Exhibit B -- Specifics of the Loan

California Residents Only

Loan Number: N1949
Minimum participation: $15,000
Call for availability of smaller participation
Loan Amount: $167,850
Type: First Mortgage
Yield: 11.0%*

PROPERTY

Project: LYON COUNTY FARMLAND II

Property address: Lyon County, MN
Description: The subject property consists of 2 parcels of farmland totaling 60 acres.

EQUITY ANALYSIS

OPERATING STATEMENT

INCOME Rental Income	. $9,800
. . . . . . . . . . . . . . . . . Total Income:	$9,800
Less 5% Vacancy Allowance	N/A
. . . . . . . . . Effective Gross Income:	$9,800

EXPENSES Onsite Management Repairs & Maintenance Real Estate Taxes Total Expenses: NET OPERATING INCOME Note: Pro forma based on appraiser's estimates.

. $490 $490 $1,500 $2,480 $7,320

TERMS

BORROWERS

LYON COUNTY FARMLAND II

George Blackburne says, "I wish we could do 50 deals just like this one.  First of all, the 11% yield gives you a lot of current income (assuming, of course, the borrower pays).  Secondly, the loan is secured by cropland.  We here at Blackburne & Sons are very bullish on cropland, so much so that we have syndicated nine pools of investors to buy nine farms in the past two years.  Arguably farming is one of the healthiest industries in America today because people still have to eat.  Unlike office buildings and other commercial properties, it is usually very easy to find an experienced farmer to lease good cropland.  I heartily and enthusiastically recommend this deal."

This investment is secured by 2 parcels and 60 acres of farmland of which 56 acres are tillable, located in Lyon County, Minnesota. It is zoned “Agricultural District”.

We are making two loans at 65% loan-to-value on these contiguous parcels that our borrowers are purchasing. One might question the high LTV on land, however this is income-producing corn soybean farmland (as opposed to desert scrubland). In addition, we are so bullish on farmland that we are actively syndicating investors to buy farmland for all cash. If the borrower were to go bankrupt and we foreclosed on the property, it is typically very easy to find a nearby farmer to rent the property from us (as opposed to finding tenants for commercial property during a recession). And if we do end up with the property, our basis in the farmland should be much less than if we just went out and paid the retail price for the farmland.

This subject property is located 12 miles northeast of Marshall, in Southwestern Minnesota. Marshall is the Lyon County seat and home of Southwest Minnesota State University with a current population of 13,040 residents, up from the 2000 Census population of 12,735 residents. The overall Lyon County population is 24,940 residents. The smaller community of Cottonwood, with approximately 140 residents is located 1 ½ miles to the northwest of the subject property. The property is surrounded by farmland and rural residential sites in all directions with a variety of farm sites, including operating sites where the owners live and farm the surrounding land or hobby farm style sites. There is a moderate amount of hog and cattle production in the area.

According to the Soil Survey of Lyon County, the subject properties have soils that are capable of producing up to 180 bushels per acre of corn and 51 bushels per acre of soybeans.

Our borrowers are husband and wife. The husband started farming in 1976 on a small scale of 230 acres in Tracy, MN. After our borrowers got married and moved to Marshall, MN they started to purchase some land throughout the 1990's, buying 560 acres. In 2007 they purchased 275 acres of land, in 2008 they purchased 240 acres and finally in 2009 they purchased 259 acres. They currently rent an additional 700 acres so they can grow all of their own crops for feed for their cattle. They also custom farm an additional 1,700 acres at $80 an acre. They plant half corn and half soybeans on all of their land. They also own cattle and from the years 2000-2009 they increased their cattle numbers from 160 head to 5,000 head.

The wife is currently working as a Certified Public Accountant and has been at this place of employment for 26 years. They also have a son who will be joining them in the family farming business. His dream is to also be a farmer and his parents are making that dream a reality with these two parcels of farmland that they are purchasing. They will be planting their corn and soybean crops in April and May and will be harvesting those crops in October and November.

Our borrowers have made improvements to their machinery line to operate the 2,000 acres that they farm and the additional 1,700 acres that they custom farm. All of their farmland is pattern tiled and very well drained. With the land, machinery, and other improvements, they have spent approximately $5,000,000 in the last three years. They own a lot of machinery and vehicles such as trailers, trucks, 4 wheelers, tractors, 4 wheel drive trucks (5) giving them a total face value of approximately $2,345,750.

Our borrowers have excellent credit with mid scores of 700 and 750 respectively. They reported to us as having a net worth of $8,495,090. They reflect a total income on their 2008 tax returns of $119,205 and $112,665 in 2007. Their farming operations (Schedule F) grossed $23,988,491 last year, $21,611,333 in 2007 and $14,731,234 in 2006. As you can see, they continue to grow each year.

A new appraisal values these 60 acres at $4,883.33 per acre which gives a value of $293,000. The purchase price is predicated on a value of $258,245 or $4,304.08 per acre. All of the comps that were provided to us by the appraiser sold in the range of $4,500-$5,225 per acre.

At an 11% yield and a 65% LTV, this loan appears to be a reasonable 36-month 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 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 & Sons, a 27-Year-Old Company BLACKBURNE & SONS REALTY CAPITAL CORPORATION 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 & Sons 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"). --------------------------------------------- 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 & Sons Realty Capital Corporation--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 & Sons Home Page Copyright © 2009 Blackburne & Sons Realty Capital Corporation. All rights reserved. 800-606-3232