9-30-03

   The Q3 of 2003 was a bit of a roller coaster. I had times of very little activity and then other times when I was doing one or two deals every day for a week. Such is the nature of the beast. Summer is normally a bit of a slower time for Real Estate. Once we get closer to fall things pick up and it's been true to form this year.

   After interest rates bottomed out in June, and then rose a bit since, they are still at near 40 year lows. With the economy picking up steam, more jobs will come and that's good for the housing market. Uncle Al isn't going to raise interest rates any time soon. There is no risk of inflation or of the economy over heating.

   We had an additional $800k of investor's money added to the portfolio this quarter. That's the largest single quarter since DenSco started. We now have $4.1 million in the portfolio. There are currently 45 loans, valued at $6.1 million. We funded 41 new loans and had 39 loans close. There are 19 loans that are currently in escrow. The high turn over-rate will continue in October. The average age of the loans is still at 109 days.

   As I said last quarter, with the new memorandum complete, I felt like I could raise more money. I believe I accomplished my goal. I sent out many new memorandums and talked to a lot of people. I appreciate the referrals! I like growing the business a little bit each quarter.

   We have had a great quarter and going into this 4th quarter, I can see we are starting off fast. My goal was to have the portfolio grow to about $5.0 million by the end of the year. I'm moving in that direction rapidly. I will keep working hard to ensure that I meet your expectations and reach my goals.

   Denny J. Chittick