Estate of Morton B. Harper, Deceased, Michael A. Harper, Executor - Page 56




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                    Although the loan is current, Mr. Marsh estimates                 
               that he could only get $0.70 to $0.80 on the dollar for                
               a 100% interest, and perhaps $0.60 to $0.70 for a 45%                  
               interest (due to liquidity factors).                                   
                    Based on the above, we conclude that the fair                     
               market value of the Marsh note is $300,000                             
               (approximately 65% of $450,000).                                       
               ii.  Mr. Thomson’s Report                                              
               Mr. Thomson in his report preceded valuation of the Marsh              
          note with a discussion of certain factual assumptions underlying            
          his analysis.  The report refers to the $1 million note as                  
          equating to “more than 2 to 1 coverage” for the Marsh note and              
          mentions personal guaranties by Mr. Marsh and Mr. Goldstein.  Mr.           
          Thomson also addresses several items relating to the security for           
          the $1 million note; namely, the value of the mobile home park,             
          the existence of any prior liens against the park, and possible             
          environmental issues pertaining to the park.                                
               Mr. Thomson appraised the 410-unit mobile home park and                
          concluded that it “could command a price of $40,000 to $50,000              
          per unit or $16.0 to $20.0 million based on other mobile home               
          park sales we are familiar with in Southern California.”  As                
          regards potential prior liens, the report states:                           
               We requested any other Trust Deeds (notes), if any,                    
               against the Carson Harbor Village Mobile Home Park                     
               which may have a senior position to the $1,000,000 Deed                
               of Trust.  However, we were not provided any data on                   
               this request from the taxpayor [sic].  We did obtain a                 
               property profile from Chicago Title which showed no                    
               recorded liens as of the appraisal date.                               







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