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