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| Jackson      Claborn, Inc. |
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| RE: | A      consultation report of the fairness of the proposed financing terms      between United Development Funding III, L.P., and United Development      Funding, L.P., our file number808123 |
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|   | The      statements of fact contained herein and upon which the opinions herein are      based, are true and correct, subject to the assumption and limiting      conditions explained in the report. |
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|   | Employment      in and compensation for providing this consultation are in no way      contingent upon any value reported and we certify that we have no      interest, either present or contemplated, in the subject property. We have      no personal interest or bias with respect to the subject matter of this      consultation report or the partiesinvolved. |
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|   | This      consultation report identifies all of the limiting conditions (imposed by      the terms of my assignment or by the undersigned) affecting the analysis,      opinions and conclusions contained in this  report. |
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|   | The      analysis, opinions and/or conclusions, if any, contained in this report      have been developed in accordance with the Code of Professional Ethics and      Standards of Professional Practice of the Appraisal    Institute. |
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|   | The      use of this consultation report is subject to the requirements of the      Appraisal Institute relating to review by its duly authorized      representatives. |
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|   | No      one other than the undersigned prepared the analysis, opinions or      conclusions concerning real estate that are set forth in this consultation      report. |
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|   | No      one at Jackson Claborn, Inc has personally inspected the property that is      the subject of this report. |
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|   | We      certify that this consultation assignment was not based on a requested      minimum valuation, a specific valuation, or the approval of a      loan. |
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|   | 1) |   | No      responsibility is assumed for matters of legal nature. It is assumed that      title to the property is marketable and the legal description furnished us      is correct. |
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|   | 2) |   | The      property is treated as though under responsible ownership and competent      management and free and clear of all liens and    encumbrances. |
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|   | 3) |   | The      described physical condition of any improvements is based on visual      inspection only. It is assumed that there are no hidden or unapparent      physical conditions affecting value such as the existence of hazardous      materials such as asbestos or any other potentially hazardous materials.      No liability is assumed for the soundness of structural members, equipment      or soil conditions, since no engineering tests were  made. |
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|   | 4) |   | Improvements      are considered to be within lot lines and in accordance with local zoning      and building ordinances, as well as all applicable Federal, state and      local environmental laws and regulations, except as noted herein. Any      plats, diagrams or drawings provided are intended solely to facilitate      understanding and aid to the reader in picturing the property and are not      meant to be used as references in matters of survey, as no survey was made      and no liability is assumed regarding questions of  survey. |
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|   | 5) |   | It      is assumed that all required private, Federal, state or local licenses,      certificates of occupancy, consents or other legislative or administrative      permissions required have been or can be readily obtained or renewed for      any use on which the value estimate in this report is    based. |
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|   | 6) |   | Any      information received from public or private sources is believed to be      reliable; however, no warranty is given for its  accuracy. |
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|   | 7) |   | The      authors shall not be required to give further consultation or testimony or      appear in court, by reason of this consultation report with reference to      the property described unless previous arrangements have been made to that      effect. |
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|   | 8) |   | Disclosure      of the contents of this consultation report is governed by the Bylaws and      Regulations of the Appraisal Institute. Possession of this consultation      report or a copy thereof or any part thereof, does not carry with it the      right of publication, nor may it be used by anyone but the party for whom      it has been prepared without the previous written consent of the      appraisers and, in any event, only with proper written qualifications and      only in its entirety. |
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|   | 9) |   | Neither      all nor any part of the contents of this consultation report (especially      conclusions as to value, the identity of the appraisers or the firm with      which the appraiser is connected) shall be disseminated to the public      through advertising, public relations, news, sales or other media without      the prior written consent and approval of Jackson Claborn,      Inc. |
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|   | 10) |   | Any      opinions of value stated herein are based on the purchasing power of the      dollar as of the date of this report, except as otherwise specified.      Therefore, the opinion of value is considered reliable only as of the      stated date of valuation. |
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|   | 11) |   | This      consultation report is intended to be read and used as a whole and not in      parts. Separation of any section or page from the main body of the      consultation report is expressly forbidden and will be considered as      invalidating the consultation. |
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|   | 12) |   | Any      allocation of value of this consultation report between land and      improvements applies only to this consultation and must not be used as      part of any other appraisal and is invalid if so used. The value reported      for any portion appraised, plus the value of all other portions may or may      not equal the value of the entire parcel or tract considered as an      entity. |
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|   | 13) |   | No      responsibility is assumed for the accuracy of any descriptions of physical      materials and conditions pertaining to the property or for any damages      sustained in connection with actual or potential deficiencies or hazards      such as, but not limited to, inadequacies or defects in the structure,      design, mechanical equipment or utility services associated with the      improvements; air or water pollution; noise; flooding; storms or wind;      traffic and other neighborhood hazards; radon gas, asbestos, natural or      artificial radiation or toxic substances of any description, whether on or      off the premises. |
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|         14)   | The      opinions of value and/or lease rates contained within this consultation      report are estimates. There is no guarantee, written or implied, that the      subject will actually sell or lease for the estimated value/lease      rate. |
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|         15)  | The      Americans with Disabilities Act ("ADA") became effective January 26, 1992.      We have not made a specific compliance survey and analysis of this      property to determine whether or not it is in conformity with the various      detailed requirements of the ADA. Indeed, we have not been supplied with      nor have we rendered a qualified opinion as to whether or not there are      any "readily achievable" barrier removal items present. It is possible      that a survey of the property together with a detailed analysis of the      requirements of the ADA could reveal that the property is not in      compliance with one or more of the requirements of the Act.  If      so, this fact could have a negative affect upon the value of the      property.  Since we have no direct evidence relating to this      issue, we did not consider possible non-compliance with the requirements      of ADA in estimating the value of the property.  Consequently,      the subject property has been valued assuming compliance to      ADA.  Should a professional survey      prove non-compliance, we reserve the right to re-evaluate the      property. |
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