4. MORTGAGE NOTES PAYABLE

Mortgage notes payable as of December 31, 2012 and December 31, 2011 consisted of the following:

	December 31,		December 31,
	2012		2011
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.	$	3,163,018	$	3,242,767

Mortgage note payable in monthly installments of $42,383 through April 5,
2020, including interest at a fixed rate of 5.00%; collateralized by the leases
and office buildings of the Garden Gateway Plaza property.		9,248,703		9,533,849


Mortgage note payable in monthly installments of $25,995 through September
1, 2015, including interest at a fixed rate of 6.50%; collateralized by the
Waterman Plaza Property		3,542,157		3,621,057

Mortgage note payable in monthly installments of $28,865 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.		4,326,536		4,431,783

Mortgage note payable in monthly installments of $10,764 through December
18, 2016, including interest at a fixed rate of 6.25%; collateralized by the
Sparky’s Hesperia East Self-Storage property.		1,666,713		1,690,301

Mortgage note payable in monthly installments of $17,226 through May 3, 2012,
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, or May 15, 2015;
collateralized by the Sparky’s Rialto Self-Storage property.		2,512,003		2,820,793

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 Apartment property (1).		1,020,943		1,040,762

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.		4,738,967		4,854,307

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.		4,511,736		4,572,161

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% (current rate) and a ceiling of 9.75% through
May 31, 2016; collateralized by the Dakota Bank Building property.		5,532,953		5,640,568

Mortgage note payable in monthly installments of $23,919 through April 11,
2015, including interest at a fixed rate of 5.62%; collateralized
by the Yucca Valley Retail Center.		3,203,262		3,304,120

Mortgage note payable in monthly installments of $9,858 through January 1,
2019, including interest at a fixed rate of 4.95%; collateralized
by the Rangewood Medical Office Building.		1,214,819		1,150,000

Mortgage note payable in monthly installments of $7,562 through January 1,
2019, including interest at a fixed rate of 4.95%; collateralized
by Regatta Square.		1,272,994		1,300,000

Mortgage note payable in monthly installments of $61,573 through March 5,
2020, including interest at a fixed rate of 4.75%; collateralized by the
Port of San Diego Complex.		9,185,400		9,500,000

Mortgage note payable in monthly installments of $13,896 through June 1,
2021, including interest at a fixed rate of 4.5% subject to reseting at the 3rd
and 6th anniversary to the lender's current rate on similar loans;
collateralized by the Morena Office Center.		2,468,148		-

Mortgage note payable in monthly installments of $9,450 through June 1,
2021, including interest at a fixed rate of 4.5% subject to reseting at the 3rd
and 6th anniversary to the lender's current rate on similar loans;
collateralized by the Pacific Oaks Plaza.		1,678,335		-

Mortgage note payable in monthly installments of $26,043 through June 1,
2021, including interest at a fixed rate of 5.1% subject to reseting at the 3rd
and 6th anniversary to the lender's current rate on similar loans;
collateralized by the Shoreline Medical Office Building.		4,067,514		-

Mortgage note payable in monthly installments of $42,788 through December
6, 2022, including interest at a fixed rate of 4.7%; collateralized by
Sparky's Palm, Joshua and Sunrise Self-Storage properties.		8,250,000		-

Mortgage note payable in monthly installments of $36,701 through January
6, 2015, including interest at a fixed rate of 5.6%; collateralized by
The Presidio.		5,617,671		-

Subtotal, NetREIT, Inc. properties		77,221,872		56,702,468

Mortgage notes payable in monthly installments of $20,588; maturity date of
February 10, 2014, including interest at a fixed rate of 5.50%;
collateralized by 7 Model Home properties.		1,628,170		2,088,868

Mortgage notes payable in monthly installments of $3,767; maturity date of
September 15, 2012, including interest at a fixed rate of 5.75%;
collateralized by 4 Model Home properties. (1)		407,480		428,203

Mortgage notes payable in monthly installments of $14,104 maturity date of
December 15, 2015, including interest at a fixed rate of 5.75%;
collateralized by 15 Model Home properties.		1,545,578		2,205,798

Mortgage notes payable in monthly installments of $4,308; maturity date
of October 5, 2011; including interest at fixed rate of 2.38%;
collateralized by 1 Model Home property.		-		420,830

Mortgage notes payable in monthly installments of $1,357; maturity date
of March 5, 2012; including interest at fixed rate of 2.55%;
collateralized by 1 Model Home property.		-		670,207

Mortgage notes payable in monthly installments of $1,798 with a maturity
December 5, 2011, including interest at 7.16%; collateralized by
collateralized by 1 Model Home property.		-		89,811

Mortgage notes payable in monthly installments of $20,507 maturities varying
from February 15, 2016 to December 15, 2017, including interest at
fixed rates from 5.00%, to 5.50%; collateralized by 15 Model Home properties.		1,723,047		2,747,709

Mortgage notes payable in monthly installments of $50,327, maturities varying
from April 15, 2017 to December 15, 2017, including interest at fixed rates
from 5.00%, to 5.50%; collateralized by 33 Model Home properties.		6,098,892		575,903

Mortgage notes payable in monthly installments of $33,298, maturities varying
from June 30, 2012 to December 15, 2017, including interest at
fixed rates of 5.50%-5.84%; collateralized by 18 Model Home properties. (1)		3,855,324		-

Subtotal, Model Home properties		15,258,491		9,227,329

	$	92,480,363	$	65,929,797