4. MORTGAGE NOTES PAYABLE

Mortgage notes payable as of September 30, 2013 and December 31, 2012 consisted of the following:

	September 30,		December 31,
	2013		2012
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.	$	3,098,780	$	3,163,018

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. (1)		7,157,382		9,248,703

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		3,479,533		3,542,157

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.		4,243,720		4,326,536

Mortgage note payable in monthly installments of $5,171 through December
18, 2022, including interest at a variable rate of currently of 4.75%;
through December 20, 2020 indexed to the 5 year Interest Rate Swap rate;
collateralized by the Sparky’s Hesperia East Self-Storage property. (2)		895,132		1,666,713

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 4.75%
to maturity, or May 15, 2023; collateralized by the Sparky’s Rialto
Self-Storage property. (3)		2,178,159		2,512,003

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

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.		4,648,880		4,738,967

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.		4,463,521		4,511,736

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.		5,446,672		5,532,953

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.		3,123,489		3,203,262

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.		1,170,340		1,214,819

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.		1,251,713		1,272,994

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. (1)		10,666,666		9,185,400

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;		2,425,513		2,468,148
collateralized by the Morena Office Center.

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;		1,649,337		1,678,335
collateralized by the Pacific Oaks Plaza.

Mortgage note payable in monthly installments of $26,043 through June 1,
2022, 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;		3,986,908		4,067,514
collateralized by the Shoreline Medical Office Building.

Mortgage note payable in monthly installments of $42,788 through December
6, 2022, including interest at a fixed rate of 4.7%; collateralized by		8,146,649		8,250,000
Sparky's Palm, Joshua and Sunrise Self-Storage properties.

Mortgage note payable in monthly installments of $36,701 through January
6, 2015, including interest at a fixed rate of 5.6%; collateralized by		5,523,716		5,617,671
The Presidio.

Mortgage note payable in monthly installments of $13,200 through
June 1, 2020, including interest at a fixed rate of 5.0%; collateralized by
Sparky's Lancaster Self- Storage.		1,980,411		-

Mortgage note payable in monthly installments of $11,479 through
August 28, 2019, including interest at a fixed rate of 4.75%; collateralized by
the Fontana Medical Plaza		2,000,000		-


Subtotal, NetREIT, Inc. properties		77,536,521		77,221,872


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.		1,514,426		1,628,170

Mortgage notes payable in monthly installments of $2,250; maturity date of
September 15, 2015, including interest at a fixed rate of 5.75%;
collateralized by 2 Model Home properties.		-		407,480

Mortgage notes payable in monthly installments of $7,490 maturity date of
December 15, 2015, including interest at a fixed rate of 5.75%;
collateralized by 7 Model Home properties.		789,867		1,545,578

Mortgage notes payable in monthly installments of $6,016, maturities
varying from February 15, 2016 to August 15, 2016, including
interest at fixed rates from 5.75%, to 6.30%; collateralized by 7
Model Home properties.		647,684		1,723,047

Mortgage notes payable in monthly installments of $35,594; maturity dates
of April 15, 2017 through June 15, 2017; including interest at fixed rate
of 5.50%; collateralized by 16 Model Home properties.		3,425,997		4,238,005

Mortgage notes payable in monthly installments of $14,732; maturity dates
of December 15, 2017; including interest at fixed rate of 5.00%;
collateralized by 13 Model Home properties.		1,799,349		1,860,887

Mortgage notes payable in monthly installments of $31,494; maturity dates
of June 30, 2013 through January 15, 2018; including interest at fixed
rate of 5.50% to 5.84%; collateralized by 15 Model Home properties.		3,098,584		3,855,324

Mortgage notes payable in monthly installments of $2,864; maturity date
of January 15, 2018; including interest at fixed rate of 5.00%;
collateralized by 2 Model Home properties.		123,630		-

Mortgage notes payable in monthly installments of $2,642; maturity date
of January 15, 2018; including interest at fixed rate of 5.00%;
collateralized by 2 Model Home properties.		312,286		-

		11,711,823		15,258,491

	$	89,248,344	$	92,480,363

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

Scheduled principal payments of mortgage notes payable as of September 30, 2013 is as follows: