Galea Advisors Client Service Presentation

VALUE CREATION. PERFORMANCE ENHACEMENT. REAL ESTATE SOLUTIONS

Commercial Real Estate Client Services

Underwriting & Investment Valuation,

And Due Diligence Services for

Commercial Real Estate TransactionsDecember 1, 2009

© Copyright 2009 Galea Advisors, Inc. All rights reserved.

Galea Advisors: Realty Analytics

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Galea Advisors, Inc (“Galea”) is pleased to present this presentation outlining the commercial real estate outsourcing and

support services we offer in underwriting & investment valuation, and due diligence services. To date, we have completed

comparable services on engagements for lenders, advisory firms, and investment funds of various size and scope including,

most recently, an FDIC structured transaction encompassing over seven hundred loans collateralized by assets located in

fourteen states. This presentation outlines our project approach, typical work plan, staffing plan, firm credentials and professional

biographies.

We believe that Galea represents the best alternative for performing this work due to our:

• Composition as a "white-label" resource that bolsters internal resources discreetly without altering or disrupting the Client!scorporate culture;

• Highly experienced staff, all of whom have bulge bracket financial firm backgrounds, deep real estate financial and analyticalskill-sets, and/or principal-level commercial real estate development and investment experience;

• Expertise in each of the major property types (office, retail, hospitality and multifamily);

• Service-oriented firm that focuses on providing services uniquely tailored to meet the specific needs of each individualClient, respectively.

• Capacity to provide assistance on short notice with varying time commitments and with limited potential for Client conflicts;

• Competitive hourly, weekly, or project/asset-based fee structures.

Galea!s professionals have prior experience completing due diligence/underwriting services on billions of dollars of real

estate assets and transactions for commercial real estate groups at the following companies: Deloitte & Touche, Credit Suisse,

Capital Trust, Ernst & Young, Babcock & Brown, Jones Lang LaSalle and Alvarez & Marsal.

Galea is dedicated to providing each Client with in-depth real estate expertise in a highly efficient and cost effective manner.

We would be pleased to meet with you and review our service offerings in person or discuss other avenues for servicing your

commercial real estate needs.

Please call either Eric Andrew at (646) 662-3509 or Vernon Beckford at (914) 582-0450 if Galea can be of assistance.


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Page

! Project Approach and Work Plan 6

! Staffing Plan 13

! Summary Professional Biographies 15

! Appendix 18

Privileged and Confidential

Proposal Contents


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11

13

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4

Project Approach and Work Plan

Project Approach

Galea!s approach to completing the underwriting & investment valuation, due diligence and leaseabstraction procedures is geared towards meeting your critical objectives in a timely and cost efficientmanner. Our approach integrates:

•Standardized Procedures and Work Program – At the outset, we will agree upon a base set ofprocedures to be undertaken that will be modified, as required, dependent on the specific deal. A formalwork program will be established for each deal against which our progress will be tracked.

•Experienced Personnel – We will dedicate an experienced project team with the required skills to performall of the required procedures.

•Formal Weekly Status Updates – We will provide you with a formal status report each week that outlinesour progress against plan, hours incurred versus budget, and resolution status of any issues encountered.

•Ongoing Communication – We will provide you with continuous communications of any problems that weencounter with respect to completing our work (e.g., difficulty obtaining data) or significant property-specific issues that we identify as part of our work.

Following is our detailed work plan for completing the due diligence procedures.


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Underwriting & Investment Valuation

Project Approach

And

Work Plan


6

Underwriting & Investment Valuation Work Plan Objectives

The objectives for each activity include:

• Property, Loan and Sponsor Assessment – Provide detailed summary of property historical operations andsponsor/borrower for direct analysis and risk mitigation.

• Revenue and Expense Analysis – Compare reported in-place operating statement with available budget andnormalize to reflect existing market conditions and asset type benchmarks.

• Market Analysis – Research and summarize property MSA, including primary demand generators, majoremployers and corporate presence, population and demographic composition, and available asset-typeperformance indicators (rents/sf, occupancy rate, competitive set).

• Property Valuation – Create performance and valuation matrix showing vital operating metrics including,income-capped valuation and LTV, appraised valuation and LTV, compare implied going-in, in-place, andterminal cap rate. Detail debt yield (NCF/loan), DSCR (NOI/Loan).

• Other Activities – Detail investment strengths, risks, and mitigating factors at origination. Create suggestedasset management and monitoring plan. Provide state, regional and street mapping of property location.Review applicable third-party (sponsor financials, appraisal, engineering, environmental, seismic, STR)reports.

Project Approach and Work Plan (cont!d)

Property and

Sponsor

Assessment

Market

Analysis

Property

Valuation

Other

Activities

Revenue

and

Expense

Analysis


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Market

Analysis

Property

Valuation Other

Activities

• Summarize and review historical

operating statements and/or

property tax returns

• Review real estate taxes and

insurance policies for actual

amounts and potential changes

• Summarize and review existing

operating budget

• Create in-place reported

operating statement

• Create in-place risk-adjusted

operating statement

• Create stabilized best and worst

case operating statement

• Summarize property location

MSA, demand generators,

employment and transportation

centers

• Research and summarize local

demographics (income, age,

ethnicity)

• Research and summarize

asset type/class market

conditions (rate/sf, market size,

occupancy rates)

• Research property competitive

set (sales/leasing)

• Prepare valuation matrix

detailing the following metrics:

• Operations: NCF DSCR, NOI

DSCR

• Investment: Debt yield, ROI,

COC, total return

• Going-in Valuation: Appraised &

LTV

• In-place Valuation: Income-

capped, replacement cost, unit-

cost derived, max debt-load.

Year 1 cap rate

• Terminal Valuation: Stabilized

capped NOI, cap-rate sensitivity

valuation

• Highlights: Summarize asset

strengths, weaknesses, and

mitigating factors, or go forward

issues to monitor

• Proximity Mapping: Provide local,

state, and regional map of

property location

• Review Third Party Reports and

detail reporting firm/inspector,

contact info, report date, and the

following vital factors:

• Appraisal Review: direct cap-rate,

reported vac, reported rent/unit,

sub-market rents, NOI, and value

• Engineering Review: condition,

est. reserves/annum, est repairs.

• Environmental:phase type, action

recommended, est. cost to cure,

cost/unit

Work Plan Activities

• Property Tax Returns and bank

statements

• Rent Roll and Leases

• Reported Operating Statements

• Insurance and Tax Bills

• Research reports

• Other Source Documents

• Management & Franchise

Agreements

• City and state websites

• Census reports

• Market research via agents,

internet, brokers, cold calls,

listings, property visits.

• Other Market data and

available, applicable research

reports (suggested: costar,

reis, Claris, ESRI, MRIS, STR)

• Operating Statements

• Underwritten year 1

• Client Analytical models

• Third Party Reports

Activity

Work

Steps

Reports &Data

Utilized

Revenue

and

Expense

Analysis

Property, Loan

and Sponsor

Assessment

• Summarize Property, Loan and

Sponsor information: property

type & sub-type, city, state, year

built, year purchased, lien type,

lien amount, loan status,

origination date, sponsor name,

borrower name, guarantor info,

loan assumption status, loan

cash management/sweep/lock

box provisions, going-in and

current loan (A, B, mezz)

balances, LTV’s and maturity

dates, amortization type, lock-

out expiration

• Sponsor and guarantor financial

statements

• Sponsor Credit Report & Bank

References

• Borrower entity docs

• Originating Loan docs

• Appraisal


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Due Diligence and Lease Abstraction

Project Approach

And

Work Plan


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Work Plan Objectives

The objectives for each activity include:

• Lease Abstraction – Provide detailed lease information for direct analysis and comparison to the Seller!sreports.

• Revenue Analysis – Ensure that the tenant base rent and other income items are billed and collectedaccordingly, as stated in the tenant's lease agreement, and the confirm that first year base rents for eachtenant are accurate.

• Disbursements Analysis – Verify the general reasonableness of property operating expenses by identifyingunusual and / or major fluctuations in operating expense accounts, identifying any deferred operatingmaintenance items and verifying contractual payments to the service vendors.

• Financial Analysis – Highlight, on a comparative basis, the historical trends of the operating accounts andprovides an analytical review for the variance in account balances. The analysis also provides information forevaluation of the accounting records and identifies potential misstatements that may exist.

• Other Activities – Provide miscellaneous additional information on the property as disclosed during thefinancial due diligence review process. Includes reviewing information that may provide detail supportingunusual property activities.


Lease

Abstraction

Disbursements

Analysis

Financial

Analysis

Other

Activities Revenue

Analysis


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Disbursement

Analysis

Financial

Analysis

Other

Activities

• Confirm Rent Receipts Against

Source Docs

• Confirm Rent Receipts Against

General Ledger

• Compare Tenant Receipts to

Lease Abstracts

• Compare Base Rent and Other

Income to Rent Roll

• Confirm Miscellaneous / Other

Income

• Compare Abstracts to Base Year

Projections

• Confirm Recoverable

Calculations, Billings and

Receipts

• Compare Reconciliation Billings

to Underwriting Model

• Note Unusual Expense Items

• Confirm Payments and Coding

for Significant Items

• Confirm Payments and Coding

for Service Contracts

• Confirm Proper Allocations of

Shared Expenses

• Confirm Tax Payments and

Increases

• Confirm Real Estate Tax

Appeals and SALT Incentives

• Confirm Budgeted CapEX, TI

and Leasing Commissions

• Note Unfunded Tenant

Improvement Allowances

• Note Deferred Maintenance

• Extrapolate Full Year Property

Operating Expenses and

Compare to Underwriting

• Prepare Comparative Statement

of Operations

• Compare to General Ledger and

Note Variances

• Review Accounts Receivable

Aging Report and Note

Historical Write-Offs

• Review Sponsor’s Explanations

of Variances and Verify

Accuracy

• Review Financial Reports and

Balance Sheet and Note Unusual

Observations

• Verify Each Tenant Security

Deposit to the Lease Abstract

• Document the Asset

Management Cycles Under the

Current Property Management

Company

• Obtain Current Owner’s

Insurance Documentation

• Obtain Current Property

Management Agreement and

Mgmt. Fee Calculations

• Obtain Other Financial Docs (Job

Costing, Notes Receivable)

• Obtain Information Related to

“Captive Subsidiaries” that

Provide Services to the Property

Work Plan Activities

• General Ledgers

• Rent Roll / Lease Abstracts

• Projections

• Billing Statements / Expense

Reconciliation True-ups

• Cash Receipts / Tenant

Receivables Ledger

• Other Source Documents

• General Ledgers

• Statement of Operations

• Seller’s Current Year Budget

• Final Base Year Model

• Check Registers / Vendor

Payment History

• List of Service Contracts

• CapEx Schedules

• General Ledgers

• Balance Sheets

• Operating Statements

• Accounts Receivable Aging

Report

• Variance Analysis Reports for

Prior Periods

• Seller’s Monthly Reports to

Owner

• Detailed Tenant Security Deposit

Report

• Other Seller’s Reports and

Correspondence Files

Activity

Work

Steps

Reports &Data

Utilized

Revenue

Analysis

Lease

Abstraction

• Read Signed Leases for Each

Tenant

• Identify Early Termination

Rights, Right of First Refusal,

Expansion Options and / or

Renewal Options

• Enter information into Client

Data Input Template per Data

Entry Procedures and

Definitions

• Extract Appropriate Information

for Due Diligence Procedures

• Signed Tenant Leases

• Lease Abstract Template

• Commercial Lease Data Input

Form


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Staffing Plan

Client

Commercial Real

Estate Group

Galea Project

Management Team

• Managing

Consultant(s)

Galea CoreEngagement Team

• Project Consultant

(1 to 10 Project

Consultants based on

Client!s needs)

The sample staffing plans outlined below identify the proposed roles and responsibilities for both Galea and the Client!s personnel during anoffsite and onsite service engagement.

Galea will bring a highly seasoned, multi-disciplinary team to this engagement with deep due diligence, lease abstraction and underwritingexperience. The Galea team includes a Project Management Team, Core Engagement Team and Advisory Team. The Project ManagementTeam will have overall responsibility for managing the Galea team and ensuring delivery of a quality work product. The Core Engagement Teamwill be responsible for conducting the analyses and for producing deliverables. Finally, the Advisory Team will provide functional support on anas-needed basis, as well as, serve as an internal quality control audit system to provide secondary review of the deliverables.

Galea anticipates ongoing involvement from the Client!s personnel throughout the engagement including participation in meetings and review ofdeliverables. We would expect an Oversight Manager to be assigned to this engagement as the primary contact for managing the relationshipwith Galea and in approving deliverables.

ClientOversight Mgr.

Client HR Personnel


Client

Commercial Real

Estate Group

Galea CoreEngagement Team

• Project Consultant

(1 to 10 Project

Consultants based on

Client!s needs)

Galea Project

Management Team

• Managing

Consultant(s)

Onsite Staffing Plan Offsite Staffing Plan

Galea Advisory Team

(Quality Control)

• Advisor

• Advisor

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Galea Credentials

Real Estate Advisory Services

Galea Advisors, Inc. (“Galea”), headquartered in New York City, was formed in 2008 to providespecialized operational and financial services to underperforming, over-leveraged or otherwisedistressed property owners and investors of related assets. In addition to advising distressed realestate companies and investors, Galea provides direct or “white label” creditor advisory services andliquidation-related services.

Galea!s Real Estate Advisory Group is comprised of a dedicated team of consultants who deliverindependent and objective consultation and analysis to owners, investors, lenders, operators andcorporate users of real estate. Building on Galea!s operational and problem-solving team, ourprofessionals develop and implement detailed real estate strategies that improve operations, unlockvalue and minimize risk. We offer comprehensive solutions that address the need for objective andindependent real estate counsel and execution.

Our real estate advisory services include:

" CRE Transaction Services

" Owner Advisory Services

" Interim and Crisis Management Consulting

" Strategy and Operations Consulting


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OverviewAs indicated in the Staffing Plan, Galea is prepared to dedicate a core team of highly seasoned professionals to provideunderwriting and investment valuation or financial due diligence and lease abstraction services. Following is a summaryprofessional biographies for these personnel.

Project Management Team

Vernon Beckford, Managing ConsultantVernon Beckford is a Director at Galea, overseeing day-to-day operations. Most recently, Mr. Beckford worked at investmentfirm Sarus Partners, where he was responsible for strategic repositioning of small and middle market companies pursuingventure capital & private equity funding. Prior to that, he worked at Credit Suisse in the Real Estate Finance Group, engagingin fixed and floating rate debt issuance. During his tenure, he performed credit analysis, coordinated due diligence & collateralanalysis for investors and assembled and reconciled pool level data tapes related to investor disclosure. In addition, heprepared and reviewed cash flow underwritings for commercial and multifamily loans in excess of $5 billion. Vernon alsojoined Credit Suisse Asia to help establish a Japanese structured finance platform and executed the first major transaction inthat office. Mr. Beckford holds a B.A. in Political Science with a concentration on Economics from Columbia University. Heholds Series 7 & 63 securities licenses and is a member of the NASD.

Eric Andrew, Managing ConsultantEric Andrew is a Director at Galea, overseeing commercial real estate deal sourcing. Most recently, Mr. Andrew served as aDirector at Enterprise Community Developers, a real estate development firm specializing in urban development anddistressed asset repositioning. Mr. Andrew also managed the company's direct investment vehicle, Enterprise CapitalPartners, and aided in the development and operations of spin-off subsidiary companies offering third-party services inconstruction and asset/property management. Prior to Enterprise, Mr. Andrew worked at Goldman Sachs as an Analyst in theInvestment Management Division. He later joined Capital Trust Real Estate Investment Company, a publicly traded REIT,acting as Analyst and Deal Underwriter. During his tenure at Capital Trust, he analyzed and worked on underwriting teams formore than $7 billion worth of commercial loans and equity participations. Mr. Andrew earned a B.A. from Columbia Universitywith a double major in Economics and History, holds a Venture Management Certification from the Harvard Business SchoolVMP, graduated with distinction from the New York ICSC Real Estate Associate Program and currently holds candidacy forCCIM designation. He holds Series 7 & 63 securities licenses and is a member of the NASD.

Summary Professional Biographies


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Summary Professional Biographies (cont!d)

Galea Core Engagement Team

Joseph A. DeVenuta, Project ConsultantPrior to joining Galea, Mr. Devenuta worked for institutional real estate firms including Babcock & Brown, and Jones LangLaSalle where his various experiences included underwriting, acquisition and asset management of more than $4 billion incommercial real estate investments across the United States, along with consulting on projects relating to managementstructure, process improvement and management software selection and implementation. Sample assignments haveincluded conducting semi-annual internal valuations for a 28,000+ unit apartment portfolio, coordinating valuations andinvestor reporting for a broad portfolio of assets (including retail, self storage, development and debt assets), and managinga $330 million loan portfolio collateralized by real assets in all major property sectors. Mr. DeVenuta holds a B.S. inManagement and Organizational Behavior with a focus in Commercial Real Estate Finance from New York University!sStern School of Business.

Mike Zampetti, Project ConsultantMichael Zampetti has eight years of experience in the commercial real estate industry. Michael is currently an independentadvisor to buyers and sellers of commercial real estate and the debt thereon. In this capacity, he provides underwriting,valuation, pricing, and marketing services to both buyers and sellers. Previously, Michael was a Vice President in the RealEstate Finance & Securitization (REFS) group at Credit Suisse, where he oversaw the creation and issuance ofapproximately $35 billion of commercial mortgage backed securities (CMBS). In this role, Michael was responsible for theday-to-day management of small teams and processes including, but not limited to, commercial real estate underwritinganalysis, conducting large scale due diligence efforts, and the sales and marketing efforts of loans and bonds. Prior tojoining the REFS group, Michael worked as a consultant in Credit Suisse!s Realty Investment Group, which was chargedwith liquidating a $300 million portfolio of performing and non-performing loans and equity positions. Michael graduated cumlaude from the University of Scranton with a finance major and economics minor. He holds Series 7 & 63 securities licensesand is a member of the NASD.


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Summary Professional Biographies (cont!d)

Galea Advisory Team

Dan Wolins, AdvisorDaniel Wolins is currently a partner in a New York-based private real estate equity company. Previously, Dan worked as aDirector for Deutsche Bank's Commercial Real Estate Group in London, where he was responsible for managing the team'scollateral risk in the origination and securitization process. His day-to-day activities included pricing new loans, participatingin lending decisions and working closely with origination, structuring and distribution to ensure consistency of lendingcriteria and data dissemination in the distribution process. Prior to joining Deutsche Bank in 2006, Dan worked in the RealEstate Finance and Securitization Group at Credit Suisse for eight years in New York. He was a deal manager for fixed andfloating rate CMBS securitizations and a member of their internal credit committee. Dan graduated from the University ofVermont with a Bachelor of Science in Business Administration.

Anthony Nazzaro, AdvisorAnthony Nazzaro is currently a principal of Layton Holdings, a commercial real estate investment and advisory firm withClients that include, TIAA-Cref, Brookfield Asset Management, and Rhodes Associates. Anthony has over 25 yearsexperience and his specialties include strategic planning, operational and organizational design, internal controls andsystems planning. Mr. Nazzaro has advised numerous real estate Clients including Homebuilders / Developers, HospitalityCompanies, Investment Managers, Opportunity Funds, Real Estate Investment Trusts (REITS), Real Estate OperatingCompanies, and Corporates. His Client projects include designing and implementing asset management, budgetingforecasting and valuation processes for a large investment manager and implementing a property and portfolio modelingsystem to support the new asset management processes. He has also designed and implemented a centralized leaseadministration function across office and retail portfolios of two large property management functions and designed a newlease abstract process and template that was fully integrated with the property management system. Anthony!s Clientsinclude AMP Henderson, AMB Property Company and Deutsche Bank. Prior to joining the Galea Advisory Team, heserved as a Director at Alvarez & Marsal and also spent ten years in Los Angeles, New York and Sydney in the real estategroup of a Big Four firm where he served as Senior Manager. Anthony earned an M.B.A. from the University of California,Irvine and a B.S. in Electrical Engineering from New Jersey Institute of Technology.


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Appendix


Appendix

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Representative Sampling of Client Deliverables


Sample Deliverables detailed herein are representative examples only. Pertinent details have been intentionally changed, deleted, or distorted to protect Client privacy and confidentiality.

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Investor Reporting - Collateral Valuation Summary (Investment “1-Pager”)


Loan Collateral Sponsor Relationship ID: 3

Loan ID # 100351 Property Name: Borrower:

Pool ID # 1234A City: Guarantor:Portfolio: State: Loan ID# Pool ID # UPB Loan Status Lien PositionBank Name: Prop. Sub Type / Yr. Built: Hotel 1999 Subject Loan: 100351 1234A 2,501,146 Non-Perf. First/DOT

Property Size (SF): 48,634 80 Keys Related Loan #1 100354 1234B 1,465,938 Non-Perf. First/DOTLoan Status: Proposed Use: Related Loan #2 113578 6359A 1,085,431 Non-Perf. First/DOTUPB / Per Key: $2,501,146 $31,264 Project Completion %: Related Loan #3Lien Position Site Inspection Review: Related Loan #4Loan Purpose: Asset Summary: Related Loan #5Origination Date: Appraisal Review: Related Loan #6Maturity Date: 2/1/2031 NAV Legal/Environmental Review YES YES Related Loan #7Last Payment Date: 5/4/2009 89 (Days Late) Original Appraisal Date: Related Loan #8Unfunded Commitment: Original Appraisal Value: $5,000,000 $62,500 Related Loan #9

BPO/Recent Appraisal $3,570,000 $44,625 Related Loan #10Galea UW Value / Per Key $2,880,000 $36,000 Total Exposure to Borrower $5,052,515

Asset SummaryNotes: Lien:

Borrower / GuarantorNotes:

Legal Summary

Notes:

Environmental SummaryNAP Soil Contamination

(Y/N):X UST (Y/N): X Ground Water

(Y/N):X Mold (Y/N): NAP Other (Y/N):

Notes:

Asset PlanNotes: UW

Galea Cap Rates: 14.0% Multiplier 2.0x /key

Underwriter: Galea UW Value 8/30/09 Reviewer 1: Client TBD Reviewer 2: Client TBD

Resolution The anticipated Loan resolution is a DPO in which the borrower refinances the existing lien within 18 months at par.

Location

Market 1) The submarket offers roughly 20 competing limited service and extended stay hospitality properties. 2) Occupancy levels in the MSA are flat. 3) ADR levels in the submarket are trending down. 4) RevPAR is expecting to trend down until 2011.

Other Issues

The Borrower signed an environmental indemnity agreement. Possible economic risk resulting from sites prior use pattern.

Dry Cleaner (Y/N): NAP

Any Borrower LLCJohn Doe, Jane Doe, & J&J Transportation

Tape Notes:

USAABC Lending

Non-Performing

First Mortgage/DOT

1950-91 site occupied by gasoline station. Low levels of BTEX in soil & groundwater. Results questionable because of location of samples. No doc on UST removals.

250000

The facility is a Non-Performing $2501146.06 First Mortgage/DOT. The purpose of the Loan was for Purchase/Acquisition

Asbestos (Y/N): NAP

None

Loan assigned from Silver State Bank to Sec. Savings - All assignment documentation in file; Title Date Down dated 8/21/09

None Issue #8: None

Holiday Inn ExpressAnyrosNM

Gas Station (Y/N): X Cost to Cure Environmental Issues:

Purchase/Acquisition2/3/2006

$0

YES

HotelNAVYES

Collateral

YES

Issue #9:

None Issue #3: None

Issue #4: None Issue #5: None

Value $36,000

Mortgage Issue (Y/N):

None Title Policy (Y/N):

Title Policy includes material exceptions

Issue #6: None Issue #7:

Note Issue:

Revenue Drivers: ADR @ $75

COLLATERAL VALUATION SUMMARY

Recent communication from 6/09 through 7/09 indicate that the Any Lender was negotiating the sale of their loan position to Any Buyer.

The Property is a Hotel with 80 Keys located in Anyros, NM

$2,880,000

Tape Notes:

5/20/05

3) As of October 2007, the Guarantors joint PFS stated a net worth of $13.02M based on assets of $17.2M, including $390k in cash, and total liabilities of $4.2. 4) The credit rating for John Doe showed a score of 630 as of 11/07 and reflected nine late payments, but all of his accounts were current. The credit score for Jane Doe as of 11/07 was 740 and reflected no late payments.

1) The Property condition at the time of site inspection (8/19/09) was noted as excellent. The Property has been well maintained and does not suffer from any deferred maintenance.2) Competing flags in the operating area include the Hampton Inn, Days, Inn, Fairfield Inn, Candlewood Suites, Best Western, Econolodge and La Quinta Inn.

The Property is the newest hotel in the MSA.

The Property sits at the corner a major north/south arterial roadway and benefits from good visibility, and walking proximity to local amenities and an adjacent golf course. Primary demand generators include, Eastern New Mexico University, New Mexico Military Institute, and oil and gas employers.

The Borrower is Any Borrower LLC. The Sponsor for the transaction is John Doe, Jane Doe, & J&J Transportation.

1) John and Jane Doe signed full guarantees. 2) J&J transportation signed full guarantees.

Multiplier @ 2.5x to 3x (2.0x for quick sale), Cap Rates @ 13-14%, ADR @ $65-80/

None Issue #1: Mechanics Liens filed

Issue #2:


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ABC FUND, INC - COLLATERAL SUMMARY

1234 ANYWHERE AVENUE - NEW YORK, NY

PROPERTY CASH FLOW PROJECTIONS AT ORIGINATION (000s)Year 1 Year 2 Year 3 Year 4 Maturity Year 6 Year 7 Year 8 Year 9 Year 10

12 Mos 12 Mos 12 Mos 12 Mos 5 Mos 12 Mos 12 Mos 12 Mos 12 Mos 12 MosFYE 12/09 FYE 12/10 FYE 12/11 FYE 12/12 ending 4/14 FYE 12/14 FYE 12/15 FYE 12/16 FYE 12/17 FYE 12/18

Economic Occupancy 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2%Base Rent $1,614 $1,663 $1,712 $1,764 $780 $1,871 $1,927 $1,985 $2,045 $2,106Other Income 6 6 6 7 3 7 7 7 8 8Vacancy Loss/Collection Loss (61) (63) (65) (67) (69) (71) (73) (75) (77) (80)Total Revenue $1,559 $1,606 $1,654 $1,704 $753 $1,807 $1,862 $1,918 $1,975 $2,034RE Taxes and Ins. 209 216 222 229 101 243 250 257 265 273Operating Expenses 469 483 497 512 226 543 560 577 594 612Net Operating Income $881 $907 $935 $963 $426 $1,021 $1,052 $1,084 $1,116 $1,150CapEx Escrow (37) (37) (37) (37) (37) (37)Adjusted NOI (NCF) $844 $871 $898 $926 $389 $985

Plus: CapEx Escrow $37 $37 $37 $37 $37 $37 0 0 0 0Less: Actual CapEx (37) (37) (37) (37) (37) (36) (36) (36) (36) (36)Net Funding (Deficit) From Reserve $0 $0 $0 $0 $0 $0

Ending Loan Balance (Mezz. Loan) $9,850 $9,850 $9,624 $9,391 $9,153 $9,153DSCR @ Actual Rate (Mezz. Loan) 1.11x 1.15x 0.92x 0.96x 0.41x 1.39xNCF/Loan (Mezz. Loan) 8.6% 8.8% 9.3% 9.9% 10.2% 10.8%

PROPERTY PERFORMANCE (000s)

Property Statistics Actual 2007 Actual 2008 Galea UW

Yr 1

Economic Occupancy 98.4% 97.1% 96.2%

Effective Gross Revenue $1,368 $1,497 $1,559

Operating Expenses 764 802 678

NOI $604 $695 $881Actual CapEx 0 0 (36)

Adjusted NOI (NCF) $604 $695 $845

Total Debt Service 760 760 760

Cash Flow After Debt Service ($156) ($65) $84

Senior DSCR - Adjusted NOI 1.45 1.66 2.02

Total DSCR - Adjusted NOI 0.79 0.91 1.11

NCF/Loan 6.1% 7.1% 8.6%

Swaps 5.21% 5.21% 5.21%

Implied Going In Cap Rate 4.62% 5.32% 6.46%

Galea Value(1) $13,070

Galea Value LTV 75.4%

(1) Value is based on a 10-year DCF with a 6.75% terminal cap rate and a 9.25% discount rate as of 12/31/08.

Performance Comments

GA Value $13,070 GA LTV (Senior Loan) 45.1%GA Value / Unit 157,471 GA LTV (Mezz. Loan) 75.4%Cap-Rate (1st Year NCF) 6.46%

Appraised Value $13,300 Appraised Value LTV (Senior Loan) 44.4%Appraised Value / Unit 160,241 Appraised Value LTV (Mezz. Loan) 74.1%Going-In Cap Rate 6.25%

GA Terminal Cap Rate 6.75% Senior Loan Mezz. LoanRequired DSCR 1.25x Ending Loan Balance $5,443 $9,153

$15,585 Ending LTV 34.9% 58.7%

Breakeven Constant 15.15% 9.01%

CT Value (Net Sale Proceeds EO Year 6)

LOAN ASSESSMENT/CAPITAL TRUST ASSET PLAN

Portfolio Management to perform quarterly review.Monitor the level of rents in property submarket.

The cash flow projections were based on the following assumptions: (i) in-place rents according to the rent roll dated November 28, 2008, (ii) a 3.0% economic vacancy, (iii) historicalrevenues grown at 3.0%, (iv) historical operating expenses grown at 3.0%, (v) management fees projected at 4.61% of effective gross revenue, and (vi) $436/Unit capital reserve ($36,610).

Galea VALUATION (000s)

The Galea underwritten value of $13.1MM is based on a 10-year DCF with a 6.75% terminal cap rate on yr. 11 NOI of $1.2MM and a 9.25% discount rate as of 12/31/08.

TAKE-OUT ANALYSIS (000s)

Investor Reporting - Collateral Summary



ABC FUND, INC - COLLATERAL SUMMARY


PROPERTY & BORROWER INFORMATION

Property Type: Multifamily Lien Type: Mezzanine Sponsor: John DoeProperty Sub-Type: Elevator Apartments Loan Origination Date: Borrower: John Doe Investments LLC# of Units: 84 ABC Loan Acquisition Date: Loan Assumable: NoCity, State: New York NY Acquisition/Refinance: Refinance Carve Out Guarantor: John DoeYear Built, Renov.: 1985 1996 Lock Box: No Cash Mgmt/Sweep: No/No

LOAN INFORMATION

Note Holder

Loan Balance

(000s) Loan/

Unit

Appr.

LTV(1)Fitch

DSCRMoodys

LTVS&P LTV

Issuer NCF

YieldInit. Mat.

DateExt. Mat.

Date Index(2) Spread Amort.(3)Lock. Exp.

Senior Loan XYZ Bank $5,900 $70,238 44.36% NAV NAV NAV 13.7% 4/1/14 4/1/14 Swaps 1.77% I/O, Fixed 4/1/14

Mezz. Loan ABC Fund 3,950 117,262 74.06% NAV NAV NAV 8.2% 4/1/14 4/1/14 Swaps 3.35% I/O, Fixed 4/1/14

Total $9,850 2.40%

(1) LTV is based on the appraised value of $13.3 MM, pursuant to the appraisal prepared by Leitner Group, Inc. dated December 08, 2008.(2) The Swaps rate will be locked-in at closing.

(3) The Loan is I/O during the first two years and amortizes based on a 30 year schedule thereafter.

PROPERTY OPERATIONS

Property Statistics

(000s) Actual 2006

Actual

2007 Actual 2008

Issuer U/W

NCF(1) Per Unit Unit Type

No. of

Units (2) Avg. SF

Avg. In-Place

Rent

Galea Adj.

Market Rent % Occ.Physical Occupancy 97.4% 99.2% 98.8% 98.0% 1 Bedroom 22 540 $1,208 $1,341 100%

Economic Occupancy 96.6% 98.4% 97.1% 98.0% 2 Bedroom 48 750 1,680 1,865 100%

Base Rent $1,369 $1,369 $1,522 $1,614 $19,448 3 Bedroom 13 940 2,100 2,331 100%

Other Income 19 20 20 16 188 Total / Average 83 724 $1,621 $1,799 100%Vacancy Loss (47) (21) (44) (33) (393) Rent roll data as of 11/28/08 0 0 $0 -

Total Revenue $1,341 $1,368 $1,497 $1,597 $19,243 HOUSING ASSISTANCE PAYMENTS ("HAP") CONTRACT

RE Taxes and Ins. 162 160 196 220 2,656Operating Expenses 622 605 606 529 6,373NOI $557 $604 $695 $848 $10,214Capital Expenditures 0 0 0 (37) (441)NCF $557 $604 $695 $811 $9,773

Appraised Value/Per Unit/Date: $13,300 $158,333 11/15/08Galea Value/Per Unit/Date: $13,070 $155,597 3/1/09

(1) Based on XYZ Bank's underwriting. (2) The property contains 84 units. The total number of units shown excludes one 3-bedroom unit occupied rent-free by the superintendent.

GENERAL NARRATIVE

INVESTMENT STRENGTHS/ RISKS AT ORIGINATION

3/6/09

Term:

Contract rents are reset to market (upward or downward) every 5 years. They may also adjusted

annually (upward only).

Rent Adjustments:

HUD pays owner a portion of tenant's contract rent minus an amount equal to the greater of (i) 30% of

tenant adjusted income, (ii) 10% of gross income, or (iii) the portion of welfare assistance designated

for housing.

The owner may terminate contract with written notice to the CA and each tenant in according to law

and HUD requirements.

Termination Options:

Five years term with unlimited five-year extension options

Families with income below 50% of the area median income.

Payments:

Eligibility:

3/6/09

The Property, known as John Doe Apartments, is a 100% occupied, 77M sf apartment building containing 84 units located at the southwest corner of Anywhere Ave. and 115th St. in northernManhattan. Built in 1985 for use as project-based Section 8 affordable housing, the Property generates 79% of the its income from HUD Section 8 subsidies under a Housing AssistancePayments ("HAP") contract through 2010.

The Property's East Harlem neighborhood has seen significant revitalization over the past few years. The East Harlem submarket contained 40M households as of 2008, with an averageannual household income of $39M compared to $64M for the nation. Due to a housing shortage throughout the submarket, which has a residential vacancy rate less than 3%, occupancy ratesapproach 100% in most properties, with only short-term vacancies. Contractual rents at the Property, which average $1,621 per unit per month, are set to be 20% below market rents inaccordance with the HAP contract. Galea believes the market rents used by HUD may be high. Galea's analysis indicates market rents to be approximately $1,340 for 1-bedroom apartments,$1,870 for 2-bedroom apartments and $2,330 for 3-bedroom apartments based on broker rental listings for comparable apartments in market rate buildings, which means in-place averagerents at the Property are closer to 10% below market. As part of the Section 8 program, the Property benefits from real estate tax savings as well as lower vacancy and collection loss thanwould be expected in a market-rate building. The Property currently pays a PILOT (payment in lieu of taxes) of $183M, which is estimated at $137M below market real estate taxes. TheProperty does not require the capital outlay that would be necessary to convert and maintain the building at market rate levels within an area with such an abundance of new construction. Thetax savings combined with lower maintenance costs and the HAP rents, which are close to market rate and on average 80% HUD-paid, makes continuing under the HAP contract moreprofitable for the owner than converting the Property to a market-rate building.

Jake Doe, Martin Doe and Jehoshua Doe (20% ownership) are the general partners responsible for management and operations. John Doe (required to maintain 25% ownership), who reportsa net worth of $1.1B and $80MM liquidity as of 6/30/09, will be the recourse carveout guarantor of the loan and has extensive real estate experience through ownership and management ofover 21 Section 8 developments (9.5M units), more than 25M residential units and over 10MM sf of commercial and industrial space in the New York Metropolitan area. Alexander Doe (55%ownership), whose net worth is reportedly in excess of $50MM, has no control over the operation of the property and will never be allowed to have a controlling interest due to his credit history,including involuntary bankruptcy petitions that were filed against him and numerous properties being foreclosed upon. The Property is managed by XYZ Realty Corp., a Doe-owned companywhich has been involved in the management of Section 8 housing since its inception in 1957. The company currently manages four buildings with a total of 654 units throughout Manhattan and theBronx, all of which have been under their management for over 19 years.

(+)Occupancy: The Property is currently 100% with a waiting list in excess of 250 people and units that are generally rented within one month.(+/-)HAP Contract: The Property generates nearly 80% of its income from government subsidies, which limits the risk of collection loss and tenant payment defaults, but also provides risk in theevent of a HAP contract default that could cause HUD to stop payment of all subsidies.

20

ABC FUND, INC - ASSET MANAGEMENT COLLATERAL SUMMARY


OPERATING STATEMENTS

Year 2008 2008/2009 Appraisal U/W Galea In Place Cash Flow Galea Underwriting

Period Full Year Full Year As of As of As of NOTE

Period Ended 12/31/08 2008/2009 11/15/08 12/31/08 12/31/08

Statement TypeAppraisal U/W Galea In Place Cash Flow Galea Underwriting

Economic Occupancy 97.1% 98.0% 98.0% 99.2% 94.2%

Per Unit % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit % of GPR Per Unit % of GPR

Gross Potential Rent $1,521,537 $18,114 100.0% $1,614,192 $19,217 100.0% $1,614,192 $19,217 100.0% $1,614,192 $19,217 100.0% $1,614,192 $19,217 100.0% 1

Vacancy Loss (17,688) (211) (1.2%) (32,284) (384) (2.0%) (32,596) (388) (2.0%) - - - (80,710) (998) (5.0%) 2

Leasing Concessions - - - - - - - - - - - - - - -

Credit / Collection Loss (26,369) (314) (1.7%) - - - - - - (12,645) (145) (0.8%) (12,645) (156) (0.8%) 3

Net Rental Income $1,477,480 $17,589 97.1% $1,581,908 $18,832 98.0% $1,581,596 $18,829 98.0% $1,601,547 $19,289 99.2% $1,520,837 $18,812 94.2%

% of EGR % of EGR % of EGR % of EGR % of EGR

Laundry Income $2,702 $32 0.2% $6,000 $71 0.4% $6,000 $71 0.4% $6,000 $71 0.4% $6,000 $71 0.4% 4

Parking Income 9,400 112 0.6% 9,600 114 0.6% 9,600 114 0.6% - - - - - - 5

Other Income 7,555 90 0.5% - - - - - - - - - - - - 6

Total Other Income $19,657 $234 1.3% $15,600 $186 1.0% $15,600 $186 1.0% $6,000 $71 0.4% $6,000 $71 0.4%

Effective Gross Revenue $1,497,137 $17,823 100.0% $1,597,508 $19,018 100.0% $1,597,196 $19,014 100.0% $1,607,547 $19,455 100.0% $1,526,837 $18,887 100.0%

Real Estate Taxes $170,112 $2,025 11.4% $183,172 $2,181 11.5% $182,667 $2,175 11.4% $183,172 $2,181 11.4% $183,172 $2,181 12.0% 7

Insurance 26,171 312 1.7% 15,000 179 0.9% 37,800 450 2.4% 26,171 312 1.6% 26,171 312 1.7% 7

Utilities 186,247 2,217 12.4% 157,000 1,869 9.8% 160,650 1,913 10.1% 186,247 2,217 11.6% 186,247 2,217 12.2% 8

Repairs & Maintenance 51,904 618 3.5% 41,500 494 2.6% 154,700 1,842 9.7% 51,904 618 3.2% 51,904 618 3.4% 8

Janitorial - - - - - - - - - - - - - - -

General & Administrative 111,271 1,325 7.4% 70,000 833 4.4% 25,000 298 1.6% 70,000 833 4.4% 70,000 833 4.6% 8

Advertising & Marketing - - - - - - - - - - - - - - -

Professional Fees 26,655 317 1.8% - - - 10,000 119 0.6% 26,655 317 1.7% 26,655 317 1.7% 8

Payroll & Benefits 187,995 2,238 12.6% 95,000 1,131 5.9% 130,000 1,548 8.1% 95,000 1,131 5.9% 95,000 1,131 6.2% 8

Other - - - - - - - - - - - - - - - 8

Management Fee 41,609 495 2.8% 47,925 571 3.0% 47,916 570 3.0% 74,108 882 4.6% 70,387 838 4.6% 9

Ground Rent - - - - - - - - - - - - - - -

Total Operating Expenses $801,964 $9,547 53.6% $609,597 $7,257 38.2% $748,733 $8,913 46.9% $713,257 $8,491 44.4% $709,536 $8,447 46.5%

Net Operating Income $695,173 $8,276 46.4% $987,911 $11,761 61.8% $848,463 $10,101 53.1% $894,290 $10,646 55.6% $817,301 $9,730 53.5%

Capital Expenditure / Reserve $0 - - $0 - - $16,800 200 1.1% $36,610 436 2.3% $21,000 250 1.4% 10

Total Capital Expenditures $0 $ - 0.0% $0 $ - 0.0% $16,800 $200 1.1% $36,610 $436 2.3% $21,000 $250 1.4%

Net Cash Flow $695,173 $8,276 46.4% $987,911 $11,761 61.8% $831,663 $9,901 52.1% $857,680 $11,604 53.4% $796,301 $9,850 52.2%

NCF Yield on Debt 7.1% 10.0% 8.4% 8.7% 8.1%

See Following Page For Notes and Comments

BudgetBorrower Provided

Investor Reporting - Underwriting & Asset Management Summary





IN PLACE UNIT MIX

Rent Roll Date: 12/31/08

Avg. SF No. of Units

No. of

Occupied

Units

No. of

Vacant Units

Avg. In-Place

Rent

Market

Rent (1)

Galea

Market

Rent (2)

1 Bedroom 540 22 22 - $1,208 $1,600 $1,341 #

2 Bedroom 750 48 48 - 1,680 2,100 1,865 #

3 Bedroom (3) 940 13 13 - 2,100 2,500 2,331

- -

-

Total / Average 724 83 83 - $1,621 $2,030 $1,799

No. of Units Physical Occ. Economic Occ. Rent

Occupied 83 100.0% 100.8% $1,614,192

Vacant/Collection Loss - 0.0% 0.8% $12,645

Total 83 100.0% 100.0% $1,601,547

NOTES

Unit Type

1. Market Rent based on market rates reported in Appraisal Report.2. Galea Market Rent based on based on current broker listings for units in similar properties within the submarket.3. The property contains 84 units. The total number of units shown excludes one 3-bedroom unit occupied rent-free by the superintendent.



SUPPLEMENTARY LOAN AND PROPERTY INFORMATION

Note

Reference Date

Balance

Balloon Loan

Balance

Annual Debt

Service

Calculation

Method Interest Rate Floor Prepayment Premium

Senior Loan $5,900,000 $5,442,521 $417,540 Actual/360 1.77% N/A N/A

Mezz. Loan 3,950,000 3,710,697 342,816 Actual/360 3.35% N/A N/A

Total $9,850,000 $9,153,218 $760,356 2.40%

Portfolio Category: ABC INVESTMENT FUND Senior Loan Mezzanine Loan

CDO Loan Number: NAV Loan Seller: XYZ Bank Loan Seller: Galea Advisors

Originator Loan Number: 53746 Loan Term: 60 Loan Term: 60

Originator: Mr. Patrick Lendyamoney Amortization Term: 360 Amortization Term: 360

Property ID: NAV Remaining Loan Term: 60 Remaining Loan Term: 60

Property Address: 1234 Anywhere Avenue Remaining Amortization Term: 360 Remaining Amortization Term: 360

Zip Code: 10029 Amortization Type I/O (24 mos.), Fixed (36 mos.) Amortization Type I/O (24 mos.), Fixed (36 mos.)

MSA / PMSA: New York/NY Seasoning: 0 Seasoning: 0

Ground Lease: No Original Interest Only Period: 24 Original Interest Only Period: 24

Exp. Date: N/A Remaining Interest Only Period: 24 Remaining Interest Only Period: 24

Security Interest: Fee Simple Interest Rate Floor: N/A Interest Rate Floor: N/A

Collateral Interest: Mezzanine Extension Option: No Extension Option: N0

Crossed: No Lock Box Type: N/A Lock Box Type: N/A

Cross Code: N/A Default Anticipated / Month: No / N/A Default Anticipated / Month: No / N/A

Annex A Occupancy / Date: NAV / N/A Loss Anticipated / Amt.: No / $0.00 Loss Anticipated / Amt.: No / $0.00

Number of Properties: 1 Master Servicer: NAV

Swap Rate 5.21% Special Servicer: NAV

Property Insurance Exp. Date: 6/1/10 Galea UW Team: VB, EA, JD

Liability Insurance Exp. Date: 6/1/10 Date of Loan Underwriting: 2/15/09

Terrorism Insurance Exp. Date: NAV

SOURCE DOCUMENT INVENTORY

Document Source Date Received Comments2009 Budget Proforma2008 Operating Statement Borrower Provided2007 Operating Statement Borrower Provided2006 Operating Statement Borrower Provided2005 Operating Statement NAVRent Roll Borrower Provided 12/31/08Issuer's Asset Summary XYZ BankAppraisal Report ABC Appraisal Firm 12/8/08Engineering Report ABC Engineering FirmEnvironmental Report EMGReal Estate Tax Bills Borrower ProvidedInsurance Bills Borrower Provided

Leases Borrower Provided

Non-recourse Guarantor Financial Statements Borrower ProvidedSponsors Info Borrower Provided

Additional Source Documents 2009 Proforma Borrower Provided

21

Investor Reporting - Collateral Valuation Summary


1234 ANYWHERE AVENUE - NEW YORK, NY11-YEAR CASH FLOW AND OCCUPANCY ANALYSIS

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

For the Years Ending Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019

Gross Potential Rent 1,614,192 1,662,618 1,712,496 1,763,871 1,816,787 1,871,291 1,927,430 1,985,253 2,044,810 2,106,154 2,169,339

Vacancy Loss (48,426) (49,879) (51,375) (52,916) (54,504) (56,139) (57,823) (59,558) (61,344) (63,185) (65,080)

Leasing Concessions - - - - - - - - - - -

Credit / Collection Loss (12,645) (13,025) (13,416) (13,818) (14,233) (14,660) (15,099) (15,552) (16,019) (16,499) (16,994)

NET RENTAL INCOME 1,553,121 1,599,714 1,647,706 1,697,137 1,748,051 1,800,493 1,854,507 1,910,143 1,967,447 2,026,470 2,087,264

Laundry Income $6,000 $6,180 $6,365 $6,556 $6,753 $6,956 $7,164 $7,379 $7,601 $7,829 $8,063

Parking Income - - - - - - - - - - -

Other Income - - - - - - - - - - -

TOTAL OTHER INCOME 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 8,063

EFFECTIVE GROSS REVENUE 1,559,121 1,605,894 1,654,071 1,703,693 1,754,804 1,807,448 1,861,672 1,917,522 1,975,048 2,034,299 2,095,328

Real Estate Taxes 183,172 188,667 194,327 200,157 206,162 212,347 218,717 225,278 232,037 238,998 246,168

Insurance 26,171 26,956 27,765 28,598 29,456 30,339 31,250 32,187 33,153 34,147 35,172

Utilities 186,247 191,834 197,589 203,517 209,623 215,911 222,389 229,060 235,932 243,010 250,300

Repairs & Maintenance 70,635 72,754 74,937 77,185 79,500 81,885 84,342 86,872 89,478 92,163 94,928

Janitorial - - - - - - - - - - -

General & Administrative 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 32,619 33,598

Advertising & Marketing - 0 - - - - - - - - -

Professional Fees 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439

Payroll & Benefits 105,000 108,150 111,395 114,736 118,178 121,724 125,375 129,137 133,011 137,001 141,111

Other - - - - - - - - - - -

Management Fee 71,875 74,032 76,253 78,540 80,896 83,323 85,823 88,398 91,050 93,781 96,595

Ground Rent - - - - - - - - - - -

TOTAL OPERATING EXPENSES 678,100 698,443 719,397 740,979 763,208 786,104 809,687 833,978 858,997 884,767 911,310

NET OPERATING INCOME 881,020 907,451 934,674 962,715 991,596 1,021,344 1,051,984 1,083,544 1,116,050 1,149,532 1,184,018

Replacement Reserves 36,174 36174.16667 36174.16667 36,174 36,174 36,174 36,174 36,174 36,174 36,174 36,174

TOTAL CAPITAL EXPENDITURE 36,174 36,174 36,174 36,174 36,174 36,174 36,174 36,174 36,174 36,174 36,174

CASH FLOW BEFORE DEBT SERVICE 844,846 871,277 898,500 926,541 955,422 985,170 1,015,810 1,047,370 1,079,876 1,113,358 1,147,843

Current Physical Occ. as of 4/08: 100.0%

Total No. of Units 84 84 84 84 84 84 84 84 84 84 84

Total No. of Rented Units 83 83 83 83 83 83 83 83 83 83 83

Average Occupied Units Per Year 81 81 81 81 81 81 81 81 81 81 81

Underwritten Physical Occupancy 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0%

Less Collection Loss -0.8% -0.8% -0.8% -0.8% -0.8% -0.8% -0.8% -0.8% -0.8% -0.8% -0.8%

Underwritten Economic Occupancy 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2% 96.2%

NET OPERATING INCOME $881 $907 $935 $963 $992 $1,021 $1,052 $1,084 $1,116 $1,150 $1,184

TOTAL CAPITAL COSTS 36 36 36 36 36 36 36 36 36 36 36

CF BEFORE DEBT SERVICE $845 $871 $899 $927 $955 $985 $1,016 $1,047 $1,080 $1,113 $1,148

1234 ANYWHERE AVENUE - NEW YORK, NYPROPERTY VALUATION

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

Fiscal Years Ending December 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Net Operating Income $881 $907 $935 $963 $992 $1,021 $1,052 $1,084 $1,116 $1,150 $1,184

Net Cash Flow 845 871 899 927 955 985 1,016 1,047 1,080 1,113

Valuation Term: 10 Years

2019 NOI: $1,184

Terminal Cap Rate: 6.75%

Residual Value: $17,541

Cost of Sale @ 3.0%: (526)

Net Residual Value: $17,015

Net Cash Flow $845 $871 $899 $927 $955 $985 $1,016 $1,047 $1,080 $1,113

Residual Value 0 0 0 0 0 0 0 0 0 17,015

Total Flow to Investor $845 $871 $899 $927 $955 $985 $1,016 $1,047 $1,080 $18,128

Discount Rate: 9.25% PORTFOLIO PRESENT VALUE MATRIX

Total No of Units: 83 Capitalization Rate

6.25% 6.50% 6.75% 7.00% 7.25%

8.75% $ 14,130 $ 13,824 $ 13,541 $ 13,279 $ 13,034

($170,237) ($166,557) ($163,149) ($159,985) ($157,038)

Present Value Summary Gross $ $Per Unit % 9.00% $ 13,878 $ 13,579 $ 13,303 $ 13,046 $ 12,807

PV Residual $7,024 $84,632 53.7% ($167,205) ($163,608) ($160,278) ($157,185) ($154,306)

PV Income Stream 6,046 $72,840 46.3% 9.25% $ 13,632 $ 13,340 $ 13,070 $ 12,819 $ 12,586

Present Value of Property $13,070 $157,471 100.0% ($164,242) ($160,726) ($157,471) ($154,449) ($151,635)

9.50% $ 13,392 $ 13,107 $ 12,842 $ 12,597 $ 12,369

($161,346) ($157,910) ($154,728) ($151,774) ($149,024)

9.75% $ 13,157 $ 12,878 $ 12,620 $ 12,380 $ 12,157

($158,516) ($155,157) ($152,047) ($149,160) ($146,471)

PRESENT VALUE MATRIX

Discount Rate Terminal Cap Rate ($000's) Terminal Cap Rate ($/per unit)

6.25% 6.50% 6.75% 7.00% 7.25% 6.25% 6.50% 6.75% 7.00% 7.25%

8.75% 14,130 13,824 13,541 13,279 13,034 $170,237 $166,557 $163,149 $159,985 $157,038

9.00% 13,878 13,579 13,303 13,046 12,807 $167,205 $163,608 $160,278 $157,185 $154,306

9.25% 13,632 13,340 13,070 12,819 12,586 $164,242 $160,726 $157,471 $154,449 $151,635

9.50% 13,392 13,107 12,842 12,597 12,369 $161,346 $157,910 $154,728 $151,774 $149,024

9.75% 13,157 12,878 12,620 12,380 12,157 $158,516 $155,157 $152,047 $149,160 $146,471

Discount Rate


22

Investor Reporting - Due Diligence and Third Party Report Summary



23

Investor Reporting – Loan Summary Report


BORROWER & GUARANTOR SUMMARY

1234 Any Street

SUMMARY OF LOAN TERMS, PURPOSE AND CURRENT STATUS

The subject loan was originated on 2/3/2006 for the acquisition of an 80-key Holiday Inn Express (the, "Property") hotel in Anyros, NM. The loan balance at origination was $2,630,101, and the current outstanding balance is $2,514,854. The collateral for the loan consists of first lien on the Property.

The loan term is for 25 years (2/1/2031) and the interest rate is fixed for the first five years at 8.647% then converts to an adjustable rate using the "the Secure Connect Rate for 4-5 year maturities in the Bullet Rates table published by the FHLB of Dallas" plus a 3.5% margin. During the first five years of the loan, a prepayment penalty of 5% is assessed on any prepayment which exceeds 20% of the outstanding loan balance. Based on the most recent payment history information provided, the last payment date was 5/4/2009.

Most recent entries in communications log as of 8/19/2009 (entries for 06/09 thru 07/10/2009) indicate that Any Lender was negotiating the sale of its position in the asset to Any Investor.

COLLATERAL DESCRIPTION & MARKET SUMMARY

The subject loan is a first lien on the Property.

The Property is a three story, 80-key limited service hotel located in Anyros, NM. The building was built in 1999 and has a stucco exterior over a steel frame with a pitched asphalt shingle roof. It contains 48,637 sf on a 1.9 acre site. Amenities include an indoor pool, fitness room, and breakfast dining area. There is a 360 square foot meeting space as well as vending areas within the facility. According to the site inspection performed on Aug. 18, 2009 by RER Solutions, Inc, the Property was in excellent condition with no deferred maintenance noted. The subject is located on the northwest corner of Main and Any Street. Main is a major north-south arterial roadway connecting with downtown Anyros approximately 1.5 miles to the south. The subject enjoys good visibility and exposure from its corner location and is within walking distance to local amenities and adjacent golf course.

The greater Anyros, New Mexico area offers approximately 20 hotels and motel properties offering a variety of limited service and extended stay amenities. According to available market resources, current economic trends will continue to result in decline in RevPAR through 2011, at which time market sources anticipate that the hotel market will bottom out and then begin a slow recov

Based on the most recent appraisal dated 5/20/2005, the property was valued at $5,000,000.00.

The Borrower is Any Borrower LLC. The sponsors, John Doe and Jane Doe, signed a full guaranty as additional collateral for the loan. Additionally, J&J Transportation signed full guaranties. The Borrower also signed an environmental indemnity agreement.

Client

Lender

Servicer

# DPD Original Date Nxt Pmt Due Date Current Maturity

Date

Accrued Interest Fixed or Adjust.

Rate

Interest Rate Margin Index Nxt Interest Adj Dt Original Term

(Months)

2/3/2006 6/1/2009 2/1/2031 $14,228.02 Adjustable 8.647% 3.50% 501 2/3/2011 300

7/31/09

MR NOI Date MR NCF MR NCF Date Current DSCR

NAV NAV

8/14/2009

# DPD Original Date Nxt Pmt Due Date Current Maturity

Date

Accrued Interest Fixed or Adjust.

Rate

Interest Rate Margin Index Next Interest

Adjustment Date

Original Term

(Months)

2/3/2006 3/1/2009 $14,228.02 Adjustable 8.647% 3.50% 2/3/2011 300

8/14/2009

MR NOI Date MR NCF MR NCF Date Current DSCR

7/31/09

# Units Original Appraised

Value

Original Appraisal

Date

Gross MR

Appraised Value

Net MR Appr Value Original LTV Current LTV MR Appr Date Lien Position Senior Lien Amt Occupancy %

80 $5,000,000.00 12/20/2005 NAV NAV 1 $0.00 NAV

Loan Data (continued)

Collateral Data

DATA REFERENCED IN UNDERWRITING (From Original Data Tape)

(Collateral Pledged Under Loan - From File Document Diligence)

ASSET SUMMARY TEMPLATE Page 2Any Investment Bank

ABC Lending

Occupancy Date

NAV

PPP (Y/N)

Y

PPP (Y/N)

Y

XYZ Asset Management

Loan Data (continued)

Loan Data

Page 1Pool/Performance:

Relationship:

Loan #

As of 7/31/09

Loan # Bank Code Curr Prin Balance Unfunded Amt Purch / Sold Loan Type

100351 1234 $2,514,853.67 $0.00 Wholly Owned Real Estate

As of 7/31/09

Loan # I/O Term Curr Total Monthly

Payment

Next P&I Adj. Date Balloon Amount FSA Gty. Gty. %

100351 NAV NAV 3/1/2011 $0.00 NAP

As of 8/14/2009

Loan # Bank Code Curr Prin Balance Unfunded Amt Purch / Sold Loan Type

100351 1234 $2,528,927.40 $0.00 P10 - Commerical

real estate

As of 8/14/2009

Loan # I/O Term Curr Total Monthly

Payment

Next P&I Adj. Date Balloon Amount FSA Gty. Gty. %

100351 $21,646.81 3/1/2009

As of 7/31/09

Loan # Collateral

Address

Collateral

City

Collateral

State

Year Built / Year

Renovated

Cross

Default

100351 1234 Any Street Anyros NM 1999 / NAV N

ASSET SUMMARY TEMPLATE

Lodging 88201 N 48,637

Collateral Data (Collateral Pledged Under Loan - From File Document Diligence)Type of Project Collateral Zip Code Cross

Collateralized

Sq. Ft.

MR NOI

Any Borrower LLC

Loan Data (continued)Borrower Sub. Debt Amount SBA Gty. Gty. %

Any Borrower LLC 100.00% $0.00 3 - ACQUISITION OF HOTEL

Loan Data DATA REFERENCED IN UNDERWRITING (From Original Data Tape)Borrower Part % Owned Part Balance Sold Loan Purpose

MR NOI

Any Borrower LLC $1,229,908.00 NAP $0.00

Loan Data (continued)Borrower Sub. Debt Amount SBA Gty. Gty. %

Any Borrower LLC 100.00% NAP Purchase/Acquisition

Borrower Part % Owned Part Balance Sold Loan Purpose

100351

Loan Data CURRENT PORTFOLIO DATA (From File Document Diligence)

1234 / Non-Performing

Any Borrower LLC


24

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