Re: Revised Renovation Analysis - Camaron at Woodcrest Apartments.

March 26, 2009 Jonathan J. Lichtman, Esq. LN Development Group, LLC 20283 State Road 7, Suite 300 Boca Raton, FL 33498 Re: Revised Renovation Analysis - Camaron at Woodcrest Apartments. Dear John, I have completed the attached revised Renovation Analysis of Camaron at Woodcrest Apartments. I have included a detailed Due Diligence Inspection Report derived from my recent personal inspection of all occupied and vacant units at the property, with a few exceptions. Upon my re-inspection of the property I found that the Seller has completed most of the units that were on our to-do list. This changes my initial renovation budget. We Also have negotiated an additional $215,000 renovation credit from the bank. We now need a total of $515,00 to complete the necessary upgrades to the Property, which includes the renovation credit. In addition, I inspected all exterior grounds and buildings. All estimates contained in the Renovation Analysis are reasonable and comparable with the renovation costs charged by other local contractors in the Talahassee area. LandMasters, Inc., (Florida General Contractor License No: CGC1508418) would act as the General Contractor for the project and would secure all necessary permits and complete the work in a professional manner. I estimate that the time frame to complete all work would be under nine months at this time. I anticipate having the 15 turn units completed within the first three months (5 units monthly) which coincide with our absorption estimate to rent up the property to a 92% occupancy within the first year of ownership. Simultaneously LandMasters, Inc. would award bids for roofs, exterior painting, stairs and decking, landscaping/sprinklers, pool, repairs, signage, washstation, and dog park. We would focus on turns first. Please adjust your projections accordingly. SS/Robert A. Nass

Camaron at Woodcrest Summary of Renovation Costs (51) Interior Upgrades $223,900 (15) Turn to Rent Units $71,400 Exterior Concrete Repairs $15,000 Railing Repairs $22,000 Replace Vinyl Shutters $18,900 (4) Roof Replacements $54,020 Lighting Sconces Exterior $17,780 Landscaping $58,000 Errosion and Drainage Repair $8,000 Car Wash Station $6,000 Painting and Pressure Cleaning Exterior $12,000 Pool Furniture $8,000 Totals $515,000 Renovation Credit From Compass Bank (215,000) Total Renovation Budget From Investor Capital $300,000

Camaron at Woodcrest Detailed Renovation Breakdown Turn to Rent Units (15) Cost This would consist of Paint, Two-Tone Updgrade, Punch, Repairs, Cleaning @ $4760 Per Unit $71,400 Interior Upgrades (51 Units) Crown Molding Upgrades $25,000 Library Panels in Dining Room $21,000 Knockdown Two-tone Paint Upgrades $20,000 Kitchen Door Replacement $24,500 Remove Carpets and Convert to Tile $24,400 Install New Bathtubs $43,000 Kitchen and Bathroom Faucet Upgrades $21,000 Bath Vanity Replacements and Upgrades $15,000 Replace Interior Doors $30,000 Total for Interior Upgrades (51 Units) $223,900 Total Required to Turn 15 Units & 51 Interior Upgrades: $295,300 Roof Replacement (32) Total Roofs (26) New Roofs Needed. 4 Done At Purchase, 22 Done Upon Refinancing of Property (6) Already Done Avg. $8125/Sq. Ft. x 186875 Sq. Ft. = 1868 Sq. Ft. Shingles @ 150 per for Architectuals. Include Drip Edge and Flashing Tear Off. $54,020

Pressure Clean Clean 18 Buildings, Walkways, and Clean Gutters $12,000 Concrete Walks Repair and Replace Concrete Walkways $15,000 Railing Repairs and Painting Paint and Repair the Railings $22,000 Replace Vinyl Shutters All Vinyl Shutters Need to be Replaced and Painted $18,900 Lighting Sconces Exterior Install New Exterior Lighting Sconces @$80 Per Unit $17,780 Landscaping Budget Fill In Missing Shrubs, Resod Areas, Voids, Repair Sprinkler System. $58,000 Errosion Control and Drainage Issues Ensure Drainage is Properly Setup to Ensure Minimal Errosion $8,000 Pool Furniture Purchase New Pool Furniture $8,000 Car Wash Station Install Location So Residents Can Wash & Vacuum Cars. $6,000 TOTAL: $515,000

Camaron at Woodcrest Renovation Budget Flow Chart Months Errosion Ext Concrete Turn Units Roofs Replace Ext Paint Landscaping 1 $23,800 $3,000 $5,800 2 $23,800 $13,505 $1,500 $5,800 3 $23,800 $13,505 $1,500 $5,800 4 $13,505 $1,500 $5,800 5 $2,000 $3,000 $13,505 $1,500 $5,800 6 $2,000 $3,000 $1,500 $5,800 7 $2,000 $3,000 $1,500 $5,800 8 $2,000 $3,000 $5,800 9 $3,000 $5,800 10 $5,800 11 12 Totals: $8,000 $15,000 $71,400 $54,020 $12,000 $58,000 Pool Interior Car Wash Ext Lighting Railing Replace Totals Months Upgrades Sconces Repairs Vinyl Shutters 1 $37,316 $69,916 2 $8,000 $37,316 $89,921 3 $37,317 $6,000 $4,725 $92,647 4 $37,317 $4,400 $4,725 $67,247 5 $37,317 $4,400 $4,725 $72,247 6 $37,317 $4,400 $4,725 $58,742 7 $4,400 $16,700 8 $4,400 $15,200 9 $8,890 $17,690 10 $8,890 $14,690 11 12 Totals: $8,000 $223,900 $6,000 $17,780 $22,000 $18,900 $515,000

DUE DILIGENCE INSPECTION REPORT UNITS STAT BLDG UNIT # KEY PAINT CARPET BATH1 BATH2 HVAC HW HTR FRIDGE STOVE DSHWSR KITCHEN NOTES: CRO A 101 1 G G G F E E G G G G Construc. repair/back door leak CRO A 102 2 G G F F E E G G G G Construc. repair/bath 2 tile door TV A 201 3 F F G G F F F G G F Turn O A 202 4 F P G G G F G G G G VTN B 101 5 G E G G E G E E G G Vacating 1/6/09 O B 102 6 G G G E E E E E E E EU B 103 7 HSH Employee Jennifer Russell Dog/Not home/lease? O B 104 8 F P G G G F G G G F Toilet Lks/Ceiling Stain O B 105 9 G F F G G G G G G G TV B 106 10 F P G F E E G G G G Turn/Carpet replace RRV C 101 11 G G G G E E G G G F Rent Ready O C 102 12 G F F G E F G G G G Cracked tile EU C 103 13 HSH Employee Adam Rielly HSH Employee Unit O C 104 14 Sick child O C 105 15 G G G G G G F G G RTV C 106 16 Transfer Occupied Mold Issue O C 201 17 G G G F E G G G G G O C 202 18 Dogs/Not home RRV C 203 19 G F G F F F G G G G Rent ready/tile broke RRV C 204 20 G G G E E G G G G Rent ready O C 205 21 F P F F E G G G G O C 206 22 G G G F F G G G G O D 101 23 G G G F F F G G G G O D 102 24 G G G F F F E G G G Construc./needs sink O D 103 25 G G G F E G G G G G TV D 104 26 F F G G E F G G G G Bath ceiling/to be turned TV E 101 27 P G G E E G G G G Paint/turn/tenant died in apt O E 102 28 G G G E E F G G G Cracked tile O E 103 29 G G G E E G G P G O E 104 30 G G F E G G G G G Drywall repair bath

O E 201 31 G G F F F G G G G O E 202 32 G G F G G G G G G Shower bad O E 203 33 G F G E E G G G G Ceiling stains O E 204 34 G G F E E G G G G Shower bad O EE 101 35 G P G G & G E G G G G G O EE 102 36 G G G G F F G G G G O EE 103 37 P P G G P F G G P G O EE 104 38 G F G G & G E E E G G G O EE 105 39 G F G F & G E G G G G F O EE 106 40 F F F G & F F F G G G F Bathroom floor O F 101 41 F F G F & G E G G G G G O F 102 42 G F G F & G F E G G G G Front door sags O F 103 43 G G G G F F G G G G O F 104 44 G F F F & G F E G G G G O F 105 45 G F G F & G G F G G G G Shower tile cracked O F 106 46 G F G G G F G G E G Front door sags EEU FF 101 47 Empire Employee Unit Empire employee unit EEU FF 102 48 Empire Employee Unit Empire employee unit O FF 201 49 G G G G E F G G G G O FF 202 50 G G G G F F G G G G O G 101 51 G G G F F G G G G Drywall repair O G 102 52 G F F F F G G G G O G 103 53 G G F G F G G G G Shower tile O G 104 54 G F F G G G G G G O G 201 55 F P F E G G G G G Shower tile CV G 202 56 F NG G G E G G G G Construction/tub leaks O G 203 57 G G F F G G G G G O G 204 58 G G F E E G G G G Shower tile Bldg EE: Firewalls cracked Bldg G: Needs fire extinguisher, hall carpet NG, dry rotted door

O GG 101 59 F F F P E G G G G F TV GG 102 60 G G G F F E G None None F Needs appliances/bath floor O GG 103 61 G G G G & G E E G G G G Bath needs sink O GG 104 62 G G G G & G E E G G G G O H 101 63 G G G G G E G G G G Rent ready/bath drywall repair O H 102 64 P F F F G G F G F Tile cracked O H 103 65 G G G F F G G G F Need faucet O H 104 66 G F G G F F G G G G Holes in 2 tiles CV H 201 67 G G G G F F G G G G Constr./Shower Tile O H 202 68 G G G F F G G G G Ceiling stains RRV H 203 69 G G G E F G G G G Rent ready/water leak (toilet) TV H 204 70 G P G G F F G G G G Tub runs RRV HH 101 71 G G G G G F G Need key ahu closet/rent ready EU HH 102 72 MANDY HSH MANAGER UNIT No key/manager Unit CV HH 103 73 P P P P F F F Construct. Unit RV HH 104 74 G E G F F None G G G TV HH 201 75 G P F E F G G G F Clean CV HH 202 76 G F F G G G G G F Roof leak/not on constr. Units CV HH 203 77 G NG F G G G P F F Toilet leaks O HH 204 78 G G G F F G G G G O J 101 79 Key 79, No Key O J 102 80 G G G G F G G G G G O J 201 81 G G G G F G G G G G Not Vacant/no lease M J 202 82 MODEL MODEL MODEL MODEL MODEL MODEL MODEL MODEL MODEL MODEL Model CV JJ 101 83 G G G-F F F N/G N/G F F Drywall repair bdrm/should be construct TV JJ 102 84 G G G F F N/G G G G Rent ready/needs refrid. O JJ 103 85 G G G F G G G G G CV JJ 104 86 G G G G G G G G G Looks ready O JJ 201 87 G E G F F G G F G O JJ 202 88 Key not working

O JJ 203 89 G G G G F G G G G O JJ 204 90 G E G F G G G G G Clean/rent ready TV K 101 91 F G G G G F G G G F Rent ready/kit. needs paint TV K 102 92 No handle/key/did not inspect TV K 103 93 G F G G F E G None F G TV K 104 94 G G G E E None None G G O K 105 95 G G G G F G G G G CV K 106 96 G NG G G? F? G G G G Construct. Looks done? TV K 201 97 G E G G F F None None None G Rent ready/needs appliances TV K 202 98 G P F F F G NG F F F Construct. TV K 203 99 F F G G F F G G F F Needs kitchen floor O K 204 100 No key/did not inspect. O K 205 101 G F? F F TV K 206 102 F None F F F F F F F F Clean/paint/needs carpet TV KK 101 103 G G G F E G F G G Bath mirror TV KK 102 104 G G G G G None P F G Pantry paint/bath needs sink O KK 103 105 G G G F F G G G G Bath ceiling repair TV KK 104 106 G F P F None None None None P Need bath floor/ceiling O KK 201 107 G P G F F G G G F TV KK 202 108 G P F G F F F F F Needs Carpet O KK 203 109 G G G G F G G G G O KK 204 110 G F G G G G G G G Ceiling Stain TV L 101 111 G P P F F P G P F Need bath ceiling O L 102 112 G F F G F G G G F Carpet O 3/09 L 103 113 F F F G E G G G G Need bath sink O L 104 114 F F F DIDN'T INS F F F F F F Hotel lock?/did not inspect O 3/09 L 201 115 F NG F F G F F F P Move out 2/28/09 O L 202 116 F F F F G G G F F Move out 2/28/09 O L 203 117 G F G E G G G G G O L 204 118 G G G E E G G F G Bldg H: Steps Cracked Bldg K: 101-201 Stairs are sloping, cracked at #104, railing needs welding, door needs paint, gutter problems, wash out problem

CV LL 101 119 F P P E E G F F G Open/construction CV LL 102 120 G G P F F NEEDS WHOLE KITCHEN Construction unit O LL 103 121 F P F G G G G G G No ahu key O LL 104 122 F P P G G G F O LL 201 123 F NG F F F G G G G Tub runs CV LL 202 124 G E P G F F F F F Open/done construction TV LL 203 125 G NG P F G G G G G Construction/needs ext. door O LL 204 126 G F F F F G G F G O M 101 127 F F G G G G G G Bath ceiling stains O M 102 128 F NG P G F G G G F Bath ceiling patch RV M 103 129 G G F F F F F F G F Tub runs O M 104 130 P NG P G G G G G F Construction TV M 105 131 F F P G G P G P NG Cracked tile O M 106 132 G P F P F G G G G F Construction O M 201 133 Dog O M 202 134 G F G E G G F F F Rent Ready O M 203 135 G P F G G F G G G F Ceiling stains CV M 204 136 F P F F F G G P P Ceiling down in l/r, constr. Not on list O M 205 137 G F G F F G G None G Construct/Bath needs sink/drywall O M 206 138 G NG NG G F F G F G F Construction CV MM 101 139 G G P None None G NG F F Construction/leak in bath CV MM 102 140 G NG F P NG G P F Construction CV MM 103 141 CONSTRUCTION NEEDS EVERYTHING Construct. Needs Everything CV MM 104 142 CONSTRUCTION NEEDS EVERYTHING ELSE Construct. Needs Everything TV MM 201 143 PAINT P F E F G G G G Ceiling stains O MM 202 144 G G G G G E G G G Bath floor V MM 203 145 F P F None None G G G P Construction O MM 204 146 G G G G F G P G G O N 101 147 F P F F F G G F G TV N 102 148 G F F F F P G G G Open Bldg R: Rotten facsia boards Bldg M: Stair treads need repair Sidewalk between Bldgs JJ & KK is all broken up Bldg LL: Needs concrete handicap ramp Bldg MM: Needs new roof, stairway( poor treads)

O N 103 149 G G G G G G G G G CV N 104 150 F P F F G G F G G Bath needs sink O N 201 151 G G G F F G G G G Bath tile/vent fan Mltd RV N 202 152 G G G E E G G G G Construction O N 203 153 G G P F F G G G G Bath floor O N 204 154 F P F F G G F G G Ceiling stain TV O 101 155 G F P F NG F G G G F Needs hvac O O 102 156 G F G F F G G G G Need bath sink CV O 201 157 G NG NG P G F NG P F G Constr./no ret. on carp. O O 202 158 G G G F G NG G F F G O P 101 159 Come back/did not inspect. CV P 102 160 P NG P F F G P P None NG Mold unit/construct. Not on list TV P 201 161 G G G G G F G G G F Kitchen floor O P 202 162 G F G F F F F G G G O Q 101 163 G F F F E G G G F F TV Q 102 164 F P F P F G G G F F Open/toilet leak/needs carpet TV Q 201 165 G F G F E P G F F F Clean O Q 202 166 F P F G F F G E G F CV R 101 167 P None P F F None None G F No tub/shower/flrg/appl/carpet/constr. TV R 102 168 F F F F F None G F F Bath Ceiling Patch O R 103 169 F P F F F G G G F CV R 104 170 F NG F F None P None NG P Open/Construct. Poor CV R 201 171 P None P E None G G F F Open/no tub/shower/flrg/construct. TV R 202 172 G P G F F G G F G Needs carpet/clean O R 203 173 F G F F F G G F G TV R 204 174 G F G E E G G G F Open/ceiling stain EU S 101 175 HSH EMPLOY. KELLY & JIMM McDONALD Hsh mgmt empl/dog/countertop O S 102 176 G G G G G G G G G G Fix door O S 103 177 P G G G F G G F F G

TV S 104 178 G F G G F F None None None F Carpet stretch, need GM/rent ready O S 105 179 G F G G G G G G G Mold RV S 106 180 G G F F G G G F G G GM CV S 107 181 CONSTRUCTION NEEDS EVERY THING Construction CV S 108 182 F NG P F F P P P F Construction O S 201 183 G F G G G G G G G G O S 202 184 Do Not Disturb! M S 203 185 G G G G G G G G G G Model RRV S 204 186 G G G G G G G G G G Rent ready TV S 205 187 G NG G F F F F F F G Needs carpet CV S 206 188 G F G F F G G G G G Ceiling needs repair CV S 207 189 CONSTRUCTION NEEDS EVERY THING Construction needs everything O S 208 190 G G G G G G F G G G CV T 101 191 DIDN'T DO NSPECT. MISSED UNIT Missed O T 102 192 F F G G F F G F CV T 201 193 CONSTRUCTION NEEDS EVERY THING Construction needs everything O T 202 194 G G G G F G G P F F CV U 101 195 P NG F F G G None F F F Construction/roaches CV U 102 196 CONSTRUCTION Construction TV U 103 197 P G P G F F F F G P Fence in bkyd/toilet runs O U 104 198 G F G G F G G G G G 8 Dogs! TV U 105 199 P F F G G F None G G G Powder room/clean CV U 106 200 G F P P F F G F G F Ceiling work/construction O U 107 201 No key, looked ok O U 108 202 F G G G G G G G G G CV V 101 203 F F G G G G G G G Construction O V 102 204 G F G G G G F F F F O V 201 205 F F G G G G G G G G O V 202 206 G G G G F G G G G G

CV W 101 207 G NG P P F G G G F F Construction CV W 102 208 P P P P G F G F Cabinets missing TV W 201 209 G F G G F NG G G G G Turn/Need hw htr O W 202 210 F G G G G G G G G G TV X 101 211 F G F??? F F G G Turn/move out O X 102 212 G F F G G G G G TV X 103 213 DID NOT INSPECT MOVED 1/1/209 Didn't inspect? CV X 104 214 CONSTRUCTION NOT ON LIST Construction need everything TV X 201 215 F NG G?? G G G G Turn/carpet RV X 202 216 G G G G G G G G G Rent ready/looks good O X 203 217 G P F G G G G F G G Nds paint/whole wall/minor gm O X 204 218 F P F F F G F F F F CV Y 101 219 G G G F F P G G F F Minor GM CV Y 102 220 CONSTRUCTION NEEDS NOT ON LIST Construction/roof leak CV Y 201 221 G G G G G F G G G F Construction Done CV Y 202 222 G G F G F G G P F F Construction Done * All screen doors need wheels * Need new pool furniture Status Codes C Construction Unit V Vacant CR Construction Repair Unit O Occupied RR Rent Ready N otice to Vacate T Turn Unit R Ready M Model EU mployee Unit EEU Empire Employee Unit