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

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

Scheduled principal payments of mortgage notes payable as of December 31, 2012 is as follows: