Exhibit B -- Specifics of the Loan

California Residents Only

Loan Number: 1834
Minimum participation: $25,000
Loan Amount: $900,000
Type: First Mortgage
Yield: 11.0%*

PROPERTY

Project: FORESTHILL OFFICE BUILDING

Property address: 23990 Foresthill Rd., Foresthill, CA

Description: The subject property consist of a two-story 6,926 square foot office building on an 1.0 acre parcel.

EQUITY ANALYSIS

OPERATING STATEMENT

INCOME Rental Income Other Income	$102,000
. . . . . . . . . . . . . . . . . Total Income:	$102,000
Less 5% Vacancy Allowance	$5,100
. . . . . . . . . Effective Gross Income:	$96,900

EXPENSES Gas and Electric Insurance Salaries & Wages Management Offsite Repairs & maint. Taxes (Real Estate) Reserves for replacement Miscellaneous Legal & Audit Advertising Interest Total Expenses:     NET OPERATING INCOME Note: Pro Forma Based on appraiser's estimates.

. $20,218 $20,218 $76,682

TERMS

BORROWERS

FORESTHILL OFFICE BUILDING

This loan is an in-house refinance secured by a two-story 10-year old 6,926 S/F office building on a 1 acre parcel in Foresthill, CA, just 17 miles east of Auburn off of Interstate-80.

Foresthill (2000 population 1,791) sits atop an expansive divide separating the north and middle forks of the American river. Founded in 1850 when gold prospectors swarmed the area, Foresthill offers the wonderful outdoor recreational opportunities of the Tahoe National Forest. With the improvement of Foresthill Road during the 1990’s, people seem to have rediscovered the Foresthill Divide. Land values are said to be on the rise, and beautiful new homes are springing up throughout the woods (Foresthill Chamber of Commerce, 2007).

This property was leased to a restaurant operator for several years, but the restaurant closed about three years ago, leaving it empty. The owners had the property listed for sale last year at $1.75 million and hoped to strike a deal with the local library, but instead found a new tenant in Foresthill Telephone Company, a part of Sebastian Enterprises (www.sebastian-enterprises.com), a 61-year-old privately-held company that owns several small mid-state telephone businesses. Arguably the phone company tenant is almost a credit tenant. Today the property is listed for sale at $1.55 million.

Foresthill inked a three-year lease at $8,500/month this January (plus all expenses except property taxes), which contains a first right of refusal clause on any sale. The lease is clearly below market ( $1.23 per S/F) because the tenant’s made significant interior improvements. The borrowers think the tenant will eventually buy the building, but would not commit to a purchase earlier this year because of another pending real estate deal.

On the strength of a $1.4 million appraisal (by our long-time Sacramento appraiser) we provided a $770,000 loan on the property in 2002. Because the property sat vacant for over two years, the loan has not paid as agreed, and has fairly consistently run one month behind, but has paid its late charges (100% distributed to the investors, enhancing the yield).

This $900,000 renewal will retire the existing $748,579 balance and pays approximately $107,000 in delinquent property taxes, with no cash-out to the borrower. The borrowers have petitioned the county to reduce the property tax assessment, which is now $1,930,980.

A current value was independently estimated by two new Broker Professional Opinions, within a very narrow range of $1,200,000 to $1,216,750 (for disclosure purposes we use $1.2 million), based on the below-market lease, which is, thankfully, relatively short. As the pictures attest, they both confirm it is one of the more aesthetically pleasing in Foresthill, and state the replacement cost would be significantly higher.

The borrowing entity is a single-asset Limited Liability Company owned by four family members, each with a 25% ownership interest. No income was reported in tax years 2005 and 2006. All four will be personally guaranteeing this loan and are employed by a closely-held electrical component manufacturer www.blaylocksinc.com/facility.html, also in Foresthill. The first guarantor reports a net worth of $4,553,528 and an adjusted gross income in 2006 of $181,912. The second guarantor reports a 2006 adjusted gross income of $175,103 and a net worth of $1,474,166. The third personal guarantor shows $65,748 in adjusted gross income for 2006 and a net worth of $927,025. The fourth personal guarantor lists a net worth of $2,784,854 and adjusted gross income of $91,176 in 2006. The guarantors have credit mid-scores ranging from 616 to 676.

Finally, a $400,000 2nd Deed of Trust, also from 2002, will subordinate to this new loan. As we’ve said many times before, we absolutely love subordinate lenders because they would have to step up and cure any default or have their investment completely wiped out in foreclosure. In many ways, it’s tantamount to another guarantor.

At an 11.0% yield and a 75.0% LTV on a fairly new California property, leased to a strong tenant, this loan appears to be a reasonable 5-year investment. Every first mortgage investment involves substantial risk, so be sure to read the Risk Factors section of the Offering Circular before investing. A substantial and prolonged decline in real estate values is possible.

For California Residents Only INVEST IN CORN FARM LAND Take Advantage of Rising Corn Prices Due to Increasing Ethanol Demand Over 75 New Ethanol Plants Are Currently Under Construction1 Wealthier Chinese and Indian Middle Class Consumers Are Eating More Meat – Two-Thirds of Corn Production is Used to Feed Livestock2 Farm Land Produces Income Even During Recessions Invest With as Little as $5,000 Very Suitable for IRA’s Farm Land Purchased With All Cash – No Leverage Used Each Farm Inspected By Certified Agronomist3 Farms Leased to Experienced Growers Short Term Investment – Just 3.5 to 4 Years Farms Will Be Sold When Most of the New Ethanol Plants Are Completed Investments Managed By Blackburne & Brown, a 27-Year-Old Company BLACKBURNE & BROWN MORTGAGE COMPANY, INCORPORATED IS CURRENTLY SERVICING OVER $50 MILLION IN FIRST MORTGAGE AND CORN FARM LAND INVESTMENTS FOR OVER 900 PRIVATE INVESTORS For An Offering Circular Please Call Warren More at 916-338-3232 or CLICK HERE Only Accredited Investors are suitable to invest in Blackburne & Brown Equity Preservation Fund, LLC, which will invest in corn farm land investments.  In order to qualify as an Accredited Investor, an individual Investor must satisfy the requirements of either paragraph (1) or (2) below and, in addition, must satisfy the requirements of  paragraph (3) below: (1)        The Investor’s net worth, or joint net worth with such investor’s spouse, at the time of purchase must exceed $1,000,000 (the value of the Investor’s home, furnishings and automobiles may be included for purposes of calculating such investor’s net worth under this paragraph); or (2)        The Investor’s income exceeded $200,000 in each of the two most recent years, or joint income with his or her spouse exceeded $300,000 in each of those years, and the investor has a reasonable expectation of reaching the same income level in the current year; and (3)        Each Investor must have either:  (a) a net worth of at least $250,000 and an annual gross income of at least $65,000; or (b) a net worth of at least $500,000. (the value of the Investor’s home, furnishings and automobiles may not be included for the purposes of calculating such Investor’s net worth under this paragraph).Other standards may apply to investors that are not individuals, such as trusts, partnerships or other entities.  Specific questions concerning Accredited Investor status should be directed to the Manager.All Units may be acquired for investment purposes only, and not with a view to, or for resale in connection with, any distribution thereof (see, “Restrictions on Transfer”). --------------------------------------------- 1Biofuels Journal, November 6, 2006 2Mark McLornan, Argo Terra, global farming company, DailyReckoning.com, March 19, 2007 3Marc Eads, Certified Farm Analyst (CFA) This notice does not constitute an offer to sell corn farm land investments. An offer is made only through an Offering Circular.  Investing in corn farm land involves substantial risk.  Please be sure to read the Risk Factors section of the Offering Circular before investing. For An Offering Circular Please Call Warren More at 916-338-3232 or CLICK HERE   Blackburne & Brown Mortgage Company, Inc.--For more information, contact George Blackburne 4811 Chippendale Drive, Suite 101, Sacramento, CA 95841 telephone: (916) 338-3232 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 829677 Publicly advertised to California residents only under California Department of Corporations business plan permit. Return to C-Loans Home Page | Return to Blackburne.com Home Page Copyright © 2007 Blackburne & Brown Mortgage Company, Inc. All rights reserved. 800-606-3232 If you wish to not receive our e-mail investment bulletins in the future, please send an e-mail with "bulletin unsubscribe" in the subject line.