7. MORTGAGE NOTES PAYABLE

Mortgage notes payable consisted of the following:

		Principal as of
		September 30,		December 31,		Loan	Interest
Mortgage note property	Notes	2015		2014		Type	Rate (1)				Maturity
Sparky's Palm, Joshua and Sunrise		$	-	$	7,986,522	Fixed		4.70	%	*		-
Sparky's Lancaster			-		1,903,982	Fixed		5.00	%	*		-
Sparky’s Thousand Palms			-		4,092,100	Variable		5.50	%	*		-
Sparky's Hesperia East			-		830,883	Variable		4.75	%	*		-
Sparky's Rialto			-		2,119,037	Fixed		4.75	%	*		-
Havana/Parker Complex			2,500,000		2,500,000	Fixed		6.51	%		7/1/16
Garden Gateway Plaza			6,841,038		6,963,381	Fixed		5.00	%		4/5/20
Genesis Plaza			6,500,000		4,491,588	Fixed		4.65	%		8/25/25
Executive Office Park	(2)		4,325,816		4,379,854	Fixed		5.80	%		7/1/25
Dakota Bank Buildings			10,866,923		10,993,386	Fixed		4.74	%		7/6/24
Yucca Valley Retail Center			6,000,000		2,982,411	Fixed		4.30	%		4/11/25
Rangewood Medical Office Building			1,043,705		1,092,778	Fixed		4.95	%		1/1/19
Regatta Square			1,191,328		1,214,799	Fixed		4.95	%		1/1/19
Port of San Diego Complex			10,180,489		10,368,228	Fixed		4.75	%		3/5/20
Morena Office Center	(3)		2,305,500		2,351,805	Fixed		4.50	%		1/1/21
Pacific Oaks Plaza	(3)		1,567,500		1,599,204	Fixed		4.50	%		6/1/21
Shoreline Medical Building	(3)		3,757,523		3,846,697	Fixed		5.10	%			-
Waterman Plaza			-		3,368,146	Fixed		6.50	%		9/1/15
The Presidio			6,000,000		6,000,000	Fixed		4.54	%		12/1/21
Bismarck Office Building			3,269,294		3,321,198	Fixed		4.50	%		10/1/16
Union Terrace Building			6,600,000		6,600,000	Fixed		4.34	%		12/5/24
Centennial Tech Center			10,250,000		10,250,000	Fixed		4.34	%		1/5/25
Arapahoe Service Center			8,500,000		8,500,000	Fixed		4.28	%		1/5/25
Highland Court			6,989,587		-	Fixed		3.82	%		8/28/22
West Fargo Industrial			4,500,000		-	Fixed		4.79	%		8/4/20
Westminster			6,610,000		-	Fixed		4.77	%		7/31/25
Union Town Center			8,440,000		8,440,000	Fixed		4.28	%		1/5/25
Subtotal, NetREIT, Inc. properties			118,238,703		116,195,999
Model Home mortgage notes	(4)		9,969,515		7,703,299	Fixed					2015-19
Mortgage Notes Payable, total		$	128,208,218	$	123,899,298

(1)	Interest rates as of September 30, 2015

(2)	Interest rate is subject to reset on July 1, 2018.

(3)	Interest rate subject to resetting on the 6th loan anniversary.

(4)	Each Model Home has a standalone mortgage note at interest rates ranging from 4.9% to 5.8% per annum (at September 30, 2015).

*	Mortgage notes payable, aggregating $16,932,524 were paid off in connection with the sale of the self-storage facilities on April 10, 2015. Refer to Note 6.

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

Scheduled principal payments of mortgage notes payable were as follows as of September 30, 2015:

	NetREIT, Inc.		Model Homes		Principal
	Notes Payable		Notes Payable		Payments
Three months remaining in 2015	$	311,539	$	133,770	$	445,309
Years ending December 31:
2016		7,243,888		970,755	$	8,214,643
2017		1,767,576		1,524,063	$	3,291,639
2018		5,972,923		1,760,339	$	7,733,262
2019		2,988,041		1,738,478	$	4,726,519
Thereafter		99,954,736		3,842,110	$	103,796,846
Total	$	118,238,703	$	9,969,515	$	128,208,218