$3MM 5 Property

File No.

- - - - - - - - - - - - - -

- - - - - - - - - - - - - -

********* INVOICE *********

File Number:

Invoice # :Order Date :Reference/Case # :PO Number :

$$

Invoice Total $State Sales Tax @ $Deposit ( $ )Deposit ( $ )

Amount Due $

Terms:

Please Make Check Payable To:

Fed. I.D. #:

304358

Larry C. Nicholson

Thank you for your business

Hazel Park, MI 480301337 E GranetLarry C. Nicholson

Paid in full

0.00

1,500.000.00

1,500.00

1,500.00Appraisal Inspection

Rochester Hills, MI 48306-35321540 Mill Race

Subject Property

09/27/2006304358

Mt Pleasant, MI2020 South MIssion #149Eli Jacobs

304358

File No.

APPRAISAL OF

LOCATED AT:

FOR:

AS OF:

BY:

304358

Larry C. Nicholson

Larry C. Nicholson

September 29, 2006

Mt Pleasant, MI2020 South MIssion #149

Eli Jacobs


A Single Family Residence


File No.

File Number:

In accordance with your request, I have appraised the real property at:

The purpose of this appraisal is to develop an opinion of the defined value of the subject property, as improved.The property r ights appraised are the fee simple interest in the site and improvements.

In my opinion, the defined value of the property as of i s :

The attached report contains the descr ipt ion, analys is and support ive data for the conclusions,final opinion of value, descriptive photographs, assignment conditions and appropriate certifications.

304358

Larry C. Nicholson

Larry C. Nicholson

Sincerely,

Three Million Five Hundred Thousand Dollars$3,500,000

September 29, 2006


Dear Sir/Madam:

304358

Mt Pleasant, MI2020 South MIssion #149Eli Jacobs

10/06/2006


Residential Appraisal Report File No.

The purpose of this appraisal report is to provide the client with a credible opinion of the defined value of the subject property, given the intended use of the appraisal.

Client Name/Intended User E-mail

Client Address City State Zip

Additional Intended User(s)

Intended Use

PU

RP

OS

E

Property Address City State Zip

Owner of Public Record County

Legal Description

Assessor's Parcel # Tax Year R.E. Taxes $

Neighborhood Name Map Reference Census Tract

Property Rights Appraised Fee Simple Leasehold Other (describe)

SU

BJE

CT

My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.

Prior Sale/Transfer: Date Price Source(s)

Analysis of prior sale or transfer history of the subject property (and comparable sales, if applicable)

Offerings, options and contracts as of the effective date of the appraisal

SA

LE

S H

IST

OR

Y

Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing Present Land Use %

Location Urban Suburban Rural Property Values Increasing Stable Declining PRICE AGE One-Unit %

Built-Up Over 75% 25-75% Under 25% Demand/Supply Shortage In Balance Over Supply $(000) (yrs) 2-4 Unit %

Growth Rapid Stable Slow Marketing Time Under 3 mths 3-6 mths Over 6 mths Low Multi-Family %

Neighborhood Boundaries High Commercial %

Pred. Other %

Neighborhood Description

Market Conditions (including support for the above conclusions)

NE

IGH

BO

RH

OO

D

Dimensions Area Shape View

Specific Zoning Classification Zoning Description

Zoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe)

Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe.

Utilities Public Other (describe) Public Other (describe) Off-site Improvements—Type Public Private

Electricity Water Street

Gas Sanitary Sewer Alley

Site Comments

SIT

E

GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION materials INTERIOR materials

Units One One with Accessory Unit Concrete Slab Crawl Space Foundation Walls Floors

# of Stories Full Basement Partial Basement Exterior Walls Walls

Type Det. Att. S-Det./End Unit Basement Area sq. ft. Roof Surface Trim/Finish

Existing Proposed Under Const. Basement Finish % Gutters & Downspouts Bath Floor

Design (Style) Outside Entry/Exit Sump Pump Window Type Bath Wainscot

Year Built Storm Sash/Insulated Car Storage None

Effective Age (Yrs) Screens Driveway # of Cars

Attic None Heating FWA HWBB Radiant Amenities WoodStove(s) # Driveway Surface

Drop Stair Stairs Other Fuel Fireplace(s) # Fence Garage # of Cars

Floor Scuttle Cooling Central Air Conditioning Patio/Deck Porch Carport # of Cars

Finished Heated Individual Other Pool Other Att. Det. Built-in

Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe)

Finished area above grade contains: Rooms Bedrooms Bath(s) Square Feet of Gross Living Area Above Grade

Additional Features

Comments on the Improvements

IMP

RO

VE

ME

NT

S

Page 1 of 2This form Copyright © 2005-2006 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(GPAR™) General Purpose Appraisal Report 12/2005GPAR1004_05 04172006

Produced using ACI software, 800.234.8727 www.aciweb.com

304358LARRY C. NICHOLSON

REO - for informational purposes only

None notedMIMt Pleasant2020 South MIssion #149

[email protected] Jacobs

X1920.00MSA 47644Metes & Bounds10,570.57200615-01-100-013

See Attached AddendumOaklandEli Edward Jacobs

48306-3532MIRochester Hills1540 Mill Race

None noted

There were no other prior sales of the subject and comparables 1 or 3 reported within the past 36 months. Prior sale of comparable #2 was transaction between builder and current owner and has no impact upon the subject's market value as defined. Recent sale of subject was reported to be a distress transaction and not considered to be arms-length in nature. As such, it is not representative of true market value of the subject property.

Warranty deed, MLS,Public Records$116,000.0001/12/2007X

Market conditions & property values remain stable. Supply and demand of preowned homes slightly favor the Buyer with current market conditions generally considered to be a "Buyers Market". Both conventional & non-conventional financing are common with sales concessions typical.

See Attached Addendum10Vac5

85

16871

6812,036

142The Subject neighborhood is situated North of 23 mile/Avon; East of

Rochester Rd; West of Mound and South of 28 MIle in the Rochester school district.

XXX

XX

X

NoneXGravel

XX

XX

NoneXX

Single Family Residential DistrictR-1Creek,WoodedIrregular154984.51 (3.56 Ac)599.17x235x684.21x214.9x84.41

Other than expected wear and tear, overall condition of the Subject was excellent. No Physical inadequacies were noted. No Functional or External Obsolescence was noted.

See Attached Addendum10,3263.55414

Hood Vent, Cent VacXXXXXXXX

5XBrick

1X

Cer,Mbl,Stn/GdCer,Mbl,Stn/GdWood/ExcellentPlaster/GoodCer,Cpt,Mbl/Gd

GatedXCPXBalcX

X2X

Wood/VinylThermalCasementAlum/AlumComp ShingleBrick/Stn/StuccoConcrete

XGas

X

X80

4399X

XX

151974

ContemporaryX

X2

X


FEATURE SUBJECT

Address

Proximity to Subject

Sale Price $

Sale Price/Gross Liv. Area $ sq. ft.

Data Source(s)

Verification Source(s)

VALUE ADJUSTMENTS DESCRIPTION

Sale or Financing

Concessions

Date of Sale/Time

Location

Leasehold/Fee Simple

Site

View

Design (Style)

Quality of Construction

Actual Age

Condition

Above Grade Total Bdrms. Baths

Room Count

Gross Living Area sq. ft.

Basement & Finished

Rooms Below Grade

Functional Utility

Heating/Cooling

Energy Efficient Items

Garage/Carport

Porch/Patio/Deck

Net Adjustment (Total)

Adjusted Sale Price

of Comparables

COMPARABLE SALE NO. 1

$

$ sq. ft.

DESCRIPTION +(-) $ Adjustment

Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $

Summary of Sales Comparison Approach

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COST APPROACH TO VALUE

Site Value Comments

ESTIMATED REPRODUCTION OR REPLACEMENT COST NEW

Source of cost data

Quality rating from cost service Effective date of cost data

Comments on Cost Approach (gross living area calculations, depreciation, etc.)

OPINION OF SITE VALUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $

Dwelling Sq. Ft. @ $ . . . . . . . . . . . . = $

Sq. Ft. @ $ . . . . . . . . . . . . = $

Garage/Carport Sq. Ft. @ $ . . . . . . . . . . . . = $

Total Estimate of Cost-New . . . . . . . . . . . . = $

Less Physical Functional External

Depreciation = $ ( )

Depreciated Cost of Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $

"As-is" Value of Site Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $

INDICATED VALUE BY COST APPROACH . . . . . . . . . . . . . . . . . . . . . . = $

CO

ST

AP

PR

OA

CH

INCOME APPROACH TO VALUE

Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach

Summary of Income Approach (including support for market rent and GRM)

INC

OM

E

Indicated Value by: Sales Comparison Approach $ Cost Approach (if developed) $ Income Approach (if developed) $

This appraisal is made "as is," subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed,

subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed subject to the following:

Based on the scope of work, assumptions, limiting conditions and appraiser's certification, my (our) opinion of the defined value of the real property

that is the subject of this report is $ as of , which is the effective date of this appraisal.

RE

CO

NC

ILIA

TIO

N

Page 2 of 2This form Copyright © 2005-2006 ACI Division of ISO Claims Services, Inc., All Rights Reserved.




BarnAmenitiesFnc,Elec GatedFence/Security2 Nat/4 DecoFireplacePorch,Balcony5 Car ParkingTypical/AvgGFA/CAAverageFinished/BathFull/4399 Sq.Ft.

10,32675.003.55414

Good32Brick,Stone/Good2-Story/GoodCreek,Wd/Good3.56 AcresFee SimpleSuburb/Good

Twp RecordsInspection &

0.00

Rochester Hills1540 Mill Race

3,019,50018.417.3

444,500X+77,000None

0Gate House-10,0004 Fireplaces

0Porch, Patio+5,0004 Car Parking

0Similar0GHW/CA0Average0Finished/Bath0Full

+250,2006,990-5,0004.569

00Good060Brick,Stn/Good02-Sty/Good

+50,000Interior/Avg04.25 Acres0Fee Simple

+77,300Suburb/Avg002/26/20060MKT-161 Days0Conv Mtg

Broker RecordsMLS 25128484

368.382,575,000

0.28 MI SWOakland Twp5566 Orchard Ridge

3,721,8003.0-0.1

3,200X0Ing Pool0Elec Gate,Fence

-5,0003 Fireplaces-15,000Porch,Pat,Deck+5,0004 Car Parking

0Typical/Avg0GFA/CA0Average0Finished/Bath0Full,

-18,20010,568-20,0005.55511

00Good070Brick,Stn/Good03-Sty/Good0Wooded/Good

+50,0001.0 Acres0Fee Simple0Suburb/Good011/15/20040MKT-335 Days0Conv Mtg

Assessor RecordsMLS 23118740

352.483,725,000

2.5 MI WRochester Hills1979 Arthurs Way

4,027,3007.46.1

232,000X0Pool,Tennis

+60,000None02 Fireplaces0Porch, Deck

+5,0004 Car Parking0Similar0GFA/CA0Average0Finished/Bath0Full

+142,0008,433-5,0004.5511


+50,000Interior/Avg-20,0001.78 Acres

0Fee Simple0Suburb/Avg008/15/20050MKT-43 Days0Conv Mtg


450.053,795,250

12.1 MI SWBloomfield Hills459 Martell

See Attached Addendum

3,545,800

350,0001,945,818

343,380$0$0$343,380100

2,289,198150,98943.403,479

1,002Porch/Patio291,43466.25Bsmt: 4399 Sq.Ft.

1,845,773178.7510,3261,250,000

Cost figures shown includes cost multiplier of 1.06 (for this market) on line by line basis. Square foot appraisal form (Marshall & Swift form 1007) included in addenda calculates the multiplier at the end of report, resulting in nominal variance in end totals. Please see attached cost addendum for specific detail.

12/2006ExcellentMarshall & Swift Cost Services

X

Please see the appraiser's certification #4 in this report, for further explanation as to why the Cost Approach was not developed.

Please see the appraiser's certification #4 in this report, for further explanation as to why the Income Approach was not developed.

N/AN/AN/A

September 29, 20063,500,000

The Subject was appraised in it's "AS-IS" condition. Appraiser assumes that Title is marketable and that there are no hidden defects or deficiencies.

X

All three approaches to value were considered. The greatest weight was given to the Market Data Approach with support from the Cost Approach. The Income Approach to Value was inapplicable for this property. Current S.E.V. = $561,110.00

N/A3,545,8003,500,000

Apollo Appraisal


FEATURE SUBJECT

Address


Sale Price $


Data Source(s)



Sale or Financing

Concessions

Date of Sale/Time

Location


Site

View

Design (Style)


Actual Age

Condition


Room Count


Basement & Finished

Rooms Below Grade

Functional Utility

Heating/Cooling


Garage/Carport

Porch/Patio/Deck


Adjusted Sale Price

of Comparables


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


SA

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Additional ComparablesThis form Copyright © 2005-2006 ACI Division of ISO Claims Services, Inc., All Rights Reserved.





10,32675.003.55414



0.00


4,147,2005.93.7

147,200X+77,000None+60,000None-10,0004 Fireplaces

0Porch, Patio+5,0004 Att. Garage

0Similar0GFA/CA0Average0Finished0Full,

-14,80010,523-20,0007.55714

00Good020Brick/Good02-Sty/Good0Creek,Wd/Good

+50,0002.04 Acres0Fee Simple0Suburb/Avg006/16/20050MKT-167 Days0Cash Sale


380.124,000,000

10.9 MI SWBloomfield Hills562 Barrington Park

2,835,80026.526.0

585,800X+77,000None



0Typical/Avg0GFA/CA0Average

+157,500Unfinished0Full,

+201,3007,64203.5541100Good070Brick,Stn/Good02-Sty/Good

+50,000Interior/Avg+100,0001.0 Acre

0Fee Simple0Suburb/Good0N/A0DOM-76 Days0Active Listing


294.432,250,000

0.27 MI SWRochester Hills6643 Cornerstone Ln

3,406,4009.54.8

156,400X+77,000None



0Typical/Avg0GFA/CA0Average0Finished/Bath0Full,

-35,60010,800-30,0006.55512


+50,000Interior/Avg+100,0001.0 Acre

0Fee Simple0Suburb/Good0N/A0DOM-76 Days0Active Listing


300.933,250,000

0.28 MI SWRochester Hills6588 Cornerstone Ln

Comparables 4 & 5 were provided to illustrate active listings of similar properties in this market area. Specifically, comparable #4 was drawn from the subject subdivision. Adjustments were given for estimated sale price (current list price less 5%), site, bath count, GLA, basement type and finish, porch/patio, fireplaces and amenities.


FEATURE SUBJECT

Address


Sale Price $


Data Source(s)



Sale or Financing

Concessions

Date of Sale/Time

Location


Site

View

Design (Style)


Actual Age

Condition


Room Count


Basement & Finished

Rooms Below Grade

Functional Utility

Heating/Cooling


Garage/Carport

Porch/Patio/Deck


Adjusted Sale Price

of Comparables


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


$

$ sq. ft.


Total Bdrms. Baths

sq. ft.

+ - $

Net Adj. %

Gross Adj. % $


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Additional ComparablesThis form Copyright © 2005-2006 ACI Division of ISO Claims Services, Inc., All Rights Reserved.





10,32675.003.55414



0.00


00.00.0

0X

0.00

00.00.0

0X

0.00

00.00.0

0X

0.00

ADDENDUMBorrower: Adam Mack File No.: 304358Property Address: 1540 Mill Race Case No.:City: Rochester Hills State: MI Zip: 48306-3532Lender: Eli Jacobs

Addendum Page 1 of 2

Legal DescriptionT3N, R11E, SEC 1, PART OF N 1/2 OF SEC BEG AT PT DIST S-00-38-32 E 1345.00 FT & S 27-19-04 W 541.15 FT & N76-27-04 W 88.95 FT & N 72-21-45 W 59.01 FT & N 68-26-23 W 83.91 FT & N 54-34-10 W 45.55 FT FROM N 1/4 COR, THS 15-59-20 W 599.17 FT, TH N 61-04-35 W 235.00 FT, TH N 12-58-22 E 684.21 FT TO CEN LINE OF STONEY CREEK, THS 43-39-30 E 214.90 FT, TH S 54-34-10 E 84.41 FT TO BEG 3.56 ACRES

Neighborhood DescriptionThe Subject area is located conveniently to public schools, shopping and major highways. Situated approximately 1 mile eastof the City of Rochester's central business district, 4 miles north of the M-59 freeway, 0.50 miles south of the Stoney CreekMetro Park, 1.5 miles north of the Rochester State Rec Area and proximate to major employment centers (DaimlerChryslerWorld Headquarters). Stoney Creek runs through the center of this neighborhood . Of particular note is the fact the subjectproperty fronts on the southern side of Stoney Creek and that opposite the subject (on WInkler Mill Road) can be found themansion/compound of Marshall Mathers AKA "Eminem".

Additional FeaturesThe interior equipment of the Subject is atypical for the immediate neighborhood primarily for its size and styling reminiscentof a castle. Though physically newer construction, it was designed and built utilizing materials and "old world" workmanshipstyles,with the intention of replicating homes of a previous era . Much of the interior construction materials were reclaimedfrom several historic and otherwise notable properties located throughout the United States, Great Britain and Europe. Someof these features include the Ballroom entry railings taken from the Dodge Estate, doors and wall lattice from the AlfredGlancey Estate, full limestone walls in living room from the Sepan Castle, true leaded glass windows throughout, rich cherrywood flooring in the Ballroom and Music room, full theater system with hidden, ceiling mounted, mechanical drop downscreen in Family room, a copper pipe, radiant heating system in the floors of the Master Bedroom, Sitting room and MasterBath, full scale indoor fountain in Conservatory and handpainted walls and ceilings in most rooms, including the built-in bedin Master Bedroom. Central chandelier located in Foyer is mounted with powered lift system that allows for easymaintenance and cleaning. The Dining room also contains handpainted walls and ceilings with the aforementioned latticefrom the Alfred Glancey Estate and a room hidden behind wall panels that was used for the display of the China patternsused for serving.

Footprint includes 2 full kitchens equipped with professional grade Viking stove and ovens, Sub-Zero refrigerators and Mieleproducts. In addition, the viewer will note additional interior contributions to this property form the JP Schlotman Mansion andthe Rose Terrace Mansion. In all, the quality of woodwork, stonework, plaster application and full detail workmanship utilizedin the construction of this property exceeds the area norm and is more typically found in areas along Lake Shore Drive inGrosse Pointe Shores, Boston-Edison or Indian Village in Detroit.

The basement recreation area replicates a full scale English pub with bar, alcoves and booth seating. Other basement roomsinclude a bedroom, bath, dressing/storage area, cedar closets and 2 mechanical rooms.

The exterior consists of brick driveway and walkways with concrete railings and sitting spaces, a 2,785 sq ft outbuilding (usedas 3 car garage and barn), a 1,632 sq ft enclosure that was previously used as a lions den (live african lion now in residenceat the Detroit Zoological Park in Huntington Woods, MI) which can be used as a kennel or play yard and direct access toStoney Creek in the rear. Across Stoney Creek, opposite the subject (on WInkler Mill Road) can be found themansion/compound of Marshall Mathers AKA Eminem.

Comments on Sales ComparisonSubject is compatible with surrounding neighborhood. All Comparables and the Subject are similar in location, view, design,condition and functionality.

Adjustments were made for some or all of the following: site, bath count, GLA, basement type and finish, garage, porch/patio,fireplace and exterior amenities. Equal weight was given to comparables 2 & 3 as they are most similar to the subject withthe least overall net/gross adjustment values.

At the time of this inspection, the volume of recent sales in close proximity that are similar to the subject in design and overallGLA were limited. GLA is a prime factor in determining the viability of a selected comparable, that consideration was givenhighest priority in said selection process. Second factor weighed heavily in this report is overall design and degree of finish,due mainly to the fact that the level of detail finish found in the subject is unique. As a result, the optimal time and distanceguidelines typically desired were expanded in order to include all relevant sales.

In high value properties, such as the subject, it is common practice for the sale to be filed with local authorities using an"Affidavit of Purchase". This document allows the homeowner to disguise or otherwise hide the actual sale price with afictitious value of $1.00. This is the amount that is generally recorded in MLS files and city records. This necessitates thedisclosure and corroboration of the actual sale price by the listing broker and/or their agent, or lacking that, an extensivesearch of city and/or county records, sometimes even utilizing the filing of Freedom of Information requests (time permitting).

In the case of the comparables used in this report, all were so recorded.

Verification of sales follows:

Comparable #1: Filed as $1.00. Per Deborah Gannes, listing agent for Hall & Hunter-Birmingham Realtors, actual sale pricewas $2,575,000.00

Comparable #2: Sale recorded in Liber 34421, Page 0416 Oakland County Records. Tax stamp calculation showed a saleprice of $3,725,000.00

Comparable #3: Filed as $1.00. According to Erin Cobb, assistant to Meridith Colburn at Snyder, Kinney, Bennett & KeatingRealtors, actual sale price was $3,795,250.00

Comparable #4; Filed as $1.00. According to Kathryn Lyons at Hannity-Wilson-Whitehouse LLC Realtors, actual sale price

ADDENDUMBorrower: Adam Mack File No.: 304358Property Address: 1540 Mill Race Case No.:City: Rochester Hills State: MI Zip: 48306-3532Lender: Eli Jacobs

Addendum Page 2 of 2

was $4,000,000.00

Comparables 5 & 6 are active listings.

File No.

Scope of Work, Assumptions and Limiting Conditions

Scope of work is defined in the Uniform Standards of Professional Appraisal Practice as " the type and extent of research and analyses in an assignment." In short, scope of work is simply what the appraiser did and did not do during the course of the assignment. It includes, but is not limited to: the extent to which the property is identified and inspected, the type and extent of data researched, the type and extent of analyses applied to arrive at opinions or conclusions.

The scope of this appraisal and ensuing discussion in this report are specific to the needs of the client, other identified intended users and to the intended use of the report. This report was prepared for the sole and exclusive use of the client and other identified intended users for the identified intended use and its use by any other parties is prohibited. The appraiser is not responsible for unauthorized use of the report.

The appraiser's certification appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraiser in the report. All extraordinary assumptions and hypothetical conditions are stated in the report and might have affected the assignment results.

1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership.

2. Any sketch in this report may show approximate dimensions and is included only to assist the reader in visualizing the property. The appraiser has made no survey of the property.

3. The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made thereto.

4. Neither all, nor any part of the content of this report, copy or other media thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client and other intended users as identified in this report, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent of the appraiser.

5. The appraiser will not disclose the contents of this appraisal report unless required by applicable law or as specified in the Uniform Standards of Professional Appraisal Practice.

6. Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the appraiser is assumed by the appraiser.

7. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering or testing, which might be required to discover such factors. This appraisal is not an environmental assessment of the property and should not be considered as such.

8. The appraiser specializes in the valuation of real property and is not a home inspector, building contractor, structural engineer, or similar expert, unless otherwise noted. The appraiser did not conduct the intensive type of field observations of the kind intended to seek and discover property defects. The viewing of the property and any improvements is for purposes of developing an opinion of the defined value of the property, given the intended use of this assignment. Statements regarding condition are based on surface observations only. The appraiser claims no special expertise regarding issues including, but not limited to: foundation settlement, basement moisture problems, wood destroying (or other) insects, pest infestation, radon gas, lead based paint, mold or environmental issues. Unless otherwise indicated, mechanical systems were not activated or tested.

This appraisal report should not be used to disclose the condition of the property as it relates to the presence/absence of defects. The client is invited and encouraged to employ qualified experts to inspect and address areas of concern. If negative conditions are discovered, the opinion of value may be affected.

Unless otherwise noted, the appraiser assumes the components that constitute the subject property improvement(s) are fundamentally sound and in working order.

Any viewing of the property by the appraiser was limited to readily observable areas. Unless otherwise noted, attics and crawl space areas were not accessed. The appraiser did not move furniture, floor coverings or other items that may restrict the viewing of the property.

9. Appraisals involving hypothetical conditions related to completion of new construction, repairs or alteration are based on the assumption that such completion, alteration or repairs will be competently performed.

10. Unless the intended use of this appraisal specifically includes issues of property insurance coverage, this appraisal should not be used for such purposes. Reproduction or Replacement cost figures used in the cost approach are for valuation purposes only, given the intended use of the assignment. The Definition of Value used in this assignment is unlikely to be consistent with the definition of Insurable Value for property insurance coverage/use.

11. The ACI General Purpose Appraisal Report (GPAR™) is not intended for use in transactions that require a Fannie Mae 1004/Freddie Mac 70 form, also known as the Uniform Residential Appraisal Report (URAR).

Additional Comments Related To Scope Of Work, Assumptions and Limiting Conditions

This form Copyright © 2005-2006 ACI Division of ISO Claims Services, Inc., All Rights Reserved.(GPAR™) General Purpose Appraisal Report 12/2005

GPARLIM_05 04172006


304358

Originally requested as part of a sales transaction, appraisal was converted from 1004 to a GPAR when the client changed from the Lender to the Homeowner.

File No.

Appraiser's Certification

The appraiser(s) certifies that, to the best of the appraiser's knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are the personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. Unless otherwise stated, the appraiser has no present or prospective interest in the property that is the subject of this report and has no personal interest with respect to the parties involved.

4. The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

5. The appraiser's engagement in this assignment was not contingent upon developing or reporting predetermined results.

6. The appraiser's compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

7. The appraiser's analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

8. Unless otherwise noted, the appraiser has made a personal inspection of the property that is the subject of this report.

9. Unless noted below, no one provided significant real property appraisal assistance to the appraiser signing this certification. Significant real property appraisal assistance provided by:

Additional Certifications:

Definition of Value: Market Value Other Value:

Source of Definition:

ADDRESS OF THE PROPERTY APPRAISED:

EFFECTIVE DATE OF THE APPRAISAL:

APPRAISED VALUE OF THE SUBJECT PROPERTY $

APPRAISER

Signature:

Name:

State Certification #

or License #

or Other (describe): State #:

State:

Expiration Date of Certification or License:

Date of Signature and Report:

Date of Property Viewing:

Degree of property viewing:

Interior and Exterior Exterior Only Did not personally view

SUPERVISORY APPRAISER

Signature:

Name:

State Certification #

or License #

State:

Expiration Date of Certification or License:

Date of Signature:

Date of Property Viewing:

Degree of property viewing:

Interior and Exterior Exterior Only Did not personally view

This form Copyright © 2005-2006 ACI Division of ISO Claims Services, Inc., All Rights Reserved.(GPAR™) General Purpose Appraisal Report 12/2005

GPARLIM_05 04172006


304358

X

September 29, 200602/02/2007

07/31/2008MI

1201002119Larry C. Nicholson

3,500,000September 29, 2006


X

Apollo Appraisal

DIMENSION LIST ADDENDUM

Client: File No.:Property Address: Case No.:City: State: Zip:

GROSS BUILDING AREA (GBA)GROSS LIVING AREA (GLA)

Area(s) Area % of GBA

Living

Level 1

Level 2

Level 3

Other

Basement

Garage

Area Measurements Area Type

Measurements Factor Total Level 1 Level 2 Level 3 Other Bsmt. Garage

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Produced using ACI software, 800.234.8727 www.aciweb.com DIM 090506


304358Eli Jacobs

19.113,47924.174,399

0.0000.000

24.644,48532.095,84156.7210,326

10,32618,204

X119.001.008.5014.00X4.500.503.003.00X4.500.503.003.00X18.001.003.006.00X781.751.0026.5029.50X97.501.005.0019.50X444.001.008.0055.50X17.251.001.5011.50X3.001.001.502.00X1,236.251.0021.5057.50

X693.251.0023.5029.50X46.841.001.0046.84X80.500.5014.0011.50X72.001.008.009.00X252.001.0014.0018.00X68.001.002.0034.00X114.001.006.0019.00X550.001.0022.0025.00X1,827.501.0042.5043.00X104.251.001.5069.50

X151.341.003.2446.71X118.171.004.5026.26X45.001.002.5018.00X348.841.0010.2634.00X83.490.5014.2611.71X822.781.0018.0045.71X550.001.0022.0025.00X118.001.004.0029.50

X35.251.001.5023.50X2,750.001.0050.0055.00

X48.591.001.0048.59X193.461.008.5022.76X543.601.0018.0030.20X1,461.531.0038.2038.26

X550.001.0011.0050.00X208.001.008.0026.00X252.001.0014.0018.00X952.001.0028.0034.00X414.001.006.0069.00X105.001.005.0021.00X992.001.0015.5064.00X860.251.0015.5055.50X65.880.508.5015.50

SUBJECT PROPERTY PHOTO ADDENDUM


FRONT VIEW OFSUBJECT PROPERTY

Appraised Date:Appraised Value: $

REAR VIEW OFSUBJECT PROPERTY

STREET SCENE


304358Eli Jacobs

3,500,000September 29, 2006

COMPARABLE PROPERTY PHOTO ADDENDUM


COMPARABLE SALE #1

Sale Date:Sale Price: $

COMPARABLE SALE #2


COMPARABLE SALE #3



304358Eli Jacobs

2,575,00002/26/2006

Oakland Twp5566 Orchard Ridge

3,725,00011/15/2004

Rochester Hills1979 Arthurs Way

3,795,25008/15/2005

Bloomfield Hills459 Martell

COMPARABLE PROPERTY PHOTO ADDENDUM


COMPARABLE SALE #4


COMPARABLE SALE #5


COMPARABLE SALE #6



304358Eli Jacobs

4,000,00006/16/2005

Bloomfield Hills562 Barrington Park

2,250,000N/A

Rochester Hills6643 Cornerstone Ln

3,250,000N/A

Rochester Hills6588 Cornerstone Ln

PLAT MAP

Client: File No.:Property Address: Case No.:City: State: Zip: 48306-3532MIRochester Hills

1540 Mill Race304358Eli Edward Jacobs


LOCATION MAP






Digital Signature Addendum




Appraiser License



1540 Mill Race304358Eli Jacobs

Exterior Photo Page 1

Property Entrance

Front entry view 2

Front entry view 3



Exterior Photo Page 2

Exterior detail

Exterior amenities

Exterior amenities



Interior Photo Page 1

Grand Stairwell

Foyer

Lav 1

Back Stairwell




Ballroom - view 1

extreme left of photoNote entrance to musician's room to

Ballroom - View 2

Attached to Ballroom on south wall

Musician's room




movie screenNote center top - powered drop down

Family Room - view to west

center top of photoWall mounted movie projector is mounted

Family Rom - view to east

Working fountainFully heated room

Conservatory



Interior Photo Page #4

All wood visible in photos is handcarvedAll murals are hand painted

Dining room - view to east

All wood visible in photos is handcarvedAll murals are hand painted

Dining room - view to west

of Dining roomLocated in hidden doors along east wall

China room




Wall of this room are solid Limestone

Living room

Primary Kitchen

primary kitchenLocated to the immediate east of the

Prep kitchen




Side (East) entrance hallway

1st floor work room

Lav 2




pipingFloors are heated via embedded copper

Note Sitting room to left of photoAll murals are handpaintedview 1

Master bedroom

All murals are handpaintedview 2

Master bedroom

south of Master BedroomAttached to and located to immediate

Sitting room




Located in Master bedroom

Turrret room

Part of Master bedroom suite

Dressing room

Master Bath




Attached to, and part of, Master Bath

SaunaSunroom

Bedroom 2

Bedroom 3




overall GLA of subjectPartially finished - but not included in

3rd floor walk-up attic

3rd floor walk-up attic entrance

Attached 2 car garage




Re-created English Pub - view 4

Basement

Room - currently used as bedroom

Basement

Mechanical room 1

$3MM 5 Property

Documents

Transcript of $3MM 5 Property