4. MORTGAGE NOTES PAYABLE

Mortgage notes payable as of June 30, 2011 and December 31, 2010 consisted of the following:

	June 30,		December 31,
	2011		2010
Mortgage note payable in monthly installments of $24,330
through July 1, 2016, including interest at a fixed rate of 6.51%,
collateralized by the Havana/Parker Complex property.	$	3,286,617	$	3,323,714

Mortgage note payable in monthly installments of $71,412 through April 5,
2014, including interest at a fixed rate of 6.08%; collateralized by the leases
and office buildings of the Garden Gateway Plaza property. Certain
obligations under the note are guaranteed by the executive officers.		9,692,371		9,823,854

Mortgage note payable in monthly installments of $27,088 through February
1, 2012, including interest at a fixed rate of 5.31%; collateralized by the
World Plaza property.		3,154,080		3,231,661

Mortgage note payable in monthly installments of $25,995 through September
1, 2015, including interest at a fixed rate of 6.5%; collateralized by the
Waterman Plaza property.		3,650,742		3,700,953

Mortgage note payable in monthly installments of $28,842 through March 1,
2034, including interest at a variable rate ranging from 5.5% to 10.5%;
with a current rate of 5.5% collateralized by the
Sparky’s Thousand Palms Self-Storage property.		4,490,566		4,539,478

Mortgage note payable in monthly installments of $9,432 through December
18, 2016, including interest at a fixed rate of 5.00%; collateralized by the
Sparky’s Hesperia East Self-Storage property.		1,703,731		1,717,059

Mortgage note payable in monthly installments of $17,226 through May 3, 2015,
including interest at a fixed rate of 5.00%; monthly installments of $19,323 from
June 3, 2012, including interest at 6.25% to maturity, collateralized
by the Sparky’s Rialto Self-Storage property.		2,856,920		2,887,597

Mortgage note payable in monthly installments of $28,219 through September 1,
2015, including interest at a fixed rate of 4.65%; collateralized
by the Genesis Plaza property.		4,919,159		4,973,365

Mortgage note payable in monthly installments of $6,638 through July 1,
2018, including interest at a fixed rate of 5.80%; collateralized
by the Casa Grande property (1).		1,050,000		-

Mortgage note payable in monthly installments of $26,962 through July 1,
2025, including interest at a fixed rate of 5.79% through July 1, 2018; collateralized
by the Executive Office Park property.		4,600,000		-

Mortgage note payable in monthly installments sufficient to amortize the note
on a 25 year schedule and the current month interest charge (currently,
approximately $36,200), interest at a variable rate of 3.0% over the one month
libor with a floor of 5.75% and a ceiling of 9.75% through May 31, 2016;
collateralizedby the Dakota Bank Building property.		5,700,000		-

Subtotal, NetREIT, Inc. properties		45,104,186		34,197,681

Mortgage notes payable in monthly installments of $25,416 through February 10,
2012, including interest at a fixed rate of 5.50%;
collateralized by 10 model home properties.		2,280,469		2,937,316

Mortgage notes payable in monthly installments of $14,546 through September
18, 2012, including interest at a fixed rate of 6.50%;
collateralized by 3 model home properties.		1,304,500		1,873,193

Mortgage notes payable in monthly installments of $3,767 through September
15, 2012, including interest at a fixed rate of 5.75%;
collateralized by 4 model home properties.		438,120		447,822

Mortgage notes payable in monthly installments of $19,792 through December
15, 2015, including interest at a fixed rate of 5.75%;
collateralized by 22 model home properties.		2,322,659		2,374,881

Mortgage notes payable in monthly installments of $4,308 maturity date of
October 5, 2011, including interest at a fixed rate of 7.12%;
collateralized by 1 model home property.		608,789		2,583,323

Mortgage notes payable in monthly installments of $6,983 maturities varying
from March 4, 2011 to November 5, 2011, including interest at fixed
rates from 2.42%, to 7.12%; collateralized by 3 model home properties. (2)		791,300		1,994,260

Mortgage notes payable in monthly installments of $10,169 maturities varying
from May 5, 2011 to December 5, 2011, including interest at
fixed rates from 4.14%, to 7.21%; collateralized by 7 model home properties. (2)		1,747,099		2,836,311

Mortgage notes payable in monthly installments of $12,449 maturities varying
from February 15, 2016 to March 11, 2016, including interest at
fixed rates from 5.75%, to 6.3%; collateralized by 14 model home properties.		1,746,758		-




Subtotal, model home properties		11,239,694		15,047,106

	$	56,343,880	$	49,244,787

As of June 30, The Company is in compliance with all conditions and covenants of its mortgage notes payable.

Scheduled principal payments of mortgage notes payable as of June 30, 2011 are as follows: