7. MORTGAGE NOTES PAYABLE

Mortgage notes payable consisted of the following:

		Principal as of
		June 30,			December 31,			Loan	Interest
Mortgage note property	Notes	2017			2016			Type	Rate (1)			Maturity
Rangewood Medical Office Building		$	-		$	958,106		Fixed		4.95	%	1/1/2019
Regatta Square			-			1,150,566		Fixed		4.95	%	1/1/2019
Garden Gateway Plaza			6,537,121			6,626,739		Fixed		5.00	%	2/5/2020
Port of San Diego Complex			9,715,579			9,852,456		Fixed		4.75	%	3/5/2020
West Fargo Industrial			4,400,178			4,434,655		Fixed		4.79	%	8/4/2020
Morena Office Center	(2)		2,190,482			2,224,839		Fixed		4.50	%	1/1/2021
Waterman Plaza			3,893,565			3,939,037		Fixed		4.25	%	4/29/2021
Pacific Oaks Plaza			1,489,478			1,512,640		Fixed		4.50	%	6/1/2021
The Presidio			6,000,000			6,000,000		Fixed		4.54	%	12/1/2021
Shoreline Medical Building			-			3,602,238		Fixed		5.10	%	6/1/2022
Highland Court			6,763,082			6,829,348		Fixed		3.82	%	9/1/2022
Dakota Bank Buildings			10,584,434			10,677,761		Fixed		4.74	%	7/6/2024
Union Terrace Building			6,505,946			6,558,704		Fixed		4.50	%	9/5/2024
Centennial Tech Center			9,991,836			10,077,242		Fixed		4.34	%	11/5/2024
Research Parkway			1,932,815			1,956,154		Fixed		3.94	%	1/5/2025
Arapahoe Service Center			8,431,261			8,500,000		Fixed		4.34	%	1/5/2025
Union Town Center			8,440,000			8,440,000		Fixed		4.28	%	1/5/2025
Yucca Valley Retail Center			6,000,000			6,000,000		Fixed		4.30	%	4/11/2025
Executive Office Park	(3)		4,191,082			4,231,842		Fixed		5.80	%	7/1/2025
Genesis Plaza			6,500,000			6,610,000		Fixed		4.65	%	8/25/2025
One Parke Centre			6,610,000			6,500,000		Fixed		4.77	%	9/5/2025
Shea Center II			17,727,500			17,727,500		Fixed		4.92	%	1/5/2026
Bismarck Office Building	(5)		4,108,883			4,158,998		Fixed		4.02	%	8/1/2037
300 N.P.			2,397,089			-		Fixed		4.02	%	8/1/2037
Subtotal, NetREIT, Inc. properties			134,410,331			138,568,825				4.71	%
Model Home mortgage notes			27,371,340			22,259,779		Fixed	(4)			2017-2020
Mortgage Notes Payable		$	161,781,671		$	160,828,604
Unamortized loan costs			(1,829,607	)		(1,942,493	)
Mortgage Notes Payable, net		$	159,952,064		$	158,886,111

(1) Interest rates as of June 30, 2017.

(2) Interest rate is subject to reset on the 6th loan anniversary.

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

(4) Each Model Home has a stand-alone mortgage note at interest rates ranging from 3.8% to 5.5% per annum (at June 30, 2017).

(5) Interest rate is subject to reset on September 1, 2023 and on September 1, 2030.

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 June 30, 2017:

	NetREIT, Inc.		Model Homes		Principal
	Notes Payable		Notes Payable		Payments
Six months remaining in 2017	$	871,226	$	726,148	$	1,597,374
Years ending December 31:
2018		1,931,368		1,950,355	$	3,881,723
2019		2,286,504		16,493,819	$	18,780,323
2020		21,157,086		8,201,018	$	29,358,104
2021		14,494,462		-	$	14,494,462
Thereafter		93,669,685		-	$	93,669,685
Total	$	134,410,331	$	27,371,340	$	161,781,671