Exhibit B -- Specifics of the Loan

California Residents Only

Loan Number: N1970
Minimum participation: $25,000
Loan Amount: $725,000
Type: First Mortgage
Yield: 11.0%*

PROPERTY

Project: HART CREEK RANCH

Property address: 23425 Buchman Road, Oreana, ID
Description: The subject property consists of 5 contiguous tax parcels totalling 545 acres.

EQUITY ANALYSIS

OPERATING STATEMENT

INCOME Rental Income	. $97,250
Other Income	$11,580
. . . . . . . . . Effective Gross Income:	$108,830

EXPENSES Management Real Estate Taxes Insurance Water Irrigation Total Expenses: NET OPERATING INCOME Note: Pro forma based on appraiser's estimates.

. $5,441 $3,836 $2,500 $28,000 $38,777 $70,053

TERMS

BORROWERS

HART CREEK RANCH

George says, "Oh, my!  I love this loan.  When was the last time you saw me use the words, "I recommend"?  Well folks, I recommend.  Oh, my."

Blackburne and Sons continues to be convinced that loans on quality farmland offer a winning strategy in today’s challenging economic times.  This 545 acre Idaho farm raises potatoes, grain and pasture and is in our judgment an outstanding example of what we are looking for. 

As George Blackburne III remarked recently on a similar property “I wish I 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 and 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 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.”

The farm is located in the very small town of Oreana in South Western Idaho.  The county is Owyhee which borders Nevada and Oregon, Grandview, the nearest town, 19 miles to the east has a population of 462 and most residences are farm/ranch oriented.  Agriculture along the Snake and Bruneau rivers is the economic core of the area.

Our borrower is a Limited Liability Company which owns the property. A husband and wife each own 50% membership of the Limited Liability Company, and both will personally guarantee our loan.  They show a net worth of $3,178,107. 

Our borrowers have owned the farm for approximately eight years.  In recent years, they have leased out portions of the farm.  Rent from irrigated potato and grain land approximates $114,000 per year.  Approximately 296 acres are irrigated by pivot and suitable for grains, 103 acres are irrigated by handline and grow potatoes, and the remaining balance of the acreage is dry farmed.

The purpose of this loan is to refinance an existing loan that has matured.  It is the borrowers’ intention to pay off our loan by virtue of sale of the farm to their son in a few years when he finishes his service in the United States Air Force.

In the middle of 2009, Mrs. Steiner’s FICO scores were 637 and 638.  Mr. Steiner had scores of 533, 536, and 592.  Efforts to get more current scores have not been successful.  The credit agencies said this was because Bank of America had not updated the account due to a “code error”.  Bank of America confirmed the error and stated it would be corrected on their next report due at the end of June. 

The FICO scores reflect significant adversities suffered in the past few years.  The Steiner’s son was struck by a car which resulted in huge medical bills which the drivers insurance refused to pay.  During this period, one of the farm tenants died and his estate had no funds to pay power bills which were his responsibility.  Lastly, during this period $40,000 was embezzled by a lender who was supposed to be holding the funds in a trust account as payment reserves.  Clearly this has been a very difficult time which now appears to be resolved. 

The property was appraised by a company from Idaho and chosen by Blackburne and Sons.  They set the value at $2,000,000, meaning our loan of $800,000 is only 40% of the appraised value.  Not only is this a conservative loan to value ratio, but our review of the appraisal suggests a well reasoned value per today’s economic times.  The full appraisal is available for your review as a prospective investor.

“Demand for food is growing.  The world’s population is projected to grow from 6.8 billion today to 9.5 billion by 2050.  The supply of arable land is limited.  Regional droughts and global climate changes have worked to reduce the world’s supply of arable acreage.”

Our loan, a first priority mortgage, amounts to $1,467 per acre, a fraction of the market value of land in the area.  At a 36.3% LTV and 11.0% yield to the investors this 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 29-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 & 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"). --------------------------------------------- 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 © 2010 Blackburne & Sons Realty Capital Corporation. All rights reserved. 800-606-3232