Henderson, Nev., (October 7, 2005)—Desert Capital REIT Inc., a real estate investment trust headquartered in Henderson, Nev., announced that it has acquired the final 22 percent of Consolidated Mortgage to complete its purchase, effective October 5.

Consolidated Mortgage is now a wholly owned subsidiary of Desert Capital REIT Inc.

Consolidated Mortgage is one of the largest private trust deed investment firms in Nevada with over $350 million in currently brokered loans.

"The acquisition of Consolidated Mortgage was completed ahead of schedule, which is a true testament to the hard work and commitment of the entire management transition team," says Todd B. Parriott, CEO and Chairman of the Board of Directors of Desert Capital REIT. "And with complete ownership of Consolidated Mortgage our stockholders should immediately realize several benefits including owning the pipeline and additional revenue to support the dividend, thus further strengthening our financial position."

Desert Capital REIT Inc. first announced the acquisition of Consolidated Mortgage in November 2004 with an initial closing of 25 percent of the outstanding equity and subsequently acquired an additional 23 percent in January, 11 percent in April and 19 percent in July.

The acquisition was structured as an installment sale pursuant to Desert Capital REIT Inc. acquiring all outstanding equity securities of Consolidated Mortgage over time, complying with Internal Revenue Code provisions. The total sum for Consolidated Mortgage consisted of $9 million in cash and 450,000 shares of Desert Capital’s common stock.

About Desert Capital REIT, Inc.
Desert Capital REIT, Inc., is a Henderson, Nevada-based real estate investment trust that invests in loans to owners and developers of real estate properties. Formed in December 2003, Desert Capital’s portfolio of mortgage loans consists of acquisition and development, construction, commercial property and residential loans. For more information, please call (800) 419-2855 or visit www.desertcapitalreit.com.

Safe Harbor Statement
Statements included herein that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 which by their nature, involve known and unknown risks and uncertainties. The company’s actual results, performance or achievements could differ materially from those expressed or implied by such statements.

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