TERMS

Terms of Investment . . . . . . . . . . . . 60 months
Current interest rate . . . . . . . . . . . . . . . .12.0%*
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N/A
Spread over the index . . . . . . . . . . . . . . . . N/A
Frequency of rate changes . . . . . . . . . . . .N/A
Interest rate ceiling. . . . . . . . . . . . . . . . . . . N/A
Interest rate floor . . . . . . . . . . . . . . . . . . . . N/A
Discount points to the lender . . . . . . . . . .N/A
Repayment schedule . . . 30 year amortization
Monthly payment . . . . . . . . . . . . . . . $2,039.22*
Frequency of payment change . . . . . . . . .N/A
Purchase price of the note . . . . . . . . .$198,250
Current balance on the note . . . . . . . $198,250
Maturity date . . . . . . . . . . . . . . . . . . . . . .60 mo.
Balloon payment after 60 mos. appr. $195,661
Late charge amount . . . . . . . . . . . . . . . $249.09
Prepayment penalty . . . . . . . . . . . . . . . . .None
*Net of servicing costs

EQUITY ANALYSIS

Appraised Value as of August 6, 1998 . . . . . . $305,000
Less Senior Liens
First trust deed of . . . . . . . . . . . . . . . . . . . . . . . . . . $
Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P&I payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$
Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
Matures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second trust deed of . . . . . . . . . . . . . . . . . . . . . . . .$
Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P&I payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$
Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
Matures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third trust deed of . . . . . . . . . . . . . . . . . . . . . . . . . .$
Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P&I payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$
Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %
Matures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Protective equity . . . . . . . . . . . . . . . . . . . . . . . . . $106,750
Loan-to-value ratio . . . . . . . . . . . . . . . . . . . . . . . . 65.0%

PROPERTY

Project: 13TH STREET APARTMENTS

Property address: 3427 13th Street, N.W., Wash. D.C. 20010

Description: The subject property is a 3-story
building with a basement.  The apartment
building consists of 10 one bedrooms,
2 efficiency units, and 2 studio units.

OPERATING STATEMENT

INCOME
Rental Income . . . . . . . . . . . . . . . . . . . .$92,000
Laundry and Other Net Income . . . . . . . .N/A
. . . . . . . . . . . . . . . . . . . Total Income: $92,000
Less   5% Vacancy Allowance . . . . . . . .4,600
. . . . . . . . . . .Effective Gross Income $87,400

EXPENSES
Gas and electric . . . . . . . . . . . . . . . $16,500
Insurance . . . . . . . . . . . . . . . . . . . . . . 3,000
Mgmt. offsite . . . . . . . . . . . . . . . . . . . 4,400
Gardner . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repairs & maint. . . . . . . . . . . . . . . . .10,500
Salaries & Payroll . . . . . . . . . . . . . . . . . . . .
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . .3,736
Trash . . . . . . . . . . . . . . . . . . . . . . . . . .2,900
Gardner . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserves for replacement . . . . . . . . 7,000
Legal & Audit . . . . . . . . . . . . . . . . . . . . . .
.
. . . . . . . . . . . . . . . . Total Expenses: $48,036
NET OPERATING INCOME . . . . .$39,364
Note: Based on appraiser's estimates.

BORROWERS

13th STREET APARTMENTS