                                                                                                                                                                                                                                                    |   | LP Interest      |                      935.00                                   |                      165,691                                             |             165,093                                                   |           2.26                            |
| Secured Income, LP                                                                                                                                                                                                                                                      |   | LP Interest      |                25,600.00                                                                    |                    223,232                                                         |             224,512                                                   |           3.08                            |
| Uniprop Manufactured Housing Income Fund II, LP                                                                                                                                                                                                                         |   | LP Interest      |                  12,156.00                                                        |                       56,890                                        |                61,996                                  |           0.82                            |
|                                          Total LP Interest |   |             |                                                                                                                                                                   |                  4,143,699                                                                   |         4,334,345                                                                         |          59.41                                 |
|                                                                                                                                                                                                                                                                    |   |             |                                                                                                                                                                   |                                                                                                                                                                              |                                                                                                                              |                                                                                        |
| Coastal Realty Business Trust, REEP, Inc.                                                                                                                                                                                                                               | *      | Investment Trust |                72,320.00                                                                    |                       72,320                                        |               73,043                                        |            1.00                      |
| Coastal Realty Business Trust, Secured Income                                                                                                                                                                                                                           | *      | Investment Trust |                37,577.00                                                                    |                     327,671                                                   |            329,550                                                         |           4.52                            |
| Coastal Realty Business Trust, Series F2                                                                                                                                                                                                                                | *      | Investment Trust |                 10,000.00                                                              |                       58,800                                        |               59,900                                        |           0.82                            |
| Coastal Realty Business Trust, Series H2                                                                                                                                                                                                                                | *      | Investment Trust |                 47,284.16                                                              |                     246,351                                                   |            274,248                                                         |           3.76                            |
| Coastal Realty Business Trust, Series L2                                                                                                                                                                                                                                | *      | Investment Trust |                   7,950.00                                                   |                        18,444                                  |                 15,741                            |           0.22                            |
| Coastal Realty Business Trust, Series Q                                                                                                                                                                                                                                 | *      | Investment Trust |                          10.00            |                     467,341                                                   |             414,987                                                   |           5.69                            |
|              Total Investment Trust                                                                                                                                                                    |   |             |                                                                                                                                                                   |                   1,190,927                                                             |           1,167,469                                                             |           16.01                           |
|                                                                                                                                                                                                                                                                    |   |             |                                                                                                                                                                   |                                                                                                                                                                              |                                                                                                                              |                                                                                        |
| TTLC Note                                                                                                                                                                                                                                                               |   | Note             |                                                                                                                                                                   |                    250,000                                                         |            250,000                                                         |           3.43                            |
|                                         Total Note              |   |             |                                                                                                                                                                   |                    250,000                                                         |            250,000                                                         |           3.43                            |
|                                                                                                                                                                                                                                                                    |   |             |                                                                                                                                                                   |                                                                                                                                                                              |                                                                                                                              |                                                                                        |
| Total Investments                                                                                                                                                                                                                                                       |   |             |                                                                                                                                                                   |  $            6,735,644                                                                                                                        |  $    6,855,708                                                                                                    |         93.99                                       |

----

|                                                                 |   | Year Ended June, 30 |      |   | For the period from Inception(Jan 25, 2012) through |   |
|---------------------------------------------------------------------------|--------|---------------------|-----------|--------|-----------------------------------------------------|--------|
|                                                                      |   | 2014                |      |   | 2013                                                |   |   | June 30, 2012 |   |
| Investment income                                                         |   |                     |      |   |                                                     |   |   |  |   |
| Dividend and distribution income                                          |   | $                   | 597,847   |   |                                                | $      | 77,011 |   |   | $ | - |   |
| Interest and other income                                                 |   |                | 26,097    |   |                                                |   | 889 |   |   |   | - |   |
| Total investment income                                                   |   |                | 623,944   |   |                                                |   | 77,900 |   |   |   | - |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Operating expenses                                                        |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Investment advisory fees                                                  |   |                | 233,599   |   |                                                |   | 72,822 |   |   |   | - |   |
| Administrative cost reimbursements                                        |   |                | 60,000    |   |                                                |   | 32,000 |   |   |   | - |   |
| Organization costs                                                        |   |                | -         |   |                                                |   | 74,410 |   |   |   | 52,759 |   |
| Amortization of deferred offering costs                                   |   |                | 389,423   |   |                                                |   | - |   |   |   | - |   |
| Professional fees                                                         |   |                | 121,387   |   |                                                |   | - |   |   |   | - |   |
| Other general and administrative                                          |   |                | 110,122   |   |                                                |   | 10,249 |   |   |   | 182 |   |
| Total operating expenses                                                  |   |                | 914,531   |   |                                                |   | 189,481 |   |   |   | 52,941 |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Net investment loss                                                       |   |                | (290,587) |   |                                                |   | (111,581) |   |   |   | (52,941) |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Net realized gain on sale of investments                                  |   |                | 632,703   |   |                                                |   | 56,219 |   |   |   | - |   |
| Net unrealized gain on investments                                        |   |                | 192,524   |   |                                                |   | 120,065 |   |   |   | - |   |
| Total net realized and unrealized gain on investments                     |   |                | 825,227   |   |                                                |   | 176,284 |   |   |   | - |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Income tax provision                                                      |   |                | (373,580) |   |                                                |   | - |   |   |   | - |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations           |   | $                   | 161,060   |   |                                                | $      | 64,703 |   |   | $ | (52,941) |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations per share |   | $                   | 0.21      |   |                                                | $      | 0.24 |   |   | $ | (1.47) |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                                |   |                | 763,813   |   |                                                |   | 269,268 |   |   |   | 36,000 |   |
|                                                                      |   |                |      |   |                                                |   |   |   |   |   |   |   |

----

|                                                            |   | Year Ended June 30, |      |   | For the period from Inception(Jan 25, 2012) through |   |
|----------------------------------------------------------------------|--------|---------------------|-----------|--------|-----------------------------------------------------|--------|
|                                                                 |   | 2014                |      |   | 2013                                                |   |   | June 30, 2012 |   |
|                                                                 |   |                     |      |   |                                                     |   |   |  |   |
| Operations                                                           |   |                     |      |   |                                                     |   |   |  |   |
| Net investment loss                                                  |   | $                   | (290,587) |   |                                                | $      | (111,581) |   |   | $ | (52,941) |   |
| Net realized gain on sale of investments                             |   |                | 632,703   |   |                                                |   | 56,219 |   |   |   | - |   |
| Net unrealized gain on investments                                   |   |                | 192,524   |   |                                                |   | 120,065 |   |   |   | - |   |
| Income tax provision                                                 |   |                | (373,580) |   |                                                |   | - |   |   |   | - |   |
| Net increase (decrease) in net assets resulting from operations      |   |                | 161,060   |   |                                                |   | 64,703 |   |   |   | (52,941) |   |
|                                                                 |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Capital share transactions                                           |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Issuance of common stock                                             |   |                | 1,655,901 |   |                                                |   | 6,922,170 |   |   |   | 360,000 |   |
| Dividend to Stockholders                                             |   |                | (130,850) |   |                                                |   | - |   |   |   | - |   |
| Selling commissions and fees                                         |   |                | (215,254) |   |                                                |   | - |   |   |   | - |   |
| Net increase in net assets resulting from capital share transactions |   |                | 1,309,797 |   |                                                |   | 6,922,170 |   |   |   | 360,000 |   |
|                                                                 |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Total increase in net assets                                         |   |                | 1,470,857 |   |                                                |   | 6,986,873 |   |   |   | 307,059 |   |
|                                                                 |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Net assets at beginning of period                                    |   |                | 7,293,932 |   |                                                |   | 307,059 |   |   |   | - |   |
|                                                                 |   |                |      |   |                                                |   |   |   |   |   |   |   |
| Net assets at end of period                                          |   | $                   | 8,764,789 |   |                                                | $      | 7,293,932 |   |   | $ | 307,059 |   |
|                                                                 |   |                |      |   |                                                |   |   |   |   |   |   |   |

----

|                                                                |   | Year Ended June 30, |        |   | For the period from Inception(Jan 25, 2012) through |   |
|-------------------------------------------------------------------------------|--------|---------------------|-------------|--------|-----------------------------------------------------|--------|
|                                                                          |   | 2014                |        |   | 2013                                                |   |   | June 30, 2012 |   |
| Cash flows from operating activities:                                         |   |                     |        |   |                                                     |   |   |  |   |
| Net increase (decrease) in net assets resulting from operations               |   | $                   | 161,060     |   |                                                | $      | 64,703 |   |   | $ | (52,941) |   |
| Adjustments to reconcile net increase (decrease) in net assets resulting from |   |                |        |   |                                                |   |   |   |   |   |   |   |
| operations to net cash used in operating activities:                          |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Proceeds from sale of investments, net                                        |   |                | 2,289,429   |   |                                                |   | 465,878 |   |   |   | - |   |
| Return of capital                                                             |   |                | 1,304,778   |   |                                                |   | - |   |   |   | - |   |
| Purchase of investments                                                       |   |                | (1,819,267) | )      |                                                |   | (696,922) |   |   |   | - |   |
| Net realized gain on sale of investments                                      |   |                | (632,703)   |   |                                                |   | (56,219) |   |   |   | - |   |
| Net unrealized gain on investments                                            |   |                | (192,524)   |   |                                                |   | (120,065) |   |   |   | - |   |
| Amortization of deferred offering costs                                       |   |                | 389,423     |   |                                                |   | - |   |   |   | - |   |
| Changes in assets and liabilities:                                            |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Accounts receivable                                                           |   |                | (3,650)     |   |                                                |   | (9,219) |   |   |   | - |   |
| Due from related entities                                                     |   |                | -           |   |                                                |   | - |   |   |   | 1,088 |   |
| Deferred offering costs                                                       |   |                | -           |   |                                                |   | (232,982) |   |   |   | (191,843) |   |
| Other assets                                                                  |   |                | (28,105)    |   |                                                |   | (26,540) |   |   |   | (14,500 |   |
| Accounts payable and accrued liabilities                                      |   |                | (205,895)   |   |                                                |   | 205,008 |   |   |   | 59,265 |   |
| Income tax payable                                                            |   |                | 160,362     |   |                                                |   | - |   |   |   | - |   |
| Due to related entities                                                       |   |                | 22,522      |   |                                                |   | 34,305 |   |   |   | - |   |
| Deferred tax liability                                                        |   |                | 124,518     |   |                                                |   | - |   |   |   | - |   |
| Net cash from operating activities                                            |   |                | 1,569,948   |   |                                                |   | (372,053) |   |   |   | (198,931) |   |
|                                                                          |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                         |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Proceeds from issuance of common stock                                        |   |                | 1,655,901   |   |                                                |   | 473,790 |   |   |   | 360,000 |   |
| Dividend to Stockholders                                                      |   |                | (130,850)   |   |                                                |   | - |   |   |   | - |   |
| Payment of selling commissions and fees                                       |   |                | (215,254)   |   |                                                |   | - |   |   |   | - |   |
| Capital pending acceptance                                                    |   |                | 380,200     |   |                                                |   | - |   |   |   | - |   |
| Net cash from financing activities                                            |   |                | 1,689,997   |   |                                                |   | 473,790 |   |   |   | 360,000 |   |
|                                                                          |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                     |   |                | 3,259,945   |   |                                                |   | 101,737 |   |   |   | 161,069 |   |
|                                                                          |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of the period                          |   |                | 262,806     |   |                                                |   | 161,069 |   |   |   | - |   |
|                                                                          |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of the period                                |   | $                   | 3,522,751   |   |                                                | $      | 262,806 |   |   | $ | 161,069 |   |
|                                                                          |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Supplemental schedule of noncash financing activities:                        |   |                |        |   |                                                |   |   |   |   |   |   |   |
| Taxes paid                                                                    |   | $                   | 88,700      |   |                                                | $      | 800 |   |   | $ | - |   |
| Common stock issued in exchange for investments (note 1)                      |   | $                   | -           |   |                                                | $      | 6,448,380 |   |   | $ | 6,448,380 |   |
|                                                                          |   |                |        |   |                                                |   |   |   |   |   |   |   |

----

----

|                                                                                                 |   | Year Ended    |    |   |               |   |
|------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
|                                                                                                 |   | June 30, 2014 |    |   | June 30, 2013 |   |   | For the period from Inception (Jan 25, 2012) - June 30, 2012 |   |
|                                                                                                 |   |               |    |   |               |   |   |  |   |
| Current tax provision                                                                                |   |               |    |   |               |   |   |  |   |
| Federal                                                                                              |   | $             | 211,900 |   |          | $      | - |   |   | $ | - |   |
| State                                                                                                |   |          | 37,162  |   |          |   | - |   |   |   | - |   |
| Total Current                                                                                        |   |          | 249,062 |   |          |   |   |   |   |   |   |   |
|                                                                                                 |   |          |    |   |          |   |   |   |   |   |   |   |
| Deferred tax provision                                                                               |   |          |    |   |          |   |   |   |   |   |   |   |
| Federal                                                                                              |   |          | 106,280 |   |          |   | - |   |   |   | - |   |
| State                                                                                                |   |          | 18,238  |   |          |   | - |   |   |   | - |   |
| Total deferred                                                                                       |   |          | 124,518 |   |          |   | - |   |   |   | - |   |
|                                                                                                 |   |          |    |   |          |   |   |   |   |   |   |   |
| Total tax provision                                                                                  |   | $             | 373,580 |   |          | $      | - |   |   | $ | - |   |
|                                                                                                 |   |          |    |   |          |   |   |   |   |   |   |   |
| The following table shows the tax effect of the cumulative temporary differences as of June 30, 2014 |   |
|                                                                                                 |   |          |    |   |          |   |   |   |   |   |   |   |
| Unrealized gain on investments                                                                       |   | $             | 124,518 |   |          | $      | - |   |   | $ | - |   |

----

----

| • | Recently quoted trading prices for the same or similar securities; |
|---------|--------------------------------------------------------------------|

| • | Recent purchase prices paid for the same or similar securities; |
|---------|-----------------------------------------------------------------|

| • | Recent sale prices received for the same or similar securities; |
|---------|-----------------------------------------------------------------|

| • | Relevant reports issued by industry analysts and publications; and |
|---------|--------------------------------------------------------------------|

| • | Other relevant observable and unobservable inputs, including liquidity discounts. |
|---------|-----------------------------------------------------------------------------------|

|  | Level I – | Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I are publicly traded equity securities. The Company does not adjust the quoted price for these investments even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. |
|--|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Level II – | Price inputs are quoted prices for similar financial instruments in active markets; quoted prices for identical or similar financial instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. Investments which are generally included in this category are publicly traded equity securities with restrictions. |
|--|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Level III – | Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. Fair values for these investments are estimated by management using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, financial condition, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant judgment by management. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had an active market for these investments existed. |
|--|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             |   | June 30, 2014 |      |   | June 30, 2013 |   |
|------------------|--------|---------------|-----------|--------|---------------|--------|
| Asset Type       |   | Cost          |      |   | Fair Value    |   |   | Cost |   |   | Fair Value |   |
| Public REIT      |   | $             | 1,595,485 |   |          | $      | 1,698,515 |   |   | $ | 1,062,727 |   |   | $ | 1,032,257 |   |
| Non-traded REIT  |   |          | 180,101   |   |          |   | 257,584 |   |   |   | 88,291 |   |   |   | 71,637 |   |
| LP Interest      |   |          | 2,587,115 |   |          |   | 2,680,542 |   |   |   | 4,143,699 |   |   |   | 4,334,345 |   |
| Investment Trust |   |          | 714,915   |   |          |   | 764,560 |   |   |   | 1,190,927 |   |   |   | 1,167,469 |   |
| Note             |   |          | 515,791   |   |          |   | 504,794 |   |   |   | 250,000 |   |   |   | 250,000 |   |
| Total            |   | $             | 5,593,407 |   |          | $      | 5,905,995 |   |   | $ | 6,735,644 |   |   | $ | 6,855,708 |   |
|             |   |          |      |   |          |   |   |   |   |   |   |   |   |   |   |   |

| Asset Type       |   | Total  |      |   | Level I |   |      | Level II |   |   | Level III |   |
|------------------|--------|--------|-----------|--------|---------|--------|-----------|----------|--------|--------|-----------|--------|
| Public REIT      |   | $      | 1,698,515 |   |    | $      | 1,288,958 |     |   | $      | 409,557   |   |   | $ | - |   |
| Non-traded REIT  |   |   | 257,584   |   |    |   | -         |     |   |   | -         |   |   |   | 257,584 |   |
| LP Interest      |   |   | 2,680,542 |   |    |   | -         |     |   |   | -         |   |   |   | 2,680,542 |   |
| Investment Trust |   |   | 764,560   |   |    |   | -         |     |   |   | -         |   |   |   | 764,560 |   |
| Note             |   |   | 504,794   |   |    |   | -         |     |   |   | -         |   |   |   | 504,794 |   |
| Total            |   | $      | 5,905,995 |   |    | $      | 1,288,958 |     |   | $      | 409,557   |   |   | $ | 4,207,480 |   |
|             |   |   |      |   |    |   |      |     |   |   |      |   |   |   |   |   |

| Asset Type       |   | Total  |      |   | Level I |   |      | Level II |   |   | Level III |   |
|------------------|--------|--------|-----------|--------|---------|--------|-----------|----------|--------|--------|-----------|--------|
| Public REIT      |   | $      | 1,032,257 |   |    | $      | 1,032,257 |     |   | $      | -         |   |   | $ | - |   |
| Non-traded REIT  |   |   | 71,637    |   |    |   | -         |     |   |   | -         |   |   |   | 71,637 |   |
| LP Interest      |   |   | 4,334,345 |   |    |   | -         |     |   |   | -         |   |   |   | 4,334,345 |   |
| Investment Trust |   |   | 1,167,469 |   |    |   | -         |     |   |   | -         |   |   |   | 1,167,469 |   |
| Note             |   |   | 250,000   |   |    |   | -         |     |   |   | -         |   |   |   | 250,000 |   |
| Total            |   | $      | 6,855,708 |   |    | $      | 1,032,257 |     |   | $      | -         |   |   | $ | 5,823,451 |   |
|             |   |   |      |   |    |   |      |     |   |   |      |   |   |   |   |   |

| Balance at July 1, 2013                  |   | $      | 5,823,451   |   |
|------------------------------------------|--------|--------|-------------|--------|
| Purchases of investments                 |   |   | 824,900     |   |
| Transfer to Level I                      |   |   | (55,597)    |   |
| Proceeds from sales, net                 |   |   | (1,537,952) |   |
| Return of capital                        |   |   | (1,304,778) |   |
| Net realized gain on sale of investments |   |   | 398,431     |   |
| Net unrealized gain                      |   |   | 59,025      |   |
| Ending balance at June 30, 2014          |   | $      | 4,207,480   |   |
|                                     |   |   |        |   |

----

| Balance at July 1, 2012                  |   | $      | -         |   |
|------------------------------------------|--------|--------|-----------|--------|
| Purchases of investments                 |   |   | 5,674,404 |   |
| Proceeds from sales                      |   |   | (254)     |   |
| Net realized loss on sale of investments |   |   | (1,234)   |   |
| Net unrealized gain                      |   |   | 150,535   |   |
| Ending balance at June 30, 2013          |   | $      | 5,823,451 |   |
|                                     |   |   |      |   |

| Asset Type       |   | Fair Value |      | Primary Valuation Techniques |                      | Unobservable Inputs Used (1) |                                  | Range  |   |         | Wt. Average |   |
|------------------|--------|------------|-----------|------------------------------|----------------------|------------------------------|---------------------------------------|--------|--------|--------------|-------------|--------|
|             |   |            |      |                         |                      |                         |                                  |        |   |         |             |   |
| Non-traded REIT  |   | $          | 257,584   |                         | Market Activity      |                              | Contracted security purchase price    |   |        |         |        |        |   |
|             |   |       |      |                         |       |                              | Secondary market industry publication |   |        |         |        |        |   |
|             |   |       |      |                         |                 |                              |                                  |   |        |         |        |        |   |
| LP Interest      |   |       | 8,196     |                         | Discounted Cash Flow |                              | Sponsor provided value                |   |        |         |        |        |   |
|             |   |       |      |                         |       |                              | Liquidity discount                    |   |   | 15 % - 31.5% |        |   | 28% |   |
| LP Interest      |   |       | 2,134,737 |                         | Market Activity      |                              | Secondary market industry publication |   |   |         |        |   |   |   |   |
|             |   |       |      |                         |       |                              | Contracted security purchase price    |   |   |         |        |   |   |   |   |
| LP Interest      |   |       | 537,609   |                         | Net Asset Value      |                              | Capitalization rate                   |   |   | 6.5% - 9.5%  |        |   | 7% |   |
|             |   |       |      |                         |       |                              | Liquidity discount                    |   |   | 10% - 35%    |        |   | 29% |   |
|             |   |       |      |                         |                 |                              |                                  |   |   |         |        |   |   |   |   |
| Investment Trust |   |       | 623,896   |                         | Market Activity      |                              | Secondary market industry publication |   |   |         |        |   |   |   |   |
| Investment Trust |   |       | 140,664   |                         | Net Asset Value      |                              | Capitalization rate                   |   |   | 6.3%         |        |   |   |   |   |
|             |   |       |      |                         |       |                              | Liquidity discount                    |   |   | 10% - 31.5%  |        |   | 24% |   |
|             |   |       |      |                         |                 |                              |                                  |   |   |         |        |   |   |   |   |
| Note             |   |       | 504,794   |                         | Market Activity      |                              | Contracted security purchase price    |   |   |         |        |   |   |   |   |
|             |   |       |      |                         | Discounted Cash Flow |                              | Term (in years)                       |   |   | 4.0          |        |   |   |   |   |
|             |   |       |      |                         |       |                              | Quoted market prices                  |   |   |         |        |   |   |   |   |
|             |   | $          | 4,207,480 |                         |                 |                              |                                  |   |   |         |        |   |   |   |   |

----

| Asset Type       |   | Fair Value |      | Primary Valuation Techniques |                              | Unobservable Inputs Used (1) |                                         | Range  |      |   | Wt. Average |   |
|------------------|--------|------------|-----------|------------------------------|------------------------------|------------------------------|----------------------------------------------|--------|-----------|--------|-------------|--------|
|                  |   |            |      |                         |                              |                         |                                         |        |      |   |             |   |
| Non-traded REIT  |   | $          | 12,123    |                         | Market Activity              |                              | Secondary market industry publication        |   |           |   |        |        |   |
| Non-traded REIT  |   |       | 59,514    |                         | Combination                  |                              | Sponsor provided value, secondary market bid |   |           |   |        |        |   |
|                  |   |       |      |                         |                         |                              |                                         |   |           |   |        |        |   |
| LP Interest      |   |       | 107,221   |                         | Discounted Cash Flow         |                              | Internal Rate of Return                      |   | 22% - 26% |   |        | 22%    |   |
|             |        |            |           |                              |                              |                              | Term                                         |        | 6 months  |        |             |        |  |
| LP Interest      |   |       | 2,719,163 |                         | Market Activity              |                              | Secondary market industry publication        |   |      |   |        |   |   |   |   |
|                  |   |       |      |                         |                              |                              | Acquisition cost                             |   |      |   |        |   |   |   |   |
|                  |   |       |      |                         |                              |                              | Contracted sale of security                  |   |      |   |        |   |   |   |   |
|                  |   |       |      |                         |                              |                              | Contracted sale of property                  |   |      |   |        |   |   |   |   |
| LP Interest      |   |       | 1,507,961 |                         | Net Asset Value              |                              | Capitalization rate                          |   | 6% - 10%  |   |        | 8%     |   |
|                  |   |       |      |                         |                              |                              | Appraisal and merger price                   |   |      |   |        |   |   |   |   |
|                  |   |       |      |                         |                              |                              | Sponsor provided value                       |   |      |   |        |   |   |   |   |
|                  |   |       |      |                         |                              |                              | Comparable sales reports                     |   |      |   |        |   |   |   |   |
|                  |   |       |      |                         |                         |                              |                                         |   |      |   |        |   |   |   |   |
| Investment Trust |   |       | 679,439   |                         | Market Activity              |                              | Secondary market industry publication        |   |      |   |        |   |   |   |   |
| Investment Trust |   |       | 414,987   |                         | Net Asset Value              |                              | Comparable sales reports                     |   |      |   |        |   |   |   |   |
| Investment Trust |   |       | 73,043    |                         | Direct Capitalization method |                              | Capitalization rate                          |   | 7%        |   |        | 7%     |   |
|                  |   |       |      |                         |                         |                              |                                         |   |      |   |        |   |   |   |   |
| Note             |   |       | 250,000   |                         | Discounted Cash Flow         |                              | Discount rate                                |   | 8%        |   |        |   |   |   |
|                  |   |       |      |                         |                         |                              |                                         |   |      |   |        |   |   |   |   |
|                  |   | $          | 5,823,451 |                         |                              |                              |                                         |   |      |   |        |   |   |   |   |

----

----

|                                                          |   | Incurred      |    |   | Unpaid as of                                   |   |
|---------------------------------------------------------------|--------|---------------|---------|--------|------------------------------------------------|--------|
|                                                          |   | Year Ended    |    |   | For the period from Inception (Jan 25, 2012) - |   |   |  |   |   |  |   |
| Types and Recipient                                           |   | June 30, 2014 |    |   | June 30, 2013                                  |   |   | June 30, 2012 |   |   | June 30, 2014 |   |   | June 30, 2013 |   |
|                                                          |   |               |    |   |                                                |   |   |  |   |   |  |   |   |  |   |
| Portfolio Structuring fee- the Adviser                        |   | $             | 57,953  |   |                                           | $      | - |   |   | $ | - |   |   | $ | 441 |   |   | $ | - |   |
| Base Management fees- the Adviser                             |   |          | 233,599 |   |                                           |   | 72,822 |   |   |   | - |   |   |   | 67,000 |   |   |   | 72,822 |   |
| Incentive Fee on Income- the Adviser                          |   |          | -       |   |                                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Incentive fee on Capital Gains- the Adviser                   |   |          | -       |   |                                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Administrative Cost Reimbursements- MacKenzie                 |   |          | 60,000  |   |                                           |   | 32,000 |   |   |   | - |   |   |   | 12,000 |   |   |   | 32,000 |   |
| Others expenses (1) -MacKenzie                                |   |          | 972     |   |                                           |   | 38 |   |   |   | - |   |   |   | 972 |   |   |   | 38 |   |
| Organization & Offering Cost Reimbursement by the Adviser |   |          |    |   |                                           |   |   |   |   |   |   |   |   |   | (22,498) |   |   |   | (67,627) |   |
| Due from other affiliated entities (2)                        |   |          |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,840) |   |
|                                                          |   |          |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to related entities                                       |   |          |    |   |                                           |   |   |   |   |   |   |   |   | $ | 57,915 |   |   | $ | 35,393 |   |
|                                                          |   |          |    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|  | ● | The Company has an ownership interest in CRBT, REEP, Inc., which invests in one of three general partners of a limited partnership which owns one multi-family property located in Frederick, Maryland. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Secured Income, which invests in units of a limited partnership, which owns one multi-family property located in Frederick, Maryland. |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | The Company has an ownership interest in CRBT, Series H2, which invests in shares of a REIT that owns a real estate portfolio totaling 170 properties located in the United States and Canada. These properties include senior housing, hotels and resorts, golf courses, and marinas, among others. |
|--|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Series L2, which invests in shares of a REIT that acquires and manages a diversified real estate portfolio, primarily comprised of retail, office, hotel, multi-family, and industrial properties. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Series Q, which invests in units of a limited partnership formed for the purpose of acquiring, refurbishing, and operating the Prescott Hotel and Postrio Restaurant located near Union Square in San Francisco, California. During the year ended June 30, 2014, the limited partnership sold the properties. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, REEP, Inc., which invests in one of three general partners of a limited partnership which owns one multi-family property located in Frederick, Maryland. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Secured Income, which invests in units of a limited partnership, which owns one multi-family property located in Frederick, Maryland. |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  |  |
|--|--|--|

|  |  |  |
|--|--|--|

|  |  |  |
|--|--|--|

|  |  |  |
|--|--|--|

----

|  | ● | The Company has an ownership interest in CRBT, Series F2, which acquires and manages a real estate portfolio consisting mainly of office properties located in the United States. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Series H2, which invests in shares of a REIT that owns a real estate portfolio totaling 170 properties located in the United States and Canada. These properties include senior housing, hotels and resorts, golf courses, and marinas, among others. |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Series L2, which invests in shares of a REIT that acquires and manages a diversified real estate portfolio, primarily comprised of retail, office, hotel, multi-family, and industrial properties. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ● | The Company has an ownership interest in CRBT, Series Q, which invests in units of a limited partnership formed for the purpose of acquiring, refurbishing, and operating the Prescott Hotel and Postrio Restaurant located near Union Square in San Francisco, California. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | Year Ended    |      |  For the Periodfrom Inception (January 25, 2012) through |          |
|-----------------------------------------------------------------|--------|---------------|-----------|---------------------------------------------------------------|---------------|
|                                                            |   | June 30, 2014 |      |                                                          | June 30, 2013 |   | June 30, 2012 |   |
| Per Share Data:                                                 |   |               |      |                                                          |               |   |   |  |   |
| Beginning net asset value                                       |   | $             | 10.02     |                                                          |          | $ | 8.53 |   |   | $ | - |   |
|                                                            |   |          |      |                                                          |          |   |   |   |   |   |   |   |
| Net investment loss (1)                                         |   |          | (0.38     | )                                                             |          |   | (0.41 | ) |   |   | (1.47 | ) |
| Net realized gain on sale of investments (1)                    |   |          | 0.83      |                                                          |          |   | 0.21 |   |   |   | - |   |
| Net unrealized gain on investments (1)                          |   |          | 0.25      |                                                          |          |   | 0.44 |   |   |   | - |   |
| Income tax provision                                            |   |          | (0.49     | )                                                             |          |   | - |   |   |   | - |   |
| Net increase (decrease) in net assets resulting from operations |   |          | 0.21      |                                                          |          |   | 0.24 |   |   |   | (1.47 | ) |
|                                                            |   |          |      |                                                          |          |   |   |   |   |   |   |   |
| Issuance of common stock                                        |   |          | -         |                                                          |          |   | - |   |   |   | 10.00 |   |
| Issuance of common stock above (below) net asset value (4)      |   |          | (0.24     | )                                                             |          |   | 1.25 |   |   |   | - |   |
| Dividends to stockholders                                       |   |          | (0.18     | )                                                             |          |   | - |   |   |   | - |   |
| Ending net asset value                                          |   | $             | 9.81      |                                                          |          | $ | 10.02 |   |   | $ | 8.53 |   |
|                                                            |   |          |      |                                                          |          |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                      |   |          | 763,813   |                                                          |          |   | 269,268 |   |   |   | 36,000 |   |
| Shares outstanding at the end of period                         |   |          | 893,808   |                                                          |          |   | 728,217 |   |   |   | 36,000 |   |
| Net assets at the end of period                                 |   | $             | 8,764,789 |                                                          |          | $ | 7,293,932 |   |   | $ | 307,059 |   |
| Average net assets (2)                                          |   | $             | 7,791,777 |                                                          |          | $ | 3,789,098 |   |   | $ | 332,771 |   |
|                                                            |   |          |      |                                                          |          |   |   |   |   |   |   |   |
| Ratios to average net assets                                    |   |          |      |                                                          |          |   |   |   |   |   |   |   |
| Total expenses                                                  |   |          | 11.74     | %                                                             |          |   | 5.00 | % |   |   | 15.91 | % |
| Net Investment Loss                                             |        |               | (3.73     | )%                                                            |               |  | (2.94 | )% |  |  | (15.91 | )% |
| Total rate of return (2) (3)                                    |        |               | 2.07      | %                                                             |               |  | 1.71 | % |  |  | (15.91 | )% |

| (1) | Based on weighted average number of shares of common stock outstanding for the period. |
|-----|----------------------------------------------------------------------------------------|

| (2) | Average net assets were derived from the quarters ending net assets. |
|-----|----------------------------------------------------------------------|

| (3) | Total return is calculated based upon the change in value of the net assets. An individual shareholder's return may vary from this return based on the time of capital transactions. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | $0.13 per share is attributed to sales commissions and dealer manager fees. |
|-----|-----------------------------------------------------------------------------|

----

|                                  |   |   |   |      | Dividends |
|---------------------------------------|--------|--------|--------|-----------|-----------|
| For the Quarter Ended                 |   |   |   | Per Share |      | Amount |
| Three months ended September 30, 2013 |   |   | $      | -         | $         | - |
| Three months ended December 31, 2013  |   |   | $      | -         | $         | - |
| Three months ended March 31, 2014     |   |   | $      | -         | $         | - |
| Three months ended June 30, 2014      |   |   | $      | 0.175     | $         | 130,850 |

----

|                                                                      |   | Quarter Ended |      |
|---------------------------------------------------------------------------|--------|---------------|-----------|
|                                                                      |   | 30-Sep-13     |      |   | 31-Dec-13 |   |   | 31-Mar-14 |   |   | 30-Jun-14 |   |
| Net investment loss                                                       |   | $             | (177,900) |   |   | $ | (119,854) |   |   | $ | (132,616) |   |   | $ | 139,783 |   |
| Net realized gain (loss) from sale of investments                         |   | $             | (852)     |   |   | $ | 410,262 |   |   | $ | 142,469 |   |   | $ | 80,824 |   |
| Net unrealized gain on investments                                        |   | $             | 84,075    |   |   | $ | 48,249 |   |   | $ | 276,752 |   |   | $ | (216,552) |   |
| Income tax provision                                                      |   | $             | -         |   |   | $ | 172,384 |   |   | $ | 129,538 |   |   | $ | 71,658 |   |
| Net increase (decrease) in net assets resulting from operations           |   | $             | (94,677)  |   |   | $ | 166,273 |   |   | $ | 157,067 |   |   | $ | (67,603) |   |
| Net increase (decrease) in net assets resulting from operations per share |   | $             | (0.13)    |   |   | $ | 0.23 |   |   | $ | 0.21 |   |   | $ | (0.10) |   |
| Weighted average share outstanding                                        |   |          | 728,217   |   |   |   | 728,217 |   |   |   | 747,840 |   |   |   | 851,583 |   |
|                                                                      |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   | Quarter Ended |      |
|                                                                      |   | 30-Sep-12     |      |   | 31-Dec-12 |   |   | 31-Mar-13 |   |   | 30-Jun-13 |   |
| Net investment loss                                                       |   | $             | (4,459)   |   |   | $ | (13,140) |   |   | $ | (18,157) |   |   | $ | (75,825) |   |
| Net realized gain from sale of investments                                |   | $             | -         |   |   | $ | - |   |   | $ | - |   |   | $ | 56,219 |   |
| Net unrealized gain on investments                                        |   | $             | -         |   |   | $ | - |   |   | $ | 76,928 |   |   | $ | 43,137 |   |
| Net increase (decrease) in net assets resulting from operations           |   | $             | (4,459)   |   |   | $ | (13,140) |   |   | $ | 58,771 |   |   | $ | 23,531 |   |
| Net increase (decrease) in net assets resulting from operations per share |   | $             | (0.12)    |   |   | $ | (0.36) |   |   | $ | 0.21 |   |   | $ | 0.03 |   |
| Weighted average share outstanding                                        |   |          | 36,000    |   |   |   | 36,000 |   |   |   | 282,121 |   |   |   | 728,217 |   |

|                                                                      |        | Period from        |         |        |               |        |          |        |        |        |        |        |        |        |
|---------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------|--------|----------|--------|--------|--------|--------|--------|--------|--------|
|                                                                      |        | Inception (January |         |        |               |        |          |        |        |        |        |        |        |        |
|                                                                      |        | 2012) through      |         |        | Quarter Ended |        |          |        |        |        |        |        |        |        |
|                                                                      |   | 31-Mar-12          |    |   | 30-Jun-12     |   |     |   |   |   |   |   |   |   |
| Net investment loss                                                       |   | $                  | (1,518) |   |          | $      | (51,423) |   |   |   |   |   |   |   |   |   |
| Net realized gain from sale of investments                                |   | $                  | -       |   |          | $      | -        |   |   |   |   |   |   |   |   |   |
| Net unrealized gain on investments                                        |   | $                  | -       |   |          | $      | -        |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations           |   | $                  | (1,518) |   |          | $      | (51,423) |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations per share |   | $                  | (0.04)  |   |          | $      | (1.43)   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                                       |   |               | 36,000  |   |          |   | 36,000   |   |   |   |   |   |   |   |   |   |

----

|   | By:    | /s/ Robert Dixon   |   |
|--------|--------|--------------------|--------|
|   |   | September 29, 2014 |   |
|   |   |                    |   |
|   | By:    | /s/ Paul Koslosky  |        |
|   |        | September 29, 2014 |        |