| NEVADA                                                                     |   | 84-1461919                           |
|----------------------------------------------------------------------------|--------|--------------------------------------|
| (State                  or other jurisdiction                  of          |   | (I.R.S.                  Employer    |
| incorporation                  or                  organization)           |   | Identification                  No.) |
|                                                                       |   |                                 |
| 5111                  Juan Tabo Boulevard                  N.E.            |   |                                 |
| Albuquerque,                  New Mexico                                   |   | 87111                                |
| (Address                  of principal executive                  offices) |   | (Zip                  code)          |

| Title                  of each                  class               | Name                  of each exchange on which                  registered |
|---------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Common                    Stock, 0.001 par                    value | OTCBB                                                                       |

00.00

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|   Item       | Description                                                                                                     | Page    |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------|---------|
|                        |                                                                                                            |    |
| Item                    1.  | Business                                                                                                        | 9  |
|                        |                                                                                                            |    |
| Item                    2.  | Description                    of                    Property                                                   | 10      |
|                        |                                                                                                            |    |
| Item                    3.  | Legal                    Proceedings                                                                            | 11      |
|                        |                                                                                                            |    |
| Item                    4.  | Submission                    of Matters to a Vote of                    Security Holders.                      | 11      |
|                        |                                                                                                            |    |
| Item                    5.  | Market                    for Common Equity and                    Related Stockholder Matters                  | 12      |
|                        |                                                                                                            |    |
| Item                    6.  | Management's                    Discussion and                    Analysis                                      | 13      |
|                        |                                                                                                            |    |
| Item                    7.  | Financial                    Statements                                                                         | 16      |
|                        |                                                                                                            |    |
| Item                    8.  | Changes                    In and Disagreements With                    Accountants on Accounting               |    |
|                        | and                    Financial                    Disclosure.                                                 | 18      |
|                        |                                                                                                            |    |
| Item                    8A. | Controls                    and                    Procedures.                                                  | 18      |
|                        |                                                                                                            |    |
| Item                    8B. | Other                    Information                                                                            | 18      |
|                        |                                                                                                            |    |
| Item                    9.  | Directors,                    Executive Officers,                    Promoters and Control                      |    |
|                        | Persons;                    Compliance with Section                    16(a) of the                             |    |
|                        | Exchange                    Act                                                                                 | 18      |
|                        |                                                                                                            |    |
| Item                    10. | Executive                    Compensation                                                                       | 20      |
|                        |                                                                                                            |    |
| Item                    11. | Security                    Ownership of Certain                    Beneficial Owners and                       |    |
|                        | Management                    and Related Stockholder                    Matters                                | 21      |
|                        |                                                                                                            |    |
| Item                    12. | Certain                    Relationships and Related                    Transactions, and Director Independence | 22      |
|                        |                                                                                                            |    |
| Item                    13. | Exhibits                                                                                                        | 23      |
|                        |                                                                                                            |    |
| Item                    14. | Principal                    Accountant Fees and                    Services                                    | 24      |

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|   | · | projections                  of future results of                  operations or financial condition;  |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | expectations                  for our properties;                  and  |
|--------|--------|------------------------------------------------------------------------------|

|   | · | expectation                  of the continued                  availability of capital                  resources. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | actual                  or anticipated fluctuations                  in our operating results;  |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | changes                  in financial estimates by                  securities analysts or our failure to perform in line with such                  estimates;  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                  in market valuations of                  other real estate companies, particularly those that sell products                  similar                  to ours; announcements by us or our competitors of significant                  innovations, acquisitions, strategic partnerships, joint ventures                  or                  capital commitments;  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | introduction                  of new design and                  planning enhancements that reduce the need for our products;                  and  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | departure                  of key                  personnel. |
|--------|--------|---------------------------------------------------------------|

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|   | · | increases                  in interest                  rates; |
|--------|--------|----------------------------------------------------------------|

|   | · | a                  general tightening of the                  availability of credit; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | a                  decline in the economic                  conditions in one or more of our primary                  markets; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                  increase in competition for                  customers or a decrease in demand by                  customers; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                  increase in supply of our                  property types in our primary                  markets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | declines                  in consumer spending                  during an economic recession that adversely affect our revenue;                  and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                  adoption on the national,                  state or local level of more restrictive laws and governmental                  regulations, including more restrictive zoning, land use or environmental                  regulations and increased real estate                  taxes. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | adverse                  changes in the perceptions                  of prospective purchasers of the attractiveness of the                  property; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | opposition                  from local community or                  political groups with respect to development or construction at                  a                  particular site; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                  change in existing comprehensive                  zoning plans or zoning regulations that impose additional restrictions                  on                  use or requirements with respect to our                  property; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | our                  inability to provide adequate                  management and maintenance or to obtain adequate                  insurance; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                  increase in operating                  costs; |
|--------|--------|-------------------------------------------------------------------|

|   | · | new                  development of a competitor's                  property in or in close proximity to one of our current markets;                  and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | earthquakes,                  floods or                  underinsured or uninsured natural                  disasters. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | an                  inability to secure sufficient                  financing on favorable terms, including an inability to refinance                  construction loans; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                  subprime mortgage financial                  crisis of 2007 has broght about a rise in defaults and home foreclosures.                  It has also caused tighter lending standards. All this combined                  appears to                  be driving down home prices and affecting consumer confidence.                  The                  negative effect of the subprime situation could effect the companies                  ability to sell homes and secure financing. It could also effect                  the                  volume of business completed by Falon Financil, the companies mortgage                  division. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | construction                  delays or cost                  overruns, either of which may increase project development                  costs; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                  increase in commodity                  costs; |
|--------|--------|-------------------------------------------------------------------|

|   | · | an                  inability to obtain zoning,                  occupancy and other required governmental permits and                  authorizations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                        |                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| First                  Mortgage and Note payable to                  Metro Funding Corp.,                  with interest at 12 percent, interest payable monthly interest                  only                  installments of approximately $11,500.00.                                  |  Balance                  at September 30,                  2007 $1,150,000.00 |
| Second                  Mortgage and Note to Karen                  Duran and/or Fred M. Montano with interest at 3% over prime as                  stated in                  Wall Street Journal with monthly installments of interest and $20,000.00                  principal payments | Balance                  at September 30, 2007$1,136,074.40                              |

----

|        2007 |   |   |   | High   | Low    |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |   |   |   |   |
| First                      Quarter             |   |   |   | 1.50   | 0.50   |   |
| Second                      Quarter            |   |   |   | 1.25   | .06    |   |
| Third                      Quarter             |   |   |   | 1.25   | 0.05   |   |
| Fourth                      Quarter            |   |   |   | 0.45   | 0.02   |   |
|                                           |   |   |   |   |   |   |
|       2006       |   |   |   | High   | Low    |   |
| First                      Quarter             |   |   |   | 0.02   | 0.01   |   |
| Second                      Quarter            |   |   |   | 0.01   | 0.01   |   |
| Third                      Quarter             |   |   |   | 1.20   | 0.01   |   |
| Fourth                      Quarter            |   |   |   | 1.50   | 0.51   |   |
| Yahoo                      Finance web site    |   |   |   |   |   |   |

18,459,337shares        of common stock outstanding. The        number of holders of record of our common stock at that date was approximately        180.

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|                                                                                                               |                                                           | Page   |
|--------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|--------|
|                                                                                                               |                                                           |   |
|  Report              of Independent Registered Public Accounting              Firm                            | F-1                                                            |
|                                                                                                               |                                                           |   |
|  Report              of Independent Registered Public Accounting Firm                                         | F-2                                                            |
|                                                                                                               |                                                           |   |
| Balance                Sheet at September 30, 2007                                                                 | F-3                                                            |
|                                                                                                               |                                                           |   |
| Statements                of Operations for the for the twelve months and nine                months               |                                                           |
|                                                                                                               | ended                September 30, 2007 and September 30, 2006 | F-4    |
|                                                                                                               |                                                           |   |
| Statements                of Shareholders' Deficit  for the twelve months and nine                months |                                                           |
|                                                                                                               | ended                September 30, 2007 and September 30, 2006 | F-5    |
|                                                                                                               |                                                           |   |
| Statements                of Cash Flow for the for twelve months and nine months                                   |                                                           |
|                                                                                                               | ended                September 30, 2007 and September 30, 2006 | F-6    |
|                                                                                                               |                                                           |   |
| Notes                to Financial Statements                                                                       | F-7                                                            |

----

----

----

| Assets                                                              |   |   |       |
|---------------------------------------------------------------------|--------|--------|------------|
|                                                                |   |   |       |
|                                                                |   |   |       |
| Cash                                                                |   | $      | 74,521     |   |
| Fixed                assets, net of accumulated depreciation        |   |   | 32,787     |   |
| Real                estate held for development and sale            |   |   | 3,175,984  |   |
|                                                                |   |   |       |   |
| Total                assets                                         |   | $      | 3,283,292  |   |
|                                                                |   |   |       |   |
| Liabilities                and Shareholders' Deficit                |   |   |       |   |
|                                                                |   |   |       |   |
| Liabilities                                                         |   |   |       |   |
|                                                                |   |   |       |   |
| Accounts                payable                                     |   | $      | 444,523    |   |
| Notes                payable related parties                        |   |   | 1,136,074  |   |
| Note                payable                                         |   |   | 1,350,000  |   |
| Retainage                payable                                    |   |   | 90,000     |   |
| Accrued                interest                                     |   |   | 120,216    |   |
| Accrued                expenses                                     |   |   | 2,587      |   |
| Preferred                Shares subject to manadatory redemption    |   |   | 485,000    |   |
|                                                                |   |   |       |   |
| Total                liabilities                                    |   |   | 3,628,400  |   |
|                                                                |   |   |       |   |
| Shareholders'                deficit                                |   |   |       |   |
| Preferred                stock,Class A  .0001 par value,  |   |   |       |   |
| 400,000                shares authorized, 160,000 shares issued and |   |   |       |   |
| outstanding                                                         |   |   | 400,000    |   |
| Common                stock, $0.001 par value, 900,000,000 shares   |   |   |       |   |
| authorized,                18,459,337 shares issued and             |   |   |       |   |
| outstanding                                                         |   |   | 18,459     |   |
| Additional                paid-in capital                           |   |   | 2,013,447  |   |
| Accumulated                deficit                                  |   |   | (2,777,014 | ) |
|                                                                |   |   |       |   |
| Total                Liabilities and Shareholders' Deficit          |   |   | (345,108   | ) |
|                                                                |   |   |       |   |
|                                                                |   | $      | 3,283,292  |   |

----

|                                                         |   |                         |       |   |                         |   |
|--------------------------------------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|
|                                                         |   |                         |       |   | Nine                Months   |   |
|                                                         |   | Year                Ended    |       |   | ended                        |   |
|                                                         |   | September                30, |       |   | September                30, |   |
|                                                         |   | 2007                         |       |   | 2006                         |   |
|                                                         |   |                         |       |   |                         |   |
| Net                sales                                     |   | $                            | 32,017     |   |                         | $      | - |   |
|                                                         |   |                         |       |   |                         |   |   |   |
| Selling,                general and administrative expenses  |   |                         | 938,324    |   |                         |   | 510,091 |   |
| Stock-based                compensation                      |   |                         | 383,883    |   |                         |   | - |   |
|                                                         |   |                         | 1,322,207  |   |                         |   | 510,091 |   |
| Other                income:                                 |   |                         |       |   |                         |   |   |   |
| Utility                credits                               |   |                         |       |   |                         |   | (67,117 | ) |
| Reduction                in construction costs               |   |                         |       |   |                         |   | (25,000 | ) |
|                                                         |   |                         |       |   |                         |   |   |   |
|                                                         |   |                         |       |   |                         |   |   |   |
|                                                         |   |                         |       |   |                         |   |   |   |
| Loss                before provision for income taxes        |   |                         | (1,290,190 | )      |                         |   | 417,974 |   |
| Income                taxes                                  |   |                         | —    |   |                         |   | — |   |
|                                                         |   |                         |       |   |                         |   |   |   |
| Net                Loss                                      |   | $                            | (1,290,190 | )      |                         | $      | 417,974 |   |
|                                                         |   |                         |       |   |                         |   |   |   |
|                                                         |   |                         |       |   |                         |   |   |   |
|                                                         |   |                         |       |   |                         |   |   |   |
| Loss                per share                                |   | $                            | —    |   |                         | $      | — |   |
|                                                         |   |                         |       |   |                         |   |   |   |
|                                                         |   |                         |       |   |                         |   |   |   |
|                                                         |   |                         |       |   |                         |   |   |   |
| Weighted                average number of shares outstanding |   |                         |       |   |                         |   | 3,761,312 |   |

----

|                                           |   |                 |    |   |                          |   |     |    |   |   |                       |   |   | Additional |     |   |    |   |      |   |   |
|------------------------------------------------|--------|----------------------|---------|--------|-------------------------------|--------|----------|---------|--------|--------|----------------------------|--------|--------|------------|----------|--------|---------|--------|-----------|--------|--------|
|                                           |   | Preferred Stock |    |   | Common                  Stock |   |     | paid-in |   |   | Accumulated                |   |   |       |     |
|                                           |   | Shares               |    |   | Par                  value    |   |     | Shares  |   |   | Par                  value |   |   | capital    |     |   | deficit |   |      | Total  |   |
|                                           |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |
| Balance                  at                    |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |
| December                  31, 2005             |   |                 | 160,000 |   |                          | $      | 400,000  |    |   |   | 3,761,312                  |   |   | $          | 752,262  |   |    | $      | 899,420   |   |   | $ | (1,068,850 | ) |   | $ | 982,832 |   |
| Stock                  issuance for Cash       |   |                 | 194,000 |   |                          |   | 485,000  |    |   |   | -                          |   |   |       | -        |   |    |   | -         |   |   |   | - |   |   |   | 485,000 |   |
| Reclassified                  to liabilities   |   |                 | -       |   |                          |   | (485,000 | )       |   |   | -                          |   |   |       | -        |   |    |   | -         |   |   |   | - |   |   |   | (485,000 | ) |
| Loss                                           |   |                 | -       |   |                          |   | -        |    |   |   | -                          |   |   |       | -        |   |    |   | -         |   |   |   | (417,974 | ) |   |   | (417,974 | ) |
|                                           |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |   |   |   |   |   |   |   |
| Balance                  September 30, 2006    |   |                 | 354,000 |   |                          | $      | 400,000  |    |   |   | 3,761,312                  |   |   | $          | 752,262  |   |    | $      | 899,420   |   |   | $ | (1,486,824 | ) |   | $ | 564,858 |   |
|                                           |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |   |   |   |   |   |   |   |
| Reclass                  common stock and APIC |   |                 |    |   |                          |   |     |    |   |   | (79                        | )      |   |       | (748,501 | )      |    |   | 748,501   |   |   |   |   |   |   |   | - |   |
| Issuance                  of common stock      |   |                 |    |   |                          |   |     |    |   |   | 14,698,104                 |   |   |       | 14,698   |   |    |   | 365,526   |   |   |   |   |   |   |   | 380,224 |   |
| Net                  loss 9-30-2007            |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |   | (1,290,190 | ) |   |   | (1,290,190 | ) |
|                                           |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |   |   |   |   |   |   |   |
|                                           |   |                 |    |   |                          |   |     |    |   |   |                       |   |   |       |     |   |    |   |      |   |   |   |   |   |   |   |   |   |
| Balance                  September 30, 2007    |   |                 |    |   |                          |   |     |    |   |   | 18,459,337                 |   |   |       | 18,459   |   |    |   | 2,013,447 |   |   |   | (2,777,014 | ) |   |   | (345,108 | ) |

----

|                                                                |   | Year                  Ended    |       |   | Year                  Ended    |   |
|---------------------------------------------------------------------|--------|--------------------------------|------------|--------|--------------------------------|--------|
|                                                                |   | September                  30, |       |   | September                  30, |   |
|                                                                |   | 2007                           |       |   | 2006                           |   |
| Cash                  flows from operating activities:              |   |                           |       |   |                           |   |
| Net                  income/loss                                    |   | $                              | (1,290,190 | )      |                           | $      | (417,974 | ) |
| Adjustments                  to reconcile net loss to net cash      |   |                           |       |   |                           |   |   |   |
| used                  by operating activities:                      |   |                           |       |   |                           |   |   |   |
| Depreciation                                                        |   |                           | 6,308      |   |                           |   | 3,150 |   |
| Changes                  in operating assets and liabilities,       |   |                           |       |   |                           |   |   |   |
|                                                                |   |                           |       |   |                           |   |   |   |
| Real                  estate held for development and sale          |   |                           | (332,544   | )      |                           |   | (369,138 | ) |
| Prepaid                  expenses                                   |   |                           | —    |   |                           |   | 13,540 |   |
| Other                  current assets                               |   |                           | 220        |   |                           |   | — |   |
| Accounts                  payable                                   |   |                           | 108,333    |   |                           |   | 42,990 |   |
| Accrued                  interest                                   |   |                           | 120,216    |   |                           |   |   |   |
| Accrued                  liabilities                                |   |                           | (43,208    | )      |                           |   | (35,504 | ) |
| Retainage                  payable                                  |   |                           | (10,000    | )      |                           |   | (51,627 | ) |
|                                                                |   |                           | —    |   |                           |   | — |   |
| Net                  cash (used in) provided by                     |   |                           |       |   |                           |   |   |   |
| operating                  activities                               |   |                           | (1,440,865 | )      |                           |   | (814,563 | ) |
|                                                                |   |                           |       |   |                           |   |   |   |
| Cash                  flows from investing activities:              |   |                           |       |   |                           |   |   |   |
|                                                                |   |                           |       |   |                           |   |   |   |
| Acquisition                  of fixed assets                        |   |                           | (2,713     | )      |                           |   | (6,319 | ) |
|                                                                |   |                           |       |   |                           |   |   |   |
| Net                  cash used in                                   |   |                           |       |   |                           |   |   |   |
| investing                  activities                               |   |                           | (2,713     | )      |                           |   | (6,319 | ) |
|                                                                |   |                           |       |   |                           |   |   |   |
| Cash                  flows from financing activities:              |   |                           |       |   |                           |   |   |   |
| Increase                  (Decrease) in related party notes payable |   |                           | 154,432    |   |                           |   | (109,696 | ) |
| Increase                  (Decrease) notes payable                  |   |                           | 979,689    |   |                           |   |   |   |
| Common                  stock, Paid in capital adjustment           |   |                           | 380,224    |   |                           |   |   |   |
| Repayments                  of real estate contract                 |   |                           | —    |   |                           |   | (18,737 | ) |
| Proceeds                  from preferred shares                     |   |                           | —    |   |                           |   | 485,000 |   |
| Stock                  based compensation                           |   |                           | —    |   |                           |   | — |   |
|                                                                |   |                           |       |   |                           |   |   |   |
| Net                  cash from financing activities                 |   |                           | 1,514,345  |   |                           |   | 356,567 |   |
|                                                                |   |                           |       |   |                           |   |   |   |
|                                                                |   |                           |       |   |                           |   |   |   |
| Net                  change in cash                                 |   |                           | 70,767     |   |                           |   | (464,315 | ) |
|                                                                |   |                           |       |   |                           |   |   |   |
| Cash:                                                               |   |                           |       |   |                           |   |   |   |
| Beginning                  of period                                |   |                           | 3,754      |   |                           |   | 468,069 |   |
|                                                                |   |                           |       |   |                           |   |   |   |
| End                  period                                         |   | $                              | 74,521     |   |                           | $      | 3,754 |   |
|                                                                |   |                           |       |   |                           |   |   |   |
| Supplemental                  disclosure of cash flow information:  |   |                           |       |   |                           |   |   |   |
| Cash                  paid during the year for:                     |   |                           |       |   |                           |   |   |   |
|                     Income taxes                          |   | $                              | —    |   |                           | $      | — |   |
|                     Interest                              |   | $                              | 138,583    |   |                           | $      | 42,895 |   |

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| Note                payable to Karen Duran                &/or Fred Montano, interest at Published Prime plus 3%, principal                and                interest payable in monthly installments of $20, 000.00 plus                interest. |   |   |          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|
| Total                financing under the                agreement is $1,136,074.40                                                                                                                                                                      |   |   | $1,136,074.40 |   |

|      |   | Cost   |   | Accumulated                Depreciation |   |
|-----------|--------|--------|--------|-----------------------------------------|--------|
|      |   |   |   |                                    |   |
| Software  |   | $      | 32,349 |                                    | $      | 1,953 |   |
| Equipment |   |   | 7,981  |                                    |   | 1,995 |   |
|      |   |   |   |                                    |   |   |   |
|      |   | $      | 40,330 |                                    | $      | 3,948 |   |
|      |   |   |   |                                    |   |   |   |

----

| Real                  estate held for development                  and sale |   | $ | 3,175,984 |   |
|-----------------------------------------------------------------------------|--------|---|-----------|--------|

| Note                payable Metro Loan Corp, with                interest at 12 percent interest only payments in monthly installments                of                $11,100.00 collateralized by a First Mortgage due                2008                                                                                    |   |                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|
| Total                financing under the                agreement is $1,150,000.00                                                                                                                                                                                                                                               |   | $                1,150,000.00 |
| Note                payable Karen Duran and/or                Fred Montano, with interest at Prime as stated in Wall Street Journal                plus                3 percent payments in monthly installments of $20,000.00 plus accrued                interest collateralized by a Second Mortgage due                2008 |   | $1,136,074.40                 |
|                                                                                                                                                                                                                                                                                                                             |   |                          |

| U.S.                  statutory                  federal rate                                        |   |   | 20.00  | %      |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| State                  income tax                  rate                                              |   |   | 4.80   | %      |
| Net                  operating loss for which no                  tax benefit is currently available |   |   | -24.80 | %      |
|                                                                                                 |   |   |   |   |
|                                                                                                 |   |   | 0.00   | %      |

|   | · | Shares                are non-cumulative with a                preference over common shares if and when a dividend is                declared. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                are convertible into common                stock at any time on the basis of 100 common shares for 1 share of                preferred stock. This conversion rate is subject to adjustments for                forward or reverse splits or other capitalizations. The option was                of no                intrinsic benefit, at the commitment date, to the preferred                shareholder. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Shares                have a priority over common                shares upon liquidation. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Shares                are callable at any time by                the Company at the original purchase price. The Preferred Shareholders                will have thirty days thereafter to convert to common                stock. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                are non-cumulative with a                preference over common shares if and when a dividend is                declared. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Investor                will receive a dividend                of 12% per annum payable monthly for a period of eighteen months                from the                date of purchase. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                are convertible into common                stock at any time on the basis of 75% of the average current bid                price for                the preceding 20 days of the Company's receipt of notice to convert.                This                conversion rate is subject to adjustments for forward or reverse                splits or                other capitalizations. The option was of no intrinsic benefit, at                the                commitment date, to the preferred                shareholder. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Shares                have a priority over common                shares upon liquidation. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Shares                are callable by the Company                at any time after 12 months of issuance of Preferred B shares at                the                original purchase price. The Preferred Shareholders will have sixty                days                thereafter to convert to common stock. The shares will be repurchased                after eighteen months for the original issue                price. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                              Name  | Age    |                                    Position |
|------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|
| Fred                    M. Montano,                    CEO                                     | 56     | Chief                    Executive Officer, President                    and                                                     |
|                                                                                           |   | Chairman                    of the                    Board                                                                      |
|                                                                                           |   |                                                                                                                             |
| Karen                    Y.                    Duran,  CFO                           | 64     | Chief                    Financial Officer and                    Secretary/Treasurer                                            |
|                                                                                           |   |                                                                                                                             |
| Sebastian                    Ramirez                                                           | 52     | Director                                                                                                                         |
|                                                                                           |   |                                                                                                                             |
| Troy                    Duran                                                                  | 41     | Director                                                                                                                         |

----

| SUMMARY                  COMPENSATION                  TABLE      |
|-------------------------------------------------------------------|
|                                                              | Long                  Term                  Compensation |   |
|                                                              | Annual                  Compensation | Awards | Payouts |   |
| (a)                                                               | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) |
| Name                  and Principle Position                  (1) | Year | Salary($) | Bonus($) | OtherAnnualCompensation($) | RestrictedStockAward(s)($) | SecuritiesUnderlyingOption/SARs(#) | LTIPPayouts($) | AllOtherCompensation($) |
| Fred                  M. Montano                  CEO             | 200720052004 | $23,000$                  4,000$                  8,000 | $0.00 | $0.00 | $0.00 | 0 | $0.00 | $0.00 |
| Karen                    Y.                    Duran..CFO         | 200720052004 | $23,000$24,000$  8,000 | $0.00 | $0.00 | $0.00 | 0 | $0.00 | $0.00 |

----

|                                                                                      | Number                    of                    Shares |      |   | Percentage |
|-------------------------------------------------------------------------------------------|--------------------------------------------------------|-----------|--------|------------|
|                            Stockholder                 | Common                                                 | Preferred | Common | Preferred  |
|                                                                                      |                                                   |      |   |       |
| Fred                      M. Montano(1)(2)                                                | 6,300,536                                              | 0         | 34%    | 0%         |
|                                                                                      |                                                   |      |   |       |
| Karen                      Y. Duran(1)(2)                                            | 6,090,671                                              | 0         | 33%    | 0%         |
|                                                                                      |                                                   |      |   |       |
| Sebastian                      Ramirez(1)                                                 | 500,000                                                | 0         | 3%     | 0%         |
|                                                                                      |                                                   |      |   |       |
| Troy                      Duran(1)                                                   | 500,000                                                | 0         | 3%     | 0%         |
|                                                                                      |                                                   |      |   |       |
| All                      executive officers and                      directors as a group | 13,391,207                                             | 0         | 73%    | 0%         |
|                                                                                      |                                                   |      |   |       |

|   |  (1) | The                  business address is 5111 Juan                  Tabo Boulevard N.E., Albuquerque, New Mexico                  87111. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Ms.                  Duran and Mr. Montano are                  co-owners of Real Estate Services, Inc., which holds of record                  82,064                  (post reverse split) shares of common stock. By virtue of Ms. Duran's                  50%                  ownership of Real Estate Services, Inc. and her position with it                  as an                  officer, Ms. Duran may be deemed to be the beneficial owner of                  all f the                  shares of Common Stock held of record by Real Estate Services,                  Inc.                  However, she expressly disclaims ownership of 50% of the shares                  of the                  common stock held of record by Real Estate Services, Inc. By virtue                  of Mr.                  Montano's 50% ownership of Real Estate Services, Inc. and his position                  with it as an officer, Mr. Montano may be deemed to be the beneficial                  owner of all of the shares of common stock held of record by Real                  Estate                  Services, Inc. However, he expressly disclaims ownership of 50%                  of the                  shares of the common stock held of record by Real Estate Services,                  Inc. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  ExhibitNumber                    |                                                                              Description                                                                                                                                                       |
|----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                                    | Agreement                        and Plan of                        Reorganization - Pocketspec Technologies, Inc. and Sierra                        Norte LLC                        (a)                                                                                                                                                                                                                                                                                                                                              |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 2.2                                    | Acquisition                        Agreement - Pocketspec                        Technologies, Inc. and Spanish Trails, LLC (b)                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.1                                    | Articles                        of Incorporation of                        Falcon Ridge Development, Inc. previously                        filed.                                                                                                                                                                                                                                                                                                                                                                                     |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.2                                    | Bylaws                        of Falcon Ridge                        Development, Inc. previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.3                                    | Articles                        of Organization of Sierra                        Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.4                                    | Operating                        Agreement of Sierra                        Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.5                                    | Articles                        of Organization of                        Spanish Trails, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.6                                    | Operating                        Agreement of Spanish                        Trails, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.1                                    | Articles                        of Amendment -                        Establishment of Series of Preferred Stock previously                        filed.                                                                                                                                                                                                                                                                                                                                                                              |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1                                   | Purchase                        Agreement - Spanish                        Trails, LLC and D.R. Horton (Confidential portions of this                        agreement noted                        by *** have been omitted and filed separately with the Securities                        and                        Exchange Commission pursuant to a request for confidentiality                        under Rule                        24b-2 of the Securities Exchange Act of 1934.) Previously                        filed. |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.4                                   | Promissory                    Note, September 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|  14.1                             | Code                    of Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 21.1                                   | List                        of                        Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 23.1                                   | Consents                        of                        experts                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1                                   | Certification                        of Chief Executive                        Officer pursuant to Rule                        13a-14(a)/15(d)-14(a)*                                                                                                                                                                                                                                                                                                                                                                                  |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.2                                   | Certification                        of Chief Financial                        Officer pursuant to Rule                        13a-14(a)/15(d)-14(a)*                                                                                                                                                                                                                                                                                                                                                                                  |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 32.1                                   | Certification                        of Chief Executive                        Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant                        to Section                        906 of the Sarbanes-Oxley Act of 2002*                                                                                                                                                                                                                                                                                         |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 32.2                                   | Certification                        of Chief Financial                        Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant                        to Section                        906 of the Sarbanes-Oxley Act of 2002*                                                                                                                                                                                                                                                                                         |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 99                           | Additional                        Exhibits -                        None                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

----

|                                      | FALCON                    RIDGE DEVELOPMENT,                    INC. |                                                                                                  |
|-------------------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|
|                                      |                                                                 |                                                                                                  |   |
| Date:                    January 14, 2008 | By:                                                                  | /s/ Fred                  M.                  Montano                                            |   |
|                                      |                                                                 | Fred                    M.                    Montano Chief Executive                    Officer |   |
|                                      |                                                                 |                                                                                                  |   |
|                                      | By:                                                                  |  /s/                  Karen                  Y.                  Duran                           |   |
|                                      |                                                                 | Karen                    Y. DuranChief                    Financial                    Officer        |   |

|                                                                                                                                                                                                                                                                                                                |   |                                                                                                  |   |                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                           Signature                                                                                                                                                                                                                                         |   |                                Title |   |                              Date |
|                                                                                                                                                                                                                                                                                                                |   |                                                                                                  |   |                                                                                     |
| /s/                  Fred M.                  Montano                                                                                                                                                                                                                                                               |   | Chairman                  of the                  Board                                               |   | January14,                  2008                                                         |
| Fred                  M.                  Montano                                            |   | Directors                  and Chief Executive                  Officer                               |   |                                                                                     |
|                                                                                                                                                                                                                                                                                                                |   |                                                                                                  |   |                                                                                     |
| /s/                  Karen Y.                  Duran                                                                                                                                                                                                                                                                |   | Chief                  Financial                  Officer                                             |   | January14,                  2008                                                         |
| Karen                  Y.                  Duran                                                                                                                                                                                                                                                                    |   |                                                                                                  |   |                                                                                     |
|                                                                                                                                                                                                                                                                                                                |   |                                                                                                  |   |                                                                                     |
| /s/                  Sebastian Ramirez                                                                                                                                                                                                                                                                              |   | Director                                                                                              |   | January14,                  2008                                                         |
| Sebastian                  Ramirez                                                                                                                                                                                                                                                                                  |   |                                                                                                  |   |                                                                                     |
|                                                                                                                                                                                                                                                                                                                |   |                                                                                                  |   |                                                                                     |
| /s/                  Troy                  Duran                                                                                                                                                                                                                                                                    |   | Director                                                                                              |   | January14,                  2008                                                         |
| Troy                  Duran                                                                                                                                                                                                                                                                                         |   |                                                                                                  |   |                                                                                     |
|                                                                                                                                                                                                                                                                                                                |   |                                                                                                  |   |                                                                                     |

----

|  ExhibitNumber                  |                                                                            Description                                                                                                                                       |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1                                  | Agreement                      and Plan of                      Reorganization - Pocketspec Technologies, Inc. and Sierra Norte                      LLC                      (a)                                                                                                                                                                                                                                                                                                                                    |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 2.2                                  | Acquisition                      Agreement - Pocketspec                      Technologies, Inc. and Spanish Trails, LLC (b)                                                                                                                                                                                                                                                                                                                                                                                          |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.1                                  | Articles                      of Incorporation of                      Falcon Ridge Development, Inc. previously                      filed.                                                                                                                                                                                                                                                                                                                                                                         |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.2                                  | Bylaws                      of Falcon Ridge                      Development, Inc. previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.3                                  | Articles                      of Organization of Sierra                      Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.4                                  | Operating                      Agreement of Sierra                      Norte, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.5                                  | Articles                      of Organization of                      Spanish Trails, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3.6                                  | Operating                      Agreement of Spanish                      Trails, LLC previously filed.                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.1                                  | Articles                      of Amendment -                      Establishment of Series of Preferred Stock previously                      filed.                                                                                                                                                                                                                                                                                                                                                                  |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.1                                 | Purchase                      Agreement - Spanish                      Trails, LLC and D.R. Horton (Confidential portions of this                      agreement noted                      by *** have been omitted and filed separately with the Securities                      and                      Exchange Commission pursuant to a request for confidentiality                      under Rule                      24b-2 of the Securities Exchange Act of 1934.) Previously                      filed. |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.4                                 | Promissory                  Note, September 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  14.1                           | Code                  of Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 21.1                                 | List                      of                      Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 23.1                                 | Consents                      of                      experts                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.1                                 | Certification                      of Chief Executive                      Officer pursuant to Rule                      13a-14(a)/15(d)-14(a)*                                                                                                                                                                                                                                                                                                                                                                      |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2                                 | Certification                      of Chief Financial                      Officer pursuant to Rule                      13a-14(a)/15(d)-14(a)*                                                                                                                                                                                                                                                                                                                                                                      |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 32.1                                 | Certification                      of Chief Executive                      Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant                      to Section                      906 of the Sarbanes-Oxley Act of 2002*                                                                                                                                                                                                                                                                               |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 32.2                                 | Certification                      of Chief Financial                      Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant                      to Section                      906 of the Sarbanes-Oxley Act of 2002*                                                                                                                                                                                                                                                                               |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 99                         | Additional                      Exhibits -                      None                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

----