Legal Notice

Welcome to Redtec Solutions, LLC (“Redtec”), a professional tax strategy consulting firm for residential real estate investors and owners. Redtec is owned and operated by real estate professionals, engineers, and investors with substantial experience in residential real estate investments. Redtec is not a Certified Public Accounting firm and its principals are not tax lawyers. Redtec’s real estate professionals will, however, take you through one of the most underutilized tax planning strategies available to real estate investors in some time. While some property owners and their tax advisors use cost segregation after acquiring or constructing a building or rental property, the accelerated depreciation and cash flow benefits of cost segregation are not routinely utilized and the finer points of the tax saving strategy are often entirely overlooked.

1. Cost Segregation. Cost segregation studies can be used throughout the stages of real estate development, acquisition, leasing, sale or exchange, and it can provide sizeable financial benefits to you. Cost segregation is an accelerated depreciation technique that sophisticated real estate investors, under the advice of qualified CPA’s and tax attorneys, use to reduce their tax burden and increase their after-tax cash flow.

A cost segregation study is a comprehensive engineering analysis for persons or company’s (“use”) whereby personal property assets and land improvement assets are identified and segregated from real property assets for tax reporting purposes. According to IRS Publication 946, “Appliances, carpets, furniture, etc., used in a residential rental real estate activity” can be classified as “5-year property” and depreciated using the “200% declining balance” method. In addition, “certain improvements made directly to land or added to it (such as shrubbery, fences, roads, and bridges)” can be classified as “15-year property” and can be depreciated using the “150% declining balance” method. These 5 and 15 year asset class buckets result in accelerated depreciation, which reduces the investor’s tax burden and increases after-tax cash flow.

Redtec Solutions, LLC is a leading residential cost segregation company in the United States that specializes in 1 to 4 unit rental properties. The User may download a MS PowerPoint presentation further explaining the advantages of cost segregation studies by visiting www.redtecsolutions.com. In addition, Users may visit our FAQ at www.redtecsolutions.com to obtain additional information that may be useful for their advisors.

2. Binding Contract and Parties. Any user subscribing to this Terms and Use Agreement with Redtec Solutions, LLC (hereafter “Redtec”) is entering into a binding and enforceable contract governed by the laws of the State of Arizona. A subscription to www.redtecsolutions.com or Redtec Solutions, LLC for Redtec’s services is deemed an enforceable and binding agreement by the User to pay any and all deposits, prices and charges quoted herein and an agreement to comply with the use and risk restrictions and other provisions set forth herein. By clicking “I Agree” and by using Redtec’s services herein, you agree to be legally bound by all of the provisions contained in this Terms and Use Agreement.

3. Service Ordering and Billing. Prices for this service are posted on Redtec’s website, www.redtecsolutions.com. By submitting this online order form, User agrees that Redtec may charge the User’s credit card or debit the designated bank account of User in accordance with the pricing herein.

Credit card payments are accepted on Redtec’s website or over the telephone. Redtec’s services include a site visit and evaluation, a subsequent cost segregation report, and photographs that the User will receive upon completion of the services which will be approximately ninety (90) days after subscription and payment of an upfront deposit in the amount of $400.

The order process is as follows: (a) create an account profile on www.redtecsolutions.com; (b) order a cost segregation study, securing it with a refundable $400 deposit (which becomes non-refundable after the subsequent site visit). This occurs when the User submits answers to a property-specific questionnaire, agrees to these Terms of Use, and submits the refundable $400 deposit (which becomes non-refundable after the subsequent site visit); (c) Redtec performs a site visit and property evaluation, after which the $400 deposit becomes non-refundable; (d) Redtec creates the customized cost segregation report within 90 days of the site visit, unless previously agreed to in writing; (e) the User is notified in writing of the completed report and is issued an invoice for the remaining balance, and; upon receipt of the User’s payment, the report will be made available within 48 hours, unless previously agreed to in writing. The questionnaire elicits information about the property’s ownership, tenancy, property management and the like, so that Redtec can make arrangements for a site visit and access to the rental unit(s) to conduct the cost segregation engineering study, take measurements, evaluate the property, take photographs, and accumulate evidence that will support appropriate cost segregation reporting and treatment in accordance with IRS rules and regulations. This data is then analyzed and included in a Redtec report, which will be uploaded to Redtec’s secure server upon completion.

Once Redtec verifies payment of the balance of the price, the User may then download Redtec’s report and photographs from the server, for a period of 90 days from payment in full of the price.

For a renewable additional charge of $50 per year, the User will receive the additional benefit of “long term report retention,” wherein Redtec retains the User’s cost segregation report on the internet. After the 90-day period, however, if the User does not order the long term report retention, any order for a prior cost segregation report will cost $350.

4. Price Structure. Redtec’s pricing is set forth below:

Unit Type	Price
SFR, Townhouse or Condo	$1,500 - $2,500
Duplex	$1,800 - $2,800
Triplex	$1,900 - $2,900
Fourplex	$2,000 - $3,000

Due to price fluctuations that come with seasonal demand, the User will lock in the current market price when the report is ordered (and the $400 deposit is made). Any discounts or promotional codes will be applied to the final balance owed upon report completion.

5. Software Programs and Reports. Upon Redtec’s completion of its report, the User must utilize the following software programs to access the User’s file (or the file may be mailed at no charge) electronically: www.redtecsolutions.com through the internet through the Internet Explorer browser 5.5 or greater; or Adobe Acrobat Reader 6.0, which may be obtained at: http://www.adobe.com/products/acrobat/readstep2.htm.

Upon Redtec’s completion of the report, no revisions, edits or changes to Redtec’s report is authorized or permitted. Multiple copies of the report may be downloaded and printed by the User, but no editing, revisions, changes or alterations shall be allowed. Finally, once Redtec generates a cost segregation report, the price quoted above shall be paid and no refunds will be made. All invoices are due upon receipt. Any non-payment for a period of 90 days after delivery of the receipt to user shall entitle Redtec to pursue any and all collection procedures under Arizona and federal law.

6. Restrictions on Use and Risk. The User understands that it is assuming any and all risk and/or liability that may arise out of the User’s (taxpayer’s) use of the report that the User is purchasing herein, as Redtec does not, and cannot know all of the User’s financial conditions and tax obligations. The User is expressly advised to retain the services of a CPA or a tax lawyer to prepare and/or report the User’s financial position to the IRS, and Redtec accepts no responsibility or liability for the accuracy or validity of the User’s tax reporting or use of Redtec’s cost segregation report. Accordingly, the User hereby agrees to indemnify, defend and hold Redtec harmless from and against any and all liability, claims, actions, audits or expenses that have any relationship to Redtec’s report.

The User expressly agrees that its use of Redtec’s website is at User’s sole risk, and User recognizes that internet services and browser capabilities (and charges as applicable) may change over time and that Redtec makes no representation or warranty, express or implied, about Redtec’s services, products or website operations.

Further, Redtec grants User a revocable, limited and nontransferable license to use Redtec’s services for tax depreciation and subsequent property valuation purposes only. Use of Redtec’s services or products for any other purposes is expressly prohibited. User may not modify, copy, reverse engineer, reproduce, or otherwise alter Redtec’s services and/or product for commercial purposes, resale or sales and marketing purposes without Redtec’s written consent. User may only copy or distribute Redtec’s report to satisfy User’s personal or investment strategies relating to calculating tax impact, or disposition of the property. Finally, User may not sublicense, assign, or transfer any licensing rights conferred herein, and any such attempt to do so shall be null and void. Any unauthorized actions in violation of this Agreement are strictly prohibited.

7. Privacy Protections. The User may be assured of the following privacy protections with respect to its credit or debit charges, personal or property information and any data collected by Redtec in the ordinary course of business:

a. Redtec will only collect information necessary to generate its cost segregation reports, unless it is necessary for billing and payment purposes.

b. Credit card numbers or debit account data will not be stored.

c. Users will be directed to www.authorize.net (through Redtec’s website), so Redtec personnel will not be privy to credit card or debit card account information (unless it is telephoned in). All personnel will be strictly trained to honor the integrity and privacy of any and all account information.

d. No social security numbers will be requested through the order process.

e. All property information, reports, photographs of a site, and account and payment data will be stored in a secure database.

f. Any unauthorized use of any User’s financial, property or personal information, for any purpose unrelated to Redtec’s services and billing as set forth herein, is strictly prohibited.

g. User information may be used by Redtec, however, for Redtec’s business purposes as set forth herein, or for the purpose of Redtec’s marketing strategies. Again, credit card and debit card (and personal information) will not be stored by Redtec.

h. Redtec will not collect information or data from persons under the age of eighteen (18), and Redtec requests that any User under the age of 18 refrain from furnishing any information to our website. Any information furnished by a minor will be immediately deleted or discarded if known by Redtec.

i. Redtec will collect the following information:

(1) Information You Furnish: We receive and store any information (excluding credit card numbers) you enter while using our site, services or during the checkout process. This information typically includes your full name, shipping and billing addresses, telephone number, email address, and email list preferences. We use the information that you provide for such purposes as responding to your requests, customizing future shopping for you, and communicating with you.

(2) Automatic Information: We collect limited non-personally identifying information your browser makes available whenever you visit a website. This information includes your Internet Protocol address, browser type, browser language, operating system version, referring website, the date and time of your query, and one or more cookies that may uniquely identify your browser and username. We use this information to operate, develop and to improve the quality of our service and to better understand how people interact with us. A number of companies offer utilities designed to help you visit websites anonymously. Although we will not be able to provide you with a personalized experience at our sites if we cannot recognize you, we want you to be aware that these tools exist. Some www.redtecsolutions.com features or services may not function properly without cookies.

(3) Email or Electronic Communications: To confirm your online order, Redtec requires that you enter your email address so that we can send you an email confirmation. We store your email in our database and will occasionally send you special communications about current promotions, product developments and/or exclusive invitations. If you do not want to receive email from us, you can unsubscribe from our electronic mailing list by contacting our web administrator on www.redtecsolutions.com.

j. Information Sharing:

Redtec does not rent or sell your personally identifiable information to other companies or individuals. Redtec will only disclose your personally identifiable information to third parties if acting under a good faith belief that such action is necessary (1) to conform to legal requirements; (2) to protect and defend the rights or property of Redtec; (3) to enforce our Terms of Use or any license agreement between you and Redtec; or (4) in the event of a merger, acquisition or sale of all or substantially all of Redtec’s assets relating to the business in connection with which the information was collected. Redtec may share aggregated information that has been scrubbed so that it does not identify a specific person.

Redtec may share your information internally among all of our services in order to provide you with a seamless experience and to improve the quality of our services. Redtec will not disclose your account information to other people or non-affiliated companies, except in the limited circumstances described above. We may store and process personal information collected on our site in the United States or any other country in which Redtec or its agents maintain facilities. By using our services, you consent to the transfer of your information among these facilities, including those located outside your country.

k. Security of Your Information:

Redtec takes appropriate security measures to protect against unauthorized access to or unauthorized alteration, disclosure or destruction of data. We restrict access to your personally identifying information to employees who need to know that information in order to operate, develop or improve our products and services. Redtec maintains all personally identifiable information on a secure server behind a firewall and IDS system. Redtec also uses encryption technology when appropriate.

l. Links:

Redtec’s websites contain links to other websites. Please note that when you click on one of these links, you are “clicking” to another website. We encourage you to read the privacy policies of these linked sites, as their privacy policies may differ from ours. This Privacy Policy applies solely to information collected by Redtec on our site.

m. Updating Your Personal Information:

You may update your personal information any at time through Redtec’s website or by calling customer service at (602) 312-8496. We may request evidence of your identity before updating any information.

n. Changes to this Privacy Protection Policy:

Redtec may periodically update this Privacy Protection Policy. If so, we will post the updated Privacy Policy on this website. Redtec encourages you to review this Privacy Protection Policy from time to time for any changes. The effective date of this Privacy Policy is September, 2007.

o. Storing of Partial Credit Card Numbers:

In the interest of fraud prevention and identity theft, Redtec will not store your debit or credit card number(s). While we require the full debit or credit card number when making a purchase, we do not store the number or account data in our database. We may, however, record the debit or credit card type, the last four numbers or the debit or credit card number, and the expiration date. This information is recorded for audit or customer service purposes only.

8. Miscellaneous. The following miscellaneous provisions shall apply to this Term and Use Agreement:

a. Disclaimer of Liability:

REDTEC AND ITS AFFILIATES, REPRESENTATIVES, SHAREHOLDERS, PREDECESSORS, SUCCESSORS, LICENSORS, DISTRIBUTORS, THIRD PARTY PROVIDERS, ADVERTISERS OR ASSIGNS (COLLECTIVELY, THE “PARTICIPATING PARTIES”) EXPRESSLY DISCLAIM ALL LIABILITY FOR ANY IMPROPER OR INCORRECT USE OF THE INFORMATION DESCRIBED AND/OR CONTAINED HEREIN OR IN THE SERVICES AND ASSUMES NO RESPONSIBILITY FOR USE OF THE INFORMATION. THE PARTICIPATING PARTIES FURTHER EXPRESSLY DISCLAIM ANY LIABILITY FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS WEBSITE OR THE SERVICES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

While all attempts have been made to verify information provided in the services and on this website, Redtec DISCLAIMS ALL LIABIILTY FOR ERRORS, OMISSIONS, INFRINGING MATERIAL, OR CONTRARY INTERPRETATION OF THE SUBJECT MATTER HEREIN AND NO WARRANTY, EXPRESS OF IMPLIED, IS MADE REGARDING TIMELINESS, ACCURACY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ADEQUACY, COMPLETENESS, LEGALITY, RELIABILITY OR USEFULNESS OF ANY INFORMATION CONTAINED HEREIN OR IN THE SERVICES.

Tax laws and regulations change frequently and their application can vary widely based upon the specific facts and circumstances involved. The User is responsible for consulting with its own professional tax advisors concerning their specific tax circumstances. Redtec EXPRESSLY DISCLAIMS ANY RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF ANY POSITIONS TAKEN BY THE USER IN THEIR TAX RETURNS.

THIS WEBSITE, THE SERVICES AND ANY REPORT GENERATED USING EITHER OF THE FOREGOING ARE PROVIDED ON AN ‘AS IS’ BASIS, WITH NO REPRESENTATIONS OR WARRANTIES PROVIDED EITHER EXPRESS OR IMPLIED.

To ensure compliance with requirements imposed by the U.S. Treasury and the IRS, we inform you that any report or information provided by Redtec cannot be used for the purpose of avoiding tax obligations or penalties that may be imposed under the Internal Revenue Code.

b. Governing Law:

Any and all issues, claims and actions arising out of this Agreement or the parties’ interactions shall be governed by Arizona law and by applicable federal statutes, law, rules, and regulations.

Redtec reserves all rights not expressly granted herein. Redtec shall have the right to immediately terminate User’s access to or use of the services in the event of any activities which are in breach of these Terms of Use or conduct which interferes with the operation or use of the services. Termination of this Agreement automatically terminates User’s license and authorization to use and/or access services and any content or other material contained therein. Redtec is entitled to enforce its rights hereunder by an action for damages or for specific performance, injunctive or other equitable relief. Redtec reserves the right to not process applications, or to revoke the access or authorizations to access this website, or to revoke the account of any User subscribing to any program without cause and without notice. If such person shall be removed, Redtec will cease any future billings immediately upon revocation, and User acknowledges that all fees paid will be retained and non-refundable.

d. Copyright and Trademarks:

Redtec reserves all rights to the content and material delivered as part of the program, including but not limited to the reports, images, written transcripts, media, logos, text graphics, software, designs, mottos, and all other items contained in this website that are protected by US and international trademark or copyright laws. Except as permitted herein, it is expressly prohibited to reproduce, use, modify or in any way display or distribute this information without the express prior written permission of Redtec or the respective owner of the copyright or trademarks. The compilation, selection, arrangement and presentation of all materials, the overall design of this website, and the computer programs that create the website displays are protected.

User agrees to protect the copyright and all other proprietary rights of Redtec and its licensors in the services by using the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized use and unauthorized disclosure of the services as User uses to protect its own confidential and/or proprietary information of like importance.

Reference herein to any specific commercial products, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by Redtec. Redtec is not responsible for the contents or the privacy practices of any off-site pages referenced. Links from this website to other sites do not constitute an endorsement from Redtec but are provided as an information service only. It is the responsibility of User to evaluate the content and usefulness of information obtained from other sites.

Pursuant to Title 17, United States Code, Section 512(c)(2), notifications of claimed copyright infringement must be sent to Sarah Sharma, ESQ and IP Attorney for the Etherton Law Group, 5555 E. Van Buren St., Suite 100, Phoenix, AZ 85008.

e. Entire Agreement and Separability:

These Terms of Use constitute the entire agreement between the parties, and no one is authorized to rely upon any representations of any nature not contained herein. Further, the representatives or agents of Redtec and its Participating Parties are not authorized to make modifications to this Agreement, or to make any additional representations, commitments, or warranties binding on Redtec, except in a writing signed by an authorized officer of Redtec.