CONTINUING UNCONDITIONAL GUARANTY BY JOE FOGARTY, NANCY FOGARTY AND THE FOGARTY FAMILY TRUST

EXHIBIT 10.6

CONTINUING UNCONDITIONAL GUARANTY

     This Continuing Unconditional Guaranty (this “Guaranty”) dated as of the 27^th day of September, 2006 (the “Effective Date”), is made by Joe Fogarty, Nancy Fogarty, individuals domiciled in Harris County, Texas, and The Fogarty Family Trust (collectively, the “Guarantors”), for the benefit of United Development Funding III, L.P., a Delaware limited partnership and its affiliates, subsidiaries, successors and assigns (“Lender”).

R E C I T A L S:

     A. Lender has agreed to advance funds to Arete Real Estate and Development Company, a Texas corporation, Creative Modular Housing, Inc., a Texas corporation, and Modern Modular Home Rental Corp., a Texas corporation (collectively, “Borrowers”) as co-borrowers under that certain Secured Promissory Note dated the Effective Date in the principal amount of U.S. $3,617,500.00 (the “Note”).

     B. Each Guarantor is an affiliate of Borrower and shall benefit, directly or indirectly, from the loan made to Borrower under the Note.

     C. The Guarantors are willing to execute this Guaranty in favor of Lender and hereby agree to be bound by its terms and conditions.

A G R E E M E N T:

     NOW, THEREFORE, for good and valuable consideration, and intending to be legally bound hereby, each Guarantor, severally and jointly with the other Guarantor, agrees and covenants with Lender as follows:

     1. Definitions. Capitalized terms not defined in this Guaranty shall have the respective meanings given to such terms in the Note.

     2. Guaranty and Surety. Each Guarantor hereby absolutely and unconditionally guarantees, and becomes surety for, the full, timely and complete payment when due, whether by lapse of time, by acceleration of payment, or otherwise, of (a) all indebtedness, liabilities and obligations of Borrowers to Lender, whether now existing or hereinafter arising, under the Note and the other Loan Documents, (b) all costs reasonably incurred by Lender to obtain, preserve, perfect and enforce the security interests granted by this Agreement and to maintain, preserve and collect any collateral, and all taxes, assessments, insurance premiums, repairs, reasonable attorneys’ fees and legal expenses, rent, storage charges, advertising costs, brokerage fees and expenses of sale related thereto, and (c) all renewals, extensions, modifications and substitutions of all or any part of the indebtedness and obligations described in the foregoing clauses (a) and (b) (collectively, the “Guaranteed Obligations”). Each Guarantor’s obligation under this Guaranty is unconditional, absolute and enforceable, irrespective of (a) the validity or enforceability of the Guaranteed Obligations in whole or in part or of the Note and the other Loan Documents or any provision thereof, (b) whether recovery against Borrowers with respect to the Guaranteed Obligations in whole or in part is prevented by bankruptcy, the operation of

law, or otherwise, and (c) any other circumstance that might otherwise cause a legal or equitable discharge or defense of Guarantors.

     3. Subsequent Acts by Lender. Lender may, in its sole discretion and without notice, take or refrain from taking any action that might otherwise be deemed a legal or equitable release or discharge of Guarantors’ obligations under this Guaranty, without either impairing or affecting the joint and several liability of Guarantors for the full, timely and complete payment of the Guaranteed Obligations, which actions might include, by way of illustration and not limitation:

     (a) the renewal or extension of any of the Guaranteed Obligations or any payments thereunder, or the acceleration or change of time for payment of the Guaranteed Obligations, any increase in the principal amount of any promissory note or other instrument comprising a part of the Guaranteed Obligations, and/or any additional funds advanced under the Guaranteed Obligations;

     (b) the modification, amendment or change in any of the terms relating to any promissory note or other agreement, document or instrument now or hereafter executed by any Borrower in favor of Lender, including, without limitation, the Note and the other Loan Documents;

     (c) the absence of any attempt to collect the Guaranteed Obligations from Borrowers or any other person or entity primarily or secondarily liable for the Guaranteed Obligations or any other action to enforce Lender’s rights with respect to the Guaranteed Obligations;

     (d) the waiver, consent, or delay in enforcement by Lender with respect to any provision of any instrument evidencing the Guaranteed Obligations;

     (e) any failure by Lender to take any steps to perfect and maintain its security interest in, or to preserve its rights to, any security or collateral given for the Guaranteed Obligations, or the release or compromise of any lien or security held by Lender as security for the Guaranteed Obligations;

     (f) the compounding, rearrangement or consolidation by Lender of all or any part of the Guaranteed Obligations;

     (g) the release from liability of Borrowers or any other guarantor or person or entity primarily or secondary liable for the Guaranteed Obligations who may guarantee or provide security for the Guaranteed Obligations in whole or in part; or

     (h) the settlement, release, compromise or cancellation of all or any part of the Guaranteed Obligations, or the acceptance of partial payment of all or any part of the Guaranteed Obligations.

     4. Expenses. Each Guarantor agrees to pay all costs and expenses, including, without limitation, all court costs and reasonable attorneys’ fees paid or incurred by Lender in endeavoring to collect all or any part of the Guaranteed Obligations, or in enforcing or pursuing Lender’s remedies with respect to the Guaranteed Obligations.

     5. Payment by Guarantor. In the event of any failure to pay with respect to the Guaranteed Obligations or any “default” or “event of default” under the Note or any Loan Document (the terms “default” and “event of default” having the respective meanings given to such terms in the Note and the other Loan Documents), each Guarantor agrees to pay on demand, all of the Guaranteed Obligations and all other costs, expenses and other amounts payable under this Guaranty. Lender shall not be required to liquidate any lien or any other form of security, instrument, or note held by Lender prior to making such demand. THIS IS A GUARANTY OF PAYMENT AND NOT OF COLLECTION, and each Guarantor specifically agrees that Lender shall not be required to assert any claim, file suit, or proceed to obtain a judgment against Borrowers or any other guarantor, endorser or surety for the Guaranteed Obligations, or make any effort at collection of the Guaranteed Obligations, or foreclose against or seek to realize upon any security or collateral now or hereafter existing for the Guaranteed Obligations, or exercise or assert any other right or remedy to which Lender is or may be entitled in connection with the Guaranteed Obligations, before or as a condition of enforcing the liability of Guarantors under this Guaranty or requiring payment of the Guaranteed Obligations under this Guaranty. Each Guarantor agrees, to the full extent it may legally do so, that suit may be brought against such Guarantor with or without making Borrowers or any other person or entity a party to such suit, as Lender may elect. Each Guarantor agrees that such Guarantor shall remain fully liable under this Guaranty regardless of whether any Borrower is held to be not liable on the Guaranteed Obligations and regardless of whether all or any portion of the Guaranteed Obligations are “non-recourse” or “limited recourse” to Borrowers.

     6. Application of Payments. Lender shall have the exclusive right to determine the time and manner of application of any payments or credits to the Guaranteed Obligations, whether received from Borrowers or any other source, and such determination shall be binding on Guarantors. All such payments and credits may be applied, reversed and reapplied, in whole or in part, to any of the Guaranteed Obligations as Lender shall determine in its sole discretion without affecting the validity or enforceability of this Guaranty.

     7. Guarantors’ Responsibilities. Each Guarantor hereby assumes responsibility for keeping itself informed of the financial condition of Borrowers, and any and all endorsers and/or other guarantors of any instrument or document evidencing all or any part of the Guaranteed Obligations and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations. Each Guarantor further agrees that Lender shall have no duty to advise such Guarantor of any information known to Lender regarding such condition or such circumstances or to undertake any investigation. If Lender, in its sole discretion, undertakes at any time or from time to time to provide any information to any Guarantor, Lender shall be under no obligation to update any such information or to provide any such information to Guarantors on any subsequent occasion.