Before Tax Cash Flow Projection

Pine Lake HomeSites


Time		 Investment
and Sale		 Effective
Income		 Operating
Expense		 Cash Flow
Before Debt		 Debt
Service		 Cash Flow
Before Tax
Buy 0 0 0 0 0 0
Jan 02 0 0 0 0 0 0
Feb 02 0 0 (1,153,215) (1,153,215) 103,215 (1,050,000)
Mar 02 0 0 (48,215) (48,215) 48,215 0
Apr 02 0 0 (101,162) (101,162) 101,162 0
May 02 0 0 (151,298) (151,298) 151,298 0
Jun 02 0 0 (87,696) (87,696) 87,696 0
Jul 02 0 98,700 (107,807) (9,107) 107,807 98,700
Aug 02 0 98,700 (171,474) (72,774) 87,579 14,805
Sep 02 0 98,700 (82,083) 16,617 (1,812) 14,805
Oct 02 0 164,500 (64,083) 100,417 (19,812) 80,605
Nov 02 0 199,280 (64,083) 135,197 (75,742) 59,455
Dec 02 0 164,500 (64,083) 100,417 (105,305) (4,888)
Jan 03 0 219,020 (10,083) 208,937 (129,742) 79,195
Feb 03 0 164,500 (4,083) 160,417 (182,084) (21,667)
Mar 03 0 199,280 (4,083) 195,197 (135,742) 59,455
Apr 03 0 164,500 (4,083) 160,417 (86,625) 73,791
May 03 0 199,280 (4,083) 195,197 0 195,197
Jun 03 0 164,500 (4,083) 160,417 0 160,417
Jul 03 0 199,280 (4,083) 195,197 0 195,197
Aug 03 0 184,240 (4,083) 180,157 0 180,157
Sep 03 0 199,280 (4,083) 195,197 0 195,197
Oct 03 0 65,800 0 65,800 0 65,800
Nov 03 0 100,580 0 100,580 0 100,580
Dec 03 0 65,800 0 65,800 0 65,800
Jan 04 0 100,580 0 100,580 0 100,580
Feb 04 0 65,800 0 65,800 0 65,800
Mar 04 0 34,780 0 34,780 0 34,780
Apr 04 0 0 0 0 0 0
May 04 0 0 0 0 0 0
Jun 04 0 0 0 0 0 0
Sell 0 0 0 0 0 0
Total 0 2,951,600 (2,137,949) 813,651 (49,891) 763,760


Rate of Return Before Debt (IRR) 40.9%
Rate of Return Before Tax (IRR) 51.2%

     


Source and Use of Proceeds --- Pine Lake HomeSites

Source and Use of Proceeds

Pine Lake HomeSites


Time		 Working
Capital		 Interest
Income		 Members'
Investment		 Cash Flow
Before Tax		 Distributed
To Members		 Distributed
To Manager
Buy 0 0 1,100,000 0 0 0
Jan 02 1,100,000 0 0 0 0 0
Feb 02 1,100,000 0 0 (1,050,000) 0 0
Mar 02 50,000 0 0 0 0 0
Apr 02 50,000 0 0 0 0 0
May 02 50,000 0 0 0 0 0
Jun 02 50,000 0 0 0 0 0
Jul 02 50,000 0 0 98,700 0 0
Aug 02 148,700 0 0 14,805 0 0
Sep 02 163,505 0 0 14,805 0 0
Oct 02 178,310 0 0 80,605 0 0
Nov 02 258,915 0 0 59,455 0 0
Dec 02 318,370 0 0 (4,888) 0 0
Jan 03 313,482 0 0 79,195 0 0
Feb 03 392,677 0 0 (21,667) 0 0
Mar 03 371,010 0 0 59,455 0 0
Apr 03 430,465 0 0 73,791 0 0
May 03 504,256 0 0 195,197 0 0
Jun 03 699,453 0 0 160,417 0 0
Jul 03 859,870 0 0 195,197 0 0
Aug 03 1,055,066 0 0 180,157 0 0
Sep 03 1,235,223 0 0 195,197 0 0
Oct 03 1,430,420 0 0 65,800 0 0
Nov 03 1,496,220 0 0 100,580 0 0
Dec 03 1,596,800 0 0 65,800 0 0
Jan 04 1,662,600 0 0 100,580 0 0
Feb 04 1,763,180 0 0 65,800 0 0
Mar 04 1,828,980 0 0 34,780 0 0
Apr 04 1,863,760 0 0 0 0 0
May 04 1,863,760 0 0 0 0 0
Jun 04 1,863,760 0 0 0 0 0
Sell 1,863,760 0 0 0 (1,741,570) (122,190)
Total 0 0 1,100,000 763,760 (1,741,570) (122,190)




     


Group Taxable Income Projection --- Pine Lake HomeSites

Group Taxable Income Projection

Pine Lake HomeSites


Time		 Taxable
Revenue		 Interest
Income		 Taxable
Expense		 Interest
Expense		 Depre-
ciation		 Ordinary
Income
Buy 0 0 0 0 0 0
Jan 02 0 0 0 0 0 0
Feb 02 0 0 0 0 0 0
Mar 02 0 0 0 0 0 0
Apr 02 0 0 0 0 0 0
May 02 0 0 0 0 0 0
Jun 02 0 0 0 0 0 0
Jul 02 98,700 0 (89,081) 0 0 9,619
Aug 02 98,700 0 (89,081) 0 0 9,619
Sep 02 98,700 0 (89,081) (1,812) 0 7,807
Oct 02 164,500 0 (124,714) (19,812) 0 19,975
Nov 02 199,280 0 (142,530) (12,832) 0 43,918
Dec 02 164,500 0 (124,714) (5,201) 0 34,586
Jan 03 219,020 0 (160,346) (4,366) 0 54,308
Feb 03 164,500 0 (124,714) (3,322) 0 36,465
Mar 03 199,280 0 (142,530) (1,832) 0 54,918
Apr 03 164,500 0 (124,714) (716) 0 39,070
May 03 199,280 0 (142,530) 0 0 56,750
Jun 03 164,500 0 (124,714) 0 0 39,786
Jul 03 199,280 0 (142,530) 0 0 56,750
Aug 03 184,240 0 (142,530) 0 0 41,710
Sep 03 199,280 0 (142,530) 0 0 56,750
Oct 03 65,800 0 (35,632) 0 0 30,168
Nov 03 100,580 0 (53,449) 0 0 47,131
Dec 03 65,800 0 (35,632) 0 0 30,168
Jan 04 100,580 0 (53,449) 0 0 47,131
Feb 04 65,800 0 (35,632) 0 0 30,168
Mar 04 34,780 0 (17,816) 0 0 16,964
Apr 04 0 0 0 0 0 0
May 04 0 0 0 0 0 0
Jun 04 0 0 0 0 0 0
Sell 0 0 0 0 0 0
Total 2,951,600 0 (2,137,949) (49,891) 0 763,760




     


Group Member Projection (per Unit) --- Pine Lake HomeSites

Group Member Projection (per Unit)

Pine Lake HomeSites


Time		 Distributed
Cash		 Ordinary
Income		 Capital
Gains		 Taxable
Income
Taxes		 Cash Flow
After Tax
Buy (10,000) 0 0 0 0 (10,000)
Jan 02 0 0 0 0 0 0
Feb 02 0 0 0 0 0 0
Mar 02 0 0 0 0 0 0
Apr 02 0 0 0 0 0 0
May 02 0 0 0 0 0 0
Jun 02 0 0 0 0 0 0
Jul 02 0 87 0 87 (35) (35)
Aug 02 0 87 0 87 (35) (35)
Sep 02 0 71 0 71 (28) (28)
Oct 02 0 182 0 182 (72) (72)
Nov 02 0 399 0 399 (158) (158)
Dec 02 0 314 0 314 (125) (125)
Jan 03 0 494 0 494 (196) (196)
Feb 03 0 331 0 331 (131) (131)
Mar 03 0 499 0 499 (198) (198)
Apr 03 0 355 0 355 (141) (141)
May 03 0 516 0 516 (204) (204)
Jun 03 0 362 0 362 (143) (143)
Jul 03 0 516 0 516 (204) (204)
Aug 03 0 379 0 379 (150) (150)
Sep 03 0 516 0 516 (204) (204)
Oct 03 0 274 0 274 (109) (109)
Nov 03 0 428 0 428 (170) (170)
Dec 03 0 274 0 274 (109) (109)
Jan 04 0 428 0 428 (170) (170)
Feb 04 0 274 0 274 (109) (109)
Mar 04 0 154 0 154 (61) (61)
Apr 04 0 0 0 0 0 0
May 04 0 0 0 0 0 0
Jun 04 0 0 0 0 0 0
Sell 15,832 (1,111) 0 (1,111) 440 16,272
Total 5,832 5,832 0 5,832 (2,310) 3,523


Member's Rate of Return Before Tax (IRR) 20.2%
Member's Rate of Return After Tax (IRR) 11.7%

     


Managing Member Cash Flow Projection --- Pine Lake HomeSites

Managing Member Cash Flow Projection

Pine Lake HomeSites


Time		 Manager
Fees		 Distributed
Cash		 Total
Cash Flow		 Taxable
Income
Taxes		 Cash Flow
After Tax
Buy 0 0 0 0 0 0
Jan 02 0 0 0 0 0 0
Feb 02 0 0 0 0 0 0
Mar 02 0 0 0 0 0 0
Apr 02 0 0 0 0 0 0
May 02 0 0 0 0 0 0
Jun 02 0 0 0 0 0 0
Jul 02 0 0 0 0 0 0
Aug 02 0 0 0 0 0 0
Sep 02 0 0 0 0 0 0
Oct 02 0 0 0 0 0 0
Nov 02 0 0 0 0 0 0
Dec 02 0 0 0 0 0 0
Jan 03 0 0 0 0 0 0
Feb 03 0 0 0 0 0 0
Mar 03 0 0 0 0 0 0
Apr 03 0 0 0 0 0 0
May 03 0 0 0 0 0 0
Jun 03 0 0 0 0 0 0
Jul 03 0 0 0 0 0 0
Aug 03 0 0 0 0 0 0
Sep 03 0 0 0 0 0 0
Oct 03 0 0 0 0 0 0
Nov 03 0 0 0 0 0 0
Dec 03 0 0 0 0 0 0
Jan 04 0 0 0 0 0 0
Feb 04 0 0 0 0 0 0
Mar 04 0 0 0 0 0 0
Apr 04 0 0 0 0 0 0
May 04 0 0 0 0 0 0
Jun 04 0 0 0 0 0 0
Sell 0 122,190 122,190 122,190 (24,438) 97,752
Total 0 122,190 122,190 122,190 (24,438) 97,752


Managing Member's Present Value Before Tax @10% 96,284
Managing Member's Present Value After Tax @10% 77,027

     


Sensitivity Analysis Comparison

Executive Lots - Interior Units Sold per Month
versus
Member's Rate of Return After Tax


     


Sensitivity Analysis

Pine Lake HomeSites

Amenity Unit Sales Cost
versus
Member's Rate of Return After Tax

Assumption IRR
$220,000.00 12.3%
$242,000.00 12.0%
$264,000.00 11.8%
$286,000.00 11.5%
$308,000.00 11.2%


     


Sensitivity Analysis

Pine Lake HomeSites

Land Unit Sales Cost
versus
Member's Rate of Return After Tax

Assumption IRR
$840,000.00 13.9%
$924,000.00 13.1%
$1,008,000.00 12.2%
$1,092,000.00 11.2%
$1,176,000.00 9.7%
$1,260,000.00 9.2%


     


Risk Analysis

Pine Lake HomeSites

Risk Analysis Assumption Lowest Likely Highest
  Executive Lots - Interior Units Sold per Month 4.15 5.15 6.15
  Executive Lots - Golf/Lake Units Sold per Month .5 1 2
  Prestige Lots - Interior Units Sold per Month .5 1.5 2.5
  Prestige Lots - Interior Unit Sale Growth Rate No Growth is projected 1% Annually 2% Annually
  Executive Lots - Golf/Lake Unit Sale Growth Rate No Growth is projected 1% Annually 2% Annually
  Executive Lots - Interior Unit Sale Growth Rate No Growth is projected 1% Annually 2% Annually
  Amenity Unit Sales Cost $200,000.00 $270,000.00 $300,000.00
  Marketing & Advertising Unit Sales Cost $50,000.00 $61,250.00 $70,000.00


Average IRR 11.0%   Lowest IRR 6.0%
Standard Deviation 1.3%   Highest IRR 13.0%

     


Analysis Assumptions Report

Pine Lake HomeSites

Investment Assumptions
Price of Property   None
Date of Acquisition   1 January 2002
Holding Period   2.5 Years
Inflation Rate   4% per Year
Sale Price Method   No Sale Price Specified
Selling Costs   6%
     
Group Member's Assumptions
General Vacancy & Credit Loss   Zero
Tax Rate - First Year   39.6%
Tax Rate - Following Years   39.6%
Capital Gain Rate   20%
Cost Recovery Recapture Rate   25% - Losses Taken Currently
Present Value Discount Rate Before Debt   10% per Year
Present Value Discount Rate Before Tax   10% per Year
Present Value Discount Rate After Tax   10% per Year
     
Group Assumptions
Total Initial Investment   $1,100,000.00
Working Capital Minimum   $50,000.00
Working Capital Maximum   $5,000.00
Working Capital Interest Rate   Zero
Managing Member Loan Interest Rate   0% per Year
Managing Member Tax Rate   35% per Year
Number of Units Issued   110
Cash Distribution Pattern   Yearly in January
     
Distribution Assumptions
Cash Distribution Start Date   1 April 2004
Preferred Return to Members   10% Cumulative
Cash to Members   75%
Net Taxable Income to Members   75%
Investment Return to Members   100% of Investment
Sale Proceeds to Members   75%
Capital Gain to Members   75%
     
Unit Sales Draw Assumptions
Draw Percent   100%
Draw Rate   10% Annually
Draw Period   1 Month
Draw Interest Payment   Accrued
Draw Limit   None
Draw Points   None
Draw Discharge Rate   85%
     
Unit Sales Parameter Assumptions
Price Multiplier   100%
Cost Multiplier   100%
Sale Cost/Unit   Zero
Inflate Unit Prices   No
Price Growth Rate   10% Over Inflation
Inflate Costs   No
Cost Growth Rate   10% Over Inflation
Parameter Application Offset   None
Absorption Schedule Stretcher   None
     
Executive Lots - Interior Unit Sales Absorption Assumptions
  0
Unit Price   $21,000.00
Total Units to be Sold   77
Unit Sale Start Date   1 July 2002
Unit Sale Growth Rate   No Growth is projected
Units Sold per Month   5.15
Unit Standard Cost   $21,000.00
Unit Sale Cost   6% of Unit Sales
     
Executive Lots - Golf/Lake Unit Sales Absorption Assumptions
  0
Unit Price   $33,000.00
Total Units to be Sold   17
Unit Sale Start Date   1 October 2002
Unit Sale Growth Rate   No Growth is projected
Units Sold per Month   1
Unit Standard Cost   $33,000.00
Unit Sale Cost   6% of Unit Sales
     
Prestige Lots - Interior Unit Sales Absorption Assumptions
  0
Unit Price   $37,000.00
Total Units to be Sold   26
Unit Sale Start Date   1 October 2002
Unit Sale Growth Rate   No Growth is projected
Units Sold per Month   1.5
Unit Standard Cost   $37,000.00
Unit Sale Cost   6% of Unit Sales
     
Land Unit Sales Spending Assumptions
Unit Sales Cost   $1,050,000.00
Expenditure Start   1 February 2002
Expenditure Months   1 Month
Include in Draws   Zero
     
Clearing & Grading Unit Sales Spending Assumptions
Unit Sales Cost   $59,429.00
Expenditure Start   1 February 2002
Expenditure Months   2 Months
Include in Draws   100%
     
Paving Unit Sales Spending Assumptions
Unit Sales Cost   $114,549.00
Expenditure Start   1 July 2002
Expenditure Months   2 Months
Include in Draws   100%
     
Curb & Gutter Unit Sales Spending Assumptions
Unit Sales Cost   $64,232.00
Expenditure Start   1 July 2002
Expenditure Months   2 Months
Include in Draws   100%
     
Sanitary Sewer Unit Sales Spending Assumptions
Unit Sales Cost   $158,810.00
Expenditure Start   1 April 2002
Expenditure Months   3 Months
Include in Draws   100%
     
Storm Sewer Unit Sales Spending Assumptions
Unit Sales Cost   $61,277.00
Expenditure Start   1 April 2002
Expenditure Months   3 Months
Include in Draws   100%
     
Water Unit Sales Spending Assumptions
Unit Sales Cost   $63,602.00
Expenditure Start   1 May 2002
Expenditure Months   1 Month
Include in Draws   100%
     
Entrance Unit Sales Spending Assumptions
Unit Sales Cost   $36,000.00
Expenditure Start   1 August 2002
Expenditure Months   2 Months
Include in Draws   100%
     
Power & Street Lighting Unit Sales Spending Assumptions
Unit Sales Cost   $9,300.00
Expenditure Start   1 April 2002
Expenditure Months   1 Month
Include in Draws   100%
     
Amenity Unit Sales Spending Assumptions
Unit Sales Cost   $270,000.00
Expenditure Start   1 August 2002
Expenditure Months   5 Months
Include in Draws   100%
     
Contingency Unit Sales Spending Assumptions
Unit Sales Cost   $35,000.00
Expenditure Start   1 February 2002
Expenditure Months   1 Month
Include in Draws   100%
     
Design Unit Sales Spending Assumptions
Unit Sales Cost   $37,500.00
Expenditure Start   1 February 2002
Expenditure Months   3 Months
Include in Draws   100%
     
Layout Unit Sales Spending Assumptions
Unit Sales Cost   $25,000.00
Expenditure Start   1 May 2002
Expenditure Months   3 Months
Include in Draws   100%
     
Taxes & Insurance Unit Sales Spending Assumptions
Unit Sales Cost   $12,000.00
Expenditure Start   1 February 2002
Expenditure Months   12 Months
Include in Draws   100%
     
Legal & Closing Unit Sales Spending Assumptions
Unit Sales Cost   $13,000.00
Expenditure Start   1 February 2002
Expenditure Months   1 Month
Include in Draws   100%
     
Appraisal Unit Sales Spending Assumptions
Unit Sales Cost   $5,000.00
Expenditure Start   1 February 2002
Expenditure Months   1 Month
Include in Draws   100%
     
Marketing & Advertising Unit Sales Spending Assumptions
Unit Sales Cost   $61,250.00
Expenditure Start   1 July 2002
Expenditure Months   15 Months
Include in Draws   100%
     
County Fees Unit Sales Spending Assumptions
Unit Sales Cost   $2,000.00
Expenditure Start   1 February 2002
Expenditure Months   1 Month
Include in Draws   100%
     
Development Fees Unit Sales Spending Assumptions
Unit Sales Cost   $60,000.00
Expenditure Start   1 February 2002
Expenditure Months   12 Months
Include in Draws   100%