3-31-03

   The first quarter of 2003 started out a bit slowly in January, but very quickly turned up the speed and has remained as busy as the last quarter. With the war started, and the uncertainty of the Iraq situation no longer a pressing issue, it seems that once the war is over, we'll start to see a gradual improvement in the economy. We funded 26 new loans this quarter, we had 23 close, and have 10 more in escrow, as of the last day of the month.

   We added 250k from new investor money this quarter. We have $3.15 million in the portfolio, which is holding 35 loans, valued at $4.857 million. We are fully invested as of today, but we have many loans that may close in the next couple of days. Our average life of each loan is holding steady at 114 days. We have funded and closed a total of 101 loans since the inception of DenSco.

   I had mentioned Rick Rickert in a past newsletter. For five years he has been buying, fixing up and reselling foreclosure homes. In the last six months he has decided to focus on providing a service to people that want to do "fix and flips". His company, Maricopa Investors Alliance, provides a Chinese menu of services for qualified buyers. He has become a great referral resource for DenSco. He and I have a working relationship that goes back 15 years. I'm excited to be working with him again.

   I've begun working with lawyers on updating DenSco's memorandum. I hope that by the end of this quarter we'll have it completed. I will be sending one to each investor. I am required to update this every two years with my previous two years activity. It will also be sent to new investors. I appreciate all the word of mouth advertising that all of you have provided! I will continue to strive to grow the portfolio and provide all of my investors with a great return on their investment!

   Denny J. Chittick