DESERT CAPITAL REIT, INC. ACQUIRES ADDITIONAL INTEREST IN TRUST DEED FIRM

LAS VEGAS (April 5, 2005)— Desert Capital REIT, Inc., a real estate investment trust headquartered in Las Vegas, announced that it has acquired an additional 11 percent of Consolidated Mortgage, bringing its ownership to 59 percent.

Consolidated Mortgage is one of the largest private trust deed investment firms in the United States with over $300 million in currently brokered loans.

“This is a major step forward in the total acquisition of Consolidated Mortgage,” says Todd B. Parriott, CEO and Chairman of the Board of Directors of Desert Capital REIT. “With state regulatory requirements complete and the management transition team in place, Desert Capital is poised to assume full ownership of Consolidated Mortgage end of 2005.”

Desert Capital 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.

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

“The acquisition of Consolidated Mortgage is a real benefit to our investors who receive quarterly, or monthly upon request, dividend payments and for Desert Capital as we continue to build our investment portfolio,” adds Parriott.

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

About Consolidated Mortgage, LLC.
With more than 25 years of continuous real estate investment success, Consolidated Mortgage, LLC 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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