Replies to post #459 on United Development Funding IV fka UDFI

[Jh5142]

There were 48 loans with outstanding balances under $2 million based on the last 10q.

We know there were 59 loans in UDF IV at 12/31/17.

We also know that loan assets only declined from $1.2 b to $900 mm from the time of the attacks until the end of 2016. That reduction in loan assets also coincided with UDF announcing they were essentially debt free.

The housing market in Dallas was very strong in 2017 and 2018 increasing the value of the underlying collateral. I'm not worried about a softening of the market. We also saw a softening in 2016. We are due for some sort of a pull back.

The Buffington loan write-offs in III were mostly on unsecured loans. UDF IV has only a small amount of unsecured loans and I don't think those are with Buffington.

I believe it is looking more likely that the remaining loan portfolio in UDF IV is much higher than the current implied value of $120 mm. Prior to the attack, there were $514 mm in net assets. We are still trading at 23 cents on the dollar.