EXHIBIT 20.1


September 6, 2007


Dear Shareholders:

We have recently filed our financial results through June 30, 2007, we would
like to highlight our recent activities and once again share with you the status
of the Company. You can also obtain a copy of our Form 10-QSB at the SEC website
www.sec.gov or by calling our office.

Financial Results

On August 21, 2007 we filed our financial results on Form 10-QSB and estimated
Net Realizable Value at $4.50 per share as of June 30, 2007, an increase of
$0.12 per share from our September 30, 2006 estimated NRV and a decrease of
$0.16 per share from our March 31, 2007 estimate. We remind you that this
estimated value does not represent a market price for the shares or any
independent valuation of the assets, but is the Company's best estimate of the
current Net Realizable Value of our assets.

Since we last wrote to you in June we have faced some challenges as the
residential real estate market, which has been soft for the last year,
deteriorated substantially due to issues with the subprime mortgage market
affecting other sectors of real estate finance and the economy as a whole. These
issues have made it more difficult for prospective buyers to obtain financing
which has worsened an already soft market. As evidence, we have noted price
declines of up to 17% in some of our investments from our projected prices two
years ago. These price declines and other issues related to the slow housing
market have caused us to stop including accruing interest and preferred returns
in our calculation of NRV on five of our 31 investments. In addition, we have
written down our net realizable value per share by $0.28 for three of these five
investments to adjust their value downward based on current market estimates.

We believe we have identified and properly reserved for the impairments in our
portfolio based on the recent market changes. We continue to be proactive and
vigilant in managing our investments and review the status with our Board of
Directors at least monthly. We have focused close attention on the
above-mentioned investments via our "Watch List" process due to deviations from
plan and the current uncertainties in the real estate market. We will continue
to closely monitor these Watch List projects and will communicate any further
issues as appropriate.

In spite of these challenges we did close three investments during the last
three months with very good results. Two of the investments were subordinated
loans in which we achieved an average return of 28%, compared with an 18% target
for that investment class. The third was a loan secured by a first trust deed
where we earned a return of 14%, compared with our targeted return of 10% for
this investment class.




Investment Portfolio

As of June 30, 2007 we had 31 active projects in our investment portfolio.
Fourteen of these active investments, totaling $8.0 million, are
lower-risk/lower-return investments that provide diversification through smaller
loan size and a consistent and reliable source of cash flow with monthly
interest collection.

Three of our investments at June 30, totaling $10.5 million, seek to obtain
development approvals. Once obtained, the developers plan to repay our
investment with proceeds from sale of the project or new financing. Two of those
entitlement projects have successfully obtained development approvals. One has
recently paid off our loan and we are working with the developer of the
remaining project to locate a buyer.

The remaining 14 investments, totaling $44.2 million, finance residential
construction projects. Five of those projects are currently selling homes and we
expect another five projects to begin sales by the end of the calendar year.

The management team and the Board of Directors continue to work very hard toward
achieving the goals set out in our three-year business plan and increasing the
value of your shares in BellaVista Capital.

Sincerely,



Michael Rider                        Eric Hanke
President                            Chief Investment Officer