3- Deposits and Costs Coincident to Acquisition of Land for Development

Deposits and costs coincident to acquisition of land for development are summarized as follows:

 Schedule of Deposits and Costs Coincident to Acquisition of Land for Development

Properties currently owned and either improved or under construction

Berkeley Terrace / Cedar Creek Towns – Bayville, NJ – 70 approved townhome units

The Company has been in title to this property since 2021 and finalized an infrastructure and construction finance facility which closed on 3/31/23. This facility included refinancing the land debt, securing funding for a large portion of the site construction, as well as funding the first building of 10 townhomes. The amount of the facility was $4,670,000.

The Company has retired the remaining debt in January of 2025 and the property currently has no debt.

The Company began infrastructure work on the property in June of 2023, with land clearing completed and the site stabilized for soils erosion control. Sanitary sewer, water and drainage has been installed on the entire property.

All building pads have been compacted and completed.

Base paving has been completed and the entire site has been fully improved.

The Company has entered into an agreement with a national builder to deliver improved building sites for this project. It is in the Company’s opinion that the financial advantages inherent in the sale of a portion of the improved lots in this development outweigh the advantages of building and selling or leasing the entire development.

The Company sold two 10-unit building pad sites in 2024 to a national builder. Vertical construction of Building 8 began in December of 2023, and Building 1 began in July of 2024.

As of September 30, 2024, 20 improved building pads had closed title to the national builder.

Building Pad 6, comprised of 8 improved building pads, was sold and closed title on 1/24/25. At that time all underlying debt for this property was retired. 42 improved building pads are scheduled to close in the next 12 months.

Building Pad 1, comprised of 12 improved building pads, was sold and closed title on 4/24/25.

On July 3, 2025, the Company sold 12 improved building pads in the Berkeley Terrace development to a national builder. The gross sale was in the amount of $1,536,429.

Subsequent Event: On October 3, 2025, the Company sold 10 improved building pads in the Berkeley Terrace development to a national builder.

The remaining buildable lots will close during 2025 and Q1 of 2026.

It is expected that the final 8-unit building pad in the development will be sold to a third-party builder in January of 2026.

Lacey Township, New Jersey, “Lacey Pines”

Dream Homes currently owns a parcel approved for 68 new townhomes in Ocean County NJ, of which 54 are market rate units and 14 are affordable housing units. The Company acquired this property on June 29, 2021 and is currently in title.

This property has received final approvals, Department of Transportation approval, CAFRA approval, MUA, County, Fire and other outside agency approvals.

Preliminary approval was granted in 2021 and final approval in 2023.

The Company has secured permanent funding to install infrastructure and vertical construction for this project in October of 2023 and retired the previous debt.

Site bonds, escrows and fees have been posted for the property, with clearing having started in the 4^th quarter of 2023.

The site improvements and infrastructure work for this development began in March of 2024 and were substantially completed in the 3^rd quarter of 2024.

As of 12/31/24, the property has been cleared, top soil removed, earth balance completed, sanitary sewer installed, water mains and laterals installed, on and off-site curb installed and base paving completed.

The Company has entered into an agreement with a national builder to deliver improved building sites for this project. It is in the Company’s opinion that the financial advantages inherent in the sale of a portion of the improved lots in this development outweigh the advantages of building and selling or leasing the entire development.

Building Pad 1, comprised of 6 improved building pads, was sold and closed title on 1/24/25.

On July 11, 2025, the Company sold 7 improved building pads in the Lacey Pines development to a national builder. The gross sale was in the amount of $893,473.

As of September 31, 2025, 47 improved building pads remained and are scheduled to close in the next 12 months.

Subsequent Event: On October 3, 2025, the Company sold 8 improved building pads in the Lacey Pines development to a national builder. 4 were market rate and 4 were affordable homes.

Louis Avenue – Bayville, NJ – 17 townhome units

The Company was heard before the Berkeley Township Planning Board on October 3, 2020 and the planning board awarded preliminary approvals for 17 townhome units.

The Company acquired this property on August 4, 2021.

The Company received Final approvals on August 8, 2022.

The property is in the process of resolution compliance and anticipates that clearing in the near term 2025. It is intended that bonds and fees will be posted and site work will begin in the 4^th quarter of 2025.

The company is scheduled to install base paving in the early part of the 2^nd quarter of 2026.

As of this date the Company is pursuing various options for the development of this property, including Build to Lease, sale of the approved parcel to another builder/developer, or sale of the improved parcel to a national builder.

If the improved property has not been sold by the time site work has been completed, the Company will proceed to build the townhouse units and either sell or lease them.

As of this date, the Company is completing resolution compliance and intends to post performance bonds and begin clearing in December of 2025.

Autumn Run – Gloucester County – 62 age-restricted manufactured housing units

On December 7, 2018, the Company signed a contract to purchase a property in Gloucester County, NJ, which has since been approved for 62 units of age-restricted manufactured housing. The property currently has final approvals.

The application for a use variance was heard on May 24, 2021 and the variance was approved.

The Company applied for preliminary and final site plan approval and was heard at the April 2023 planning board meeting. Preliminary approval was granted, and the Company submitted for finals in the 4^th quarter of 2023. The Company has since received final approvals.

The property has completed resolution compliance and is scheduled to begin clearing in November of 2025. Bonds and fees will be posted and site work will begin in the 4^th quarter of 2025 or early 2026.

The company is scheduled to install base paving and finish the first model homes in the early part of the 2^nd quarter - 2026.

All homes should be sold by mid-2027 and income from land leases will be ongoing from that time.

Subsequent event: On August 14, 2025, the Company closed on a funding facility with Asset Based Lending for the Autumn Run manufactured home development. The total facility is in the amount of $13,600,000 and includes a refinance of the existing land debt, a percentage of the infrastructure/site development costs and a vertical construction facility for the entire development. As a result of this funding, the existing $750,000 mortgage with Lynx Assets has been retired.

The Company took title to this property in early September of 2023. It is the Company’s intention to develop this property, sell the individual manufactured homes and continue to own and operate the development as a land lease rental property.

Properties under Contract to Purchase and in Development

Mathistown Commons: The Company signed a contract in mid-2024 to obtain approvals, acquire and improve a 96 unit townhome property (of which 80 units are market rate and 16 are Affordable Housing) in Southern Ocean County. This property has been pre-sold on an “as-improved” basis to a national builder.

At this time, full submissions have been made to the Township, County, and local Municipal utilities authorities. A CAFRA permit has been submitted to the DEP and a full traffic study has been completed. The application has been deemed complete for public hearing and will be heard at the September 2025 planning board meeting.

The initial closing to acquire the property should occur in 2026, with site improvements to begin shortly thereafter. The sale of improved building pads should begin in late 2026 / early 2027.

Subsequent event: The Company received Little Egg Harbor Preliminary Approvals for 80 market rate townhomes and 16 affordable condominiums on November 7, 2025.

Southern Ocean 2: The Company has signed a letter of intent and contract to obtain approvals, acquire and improve a 120 unit townhome property (of which 100 units are market rate and 20 are Affordable Housing) in Southern Ocean County. This property has been pre-sold on an “as-improved” basis to a national builder.

The initial closing to acquire the property should occur in 2027, with site improvements to begin shortly thereafter. The sale of improved building pads should begin in late 2027.

Gloucester County: The Company has signed a letter of intent and contract to obtain approvals, acquire and improve a 70 unit property in Gloucester County. This property will be developed as a manufactured home community.

Summary

These new developments which the Company owns or is in contract to purchase represent significant future earnings in new construction or forward contracts for improved building pads that have been pre-sold. This work will occur over the next 3-4 years and will occur in addition to the custom homes & elevation/renovation division of the business. Management is very positive about these new developments.