BBT Fund (Bass Family):
We are currently filling out the paperwork for the BBT Fund which is set to  fund July 1 ($100k in Partnership, $250k personally).  I was  discussing with Andrew Linbeck, who works for Redstone Consulting and  introduced us to the Fund, the issue of using the fund as collateral.   He said that his clients have had some success with borrowing against the  Fund.  More importantly, one had borrowed from Bank of America (BA),  so a precedent has been set.  Andrew was not familiar with our BA contacts,  but said that he would be more than happy to familiarize them or any of our  other banking relationships with the BBT Fund.  If you recall, the Fund is  basically a bond alternative that has historically generated around 3 times  the risk free rate.  He has seen clients borrow against 40% to 50% of the  Funds value.
 
I am going to pursue this further by initially having Andrew meet with BA  and Compass.  I told Andrew that if he can help get our lenders comfortable  with it, then we would be more likely to build our position in the  Fund.
 
Aspen/Galveston Houses:
Still moving ahead.  I know you want to keep Aspen #1 out, at least  initially.  I am working with Jim Braniff, IV on the  insurance.  Jim and some of Gallagher Braniff's higher-ups have been  very involved, as well as interested in the outcome of all of this.  I  think that they might want a similar structure for themselves or other wealthy  clients that have similar circumstances.  Anyway, we are trying to address  all the issues on all fronts to ultimately protect you, your assets, and the  Partnership.
 
Braeswood & Kirby Apt. Development - Shawn  Gross:
The capital required is still being determined, but should be between $1.6  million and $2.2 million.  Per your request, you will have 10% and the  Family Partnership will have 8%.  I can lower  the Partnership's amount if you desire, but I thought somewhere  between 5% - 10% was good.  I am personally investing 2%.  Not sure if  the rest of the siblings are going to participate.
 
Family Partnership - Cash Flow &  Commitments:
As you know, the Family Partnership is in need of liquidity due to the  following: (i) monthly distributions; (ii) capital calls from outstanding  long-term commitments; (iii) additional costs associated with transferring the  homes into the partnership; (iv) funds to develop/maintain Aspen #4.   Currently, the only source of inflows is coming from the sale of options, which  is not generating enough (@ $53/share approx. $675k/mo.).  This month alone  the Partnership paid out approximately $700k in capital calls for long-term  commitments: $588k - SRE Properties, $97k - TCW/Hines Emerging Mkts R  E.  I know that you do not want the Partnership to borrow from  you, but today we had know choice so we borrowed $100,000 against your  BA line.  As we previously discussed, the only alternative would be to sell  a larger (one time) amount of options or exercise and hold.  Unfortunately,  all of the illiquid investments have yet to distribute anything meaningful of  recent.  
Family Partnership scheduled payments/outstanding  commitments:
1)    $210,000 - (due early June) Monthly Distributions to  the partners
2)    $200,000 - (due June 6) Vanguard Ventures cap  call
3)    $128,000 to $176,000 - (due mid June) Shawn Gross  development
4)    $400,000 to $450,000 - (June 30) Sterling Group
5)    $100,000 - (July 1) BBT Fund
6)    approx. $6.8 million exposure to outstanding  long-term commitments (after Vanguard & Sterling are funded)
7)    transfer of homes into the partnership would require  an additional est. $170,000 per month (approx. $2 million annually, including  Aspen#1); excludes the additional costs of Aspen #4 to be developed (est. $2.4  million) and maintained.
 
Upcoming meeting with Goldman Sachs:
Pete Coneway left me a message confirming our meeting at 3pm of June  13th.  Those scheduled to be present are Pete Coneway, Stacey Eastland,  Jeff Daly, two other Goldman guys flying in from NY, Barry Margolis, Jan Phipps  and me.  I wanted to reconfirm the meeting with you before I call Pete  back.
 
I hope Spain is/was enjoyable.  Will talk to you soon.
 
Beau