Financing Leverage

     Asset Fair Market Value

Raw Land     ($3,500 per acre)

Note 1

$4,200,000

Homes (7 Neighborhoods)

  (330 Homes X 700 sq' X $125 per sq')

Note 2

28,875,000

Trades Buildings

 4,000,000

Infrastructure & Equipment

 2,000,000

    Total Fair Market Value:

First Mtg. Position - Land Financing

 $ 2,000,000

Second Mtg. Position

  10,000,000

  ------------

          Total Financing

$12,000,000

Financing Leverage:  

    $12,000,000.00 / $39,075,000.00

31%

                                           Note 1:

 75% of land still available for development.

                                           Note 2:

 Average FMV home construction cost.

                                           Note 3:

 If third Mtg. is placed, all risk shifts to it.

  A fourth Mtg position will be taken by residents.