DESERT CAPITAL REIT ANNOUNCES ACQUISITION OF CONSOLIDATED MORTGAGE CORPORATION

LAS VEGAS (November 15, 2004) — Desert Capital REIT, a real estate investment trust headquartered in Las Vegas, Nevada, announced today that it has entered into an agreement to acquire Consolidated Mortgage Corporation.

The transaction is structured as an installment sale pursuant to which Desert Capital will acquire the outstanding equity securities of Consolidated Mortgage over time so as to comply with applicable Internal Revenue Code provisions.

The initial closing of 25% of the outstanding equity of Consolidate Mortgage is expected to occur within the next 30 days, following the receipt by Desert Capital of certain regulatory approvals from the State of Nevada. Desert Capital expects to acquire all of the equity securities of Consolidated Mortgage by the end of the third quarter 2005.

The purchase price to be paid by Desert Capital for Consolidated Mortgage consists of $9 million in cash and 450,000 shares of Desert Capital’s common stock.

“We believe this transaction will be beneficial for everyone,” says Todd B. Parriott, Chairman of the Board, CEO, President and Chief Investment Officer of Desert Capital REIT. “CMC’s origination fees will now serve as an additional income stream for Desert Capital REIT, thereby providing additional revenue for dividend payments.”

About Desert Capital REIT, Inc.
Desert Capital REIT, Inc., is a Las Vegas, Nev.-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.

About Consolidated Mortgage Corporation
With more than 25 years of continuous real estate investment success, Consolidated Mortgage Corporation is one of the largest private trust deed investment firms in the United States, with over $300 million in currently brokered loans. The company is headquartered in Las Vegas, Nevada.

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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