Exhibit (a)(3)



June 5, 2007

TO:         SHAREHOLDERS OF BELLAVISTA CAPITAL, INC.

SUBJECT:    OFFER TO PURCHASE SHARES

Dear Shareholder:

As  described  in  the  enclosed  Offer  to  Purchase  and  related  Letters  of
Transmittal   (the  "Offer")  the   Purchasers   named  in  the  attached  Offer
(collectively the "Purchasers") are offering to purchase up to 750,000 Shares of
common stock (the "Shares") in BELLAVISTA CAPITAL, INC. (the "Corporation") at a
purchase price equal to:

                                 $2.25 per Share

The Offer will provide you with an  opportunity  to liquidate  all, or a portion
of, your investment in BELLAVISTA  CAPITAL,  INC. without the usual  transaction
costs  associated  with  market  sales.  Reasons you may wish to sell your Units
include:

      o     BellaVista has decided to cancel all share  redemptions for at least
            two more years.

      o     BellaVista has decided to cancel all dividends for at least two more
            years.

      o     Bellavista  has  decided to  restructure  its goals,  employ new and
            unproven investment strategies,  and attempt to grow the company; as
            a result,  shareholders will not receive any income and will have to
            wait to see what  these  new  plans  do for  shareholder  value,  if
            anything.

      o     You are unlikely to have any other liquidity  options anytime in the
            next two years (outside tender offers or private sales).

      o     You can avoid proration, selling your Shares only if we purchase all
            of  them  by  checking  the  "All  or  None"  box on the  Letter  of
            Transmittal.

      o     We are offering to purchase Shares at the same price the Corporation
            offered  to  purchase  shares  last fall,  $2.25 per Share.  This is
            higher than our last offer, which was at $1.75 per Share.

After carefully  reading the enclosed Offer, if you elect to tender your Shares,
mail (using the  enclosed  pre-addressed,  postage  paid  envelope) or fax (then
mail) a duly completed and executed copy of the Letter of  Transmittal  (printed
on yellow paper) and change of address forms,  and any other documents  required
by the Letter of Transmittal, to the Depositary for the Offer at:

                         MacKenzie Patterson Fuller, LP
                               1640 School Street
                            Moraga, California 94556
                            Facsimile: (925) 631-9119

If you have any  questions or need  assistance,  please call the  Depositary  at
800-854-8357.

This Offer expires (unless extended) July 9, 2007.