Exhibit B -- Specifics of the Loan

California Residents Only

Loan Number: 1840
Minimum participation: $25,000
Loan Amount: $650,000
Type: First Mortgage
Yield: 9.0%*

PROPERTY

Project: SHINGLE SPRINGS MIXED USE BLDG.

Property address: 4151 South Shingle Road, Shingle Springs, CA

Description: The subject property consists of a 7,730SF mixed use building on a 2 acre parcel.

EQUITY ANALYSIS

OPERATING STATEMENT

INCOME Rental Income Other Income	$84,842
. . . . . . . . . . . . . . . . . Total Income:	$84,842
Less 5% Vacancy Allowance	$4,242
. . . . . . . . . Effective Gross Income:	$80,600

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.

. $1,200 $4,000 $2,418 $8,250 $2,000 $150 $17,868 $62,732

TERMS

BORROWERS

SHINGLE SPRINGS MIXED-USE BUILDING

Please note that we have increased the yield on this investment by 1%.  Arguably this deal was attractive enough to have sold out at 8%, but those silly balloons painted on the building by the day care center tenant really detracted from the appearance of this nice building. 

George wanted us to point out that this is the type of deal that he greatly prefers – a first trust deed to a good credit borrower on an attractive building.  The yield on these better quality deals may be a little bit lower than on some competing trust deed investments, but the trade-off is definitely worth it.  As George has so often said, “The secret to successful trust deed investing is easy.  Just don’t get greedy.”

This investment is secured by a 7,730 S/F, three-story mixed-use building on a 2.0 acre parcel in Shingle Springs, California. It is a re-write of an existing B&B loan that has had a perfect pay history the last four years.

The property has good visibility and exposure along South Shingle Road about 1/4 mile from the entrance to Highway 50 , the main arterial from South Lake Tahoe area to Sacramento.

Shingle Springs is an unincorporated town of nearly 3,000 people in El Dorado county, about halfway between Folsom (of prison fame) and Placerville (formerly “hangtown”, in the heart of the gold country). It has developed on both sides of the highway. This property is around the corner from Main Street, a mix of historic and new development that once served as the old highway.

El Dorado county is a fairly affluent “bedroom county” to the Sacramento metro area, and has been among the fastest growing in the state. Its median household income exceeds the state average and it’s grown twice as fast as the state since 2000 (14%) to 178,066, following 19% growth in the1990's.

This building has 4,980 square feet of ground floor retail/office space, and 2,750 square feet of second/third floor residential space. It also has a fenced yard area that is leased to a landscaping company for equipment storage. The retail portion of this building has a concrete block construction with a stucco exterior and a river rock facade. The residential addition to the building is newer with a wood frame/concrete block construction, a wood exterior and some river rock facade as well.

The improvements (building and parking lot) sit on 1 acre; the property also includes another 1 acre of unimproved land (also facing South Shingle Road) for future development. In 2003 the county confirmed that the other acre could be split and separately sold. A newly-ordered appraisal determined its current $1.0 million value. The three mixed-use comparable sales sold for $151 to $222 per S/F, all on smaller parcels. The appraiser valued the subject property at $129 per S/F without adjusting for the undeveloped 1 acre. While he did not “develop” the cost approach, he calculated the entire land value alone at $653,400 ($7.50 per S/F) as if without any improvements.

We financed the $750,000 purchase of this property in late 2003 with a $487,500 loan. It has paid like clockwork. The borrowers put down nearly $80,000 cash and the seller carried a $198,000 2nd Deed of Trust. The 2nd lien holder will re-subordinate to our new loan. As we’ve said before, we like seller-financed junior liens because it is much like a co-signer. The seller has a vested interest, as in the event of a default on our 1st Deed of Trust, the 2nd Deed of Trust holder must step-up and cure the default, or be completely wiped out in the foreclosure.

Our borrowers are a husband and wife with a net worth exceeding $2.0 million. She has been with Intel Corporation for 20 years, while he left there 5 years ago and is a consultant. They are experienced real estate investors & own eight properties - commercial, multi-family & single-family/condo - including the subject property and their home. She is also a licensed real estate agent. They report over $5 million in assets and a net worth over $2.0 million and had an adjusted gross income of $169,602 in 2006. They have credit mid-scores of 611 and 609. This refinance will net them about $150,000, to assist with college expenses and for other investment purposes.

Since 2003 the owners have invested over $29,000 into the property, mostly in interior improvements and landscaping. Per the current rent roll, the property is scheduled to gross $84,842 (it grossed $71,136 in 2006) however they have reached a mutual agreement with a major tenant, a daycare center, to vacate on April 1st. They are talking with three potential tenants about the space and are confident it will re-lease, and at a higher per S/F price; they have been able to keep the place nearly full because they generally lease at below market rents. Excluding the residential component (a 2,500 S/F apartment for $1,595/mo.), they’ve leased the commercial space right at $1.00 per S/F gross (landlord pays insurance, taxes & utilities). The appraiser confirmed that this is somewhat below market.

Banks have just never seemed to warm up to smaller mixed-use properties because they don’t fit into a square or round peg. They are B&B’s bread & butter. Folks will always need a place to live, the rents are affordable, and it’s a multi-tenant building - one moves out and there’s still good rent coming in. George Blackburne says that investing in a Deed of Trust on a smaller California property of this type in a growing, prosperous area, to perfect paying borrowers, is much like an annuity. He counsels that every trust deed investor should have a few of these in their portfolio. Like an annuity, odds are you can just stick it on the shelf & forget about it.

At an 9.0% yield and a 65.0% LTV to existing B&B borrowers, 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 © 2008 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.