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Exhibit 10.1 
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**NOTE      PURCHASE, ASSIGNMENT AND ASSUMPTION AGREEMENT**

***Agreement***
***Effective Date***
**MCDOUGAL FAMILY PARTNERSHIP, LTD.**
***Assignor***
**UNITED DEVELOPMENT FUNDING      III, L.P.**
** **
***Assignee***

***Note***
***Loan Documents***
***Loan***
***Borrower***

** **

***Loan Balance***
***Accrued      Interest***
***“Daily Per Diem***

***Purchase      Price***

*[SIGNATURE      PAGE FOLLOWS]*

**                        **

|   |  **ASSIGNOR:**                                                   |                                                                                               |
|--------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
|   |                                                                  |                                                                                               |
|   | ** MCDOUGAL              FAMILY PARTNERSHIP,              LTD.** |                                                                                               |
|   |                                                                  |                                                                                               |
|   |  By:                                                   | DCMC,              L.C., its general              partner                                          |   |
|   |                                                                  |                                                                                               |   |
|   |                                                                  | /s/ Mike              McDougal                                                                |   |
|   |                                                                  | Name: Mike              McDougal                                                              |   |
|   |                                                                  | Title:                Manager                                                            |   |
|   |                                                                  | Address:  7008              Salem              Avenue, Lubbock,              Texas 79424 |   |

|   |  **ASSIGNEE:**                                                          |                                                                                                              |
|--------|------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|   |                                                                         |                                                                                                              |
|   | ** UNITED                DEVELOPMENT FUNDING III,                L.P.** |                                                                                                              |
|   |                                                                         |                                                                                                              |
|   |  By:                                                          | UMTH                Land Development, L.P., its                general                partner                     |   |
|   |                                                                         |                                                                                                              |   |
|   |  By:                                                          |  UMT                Services Inc., its general partner                                                       |   |
|   |                                                                         |                                                                                                              |   |
|   |                                                                         | /s/ Ben                Wissink                                                                               |   |
|   |                                                                         | Name: Ben                Wissink                                                                             |   |
|   |                                                                         | Title:  Vice                President                                                                   |   |
|   |                                                                         | Address:  1812                Cindy                Lane, Suite 200, Bedford,                Texas 76021 |   |

*Signature            page to*

*Note            Purchase, Assignment and Assumption            Agreement*

**EXHIBIT      A**

**LOAN      DOCUMENTS**