Hey everyone I just wanted to drop a quick note and provide some updates on the progress of the partnership. We have been very cautious and conservative in planning our upcomig acquisitions as we are closely monitoring the effect of the first time homebuyer tax credit expiring. However our relationships have never been better and we are seeing consistent deal from which we are selecting only the best positioned properties to add to our portfolio. In regards to upcoming distributions we anticipate making distributions is Septmember of this year. Please see below for an update on current properties.

1916 Emerson Cincinnati OH-This was a single family home that was sold in October of 2009 via seller financing for $50,000 in which the partnership held a short term mortage at an interest rate of 10%. We are currently collecting interest on the mortgage and the owner is in the process of refinancing to liquidate our position in which we realize a total return on investment of approximately 19%.

1197 S. Lynnebrook Cincinnati OH-This is a single family home that was sold in October of 2009 via seller financing for $50,000 in which the partnership held a short term mortage at an interest rate of 10%. We are currently collecting interest on the mortgage and the owner is in the process of refinancing to liquidate our position in which we realize a total return on investment of approximately 21%.

1004 Overlook Covedale OH-This is a two family home that we renovated, leased and we have been collecting rental income on if for the last 7 months. This property is also under contract to be sold to another investor for $84,500 and will provide the partnership with a total return of 14%.

179 Mclean Wilkes Barre PA- This is a four unit building that was purchased as a foreclosure with the intent to wholesale to another investor in its current condition without performing any renovations. The initial buyer of the property was unable to execute and it is currently available for purchase at $45,900, the property needs approximately $70,000 of renovation and will generate a rent roll of $2,100 per month upon completion. We have several interested parties looking at this property but if it is not sold by July 15th we will begin renovations.

  
6431 Sugartree Independence KY-This is a single family home that was purchased in April of 2010, we have completed renovations and listed the property for sale as of June 1, 2010 for $129,900. This property is being marketed to owner occupants and we anticipate a 15-18% ROI in less than six months.

Sincerely,
Christopher Urso
Principal