Dear Investors,

I hope you enjoyed the holiday and are taking advantage of the beautiful weather. As for real estate we are still working diligently to identify opportunities that will be prosperous for the partnership in 2010. With the expiration of the First Time Buyer Tax Credit coming to a close the first time buyers have been extremely active in the new year and we are currently down to only 2 properties available for sale in our portfolio.

As of today we are awaiting the closing of 4748 Dale Rd Cincinnati OH and 1004 Overlook Cincinnati OH, these two projects will yield the partnership over a 12% return on investment in less than one year.

Our most recent acquisition is 6432 Sugartree Independence KY, this project was acquired for $60,000 with an anticipated after repair value of approximately $130,000.
    

Your quarterly financial statements will be sent out by month end and as always please feel free to contact me with any questions.

The overall feel of the market has been somewhat positive however it is cautious optimism and we believe the buying opportunities will continue throughout 2010, 2011, 2012 with
over 2 million foreclosures expected to hit the market by year end. Below is an excellent article from RealtyTrac that sheds some light on the current situation.

Sincerely,
Christopher Urso
Principal

Activity Up 6 Percent From February 2009, Smallest Annual Increase in Four Years
More Than 300,000 Properties Receive Foreclosure Filings for 12th Straight Month

IRVINE, Calif. – March 11, 2010 – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its February 2010 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 308,524 U.S. properties during the month, a decrease of 2 percent from the previous month but still 6 percent above the level reported in February 2009. The report also shows one in every 418 U.S. housing units received a foreclosure filing in February.

“The 6 percent year-over-year increase we saw in February was the smallest annual increase we’ve seen since January 2006, when we began calculating year-over-year increases, but it still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, chief executive officer of RealtyTrac. “This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure, but rather that foreclosure prevention programs, legislation and other processing delays are in effect capping monthly foreclosure activity — albeit at a historically high level that will likely continue for an extended period.

“In addition, severe winter weather appears to have temporarily slowed the processing of foreclosure records in some Northeastern and Mid-Atlantic states.”

Foreclosure activity by type
Default notices (Notices of Default and Lis Pendens) were reported on a total of 106,208 U.S. properties during the month, an increase of 3 percent from the previous month but down 3 percent from February 2009. Default notices were down 25 percent from their peak of more than 142,000 in April 2009 but were still more than three times the number they were four years ago in February 2006.

Foreclosure auctions (Notices of Trustee’s Sale and Notices of Sheriff’s Sales) were scheduled for the first time on a total of 123,633 U.S. properties, a decrease of 1 percent from the previous month but still 16 percent higher than the level reported in February 2009. Scheduled auctions were down 14 percent from their peak of more than 144,000 in August 2009 but were also about three times higher than the number reported in February 2006.

Bank repossessions (REOs) were reported on a total of 78,683 U.S. properties during the month, a 10 percent decrease from the previous month but an increase of 6 percent from February 2009. Bank repossessions were down nearly 15 percent from their peak of more than 92,000 in December 2009 but were at nearly twice the level reported in February 2006.