Trust Deed Investment Opportunity - Seeking $230,000 for 12 months with a 14% APY.

Transaction Synopsis: Rate & term refinance to retire existing ballooning private loan.

• Subject properties [I-40 Mountain Springs Oasis] consist of three parcels, with freeway frontage, totaling 205.86+/- acres including I-40 on/off-ramps at Mountain Springs Road and National Trails Highway (Route 66).
• Utilities present: Water Rights + 2 Wells-located & tested, Electricity/Power runs alongside I-40. Telephone, Cable, Gas/Propane & Sanitation are not present. No zoning issues, no land access issues and clear title.
• Borrower invested approximately $250,000 to date for a four phase development plan of a Travel Center including a truck stop, gas stations, fast food and a motel, all of which the county of San Bernardino has given preliminary written approval.
• Subject listed for sale, originally on market at $1.9m, but recently reduced to $600,000. Subject was acquired 03-17-03 for $250,000.
• Risk: OPEN HOLE. The 171.88 acre parcel has an abandoned Gold Mine that is 20 to 30 feet deep and should be boarded up or filled in.
• Compensating Factors: Cross collateralization of an income producing property in Big Bear City, CA.
• Exit Strategy: Sale of subject. Proceeds from the sale will retire this proposed loan.

Investment Details:

Security First Deed of Trust on the property and borrower’s personal guaranty.
Sub Address San Bernardino County – Essex, CA 92332.
APN  n/a
Prop Details Vacant Land - Commercial
Lien Position 1st TD
Loan Amount $230,000
Protective Equity $258,336.67
LTV 38% Based on Listing Price of $600,000.
CLTV n/a
Subordinated Lien(s) n/a
Note Rate 14% Annual Interest
Sold Rate (Net Int. Rate) 12% (2% Servicing Premium - Hanover IS participating in Spread)
Amortization Type Interest Only
Amortization Period n/a
Term 12 Months
Monthly Payment $2,300.00 (Based on Sold rate of 12%)
Renewal n/a
Payment Reserve n/a
Cross-collateralization Yes - Big Bear City, CA
Pre-Payment Penalty None
Construction Holdback n/a
Funds Control n/a
Fees Borrower to pay 8 points of the loan amount, plus a $1,195 Underwriting Fee, $595 Processing Fee and $500 Loan Document Fee to Hanover Mortgage, 2 points of the loan amount to Lender, plus all normal third party closing fees, such as title and recording fees.

The information above, though secured from sources believed to be reliable, cannot be guaranteed. The investor should independently verify this information to his/her satisfaction. All real estate markets can be negatively affected by interest rates, availability of capital, supply and demand factors and general economic conditions both locally, regionally and nationally. Each investor should review this summary with these risks in mind and base their investment decision on both existing market conditions and potential changes in the economy as well as your personal objectives and risk tolerance.