Exhibit B -- Specifics of the Loan

California Residents Only

Loan Number: 1817
Minimum participation: $28,500
Loan Amount: $2,850,000
Type: First Mortgage
Yield: 9.0%*

PROPERTY

Project: AUBURN TOWERS

Property address: 1236-1240 High Street, Auburn, CA

Description: The subject property is a brand new 23,394SF
two-story office complex on a 1.24 acre parcel.

EQUITY ANALYSIS

OPERATING STATEMENT

INCOME Rental Income CAM Expense Reimbursement	. $479,377 $124,337
. . . . . . . . . . . . . . . . . Total Income:	$603,714
Less 10% Vacancy Allowance	$60,371
. . . . . . . . . Effective Gross Income:	$543,343

EXPENSES Gas and Electric Insurance Salaries & Wages Management 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.

. $2,060 $12,360 $21,734 $14,420 $58,319 $5,150 $17,510 $131,553 $411,790

TERMS

BORROWERS

PERSONAL GUARANTORS

AUBURN TOWERS

This is one of the most attractive loans we have EVER offered, a first mortgage on an A-quality property to an A-quality borrower. This brand new, 23,394 S/F two-story office building is in the quaint, Carmel-like foothill town of Auburn. It’s gorgeous and it has tons of parking.

The principals have a $16 million net worth, a successful business AND great credit (703 credit mid-score). The loan will ALSO have $3.2 million in junior financing behind it, which is like having another borrower that would have to step up and cure any default or risk losing their entire investment AND it will have a $250,000 interest reserve - to pay the first nine payments.

We can barely contain our enthusiasm!

The property was purchased five years ago, and the bank $2.05 million construction loan just matured. In addition to the interest reserve, we are giving them about $480,000 to complete tenant improvements. They have just listed it for lease and have verbal commitments from two tenants (3,000 S/F) and are in negotiations with a doctor group for another 10,000 S/F - nearly half the building.

The property literally overlooks historic old-town Auburn, right off Interstate 80 and anchored by the distinctive white-domed county courthouse, a visual fixture on the trip “up the hill” to Tahoe/Reno. The 1.24 acre rectangle-shaped site has 200 feet of frontage on High Street. An oak-studded hill drops to the street behind it while smaller commercial uses are across the street and on the other two sides. The entrance to the Gold Country (county) fairgrounds is down the street.

It is fully paved and landscaped and has 56 parking spaces. The exterior walls are stucco, over a wood frame, with a roof-mounted HVAC system on a metal/built-up composition roof. The interior finishes are concrete & wood flooring, with painted drywall ceilings and walls.

The guarantors (husband and wife) have owned a private hard money mortgage company for 16 years; it paid them $200,000 last year, $159,750 in 2005 and $162,504 in 2004. She’s also an attorney. 2006 tax returns are on extension; in 2005 they had a $(24,931) Adjusted Gross Income (after $232,249 in real-estate related write-offs) with a $342,524 Adjusted Gross Income in 2004. Their company combined gross income exceeded $2.3 million the last two years, with small profits both years. They have a $16.0 million net worth: $13.3 million in real estate equity, the company at $800,000, trust deed investments of $590,000, and $293,793 in retirement accounts.

The property is held in a corporation, which is owned by the husband. It has assets of $7.0 million. Besides this project it owns a Grass Valley office building which grossed $136,546 and had a $21,612 tax loss, last year. The company also has varying interests in three other real estate development projects.

In lieu of equity, the corporation borrowed $3.2 million in junior financing from the principals’ private mortgage company. These will be subordinate to our new loan. As we’ve stated many times, we like junior financing because in the event of a foreclosure, the junior lenders would have to cure the 1st Mortgage or lose their investment. In that way, junior financing is better than a co-signer. We also like that the financing is with the principal’s own private investor clients because it gives the guarantors even more incentive not to walk away from the project.

The appraiser concluded it had an “AS IS” value of $4.0 million and will be worth $4.75 million at stabilized occupancy (90% full). The difference is a discount based on tenant improvement costs and lost rent during the lease-up period. He used a conservative approach for the stabilized occupancy value. At $1.71 per S/F NNN and an 8.5% Cap rate, the place would be worth $4.75 million. As the old saying goes “you never know what something is really worth until it sells”. Well, we do know the borrowers have a different idea. If they achieve their targeted $2.00 per S/F NNN , the building could be worth $7.5 million or more (at a 7.0% Cap rate).

Why mention this? It’s another reason why the principals, and their hard money clients, should stay the course. A tidy profit awaits them if they’re right.

In addition to its many attributes, this place is almost in our backyard. Please don’t put your last dime in this deal, though, because in the unlikely event you end up the owners, you can figure we’ll need a capital call (assessment) from the investors to spiff up the place and command top dollar.

At a 71.25% “AS IS” and a 60% “AS STABILIZED” loan-to-value on a brand new building, with a 9% yield and a 9-month interest reserve, this appears to be a reasonable 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.