---------------------- Forwarded by Phillip K Allen/HOU/ECT on 02/23/2001 
02:27 PM ---------------------------


Andrew_M_Ozuna@bankone.com on 02/21/2001 07:28:47 AM
To: Phillip.K.Allen@enron.com
cc:  
Subject: Sagewood II




Phillip -

George Richards asked that I drop you a line this morning to go over some
details on the San Marcos project.

1.  First, do you know if I am to receive a personal financial statement from
Keith?  I want to make sure my credit write-up includes all the principals in
the transaction.

2.  Second, without the forward or take-out our typical Loan to Cost (LTC) 
will
be in the range of 75% - 80%.  The proposed Loan to Value of 75% is within the
acceptable range for a typical Multi-Family deal.  Given the above pro-forma
performance on the Sagewood Townhomes, I am structuring the deal to my credit
officer as an 80% LTC.  This, of course, is subject to the credit officer
signing off on the deal.

3.  The Bank can not give dollar for dollar equity credit on the Developers
deferred profit.  Typically, on past deals a 10% of total project budget as
deferred profit has been acceptable.

Thanks,

Andrew Ozuna
Real Estate Loan Officer
210-271-8386
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