Jeff,

I am not willing to guarantee to refinance the 1st lien on the stage in 4 
years and drop the rate on both notes at that point to 8%.  There are several 
reasons that I won't commit to this.  Exposure to interest fluctuations, the 
large cash reserves needed, and the limited financial resources of the buyer 
are the three biggest concerns.  

What I am willing to do is lower the second note to 8% amortized over the 
buyers choice of terms up to 30 years.  The existing note does not come due 
until September 2009.  That is a long time.  The buyer may have sold the 
property.  Interest rates may be lower.  I am bending over backwards to make 
the deal work with such an attractive second note.  Guaranteeing to refinance 
is pushing too far.

Can you clarify the dates in the contract.  Is the effective date the day the 
earnest money is receipted or is it once the feasibility study is complete?

Hopefully the buyer can live with these terms.  I got your fax from the New 
Braunfels buyer.  If we can't come to terms with the first buyer I will get 
started on the list.

Email or call  me later today.

Phillip