8. MORTGAGE NOTES PAYABLE

Mortgage notes payable consisted of the following:

		Principal as of
		December 31,			December 31,			Loan	Interest
Mortgage note property	Notes	2016			2015			Type	Rate (1)			Maturity
Havana/Parker Complex		$	-		$	2,500,000		Fixed		6.51	%	7/1/2016
Rangewood Medical Office Building			958,106			1,027,085		Fixed		4.95	%	1/1/2019
Regatta Square			1,150,566			1,183,473		Fixed		4.95	%	1/1/2019
Port of San Diego Complex			9,852,456			10,097,726		Fixed		4.75	%	3/5/2020
Garden Gateway Plaza			6,626,739			6,799,229		Fixed		5.00	%	4/5/2020
West Fargo Industrial			4,434,655			4,500,000		Fixed		4.79	%	8/4/2020
Morena Office Center	(2)		2,224,839			2,289,899		Fixed		4.50	%	1/1/2021
Waterman Plaza	(4)		3,939,037			-		Fixed		4.25	%	4/29/2021
Pacific Oaks Plaza			1,512,640			1,556,891		Fixed		4.50	%	6/1/2021
Shoreline Medical Building	(2)		3,602,238			3,727,569		Fixed		5.10	%	6/1/2022
Highland Court			6,829,348			6,958,147		Fixed		3.82	%	8/28/2022
Dakota Bank Buildings			10,677,761			10,825,201		Fixed		4.74	%	7/6/2024
Union Terrace Building			6,558,704			6,600,000		Fixed		4.50	%	9/5/2024
The Presidio			6,000,000			6,000,000		Fixed		4.54	%	12/1/2024
Centennial Tech Center			10,077,242			10,237,591		Fixed		4.34	%	1/5/2025
Research Parkway			1,956,154			-		Fixed		3.94	%	1/5/2025
Arapahoe Service Center			8,500,000			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)		4,231,842			4,307,975		Fixed		5.80	%	7/1/2025
Genesis Plaza			6,610,000			6,500,000		Fixed		4.65	%	8/25/2025
One Parke Centre			6,500,000			6,610,000		Fixed		4.77	%	9/5/2025
Shea Center II			17,727,500			17,727,500		Fixed		4.92	%	1/5/2026
Bismarck Office Building	(6)		4,158,998			3,252,016		Fixed		4.02	%	8/1/2037
NetREIT, Inc. properties			138,568,825			135,640,302				4.71	%
Model Home mortgage notes			22,259,779			9,050,268		Fixed	(5)			2016-2020
Mortgage Notes Payable		$	160,828,604		$	144,690,570
Unamortized loan costs			(1,942,493	)		(2,052,169	)
Mortgage Notes Payable, net		$	158,886,111		$	142,638,401

(1)	Interest rates as of December 31, 2016.

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

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

(4)	Interest rate is subject to reset on April 28, 2017.

(5)	Each Model Home has a standalone mortgage note at interest rates ranging from 3.8% to 5.5% (at December 31, 2016).

(6)	Interest rate is subject to reset on September 1, 2023.

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

Scheduled principal payments of mortgage notes payable are as follows:

	NetREIT, Inc.		Model Homes		Principal
Years ending December 31:	Notes Payable		Notes Payable		Payments
2017	$	1,927,307	$	1,844,449	$	3,771,756
2018		6,213,089		1,153,766		7,366,855
2019		3,153,040		16,764,027		19,917,067
2020		2,569,269		2,497,537		5,066,806
2021		12,081,874		-		12,081,874
Thereafter		112,624,246		-		112,624,246
Total	$	138,568,825	$	22,259,779	$	160,828,604