YINGLING APPRAISAL SERVICE 147 S. MARKET ST. BENTON_ AR 72015 ...

File No. M0908194 Page #1









YINGLING APPRAISAL SERVICE

147 S. MARKET ST.

BENTON, AR 72015





SEPTEMBER 23, 2008





BIRCH TREE COMMUNITIES, INC.

4691 HWY 256

ENGLAND, AR 72046





Re: Property: 4691 HWY 256

ENGLAND, AR 72046

Borrower: BIRCH TREE COMMUNITIES, INC

File No.: M0908194







In accordance with your request, we have appraised the above referenced property. The report of that appraisal is

attached.



The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as

improved, in unencumbered fee simple title of ownership.



This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and

city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the

report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.



The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the

certification and limiting conditions attached.



It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of additional

service to you.









Sincerely,









MARTY SPURLOCK, #SL 2631

File No. M0908194 Page #2









FROM:

INVOICE

YINGLING APPRAISAL SERVICE

INVOICE NUMBER

147 S. MARKET ST. M0908194

BENTON, AR 72015 DATE

09/23/08

Telephone Number: 501-315-9201 Fax Number: 501-315-2730

REFERENCE

TO: Internal Order #:

Lender Case #:

BIRCH TREE COMMUNITIES, INC.

Client File #:

4691 HWY 256

Main File # on form: M0908194

ENGLAND, AR 72046

Other File # on form: 4691 HWY 256



Telephone Number: Fax Number: Federal Tax ID:

Alternate Number: E- Mail: Employer ID:









DESCRIPTION

Lender: NONE Client:

Purchaser/Borrower: BIRCH TREE COMMUNITIES, INC

Property Address: 4691 HWY 256

City: ENGLAND

County: LONOKE State: AR Zip: 72046

Legal Description: PT E1/2 W







FEES AMOUNT

4691 HWY 256 475.00

BIRCH TREE COMMUNITIES, INC









THANKS, MARTY SUBTOTAL 475.00





PAYMENTS AMOUNT

Check #: Date: Description:

Check #: Date: Description:

Check #: Date: Description:







SUBTOTAL



TOTAL DUE $ 475.00









Form NIV5 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

YINGLING APPRAISAL SERVICE

File No. M0908194 Page #3

YINGLING APPRAISAL SERVICE



Borrower BIRCH TREE COMMUNITIES, INC File No. M0908194

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender/Client NONE



APPRAISAL AND REPORT IDENTIFICATION



This Appraisal Report is one of the following types:

Self Contained (A written report prepared under Standards Rule 2-2(a) , persuant to the Scope of Work, as disclosed elsewhere in this report.)

Summary (A written report prepared under Standards Rule 2-2(b) , persuant to the Scope of Work, as disclosed elsewhere in this report.)

Restricted Use (A written report prepared under Standards Rule 2-2(c) , persuant to the Scope of Work, as disclosed elsewhere in this report,

restricted to the stated intended use by the specified client or intended user.)









Comments on Standards Rule 2-3

I certify that, to the best of my knowledge and belief:



The

• statements of fact contained in this report are true and correct.

The

• reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional

analyses, opinions, and conclusions.

I

• have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties

involved.

I

• have no bias with respect to the property that is the subject of this report or the parties involved with this assignment.

My

• engagement in this assignment was not contingent upon developing or reporting predetermined results.

My

• compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause

of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

My

• analyses, opinions and conclusions were developed and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

I

• have (or have not) made a personal inspection of the property that is the subject of this report.

No

• one provided significant real property appraisal assistance to the person signing this certification. (If there are exceptions, the name of each individual providing significant

real property appraisal assistance is stated elsewhere in this report.)









Comments on Appraisal and Report Identification

Note any USPAP related issues requiring disclosure and any State mandated requirements:



SUBJECT PROPERTY IS APPRAISED "AS IS" AND IS CONSIDERED TO BE IN AVERAGE CONDITION FOR THE SUBJECT AREA.









APPRAISER: SUPERVISORY APPRAISER (only if required):









Signature: Signature:

Name: MARTY SPURLOCK, #SL2631 Name:

Date Signed: September 23, 2008 Date Signed:

State Certification #: State Certification #:

or State License #: SL2631 or State License #:

State: AR State:

Expiration Date of Certification or License: 06/30/09 Expiration Date of Certification or License:

Supervisory Appraiser inspection of Subject Property:

Effective Date of Appraisal: 09/22/08 Did Not Exterior-only from street Interior and Exterior









Form ID06 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #4

SUPPLEMENTAL ADDENDUM File No. M0908194

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE



SCOPE OF WORK:



1. DATE: 09/23/08



2. CLIENT: BIRCH TREE COMMUNITIES, INC.



3. INTENDED USER: BIRCH TREE COMMUNITIES, INC.



4. INTENDED USE: FAIR MARKET VALUE APPRAISAL



5. EFFECTIVE DATE: 09/22/08



6. TYPE OF OPINION: FEE SIMPLE



7. ADDRESS OF THE PROPERTY: 4691 HWY 256 ENGLAND, AR 72046



8. LEGAL DESCRIPTION: PT E1/2 W



9. OWNER OF RECORD: BIRCH TREE COMMUNITIES, INC.



10. SIZE OF PROPERTY: 1,226 SQ. FT.



11. LAND SIZE: 4 ACRES



12. TYPE OF REPORT: SUMMARY



13. HIGHEST & BEST USE: SINGLE FAMILY RESIDENCE



14. DATE OF COMPLETION: 09/23/08



15. FEE: $ 475.00









Form SUP — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #5

SUPPLEMENTAL ADDENDUM File No. M0908194

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE



SCOPE OF WORK: PAGE (2)



The appraiser

a. will inspect the subject property to note the characteristics of the property that are relevant to its valuation;



b. will investigate available market data for use in a sales comparison approach to value and, if appropriate, cost

and income capitalization approaches.

The appraiser's investigations will include research of public records through the use of commercial sources of

data such as printed comparable data services and computerized databases. Search parameters such as dates of

sales, leases, locations, sizes, types of properties, and distances from the subject will start with relatively narrow

constraints and, if necessary, be expanded until the appraiser has either retrieved data sufficient(in the appraiser's

opinion) to estimate market value, or until the appraiser believes that he or she has reasonably exhausted the

available pool of data. Researched sales data will be viewed and, if found to be appropriate, efforts will be made to

verify the data with persons directly involved in the transactions such as buyers, seller, brokers, or agents. At the

appraiser's discretion, some data will be used without personal verification if, in the appraiser's opinion, the data

appear to be correct. In addition, the appraiser will consider any appropriate listings or properties found through

observation during appraiser's data collection process. The appraiser will report only the data deemed to be

pertinent to the valuation problem;



c. will investigate and analyze any pertinent easements or restrictions, on the fee simple ownership of the subject

property. It is the client's responsibility to supply the appraiser with a title report. If a title report is not available,

the appraiser will rely on a visual inspection and identify any apparent easements or restrictions;



d. will analyze the data found and reach conclusions regarding the market value, as defined in the report, of the

subject property as of the date of value using appropriate valuation approach (es) identified above;



e. will prepare the appraisal in compliance with the Unform Standards of Professional Appraisal Practice as

promulgated by The Appraisal Foundation;



f. will not be responsible for ascertaining the existance of any toxic waste or other contamination present on or off

the site. The appraiser will, however, report any indications of toxic waste or contaminants that may affect the value

if they are readily apparent during the appraisers investigation. Appraisers cautions the user of the report that the

appraiser is not expert in such matters and that appraiser may overlook contamination that might be readily

apparent to parties that are experts in such matters.



g. will prepare a Summary Appraisal Report, as defined in USPAP, which will include photographs of the subject

property, description of the subject neighborhood,the site, any improvements on the site, a description of the

zoning, a highest and best use analysis, a summary of the most important sales used in the appraisers valuation, a

reconciliation and conclusion, a map illustrating the sales in relation to the subject property, and other data deemed

by the appraiser to be relevant to the assignment. Pertinent data and analyses not included in the report may be

retained in the appraisers files.









Form SUP — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

YINGLING APPRAISAL SERVICE File No. M0908194 Page #6



4691 HWY 256

Uniform Residential Appraisal Report File # M0908194

The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.

Property Address 4691 HWY 256 City ENGLAND State AR Zip Code 72046

Borrower BIRCH TREE COMMUNITIES, INC Owner of Public Record BIRCH TREE COMMUNITIES, INC County LONOKE

Legal Description PT E1/2 W

Assessor's Parcel # 001-02922-000 Tax Year 2007 R.E. Taxes $ 1,280.27

Neighborhood Name NONE Map Reference 2000 Census Tract

SUBJECT









Occupant Owner Tenant Vacant Special Assessments $ PUD HOA $ per year per month

Property Rights Appraised Fee Simple Leasehold Other (describe)

Assignment Type Purchase Transaction Refinance Transaction Other (describe) FAIR MARKET VALUE APPRAISAL

Lender/Client NONE Address NA

Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes No

Report data source(s) used, offering price(s), and date(s).

AFTER RESEARCH - NO LISTING WAS FOUND

I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not

performed.

CONTRACT









NA- FAIR MARKET VALUE APPRAISAL

Contract Price $ NA Date of Contract NA Is the property seller the owner of public record? Yes No Data Source(s) NA

Is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes No

If Yes, report the total dollar amount and describe the items to be paid. NA NA





Note: Race and the racial composition of the neighborhood are not appraisal factors.

Neighborhood Characteristics One- Unit Housing Trends One- Unit Housing Present Land Use %

Location Urban Suburban Rural Property Values Increasing Stable Declining PRICE AGE One-Unit 85 %

Built-Up Over 75% 25-75% Under 25% Demand/Supply Shortage In Balance Over Supply $ (000) (yrs) 2-4 Unit 5%

NEIGHBORHOOD









Growth Rapid Stable Slow Marketing Time Under 3 mths 3-6 mths Over 6 mths 35 Low 0 Multi-Family %

Neighborhood Boundaries THE BOUNDARIES ARE: HWY 165/NORTH & EAST, HWY 161/WEST, AND 275 High 70 Commercial 5%

ARKANSAS RIVER/SOUTH. 125 Pred. 30 Other 5%

Neighborhood Description EMPLOYMENT CENTERS ARE LOCATED NEARBY IN BRYANT AND BENTON AND ALONG INTERSTATE 30. OTHER

EMPLOYMENT CENTERS ARE LOCATED NEARBY IN WEST LITTLE ROCK AND LITTLE ROCK LOCATED 20-30 MINUTES EAST VIA

INTERSTATE 30. RETAIL AREAS, SCHOOLS, PLACES OF WORSHIP AND RECREATIONAL FACILITIES ARE LOCATED NEARBY.

Market Conditions (including support for the above conclusions) SUBJECT MARKET IS CURRENTLY STABLE AND THE AVERAGE DAYS-ON-MARKET

IS NOTED ABOVE. THE TREND IN VALUE IS CURRENTLY STABLE. A BALANCE OF LISTINGS TO SOLD PROPERTIES IS NOTED WITHIN

THE MARKET AREA OF THE SUBJECT PROPERTY. TYPICALLY HOMES RANGE FROM 1,000 TO 2,500 SF IN SIZE.

Dimensions 4 ACRES Area 4 ACRES Shape IRREGULAR View TYPICAL STREET

Specific Zoning Classification SINGLE FAMILY RESIDENCE Zoning Description NO ZONING IN THE COUNTY

Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe)

Is the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe



Utilities Public Other (describe) Public Other (describe) Off- site Improvements - Type Public Private

Electricity Water Street ASPHALT

SITE









Gas PROPANE Sanitary Sewer Alley NONE

FEMA Special Flood Hazard Area Yes No FEMA Flood Zone C FEMA Map # 05085C0525D FEMA Map Date 06/16/06

Are the utilities and off-site improvements typical for the market area? Yes No If No, describe

Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe

NO ADVERSE EASEMENTS, ENCROACHMENTS OR CONDITIONS WERE NOTED ON VISUAL OBSERVATION OF THE SUBJECT

PROPERTY; HOWEVER, NO CURRENT SURVEY WAS PROVIDED TO THE APPRAISER.



General Description Foundation Exterior Description materials/condition Interior materials/condition

Units One One with Accessory Unit Concrete Slab Crawl Space Foundation Walls AVG/CC BLOCK Floors TILE/AVG

# of Stories 1 Full Basement Partial Basement Exterior Walls VNL-SD/AVG Walls DRWLL/PNL/AVG

Type Det. Att. S-Det./End Unit Basement Area NONE sq.ft. Roof Surface COMP/SHNG/AVG Trim/Finish WOOD/AVG

Existing Proposed Under Const. Basement Finish NONE % Gutters & Downspouts NA Bath Floor TL/AVG

Design (Style) 1-LVL/TRADL Outside Entry/Exit Sump Pump Window Type SP/MTL/AVG Bath Wainscot COMB/CRT-AVG

Year Built UNK Evidence of Infestation Storm Sash/Insulated YES/AVG Car Storage None

Effective Age (Yrs) 25 Dampness Settlement Screens YES/WNDW/AV Driveway # of Cars 2

Attic None Heating FWA HWBB Radiant Amenities Woodstove(s) # NA Driveway Surface CONCRETE

Drop Stair Stairs Other Fuel Fireplace(s) # NA Fence NA Garage # of Cars

Floor Scuttle Cooling Central Air Conditioning Patio/Deck CONC Porch COVRD Carport # of Cars

Finished Heated Individual Other Pool NA Other NONE Att. Det. Built-in

IMPROVEMENTS









Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe) VENT A HOOD

Finished area above grade contains: 5 Rooms 2 Bedrooms 1 Bath(s) 1,226 Square Feet of Gross Living Area Above Grade

Additional features (special energy efficient items, etc.). COVERED PORCH, COVERED CONCRETE PATIO



Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). SUBJECT PROPERTY IS APPRAISED "AS IS" AND

IS CONSIDERED TO BE IN AVERAGE CONDITION FOR THE SUBJECT AREA.









Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe









Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe







Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005





Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #7



4691 HWY 256

Uniform Residential Appraisal Report File # M0908194

There are 8 comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 49,900 to $ 89,900 .

There are 7 comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 65,000 to $ 74,000 .

FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3

Address 4691 HWY 256 804 IRVY 10 MAPLE ST. 19023 WAYNE ROAD

ENGLAND, AR 72046 ENGLAND, AR 72046 ENGLAND, AR 72046 ENGLAND, AR 72046

Proximity to Subject 3.41 miles 3.75 miles 6.91 miles

Sale Price $ NA $ 74,000 $ 69,000 $ 65,000

Sale Price/Gross Liv. Area $ sq.ft. $ 48.08 sq.ft. $ 41.39 sq.ft. $ 54.17 sq.ft.

Data Source(s) MLS/REALTOR MLS/REALTOR MLS/REALTOR

Verification Source(s) COUNTY RECORDS/EXT OBS COUNTY RECORDS/EXT OBS COUNTY RECORDS/EXT OBS

VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment

Sales or Financing CONV CONV FHA

Concessions TYPICAL TYPICAL TYPICAL

Date of Sale/Time 02/26/08 04/30/08 07/18/08

Location AVG SUB AVG SUB AVG SUB AVG SUB

Leasehold/Fee Simple Fee Simple FEE FEE FEE

Site 4 ACRES .48 ACRES +6,000 .33 ACRES +6,000 1.15 ACRES +3,000

View TYPICAL STREET TYPICAL ST. TYPICAL ST. TYPICAL ST.

Design (Style) 1-LVL/TRADL 1-LVL/TRADL 1-LVL/TRADL 1-LVL/TRADL

Quality of Construction VSD/AVERAGE BRK-FRM/AVG BRK-FRM/AVG BRK-FRM/AVG

Actual Age 25 EFF 18 EFF 25 EFF 18 EFF

Condition AVERAGE ABOVE/AVG -2,500 AVERAGE ABOVE/AVG -2,500

Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths

Room Count 5 2 1 5 3 2 -2,000 5 3 2 -2,000 4 2 1.5 -1,000

Gross Living Area 1,226 sq.ft. 1,539 sq.ft. -6,260 1,667 sq.ft. -8,820 1,200 sq.ft. 0

Basement & Finished NONE NONE NONE NONE

Rooms Below Grade NONE NONE NONE NONE

Functional Utility AVERAGE AVERAGE AVERAGE AVERAGE

SALES COMPARISON APPROACH









Heating/Cooling CH&A CH&A CH&A CH&A

Energy Efficient Items INSL W/D INSL W/D INSL W/D INSL W/D

Garage/Carport PARK PAD 2-CARCARPRT -1,500 2-CARCARPRT -1,500 1-CARCARPRT -1,000

Porch/Patio/Deck PORCH/PATIO PORCH/PATIO PORCH/PATIO PORCH/PATIO

FIREPLACE NONE NONE NONE NONE

NONE NONE NONE STRG BLDNG

NONE NONE FENCE NONE

Net Adjustment (Total) + - $ 6,260 + - $ 6,320 + - $ 1,500

Adjusted Sale Price Net Adj. 8.5 % Net Adj. 9.2 % Net Adj. 2.3 %

of Comparables Gross Adj. 24.7 % $ 67,740 Gross Adj. 26.6 % $ 62,680 Gross Adj. 11.5 % $ 63,500

I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain





My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.

Data Source(s) LONOKE COUNTY TAX RECORDS

My research did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale.

Data Source(s) LONOKE COUNTY TAX RECORDS

Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3).

ITEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3

Date of Prior Sale/Transfer 11/01/07 NOT SOLD IN THE PAST NOT SOLD IN THE PAST NOT SOLD IN THE PAST

Price of Prior Sale/Transfer 0.00 12 MONTHS 12 MONTHS 12 MONTHS

Data Source(s) SALINE COUNTY TAX REC SALINE COUNTY TAX REC SALINE COUNTY TAX REC SALINE COUNTY TAX REC

Effective Date of Data Source(s) 09/23/08 09/23/08 09/23/08 09/23/08

Analysis of prior sale or transfer history of the subject property and comparable sales THE PRIOR SALES AND TRANSFER HISTORY OF THE SUBJECT

PROPERTY APPEAR TO BE CONSISTANT WITH OTHER SALES AND TRANSFERS IN THE AREA.









Summary of Sales Comparison Approach SALES COMPARABLES WERE CHOSEN BASED UPON LOCATION, SIZE, AGE, AND DATE OF SALE.

SQUARE FOOT ADJUSTMENT IS $ 20. NO ADJUSTMENT FOR LESS THAN 50 SQUARE FEET.ALTHOUGH SOME SALES CLOSED OVER 6

MONTHS AGO, THE MARKET IN THIS AREA IS CONSIDERED STABLE.THE SITE ADJUSTMENT IS BRACKETED WITH THE LOCATION,

SIZE, & VALUE.THE CONDITION ADJUSTMENT WAS BRACKETED WITH THE AGE.NO CONSIDERATION WAS GIVEN FOR FENCE DUE TO

LACK OF EVIDENCE TO EFFECT THE MARKET.ADJUSTMENT FOR A FULL BATH IS $ 2,000. ADJUSTMENT FOR A HALF BATH IS

$ 1,000.DISTANCES ARE ROAD MILES AND NOT FROM POINT A TO POINT B.





Indicated Value by Sales Comparison Approach $ 65,000

Indicated Value by: Sales Comparison Approach $ 65,000 Cost Approach (if developed) $ 69,870 Income Approach (if developed) $

MOST RELIANCE IS PLACED UPON THE MARKET APPROACH WITH THE COST APPROACH USED FOR SUPPORT. MOST HOMES IN

THE AREA ARE OWNER OCCUPIED; THEREFORE, THERE IS NO MARKET INFORMATION FOR THE GROSS RENT MULTIPLIER AND NO

RECONCILIATION









INCOME APPROACH HAS BEEN ATTEMPTED. THIS IS A COMPLETE APPRAISAL/SUMMARY REPORT.

This appraisal is made ''as is'', subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been

completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the

following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: SUBJECT PROPERTY IS

APPRAISED "AS IS" AND IS CONSIDERED TO BE IN AVERAGE CONDITION FOR THE SUBJECT AREA.

Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting

s

conditions, and appraiser’ certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is

$ 65,000 , as of 09/22/08 , which is the date of inspection and the effective date of this appraisal.

Freddie Mac Form 70 March 2005 Page 2 of 6 Fannie Mae Form 1004 March 2005





Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #8



4691 HWY 256

Uniform Residential Appraisal Report File # M0908194

SUBJECT PROPERTY IS APPRAISED "AS IS" AND IS CONSIDERED TO BE IN GOOD CONDITION FOR THE SUBJECT AREA.





SALES COMPARABLES WERE CHOSEN BASED UPON LOCATION, SIZE, AGE, AND DATE OF SALE. SQUARE FOOT ADJUSTMENT IS $ 20.

NO ADJUSTMENT FOR LESS THAN 50 SQUARE FEET.ALTHOUGH SOME SALES CLOSED OVER 6 MONTHS AGO, THE MARKET IN THIS

AREA IS CONSIDERED STABLE.THE SITE ADJUSTMENT IS BRACKETED WITH THE LOCATION, SIZE, & VALUE.THE CONDITION

ADJUSTMENT WAS BRACKETED WITH THE AGE.NO CONSIDERATION WAS GIVEN FOR FENCE DUE TO LACK OF EVIDENCE TO EFFECT

THE MARKET.ADJUSTMENT FOR A FULL BATH IS $ 2,000. ADJUSTMENT FOR A HALF BATH IS $ 1,000.DISTANCES ARE ROAD MILES

AND NOT FROM POINT A TO POINT B.



THE DOUBLE-WIDE MOBILE HOME WHICH PRESENTLY EXISTS ON THE SUBJECT PROPERTY SITE IS TO BE REMOVED. THEREFORE,

NO CONSIDERATION OF VALUE WAS GIVEN FOR IT IN THIS REPORT.

ADDITIONAL COMMENTS









COST APPROACH TO VALUE (not required by Fannie Mae)

Provide adequate information for the lender/client to replicate the below cost figures and calculations.

Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value) THE COST WAS TAKEN FROM THE MARSHALL

AND SWIFT RESIDENTIAL COST HAND BOOK AND RESEARCH FROM THE LOCAL MARKET AREA. THE LAND VALUE WAS TAKEN FROM

TAX RECORDS AND RESEARCH FROM THE LOCAL MARKET AREA.

COST APPROACH









ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW OPINION OF SITE VALUE =$ 17,500

Source of cost data MARSHALL & SWIFT RES. COST HANDBOOK DWELLING 1,226 Sq.Ft. @ $ 65.25 =$ 79,997

Quality rating from cost service AVG/GD Effective date of cost data 06/06 NONE Sq.Ft. @ $ =$

Comments on Cost Approach (gross living area calculations, depreciation, etc.) H&A,KIT,FLRS,PRCH,PTO =$ 5,500

SEE ATTACHED SKETCH FOR SQUARE FOOTAGE CALCULATIONS Garage/Carport Sq.Ft. @ $ =$

AND FLOOR PLAN. COST APPROACH CALCULATIONS TAKEN Total Estimate of Cost-New =$ 85,497

FROM MARSHALL AND SWIFT RESIDENTIAL COST HANDBOOK. Less Physical Functional External

SITE VALUE IS TAKEN FROM RECENT LOT SALES IN THE AREA. Depreciation 35,627 =$( 35,627)

Depreciated Cost of Improvements =$ 49,870

REMAINING ESTIMATED ECONOMIC LIFE: 40-45 YEARS. "As-is" Value of Site Improvements =$ 2,500



Estimated Remaining Economic Life (HUD and VA only) 35 Years INDICATED VALUE BY COST APPROACH =$ 69,870

INCOME APPROACH TO VALUE (not required by Fannie Mae)

INCOME









Estimated Monthly Market Rent $ NO INFO X Gross Rent Multiplier N/A =$ Indicated Value by Income Approach

Summary of Income Approach (including support for market rent and GRM)



PROJECT INFORMATION FOR PUDs (if applicable)

Is the developer/builder in control of the Homeowners’ Association (HOA)? Yes No Unit type(s) Detached Attached

Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit.

Legal Name of Project

Total number of phases Total number of units Total number of units sold

PUD INFORMATION









Total number of units rented Total number of units for sale Data source(s)

Was the project created by the conversion of existing building(s) into a PUD? Yes No If Yes, date of conversion.

Does the project contain any multi-dwelling units? Yes No Data Source

Are the units, common elements, and recreation facilities complete? Yes No If No, describe the status of completion.





Are the common elements leased to or by the Homeowners’Association? Yes No If Yes, describe the rental terms and options.



Describe common elements and recreational facilities.





Freddie Mac Form 70 March 2005 Page 3 of 6 Fannie Mae Form 1004 March 2005





Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #9



4691 HWY 256

Uniform Residential Appraisal Report File # M0908194



This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit;

including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a

manufactured home or a unit in a condominium or cooperative project.



This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value,

statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended

use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may

expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal

assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do

not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s

continuing education or membership in an appraisal organization, are permitted.



SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the

reporting requirements of this appraisal report form, including the following definition of market value, statement of

assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual

inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the

comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources,

and (5) report his or her analysis, opinions, and conclusions in this appraisal report.



INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the

subject of this appraisal for a mortgage finance transaction.



INTENDED USER: The intended user of this appraisal report is the lender/client.



DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open

market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming

the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and

the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both

parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a

reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms

of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold

unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.



*Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are

necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are

readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing

adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional

lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical

dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market’ s

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reaction to the financing or concessions based on the appraiser’ judgment.



STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser’ certification in this report is

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subject to the following assumptions and limiting conditions:



1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title

to it, except for information that he or she became aware of during the research involved in performing this appraisal. The

appraiser assumes that the title is good and marketable and will not render any opinions about the title.



2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements.

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The sketch is included only to assist the reader in visualizing the property and understanding the appraiser’ determination

of its size.



3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency

(or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an

identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or

implied, regarding this determination.



4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question,

unless specific arrangements to do so have been made beforehand, or as otherwise required by law.



5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the

presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or

she became aware of during the research involved in performing the appraisal. Unless otherwise stated in this appraisal

report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the

property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances,

adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such

conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such

conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist.

Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as

an environmental assessment of the property.



6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory

completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will

be performed in a professional manner.









Freddie Mac Form 70 March 2005 Page 4 of 6 Fannie Mae Form 1004 March 2005





Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #10



4691 HWY 256

Uniform Residential Appraisal Report File # M0908194



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APPRAISER’ CERTIFICATION: The Appraiser certifies and agrees that:



1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in

this appraisal report.



2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition

of the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the

livability, soundness, or structural integrity of the property.



3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal

Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in

place at the time this appraisal report was prepared.



4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales

comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach

for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop

them, unless otherwise indicated in this report.



5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for

sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject

property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report.



6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior

to the date of sale of the comparable sale, unless otherwise indicated in this report.



7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property.



8. I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that

has been built or will be built on the land.



9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject

property and the comparable sales.



10. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in

the sale or financing of the subject property.



11. I have knowledge and experience in appraising this type of property in this market area.



12. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing

services, tax assessment records, public land records and other such data sources for the area in which the property is located.



13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from

reliable sources that I believe to be true and correct.



14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject

property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I

have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the

presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the

subject property or that I became aware of during the research involved in performing this appraisal. I have considered these

adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and

marketability of the subject property.



15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all

statements and information in this appraisal report are true and correct.



16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which

are subject only to the assumptions and limiting conditions in this appraisal report.



17. I have no present or prospective interest in the property that is the subject of this report, and I have no present or

prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or

completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital

status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the

present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law.



18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not

conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a

predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of

any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending

mortgage loan application).



19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I

relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal

or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this

appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make

a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no

responsibility for it.



20. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that

ordered and will receive this appraisal report.





Freddie Mac Form 70 March 2005 Page 5 of 6 Fannie Mae Form 1004 March 2005





Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #11



4691 HWY 256

Uniform Residential Appraisal Report File # M0908194



21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the

borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other

secondary market participants; data collection or reporting services; professional appraisal organizations; any department,

agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to

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obtain the appraiser’ or supervisory appraiser’ (if applicable) consent. Such consent must be obtained before this appraisal

report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public

relations, news, sales, or other media).



22. I am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain

laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice

that pertain to disclosure or distribution by me.



23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage

insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part

of any mortgage finance transaction that involves any one or more of these parties.



24. If this appraisal report was transmitted as an “electronic record” containing my ''electronic signature,'' as those terms are

defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this

appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and

valid as if a paper version of this appraisal report were delivered containing my original hand written signature.



25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or

criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States

Code, Section 1001, et seq., or similar state laws.



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SUPERVISORY APPRAISER’ CERTIFICATION: The Supervisory Appraiser certifies and agrees that:



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1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser’

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analysis, opinions, statements, conclusions, and the appraiser’ certification.



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2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser’ analysis, opinions,

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statements, conclusions, and the appraiser’ certification.



3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the

appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law.



4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and

promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal

report was prepared.



5. If this appraisal report was transmitted as an ''electronic record'' containing my ''electronic signature,'' as those terms are

defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this

appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and

valid as if a paper version of this appraisal report were delivered containing my original hand written signature.







APPRAISER MARTY SPURLOCK SUPERVISORY APPRAISER (ONLY IF REQUIRED)



Signature Signature

Name MARTY SPURLOCK, #SL 2631 Name

Company Name YINGLING APPRAISAL SERVICE Company Name

Company Address 147 SO. MARKET ST. Company Address

BENTON, AR 72015

Telephone Number (501) 315-9201 Telephone Number

Email Address Email Address

Date of Signature and Report September 23, 2008 Date of Signature

Effective Date of Appraisal 09/22/08 State Certification #

State Certification # or State License #

or State License # SL2631 State

or Other (describe) State # Expiration Date of Certification or License

State AR

Expiration Date of Certification or License 06/30/09 SUBJECT PROPERTY



ADDRESS OF PROPERTY APPRAISED Did not inspect subject property

4691 HWY 256 Did inspect exterior of subject property from street

ENGLAND, AR 72046 Date of Inspection

APPRAISED VALUE OF SUBJECT PROPERTY $ 65,000 Did inspect interior and exterior of subject property

Date of Inspection

LENDER/CLIENT

Name

COMPARABLE SALES

Company Name NONE

Company Address NA Did not inspect exterior of comparable sales from street

Did inspect exterior of comparable sales from street

Email Address Date of Inspection





Freddie Mac Form 70 March 2005 Page 6 of 6 Fannie Mae Form 1004 March 2005





Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #12



Building Sketch (Page - 1)

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









14.0' 14.3'





REAR

9.0'









9.0'







PORCH LAUNDRY

14.0'









KITCHEN

BEDROOM

43.6'









DINING BATH

42.8'









20.0'

LIVING ROOM









BEDROOM

20.0'









20.0'

PARK PAD

14.0'

8.2'









8.2'









PORCH

14.3' 14.0' 20.0'









Sketch by Apex IV™



Comments:









AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN

Code Description Size Net Totals Breakdown Subtotals

GLA1 First Floor 1225.91 1225.91 First Floor

P/P Porch 114.33 14.3 x 43.6 624.69

COVERED PORCH 126.00 0.3 x 8.2 2.72

PARK PAD 400.00 640.33 14.0 x 42.8 598.50









TOTAL LIVABLE (rounded) 1226 3 Calculations Total (rounded) 1226









Form SKT.BldSkI — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #13



Subject Photo Page

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









Subject Front

4691 HWY 256

Sales Price NA

Gross Living Area 1,226

Total Rooms 5

Total Bedrooms 2

Total Bathrooms 1

Location AVG SUB

View TYPICAL STREET

Site 4 ACRES

Quality VSD/AVERAGE

Age 25 EFF









Subject Rear









Subject Street









Form PICPIX.SR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

YINGLING APPRAISAL SERVICE File No. M0908194 Page #14



SUBJECT PHOTO ADDENDUM

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









LIVING ROOM KITCHEN



Comments: Comments:









BEDROOM BATH



Comments: Comments:









Form PICFOUR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #15



Comparable Photo Page

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









Comparable 1

804 IRVY

Prox. to Subject 3.41 miles

Sale Price 74,000

Gross Living Area 1,539

Total Rooms 5

Total Bedrooms 3

Total Bathrooms 2

Location AVG SUB

View TYPICAL ST.

Site .48 ACRES

Quality BRK-FRM/AVG

Age 18 EFF









Comparable 2

10 MAPLE ST.

Prox. to Subject 3.75 miles

Sale Price 69,000

Gross Living Area 1,667

Total Rooms 5

Total Bedrooms 3

Total Bathrooms 2

Location AVG SUB

View TYPICAL ST.

Site .33 ACRES

Quality BRK-FRM/AVG

Age 25 EFF









Comparable 3

19023 WAYNE ROAD

Prox. to Subject 6.91 miles

Sale Price 65,000

Gross Living Area 1,200

Total Rooms 4

Total Bedrooms 2

Total Bathrooms 1.5

Location AVG SUB

View TYPICAL ST.

Site 1.15 ACRES

Quality BRK-FRM/AVG

Age 18 EFF









Form PICPIX.CR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #16







Supplemental Addendum File No. M0908194

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









*Uniform Standard Rule 2-2 Report: (b) Summary Appraisal Report:



(vii) SUMMARIZE SUFFICIENT INFORMATION TO DISCLOSE TO THE CLIENT AND ANY INTENDED USERS OF

THE APPRAISAL THE SCOPE OF THE WORK USED TO DEVELOP THE APPRAISAL:



*Scope of a Typical Appraisal Process:

THE APPRAISAL ANALYSIS IS COMPLETED IN SEVERAL DISTINCT PHASES; GENERAL DATA COLLECTION,

NEIGHBORHOOD DATA COLLECTION AND ANALYSIS, SUBJECT PROPERTY DATA COLLECTION AND ANALYSIS,

HIGHEST AND BEST USE ANALYSIS, VALUATION AND REPORT PREPARATION. EACH PHASE WILL BE APPLIED AS

DEEMED BY THE APPRAISER(S).



A SERIES OF SPECIFIC STEPS ARE UNDERTAKEN IN ORDER TO COMPLETE EACH PHASE, DESCRIBED

BELOW.



1) GENERAL DATA COLLECTION AND ANALYSIS

THE GENERAL DATA COLLECTION AND ANALYSIS PHASE INVOLVES COLLECTION OF DATA RELATING TO

REGIONAL AND LOCAL TRENDS AND IDENTIFICATION AND ANALYSIS OF THE SOCIAL, GOVERNMENTAL AND

ENVIRONMENTAL FORCES AFFECTING OUR OPINION OF VALUE OF THE SUBJECT PROPERTY.



2) NEIGHBORHOOD DATA COLLECTION AND ANALYSIS

THE NEIGHBORHOOD DATA COLLECTION AND ANALYSIS PHASE ENTAILS OBSERVING THE SUBJECT

NEIGHBORHOOD, COLLECTION OF DATA RELATED TO GROWTH TRENDS, DEMOGRAPHICS, PHYSICAL

CHARACTERISTICS, AVAILABLE UTILITIES, PUBLIC IMPROVEMENTS AND SERVICES, ETC. AND ANALYZING THE

COLLECTED DATA FOCUSING ON ITS EFFECT ON THE SUBJECT PROPERTY.



3) SUBJECT PROPERTY DATA COLLECTION AND ANALYSIS

IN THE SUBJECT PROPERTY DATA COLLECTION AND ANALYSIS PHASE, WE OBSERVED THE SUBJECT

PROPERTY, BOTH SITE AND IMPROVEMENTS, REVIEW AVAILABLE HOUSE PLANS, WHEN APPLICABLE, SITE PLANS

AND OBTAIN REAL ESTATE TAXES, ZONING AND OTHER INFORMATION FROM PUBLIC SOURCES; AND ANALYZE THE

FUNCTIONALITY, CONDITION, ETC. OF THE SUBJECT PROPERTY IMPROVEMENTS.



4) MARKET DATA COLLECTION AND ANALYSIS

IN THE MARKET DATA COLLECTION AND ANALYSIS PHASE, WE OBTAIN AND VERIFY COMPARABLE

SALES DATA FOR VACANT LAND AND IMPROVED PROPERTIES FROM LOCAL MULTI-LIST SERVICES AND PUBLIC

RECORDS, PERSONALLY OBSERVE THE COMPARABLE LAND AND IMPROVED SALES AND RENTALS; AND

COLLECTION MARKET DATA, ETC. FROM A VARIETY OF SOURCES. ALL DATA WILL BE VERIFIED WHEN POSSIBLE.



5) HIGHEST AND BEST USE ANALYSIS

IN THE HIGHEST AND BEST USE ANALYSIS, WE ANALYZE ALL PREVIOUS OBTAINED DATA WITHIN THE

FRAMEWORK OF SUPPLY AND DEMAND, LEGAL USE, PHYSICALLY POSSIBLE USE, FEASIBILITY USE AND THAT USE

WHICH IS NORMALLY PRODUCTIVE BOTH FOR THE SITE AS IF VACANT AND USE OF THE PROPERTY AS IMPROVED.

6) VALUATION

IN THE VALUATION PHASE, WE WILL APPLY THE SALES COMPARISON APPROACH IN OUR OPINION OF

VALUE. IN THE ABSENCE OF RECENT LAND SALES IN AREAS WHICH ARE BUILT-UP; SEVERAL DIFFERENT,

GENERALLY RECOGNIZED METHODS ARE AVAILABLE TO VALUE RESIDENTIAL LAND. THESE OTHER METHODS ARE

ALLOCATION, EXTRACTION AND LAND RESIDUAL. IN OUR OPINION OF VALUE THE SUBJECT PROPERTY, WE APPLY

THE DIRECT SALES COMPARISON. WE ALSO APPLY THE COST APPROACH WHERE APPLICABLE AND NECESSARY TO

PRODUCE A CREDIBLE APPRAISAL. THE INCOME APPROACH TO VALUE IS ALSO CONSIDERED WHERE THERE IS A

SUFFICIENT AVAILABLE SUPPLY OF VERIFIABLE, RELIABLE RENTAL INFORMATION WHICH CAN BE USED TO

FORMULATE A RELIABLE GROSS RENT MULTIPLIER. THESE INDICATIONSOF VALUE ARE THEN RECONCILED INTO A

FINAL OPINION OF VALUE.



7) REPORT PREPARATION

THE FINAL PHASE OF THE APPRAISAL PROCESS IS REPORT PREPARATION, IN WHICH WE PREPARE A

LIMITED APPRAISAL IN A SUMMARY REPORT FORMAT IN ACCORDANCE WITH THE UNIFORM STANDARDS OF

PROFESSIONAL APPRAISAL PRACTICE.





(x) INCLUDE A SIGNED CERTIFICATION IN ACCORDANCE WITH STANDARDS RULE 2-3:

**NOTE: THIS CERTIFICATION SUPERCEDES THE CERTIFICATION CONTAINED ON FORM 439/1004B. IN THE EVENT

OF ANY CONFLICT, THIS CERTIFICATION TAKES PRECEDENCE.**



I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF:



-THE STATEMENTS OF FACT CONTAINED IN THIS REPORT ARE TRUE AND CORRECT.



-THE REPORTED ANALYSES, OPINIONS AND CONCLUSIONS ARE LIMITED ONLY BY THE REPORTED ASSUMPTIONS

AND LIMITING CONDITIONS, AND ARE MY PERSONAL, IMPARTIAL AND UNBIASED PROFESSIONAL ANALYSES,

OPINIONS AND CONCLUSIONS.



-I HAVE NO PRESENT OR PROSPECTIVE INTEREST IN THE PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AND I



Signature Signature

Name MARTY SPURLOCK, #SL 2631 Name

Date Signed September 23, 2008 Date Signed

State Certification # State State Certification # State AR

Or State License # SL2631 State AR Or State License # State

YINGLING APPRAISAL SERVICE

Form TADD2 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #17







Supplemental Addendum File No. M0908194

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE





HAVE NO PERSONAL INTEREST WITH RESPECT TO THE PARTIES INVOLVED.



-I HAVE NO BIAS WITH RESPECT TO THE PROPERTY THAT IS THE SUBJECT OF THIS REPORT OR THE PARTIES

INVOLVED WITH THIS ASSIGNMENT.



-MY ENGAGEMENT IN THIS ASSIGNMENT WAS NOT CONTINGENT UPON DEVELOPING OR REPORTING

PREDETERMINED RESULTS.



-MY COMPENSATION FOR COMPLETING THIS ASSIGNMENT IS NOT CONTINGENT UPON THE DEVELOPMENT OR

REPORTING OF A PREDETERMINED VALUE OR DIRECTION IN VALUE THAT FAVORS THE CAUSE OF THE CLIENT, THE

AMOUNT OF THE VALUE OPINION, THE ATTAINMENT OF A STIPULATED RESULT, OR THE OCCURRENCE OF A

SUBSEQUENT EVENT RELATED TO THE INTENDED USE OF THIS APPRAISAL.



-MY ANALYSES, OPINIONS AND CONCLUSIONS WERE DEVELOPED, AND THIS REPORT HAS BEEN PREPARED, IN

CONFORMITY WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE.



-I HAVE MADE A PERSONAL INSPECTION (I.E. OBSERVATION) OF THE PROPERTY THAT IS THE SUBJECT OF THIS

REPORT.



-NO ONE PROVIDED SIGNIFICANT REAL PROPERTY APPRAISAL ASSISTANCE TO THE PERSON SIGNING THIS REPORT

EXCEPT AS STATED IN THIS REPORT..



-THE INTENDED USER OF THIS APPRAISAL REPORT IS THE LENDER/CLIENT. THE INTENDED USE IS TO EVALUATE

THE PROPERTY THAT IS THE SUBJECT OF THIS APPRAISAL FOR A MORTGAGE FINANCE TRANSACTION, SUBJECT TO

THE STATED SCOPE OF WORK, PURPOSE OF THE APPRAISAL, REPORTING REQUIREMENTS OF THIS APPRAISAL

REPORT FORM, AND DEFINITION OFMARKET VALUE. NO ADDITIONAL INTENDED USERS ARE IDENTIFIED BY THE

APPRAISER.



I HAVE NO KNOWLEDGE OR EXPERTISE TO EVALUATE THE CONDITIONS OF THE WORKING ORDER OF INTERNAL OR

HIDDEN MECHANICAL EQUIPMENT. THIS INCLUDES BUT IS NOT LIMITED TO PLUMBING, SEPTIC SYSTEMS, WATER

WELL SYSTEMS IF ANY, WIRING, HEAT EXCHANGERS, AC COMPRESSORS, WATER HEATERS, APPLIANCES, ETC. NO

WARRANTIES ARE MADE AS TO THEIR CONDITION AND REMAINING ECONOMIC LIFE.



URAR ADDITIONAL COMMENTS:



AS PART OF THE APPRAISAL PROCESS THE SUBJECT PROPERTY WAS OBSERVED BY THE APPRAISER. THE

APPRAISER IS NOT A HOME INSPECTOR. THE APPRIASER IS NOT A TECHNICAL EXPERT WITH RESPECT TO

ELECTRICAL SYSTEMS, PLUMBING SYSTEMS OR SEWER SYSTEMS, OR PUBLIC WATER SYSTEMS. I HAVE NOT

PERFORMED A HOME INSPECTION. THE BUYER SHOULD OBTAIN THE SERVICES OF A HOME INSPECTOR OR IN THE

ALTERNATIVE SATISFY THEMSELVES AS TO THE CONDITION OF THE HOME THEY ARE PURCHASING.



THE SCOPE OF THE WORK IN THE APPRAISAL AND THE LEVEL OF DETAIL PROVIDED IN THE REPORT WERE BASED

SOLEY ON THE REQUIREMENTS OF THE INTENDED USER SPECIFICALLY STATED.



SUBJECT PROPERTY IS APPRAISED "AS IS" AND IS CONSIDERED TO BE IN AVERAGE CONDITION FOR THE SUBJECT

AREA.



THE DOUBLE-WIDE MOBILE HOME WHICH PRESENTLY EXISTS ON THE SUBJECT PROPERTY SITE IS TO BE REMOVED.

THEREFORE, NO CONSIDERATION OF VALUE WAS GIVEN FOR IT IN THIS REPORT.



SALES COMPARABLES WERE CHOSEN BASED UPON LOCATION, SIZE, AGE, AND DATE OF SALE. SQUARE FOOT

ADJUSTMENT IS $ 20. NO ADJUSTMENT FOR LESS THAN 50 SQUARE FEET.ALTHOUGH SOME SALES CLOSED OVER 6

MONTHS AGO, THE MARKET IN THIS AREA IS CONSIDERED STABLE.THE SITE ADJUSTMENT IS BRACKETED WITH THE

LOCATION, SIZE, & VALUE.THE CONDITION ADJUSTMENT WAS BRACKETED WITH THE AGE.NO CONSIDERATION WAS

GIVEN FOR FENCE DUE TO LACK OF EVIDENCE TO EFFECT THE MARKET.ADJUSTMENT FOR A FULL BATH IS $ 2,000.

ADJUSTMENT FOR A HALF BATH IS $ 1,000.DISTANCES ARE ROAD MILES AND NOT FROM POINT A TO POINT B.









Signature Signature

Name MARTY SPURLOCK, #SL 2631 Name

Date Signed September 23, 2008 Date Signed

State Certification # State State Certification # State AR

Or State License # SL2631 State AR Or State License # State

YINGLING APPRAISAL SERVICE

Form TADD2 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #18



Location Map

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









Form MAP.LOC — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #19



Flood Map

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









Form MAP.FLOOD — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #20



MULTI-PURPOSE SUPPLEMENTAL ADDENDUM

FOR FEDERALLY RELATED TRANSACTIONS

YINGLING APPRAISAL SERVICE

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE



This Multi-Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with the current

appraisal standards and requirements of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency (OCC), The Office of Thrift

Supervision (OTS), the Resolution Trust Corporation (RTC), and the Federal Reserve.





This Multi-Purpose Supplemental Addendum is for use with any appraisal. Only those

statements which have been checked by the appraiser apply to the property being appraised.





PURPOSE & FUNCTION OF APPRAISAL



The purpose of the appraisal is to estimate the market value of the subject property as defined herein. The function of the appraisal is to assist the above-named

Lender in evaluating the subject property for lending purposes. This is a federally related transaction.



EXTENT OF APPRAISAL PROCESS



The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject property and

neighborhood, and selection of comparable sales within the subject market area. The original source of the comparables is shown in the Data Source section

of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable.

When conflicting information was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor

used as a basis for the value conclusion.

The Reproduction Cost is based on MARSHALL & SWIFT RESIDENTIAL COST HANDBOOK

supplemented by the appraiser's knowledge of the local market.

Physical depreciation is based on the estimated effective age of the subject property. Functional and/or external depreciation, if present, is specifically

addressed in the appraisal report or other addenda. In estimating the site value, the appraiser has relied on personal knowledge of the local market. This

knowledge is based on prior and/or current analysis of site sales and/or abstraction of site values from sales of improved properties.

The subject property is located in an area of primarily owner-occupied single family residences and the Income Approach is not considered to be meaningful.

For this reason, the Income Approach was not used.

The Estimated Market Rent and Gross Rent Multiplier utilized in the Income Approach are based on the appraiser's knowledge of the subject market area.

The rental knowledge is based on prior and/or current rental rate surveys of residential properties. The Gross Rent Multiplier is based on prior and/or current

analysis of prices and market rates for residential properties.

For income producing properties, actual rents, vacancies and expenses have been reported and analyzed. They have been used to project future rents,

vacancies and expenses.



SUBJECT PROPERTY OFFERING INFORMATION

According to COOPERATIVE ARKANSAS REALTORS MULTIPLE LIST SERVICE the subject property:

has not been offered for sale in the past: 30 days 1 year 3 years.

is currently offered for sale for $ .

was offered for sale within the past: 30 days 1 year 3 years for $ .

Offering information was considered in the final reconciliation of value.

Offering information was not considered in the final reconciliation of value.

Offering information was not available. The reasons for unavailability and the steps taken by the appraiser are explained later in this addendum.



SALES HISTORY OF SUBJECT PROPERTY



According to LONOKE COUNTY TAX RECORDS the subject property:

Has not transferred in the past twelve months. in the past thirty-six months. in the past 5 years.

Has transferred in the past twelve months. in the past thirty-six months. in the past 5 years.

All prior sales which have occurred in the past year are listed below and reconciled to the appraised value, either in the body of the report or in the addenda.

Date Sales Price Document # Seller Buyer

11/01/07 0 2007-14786 GALL & WF GAYLE KELLEY, HENRY C JR









FEMA FLOOD HAZARD DATA



Subject property is not located in a FEMA Special Flood Hazard Area.

Subject property is located in a FEMA Special Flood Hazard Area.



Zone FEMA Map/Panel # Map Date Name of Community



C 05085C0525D 06/16/06 ENGLAND, ARKANSAS

The community does not participate in the National Flood Insurance Program.

The community does participate in the National Flood Insurance Program.

It is covered by a regular program.

It is covered by an emergency program.



Page 1 of 2

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File No. M0908194 Page #21







CURRENT SALES CONTRACT

The subject property is currently not under contract.

The contract and/or escrow instructions were not available for review. The unavailability of the contract is explained later in the addenda section.



The contract and/or escrow instructions were reviewed. The following summarizes the contract:



Contract Date Amendment Date Contract Price Seller







The contract indicated that personal property was not included in the sale.

The contract indicated that personal property was included. It consisted of

Estimated contributory value is $ .

Personal property was not included in the final value estimate.

Personal property was included in the final value estimate.

The contract indicated no financing concessions or other incentives.

The contract indicated the following concessions or incentives:

.

If concessions or incentives exist, the comparables were checked for similar concessions and appropriate adjustments were made, if applicable, so

that the final value conclusion is in compliance with the Market Value defined herein.



MARKET OVERVIEW Include an explanation of current market conditions and trends.



3-6 months is considered a reasonable marketing period for the subject property based on MARKET DATA.

.



ADDITIONAL CERTIFICATION

The Appraiser certifies and agrees that:

(1) The analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional

Appraisal Practice ("USPAP"), except that the Departure Provision of the USPAP does not apply.

(2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the client, the amount

of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

(3) This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.



ADDITIONAL (ENVIRONMENTAL) LIMITING CONDITIONS



The value estimated is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental

environmental conditions unless otherwise stated in this report. The appraiser is not an expert in the identification of hazardous substances or detrimental

environmental conditions. The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated

any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively unless otherwise stated

in this report. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of

hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value.



ADDITIONAL COMMENTS



SUBJECT PROPERTY IS APPRAISED "AS IS" AND IS CONSIDERED TO BE IN AVEAGE CONDITION FOR THE SUBJECT AREA.







APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION







Appraiser's Signature Effective Date 09/22/08 Date Prepared September 23, 2008

Appraiser's Name (print) MARTY SPURLOCK #SL2631 Phone # (

State AR License Certification # #SL2631 Tax ID # SEE INVOICE



CO-SIGNING APPRAISER'S CERTIFICATION



The co-signing appraiser has personally inspected the subject property, both inside and out, and has made an exterior inspection of all comparable sales

listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts

responsibility for the contents of the report including the value conclusions and the limiting conditions, and confirms that the certifications apply

fully to the co-signing appraiser.

The co-signing appraiser has not personally inspected the interior of the subject property and:

has not inspected the exterior of the subject property and all comparable sales listed in the report.

has inspected the exterior of the subject property and all comparable sales listed in the report.

The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the

contents of the report, including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing

appraiser with the exception of the certification regarding physical inspections. The above describes the level of inspection performed by the

co-signing appraiser.

The co-signing appraiser's level of inspection, involvement in the appraisal process and certification are covered elsewhere in the addenda section

of this appraisal.



CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION





Co-Signing

Appraiser's Signature Effective Date Date Prepared

Co-Signing Appraiser's Name (print) Phone #

State License Certification # Tax ID #



Page 2 of 2



Form MPA3 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #22









DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions

requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this

definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are

typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed

for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price

represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with

the sale.



* Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary

for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable

since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the

comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the

property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession

but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the

appraiser's judgement.







STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION



CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following

conditions:





1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that

the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible

ownership.





2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist

the reader of the report in visualizing the property and understanding the appraiser's determination of its size.





3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted

in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes

no guarantees, express or implied, regarding this determination.





4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do

so have been made beforehand.





5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These

separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used.





6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic

substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing

the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or

adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and

has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The

appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such

conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an

environmental assessment of the property.





7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be

reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other

parties.





8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice.





9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or

alterations on the assumption that completion of the improvements will be performed in a workmanlike manner.





10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report

(including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal

organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage

insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality

of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data

collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also

be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.









Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 1004B 6-93



YINGLING APPRAISAL SERVICE

Form ACR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #23









APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that:



1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property

for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant

variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce

the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made

a positive adjustment to increase the adjusted sales price of the comparable.



2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not

knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the

appraisal report are true and correct.



3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent

and limiting conditions specified in this form.



4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with

respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report

on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present

owners or occupants of the properties in the vicinity of the subject property.



5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this

appraisal is contingent on the appraised value of the property.



6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate,

the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I

did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan.



7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal

Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those

Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value

and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the

reconciliation section.



8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report.

I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate

vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that

I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property.



9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional

assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and

disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform

the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take

no responsibility for it.









SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that:

I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser,

agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report.





ADDRESS OF PROPERTY APPRAISED: 4691 HWY 256, ENGLAND, AR 72046



APPRAISER: SUPERVISORY APPRAISER (only if required):



Signature: Signature:

Name: MARTY SPURLOCK #SL2631 Name:

Date Signed: September 23, 2008 Date Signed:

State Certification #: State Certification #:

or State License #: SL2631 or State License #:

State: AR State:

Expiration Date of Certification or License: 06/30/09 Expiration Date of Certification or License:



Did Did Not Inspect Property









Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 1004B 6-93



Form ACR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #24



MARTY SPURLOCK APPRAISAL LICENSE

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









Form MAP.Generic — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE

File No. M0908194 Page #25

E & O Insurance Letter File No. M0908194

Borrower/Client BIRCH TREE COMMUNITIES, INC

Property Address 4691 HWY 256

City ENGLAND County LONOKE State AR Zip Code 72046

Lender NONE









General Star National Insurance Company

. TAj (GENERAL STAR NATIONAL INSURANCE COMPANY .







, ~~. P.O.. Box 10354

Stamford. Connecticut 06904

REAL ESTATE APPRAISERS ERRORS & OMISSIONS LlABILITY INSURANCE POLICY



DECLARATIONS PAGE

This Is a claims. made and reported policy. .



Please read th1s policy and all endorsements and attachments carefully.

Policy Number:

NJ A9871.S3

Renewal of Number:

1. NAMED INSURED:

MAILING ADDRESS:

Travis Yingling 12600 SOuth Fork Ln Benton, AR 7201'

2. POLICY PERIOD: Inception Date: 09/16/2007 Expiration Date: 09/16/2008

Effective 12:01 a.m. Standard Time at the mallng address oflhe Named Insured.

.3. LIMIT OF lIABILITY: Each Claim: . Aggregate: .





lock Box liability:

$ 1,000,000 . $ 2,000,000

NlA

4. CLAIM EXPENSES:

b. Have a separate limit ofUabUity.

5. STATUS OF INSURED:

Independent Contractor

6. DeDUCTIBLE: $500/1000

Each Claim: I

b. The dcductiblo amount specified above applies to both Damages and CJaima Expenses.

7. PRIOR ACTS DATE: 09/1612004

If a date is Indlca~d, this insurance will not apply to any regular act, error, omission or personal injury which occurred

before such date.

8. PREMIUM:

$ 590.00

9. ENDORSEMENTS:

. .



This policy Is.made and accepted such to the printed conditions in this policy together with the provisions, stipulations and

agreements contained in the following formes) or endorsement(s).

OSN-06-RE-l22 (0112003) OSN..()6..PL-80~ (0412003)

GsN.06-RE-200 (0412003) 06-PL-37S (0212003)

10. MANAGING AGENT

Herbert H. Landy Insurance Agency, 'Inc. 75 Second Avenue, Suite 410

Needham, Massachusetts 02494..2876





~

Au~oriUd~e~;Senmtl~==~=~~~~

Producer Code: 00026230 Date~ 09/Z.912OO4

GSN-06-RE.720 (03/2004)









Form TADD — "TOTAL for Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE