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USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Nov 2006

ASSETS

Cash
Operating Cash 69,663.42
Money Market 0.00
Security Deposits 62,375.06
Total Cash $132,038.48

OTHER ASSETS
Accounts Receivable 12,605.24
Prepaid Expenses 37,139.44
Tax Escrow 227,891.85
Cash in Bank-Wrk Cap Reserve 33,005.43
Capital / Repair Escrow 200,000.00
Total Other Assets 510,641.96

Total ASSETS 642,680.44

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 10,613.26
Other Accounts Payable 569,973.61
Accrued Taxes 302,825.02
Prepaid Rent 5,397.54
Security Deposits 61,701.56
Notes Payable (328.39)
Total Liabilities 950,182.60

CAPITAL

Owners Equity 100.00
Retained Earnings (307,602.16)
Total Capital (307,502.16)

Total LIABILITIES & CAPITAL 642,680.44
USA Courtney Downs LeaseCo, LLC
Cash Flow (Actual + Budget)
Books = Accrual
For the 12 Months Ending Dec 2006

Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006 12 Month $/ $/
Account Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Reforecast Total Unit Sq. Ft.
342 313,778
Revenue
Gross Potential Rent 356,941 356,261 353,425 356,370 356,790 352,042 356,753 356,720 356,720 357,700 355,328 364,160 4,279,210 12,512.31 13.64
- Vacancy (50,457) (41,504) (32,721) (25,521) (27,566) (20,448) (24,375) (29,656) (19,795) (27,386) (32,196) (43,000) (374,625) (1,095.40) (1.19)
- Concessions & Disc. (80,765) (83,296) (83,632) (87,552) (89,252) (91,481) (83,568) (82,402) (79,734) (80,099) (80,362) (80,000) (1,002,141) (2,930.24) (3.19)
- Other Write-offs & Adj. (5,393) (4,621) (13,129) (3,761) (3,761) (3,761) (8,525) (4,902) (6,891) (6,370) (6,051) (6,085) (73,248) (214.18) (0.23)
Total Rental Income 220,326 226,840 223,943 239,537 236,211 236,353 240,285 239,760 250,300 243,846 236,720 235,075 2,829,196 8,272.50 9.02

Other Income 26,619 19,852 32,398 25,588 26,964 20,730 20,479 29,442 23,112 27,168 26,551 19,000 297,902 871.06 0.95
Total Revenue 246,945 246,692 256,342 265,125 263,175 257,083 260,764 269,202 273,411 271,014 263,270 254,075 3,127,097 9,143.56 9.97

Operating Expenses
Salary Expense 31,314 27,779 25,751 34,224 28,896 30,735 32,813 30,497 25,074 32,939 27,075 37,759 364,856 1,066.83 1.16
Operating Expense 4,125 1,829 4,155 2,418 3,488 1,785 4,044 1,759 2,987 3,546 3,528 3,030 36,694 107.29 0.12
Advertising Expense 10,172 7,867 8,790 12,875 9,217 4,566 9,311 9,128 5,468 8,689 3,394 6,885 96,362 281.76 0.31
Make Ready Expense 2,824 1,468 6,877 3,034 6,347 6,868 4,319 6,576 2,661 5,755 6,286 7,500 60,516 176.95 0.19
Maintenance Expense 484 2,348 2,996 938 1,390 2,786 4,753 1,299 933 14,604 4,679 2,295 39,504 115.51 0.13
Service Expense 2,095 (1,911) 750 1,089 7,856 6,550 3,601 3,942 6,370 3,538 1,973 2,395 38,249 111.84 0.12
Administrative Expense 15,018 14,773 20,876 15,092 17,309 15,941 18,145 18,942 16,905 17,508 15,877 14,969 201,357 588.76 0.64
Utility Expense 17,811 10,978 5,261 9,118 8,907 9,673 13,946 10,892 14,755 13,099 7,614 10,900 132,953 388.75 0.42
Management Expense 1,732 605 (2,311) 0 (26) 0 0 0 0 0 0 0 0 0.00 0.00
Taxes & Insurance 34,178 39,883 33,892 33,962 41,050 36,561 34,740 35,107 33,746 36,233 35,713 37,237 432,299 1,264.03 1.38

Total Operating Exp. 119,755 105,619 107,036 112,750 124,435 115,464 125,672 118,141 108,899 135,911 106,138 122,970 1,402,790 4,101.72 4.47
Net Operating Income 127,190 141,073 149,305 152,375 138,740 141,618 135,092 151,061 164,512 135,103 157,133 131,106 1,724,307 5,041.83 5.50

Rent Expense 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,254 2,319,041 6,780.82 7.39
Partnership Expense 1,511 40 324 595 169 0 0 0 1,128 62 9,150 0 12,979 37.95 0.04
Capital Expense 3,871 (782) 8,204 6,055 3,698 14,150 7,730 3,637 2,383 5,646 3,806 3,300 61,696 180.40 0.20

Cash Flow Frm Operations (71,445) (51,438) (52,476) (47,528) (58,381) (65,785) (65,891) (45,830) (32,251) (63,858) (49,076) (65,449) (669,409) (1,957.34) (2.13)

Rental Guarantees 66,280 58,055 58,308 42,302 0 0 0 55,178 45,798 42,772 45,351 60,901 474,945

Balance Sheet Adjustments
Cash - Non Operating Accounts 792 (2,230) (4,698) 2,407 6,708 2,152 4,182 3,545 (771) 9,084 1,271 0 22,444
Accounts Receivable 9,672 (940) (590) 4,549 (4,100) (8,512) 14,748 (1,503) 626 (2,785) (3,429) 0 7,736
Prepaid Assets 372 (275) 86 156 1,384 280 7,106 15,908 6,446 (17,590) 451 0 14,324
Escrow Deposits (34,325) (34,325) (34,325) (34,325) 324,584 (30,394) (30,394) (30,394) (30,394) (30,394) 25,664 (2,951) 58,029

Cash Increase (Decreae) From Assets (23,489) (37,770) (39,527) (27,213) 328,577 (36,473) (4,358) (12,444) (24,092) (41,684) 23,957 (2,951) 102,533

Accounts Payable (5,209) 4,548 22,679 5,948 (1,420) 65,950 8,685 30,415 (53,751) (9,112) (15,790) 0 52,942
Accrued Expenses 34,702 17,279 26,292 32,763 (282,521) 115,337 25,645 23,477 32,478 45,961 22,329 0 93,741
Other Payables 1,398 6,448 1,789 (2,315) (5,212) (3,153) (2,593) (5,234) (2,080) (4,145) (3,449) 0 (18,545)
Mortgages Payable 0 (763) (382) (382) (382) (701) (382) 0 (391) 0 0 0 (3,382)

Cash Increase (Decrease) From Liab. 30,890 27,511 50,377 36,014 (289,534) 177,433 31,355 48,658 (23,744) 32,704 3,090 0 124,756

NET CASH FLOW 2,236 (3,642) 16,682 3,574 (19,338) 75,176 (38,893) 45,563 (34,289) (30,066) 23,322 (7,499) 32,825
CUMM. NET CASH FLOW 29,014 25,372 42,054 45,628 26,290 101,466 62,573 108,136 73,846 43,780 67,102 59,603

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$-

$(100,000)

$(200,000)

$(300,000)
Jan 2006 Feb 2006 Mar 2006 Apr 2006 May 2006 Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006

NET CASH FLOW CUMM. NET CASH FLOW

Units
Sq. Ft.
### 384807

bayclub2 160 146,080
castlep 356 384,807
cedar 300 274,080
congress 257 254,074
jackson 247 221,730
lee 10 22,160
rem 428 398,868
ric 5 24,952
parkside 300 305,832
polo 440 403,761
sat 440 548,750
sweet 240 264,892
trailapt 280 286,056
vlgcrest 120 108,276
walnut 284 254,103
westo 12 48,309
wind 346 433,196
usacourt 280 299,111
usawalcr 284 254,103
M30: administrator:
assume insurance increases by 50%

M47: administrator:
replacement reserve + reduction in tax escrow due to overage
USA Courtney Downs LeaseCo, LLC
Budget Comparison
Books = Accrual
For the period ending November 30, 2006

MTD MTD YTD YTD Annual
Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget YTD Variance Comment
Revenue
Market Rent 355,720.00 364,160.00 (8,440.00) Due to market 3,912,920.00 3,938,374.00 (25,454.00) 4,302,534.00
conditions, could not
increase market rents.
Continue with
concessions.
Loss / Gain to Lease 730.00 0.00 730.00 2,130.00 0.00 2,130.00 0.00
Gross Potential Rent 356,450.00 364,160.00 (7,710.00) 3,915,050.00 3,938,374.00 (23,324.00) 4,302,534.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Residential Rent (1,122.00) 0.00 (1,122.00) Correcting mis coded 0.00 0.00 0.00 0.00
rent from prior momths.
Vacancy Loss (32,195.83) (40,058.00) 7,862.17 Positive variance due to (331,625.27) (350,332.00) 18,706.73 (390,390.00)
actual occupancy of
91% versus 90%
budgeted.
Upfront Rent Concessions (1,075.66) (2,000.00) 924.34 Positive variance due to (107,397.35) (22,000.00) (85,397.35) (24,000.00)
reduction of upfront
concessions.
Corporate Discount 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Delinquent Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Adjustments & W/O (1,130.30) (500.00) (630.30) Additional write offs due (21,039.40) (5,500.00) (15,539.40) (6,000.00)
to 9-skips.
Model Units (1,980.00) (1,980.00) 0.00 (21,780.00) (21,780.00) 0.00 (23,760.00)
Courtesy Officer Apt. 0.00 (575.00) 575.00 Savings due to (1,725.00) (6,325.00) 4,600.00 (6,900.00)
termination of position.
Employee Apartment (1,780.80) (1,900.00) 119.20 (19,588.80) (20,900.00) 1,311.20 (22,800.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Guest Suite (1,160.00) (1,130.00) (30.00) (3,030.00) (12,430.00) 9,400.00 (13,560.00)
Lease Term Concessions (79,285.87) (83,497.00) 4,211.13 Savings due to reducing (814,743.55) (935,567.00) 120,823.45 (1,019,064.00)
the prorated
concessions on selected
units.
Homeowner's Assn Dues Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowner Dues Paid 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Model Units 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Lease Contract Difference 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rental Income $236,719.54 $232,520.00 $4,199.54 $2,594,120.63 $2,563,540.00 $30,580.63 $2,796,060.00

Laundry Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Vending Income 0.00 68.00 (68.00) 403.23 748.00 (344.77) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 858.00 2,300.00 (1,442.00) More residents paid on 19,521.70 25,300.00 (5,778.30) 27,600.00
time resulting in less
fees charged and
collected.
Month to Month Premium 145.00 300.00 (155.00) 2,112.23 3,300.00 (1,187.77) 3,600.00
Storage Fees 700.00 1,300.00 (600.00) Due to residents moving 9,343.45 14,300.00 (4,956.55) 15,600.00
out and renewing,
storage units are not
being re-rented.
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 910.00 1,000.00 (90.00) 12,530.00 11,000.00 1,530.00 12,000.00
Termination Fees & Damages 2,892.68 1,033.00 1,859.68 Collected more fees 27,448.44 11,363.00 16,085.44 12,396.00
due to new home
purchases.
Miscellaneous Income 719.48 500.00 219.48 11,433.85 5,500.00 5,933.85 6,000.00
Renters Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Pet Rents & Fees 3,132.66 900.00 2,232.66 All new move in's with 27,334.73 9,900.00 17,434.73 10,800.00
pets are required to pay
a non refundable pet fee
and pet rent.
Tower Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Asset Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Parking Spaces Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowners Assessments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Garage Income 6,241.50 8,700.00 (2,458.50) Fewer rentals due to 71,919.17 95,700.00 (23,780.83) 104,400.00
higher turnover than
expected and lower
rates given as move in
incentives.
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 5,317.87 1,000.00 4,317.87 Includes quarterly 15,748.67 11,000.00 4,748.67 12,000.00
collections for phone
and cable, includes an
accrual for future
collections in 2006.
HOA Contributions Developer 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Developer HOA Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Forfeited Deposits 250.00 190.00 60.00 1,490.98 2,090.00 (599.02) 2,280.00
Developer Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Thunder Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Administration Fee 900.00 2,000.00 (1,100.00) Budgeted for 13 move 32,565.00 22,000.00 10,565.00 24,000.00
ins, had 6 actual.
Move-Out Charges 4,323.57 929.00 3,394.57 More damages charged 44,165.98 10,219.00 33,946.98 11,148.00
at move out than
budgeted. Move outs
higher than anticipated.
Short Term Lease Fees 160.00 225.00 (65.00) 2,884.12 2,475.00 409.12 2,700.00
Extra-Ordinary Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Units - expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Deferred Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HOA Developer Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Acquisition Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - C.A.M. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income - Condo Sales 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Other Income 26,550.76 20,445.00 6,105.76 278,901.55 224,895.00 54,006.55 245,340.00

Total Revenue $263,270.30 $252,965.00 $10,305.30 $2,873,022.18 $2,788,435.00 $84,587.18 $3,041,400.00

Expense
Managers Salary 10,290.79 9,545.00 (745.79) 97,738.07 109,766.00 12,027.93 124,082.00
Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 9,893.39 6,660.00 (3,233.39) We are over in 111,670.42 76,591.00 (35,079.42) 86,582.00
maintenance payroll due
to additional porter
position that was not
budgeted, this is offset
in make ready
expenses.
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 1,611.20 3,500.00 1,888.80 Fewer move ins and 36,867.30 35,000.00 (1,867.30) 42,000.00
renewals than
anticipated.
Payroll Taxes 1,684.93 1,576.00 (108.93) 19,643.82 17,705.00 (1,938.82) 20,210.00
Group Insurance 1,463.00 1,442.00 (21.00) 16,321.00 15,862.00 (459.00) 17,304.00
Disability Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
401k Match 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contract Labor 0.00 0.00 0.00 21,303.72 0.00 (21,303.72) 0.00
Workers Comp 2,132.14 1,576.00 (556.14) Reflective of total payroll 23,552.58 17,705.00 (5,847.58) 20,210.00
costs.
Total Salary Expense 27,075.45 24,299.00 (2,776.45) 327,096.91 272,629.00 (54,467.91) 310,388.00

Office Operations & Supplies 626.37 600.00 (26.37) 9,677.08 6,600.00 (3,077.08) 7,200.00
Telephones 767.25 1,080.00 312.75 10,119.12 11,880.00 1,760.88 12,960.00
Answering Svc. & Pagers 112.55 100.00 (12.55) 1,000.88 1,100.00 99.12 1,200.00
Postage & Delivery 358.45 200.00 (158.45) 2,027.22 2,200.00 172.78 2,400.00
Patrol Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Membership Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Publications & Subscriptions 0.00 0.00 0.00 534.75 1,645.00 1,110.25 1,645.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 213.08 100.00 (113.08) 1,131.90 2,100.00 968.10 2,200.00
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 154.86 200.00 45.14 301.00 2,200.00 1,899.00 2,400.00
Permits & Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Checks 796.50 750.00 (46.50) 5,066.90 8,250.00 3,183.10 9,000.00
Guest Suite Expense 498.65 0.00 (498.65) Reflects cable and 3,805.33 0.00 (3,805.33) 0.00
furniture rental for the
guest suite.
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 3,527.71 3,030.00 (497.71) 33,664.18 35,975.00 2,310.82 39,005.00

Advertising & Promotions 2,348.09 3,452.00 1,103.91 Cancelled For Rent 49,341.20 38,957.00 (10,384.20) 42,409.00
advertising.
Resident Promotions 557.58 475.00 (82.58) 6,956.06 8,800.00 1,843.94 10,300.00
Locators 488.48 1,033.00 544.52 Two placement fees 16,179.83 11,363.00 (4,816.83) 12,396.00
paid.
Resident Referrals 0.00 900.00 900.00 No resident referral for 17,000.00 9,900.00 (7,100.00) 10,800.00
the month.
Total Advertising Expense 3,394.15 5,860.00 2,465.85 89,477.09 69,020.00 (20,457.09) 75,905.00

Paint & Drywall 1,012.38 2,500.00 1,487.62 Majority of the paints are 4,723.52 30,700.00 25,976.48 33,200.00
performed by in house
staff.
Contract Cleaning Svcs. 3,310.00 2,500.00 (810.00) Reflects contract 25,445.00 30,000.00 4,555.00 32,500.00
cleaning of 16 units plus
common areas.
Carpet Cleaning & Repairs 1,560.00 1,200.00 (360.00) Cleaned 16 carpets. 18,482.13 14,700.00 (3,782.13) 15,900.00
Some repairs required.
Window Coverings 0.00 200.00 200.00 1,615.23 2,200.00 584.77 2,400.00
Vinyl & Tile Repairs 11.85 500.00 488.15 11.85 5,500.00 5,488.15 6,000.00
Lock & Keys 227.13 100.00 (127.13) 660.59 1,100.00 439.41 1,200.00
Counter & Tub Resurfacing 0.00 100.00 100.00 941.46 1,100.00 158.54 1,200.00
Other Redecorating 0.00 100.00 100.00 218.86 1,100.00 881.14 1,200.00
Cleaning Supplies 164.19 300.00 135.81 917.07 3,300.00 2,382.93 3,600.00
Total Make Ready Expense 6,285.55 7,500.00 1,214.45 53,015.71 89,700.00 36,684.29 97,200.00

General Maintenance & Supplies 1,335.83 750.00 (585.83) Includes quarterly 7,664.89 8,450.00 785.11 9,200.00
fitness center repairs,
replaced bateeries in
smoke alarms, replaced
the vacuum at the car
care center, also re-
stocked the "doggie
pots."
HVAC Parts & Repairs 218.31 150.00 (68.31) 1,102.25 1,650.00 547.75 1,800.00
Plumbing Parts & Repairs 141.01 75.00 (66.01) 5,017.13 4,125.00 (892.13) 4,200.00
Electric Parts & Repairs 338.04 150.00 (188.04) 1,493.93 1,650.00 156.07 1,800.00
Roof & Gutter Repairs 0.00 100.00 100.00 0.00 1,100.00 1,100.00 1,200.00
Pools & Fountains 130.85 400.00 269.15 4,486.33 5,400.00 913.67 5,800.00
Gates & Entrances 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Glass & Screens 293.93 50.00 (243.93) Replaced patio glass in 1,712.44 550.00 (1,162.44) 600.00
one unit.
Appliance Parts & Repairs 645.56 75.00 (570.56) Purchased washer/dryer 2,184.76 825.00 (1,359.76) 900.00
parts. Parts failure more
than anticipated.

Hardware 0.00 150.00 150.00 548.35 1,650.00 1,101.65 1,800.00
Exterior Painting 0.00 100.00 100.00 90.11 1,100.00 1,009.89 1,200.00
Uniforms 99.99 0.00 (99.99) 944.62 2,100.00 1,155.38 2,100.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 1,475.00 295.00 (1,180.00) Performed annual Fire 11,964.21 11,245.00 (719.21) 11,540.00
alarm testing.
Uninsured Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Locks & Keys 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bulbs & Ballasts 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Maintenance Expense 4,678.52 2,295.00 (2,383.52) 37,209.02 39,845.00 2,635.98 42,140.00
Landscape & Grounds 1,988.13 2,745.00 756.87 Positive variance due to 29,604.61 32,205.00 2,600.39 32,205.00
end of season, contract
ended.
Trash Removal 527.33 775.00 247.67 Fewer pick ups needed. 5,628.17 9,275.00 3,646.83 10,050.00
Pest Control 75.00 75.00 0.00 760.56 825.00 64.44 900.00
Security Patrols 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Window Cleaning Svc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interior Cleaning Svc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable Television 0.00 45.00 45.00 0.00 495.00 495.00 540.00
Snow Removal (617.50) 1,000.00 1,617.50 Due to less snow fall this (139.63) 6,500.00 6,639.63 8,000.00
month.
Total Service Expense 1,972.96 4,640.00 2,667.04 35,853.71 49,300.00 13,446.29 51,695.00

Expenses - CAM - Electric 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Water/Sewer 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Grounds 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Trash Removal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Cleaning Svcs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - R/E Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total CAM Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Management Fees 10,613.26 10,119.00 (494.26) Based on % of 118,404.31 111,539.00 (6,865.31) 121,658.00
collections.
Asset Management Fees 1,000.00 1,000.00 0.00 11,000.00 11,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,250.00 0.00 35,750.00 35,750.00 0.00 39,000.00
Legal Fees 872.80 550.00 (322.80) Eviction fees. 13,839.40 6,050.00 (7,789.40) 6,600.00
Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Postage & Delivery 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 0.00 0.00 (104.00) 0.00 104.00 0.00
Partnership Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Administrative Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Travel Expense 140.79 500.00 359.21 966.28 1,000.00 33.72 1,000.00
Employee Activities 0.00 50.00 50.00 2,596.02 2,550.00 (46.02) 2,600.00
Printing 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Computer Consulting 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Computer Expense 0.00 0.00 0.00 3,936.30 1,400.00 (2,536.30) 1,400.00
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Development Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Admin. Expense 15,876.85 15,469.00 (407.85) 186,388.31 169,289.00 (17,099.31) 184,258.00

Electricity 2,615.99 2,800.00 184.01 35,427.51 30,800.00 (4,627.51) 33,600.00
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 2,087.36 4,000.00 1,912.64 Not heating the hot tub 29,207.36 31,120.00 1,912.64 35,120.00
at this time. Less
usuage.
Water & Sewer 6,769.35 7,500.00 730.65 Based on current 97,595.17 98,500.00 904.83 106,000.00
usuage.
Water & Sewer - Resident Reimb (5,954.71) (4,000.00) 1,954.71 Collected at 88% of (56,260.00) (46,500.00) 9,760.00 (50,500.00)
water/sewer bill.
Water - irrigation 1,842.85 0.00 (1,842.85) Budgeted in water/sewer 21,890.64 40,840.00 18,949.36 40,840.00
category.
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,718.18) (2,200.00) 518.18 (23,255.74) (24,200.00) (944.26) (26,400.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 620.04 1,700.00 1,079.96 Fewer vacants and rates 9,580.66 18,700.00 9,119.34 20,400.00
less than budgeted.

Utility - Vacant Gas 2,351.05 1,100.00 (1,251.05) Had to heat units during 7,867.20 8,720.00 852.80 9,820.00
sub zero temperatures.
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 7,613.75 10,900.00 3,286.25 122,052.80 157,980.00 35,927.20 168,880.00

Management Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Management Fees-MRLL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Property Legal Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Credit Card Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bank Adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Professional Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
HOA Assessment Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fiduciary Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Custodial Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Thunder Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Accounting Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Management Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Property Taxes 27,619.00 27,200.00 (419.00) Based on anticipated 314,978.26 299,200.00 (15,778.26) 326,400.00
accruals.
Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 8,093.70 6,691.00 (1,402.70) Actual cost. 79,384.37 73,601.00 (5,783.37) 80,292.00
Tax Consultants 0.00 0.00 0.00 700.00 0.00 (700.00) 0.00
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 35,712.70 33,891.00 (1,821.70) 395,062.63 372,801.00 (22,261.63) 406,692.00
Total Operating Expenses 106,137.64 107,884.00 1,746.36 1,279,820.36 1,256,539.00 (23,281.36) 1,376,163.00
NET OPERATING INCOME 157,132.66 145,081.00 12,051.66 1,593,201.82 1,531,896.00 61,305.82 1,665,237.00

Base Rent 106,586.67 106,587.00 0.33 1,172,453.37 1,172,457.00 3.63 1,279,044.00
Stated Rent 86,666.71 86,667.00 0.29 953,333.41 953,337.00 3.59 1,040,004.00
Office Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rent Expense 193,253.38 193,254.00 0.62 2,125,786.78 2,125,794.00 7.22 2,319,048.00

Mortgage Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Loan Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Debt Service 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Partnership Legal Fees 0.00 0.00 0.00 1,510.50 0.00 (1,510.50) 0.00
Partnership Accounting Fees 9,150.00 0.00 (9,150.00) 9000- Partnership fee 10,726.30 0.00 (10,726.30) 0.00
CPA firm Fee.
Partnership Travel 0.00 0.00 0.00 655.29 0.00 (655.29) 0.00
Partnership - Meals 0.00 0.00 0.00 86.91 0.00 (86.91) 0.00
Partnership Fees - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Due Diligence Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dead Deal Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Partnership Exp- Leaseup Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 9,150.00 0.00 (9,150.00) 12,979.00 0.00 (12,979.00) 0.00

Exterior Rehab 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interior Rehab 0.00 0.00 0.00 0.00 3,000.00 3,000.00 3,000.00
HVAC Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 2,721.64 3,300.00 578.36 Replaced two carpets. 52,417.49 60,500.00 8,082.51 63,800.00
Refrigerators 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 0.00 0.00 0.00 236.72 0.00 (236.72) 0.00
Fire Alarm Replacement 0.00 0.00 0.00 4,658.23 0.00 (4,658.23) 0.00
Other Capital Improvements 1,084.00 0.00 (1,084.00) First payment of 1,084.00 0.00 (1,084.00) 0.00
resurfacing of the hot
tub.
Boiler Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Roof Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Capital Expenses 3,805.64 3,300.00 (505.64) 58,396.44 63,500.00 5,103.56 66,800.00

Casualty Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Casualty Recovery 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Casualty Loss 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) (49,076.36) (51,473.00) 2,396.64 (603,960.40) (657,398.00) 53,437.60 (720,611.00)

Rental Guarantee 45,351.21 0.00 45,351.21 414,043.73 124,335.14 289,708.59 124,335.14
(3,725.15) (51,473.00) 47,747.85 (189,916.67) (533,062.86) 343,146.19 (596,275.86)
Courtney Downs Apartments
Nov-06
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 11 INCOME THIS MONTH: $263,270.00
NUMBER OF MOVE OUTS: 13 INCOME LAST MONTH: $271,013.82
NET FOR THE MONTH: -2 DIFFERENCE: -7743.82

TOTAL # GARAGES 120
# GARAGES OCCUPIED 117
OCCUPIED/LEASED %: 91.23% 93.27% GARAGES OCCUPIED % 98%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 3
APARTMENT GUIDE 7 3 * Too expensive. 13
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 12 1 * Just started looking. 12
FOR RENT 0 0 * Waiting for Home to Sell 15
RENT.NET 6 0 * Current Lease to Expire 4
LIVES IN AREA 25 6 * Needs Ground Floor 6
RESIDENT REFERRAL 9 1 * Moved Elsewhere 0
LOCATORS 4 0 * Will return with roommate or spouse 15
RENT.COM 8 0 * Realtor Looking for Client 0
WALK-IN 0 0 * Undecided 0
SIGNAGE 28 2 * Employment pending 12
WORD OF MOUTH 0 0 * House sale pending 6
* Rented at Competitor 0
TOTALS 99 13 TOTALS 86

CLOSING RATIO: 33%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Dropped off bag of cookies and candy with flyer and brochures to Richmond Homes.
* Updated all locators with new pricing information.
* Updated all internet ads with new pricing.
* Took locators lunch and new prices for the month.
* Took flyer's to Colorado Fitness club .
* Brochures were taken to Human Resources at Albertsons Supermarket.
* Met with Prudential sales team with options of temporary housing for new home buyers.
* Dropped off cookie basket and brochures and price sheets with Human Resources at First Data Corporation.
* Dropped off doughnuts and brochures to Parker Adventist Hospital with Human Resources.
* Took cookie and candy bag with flyer's to Parker Fire Station.
* Took cookie and candy bag to Burt Chevrolet with brochures.
* Took cookie and candy bag to Wells Fargo with brochures.
OVERVIEW OF COMPARABLE PROPERTIES:
The surrounding comps are still offering specials of one to two months free on selected units.
This translates into one bedroom effective rents of $520, two bedrooms at $730and three bedrooms starting at $985.
Look and leases are being locked in with $500.00 off move in and one moth free as well as prorating concessions on a 12 to 13 month lease with some of our competitors.

RESIDENT RETENTION:
We had 15 leases expiring in the month of November. Five are moving due to buying and/or renting houses
one is moving out due to relocating, one is moving due to contract being over and one is going month to month.
Overall our five renewals had an average increase of $55.00 per renewal.

INCIDENTS ON THE PROPERTY:
Garage #50 was hit by a car and damage (about $200) is being billed to Resident.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 12 REFRIGERATORS 0
COMPLETE PAINTS 7 DISHWASHERS 0
TOUCH UPS 5 STOVES 0
WORK ORDERS 125 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 18 18 WATER HEATERS 0
Electrical 0 17 17 ICE MAKERS 0
Punch 0 12 12 GARBAGE DISPOSALS 0
HVAC 0 14 14 MICROWAVES 0
Plumbing 0 48 48 CARPETS 0
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 15 15 TOILETS 0
Safety 0 1 1 A/C FAN MOTORS 0
Total 0 125 125 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
17201-3, 19201-1, 6212-1, 6209-1,
PLUMBING LEAKS 0 BLINDS 11 4307-1, 19204-2, 16105-2.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A

PROBLEM AREAS NEEDING ATTENTION:
We are in the process of resurfacing the hot tub.

CURRENT STAFF:

Manager Nancy Howland
Assistant Manager Wendy Gillan
Leasing Consultant Carrie McMillan
Leasing Consultant Jessica Branch
Maintenance Supervisor Gabriel Tellez
Assistant Maintenance Russell Briley
Maintenance/ Grounds Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH:
Special efforts focused on marketing.
Courtney Downs
RENTAL SCHEDULE
November 2006

EFFECTIVE EFFECTIVE EFFECTIVE Vacants Notice Net
UNIT TYPE #UNITS SIZE TOTAL MKT RENT MKT RENT MONTHLY ANNUAL CONCESSION CONCESSION PER S/F MONTHLY Vacants Leased Notice Leased Available
S/F PER UNIT PER S/F GROSS GROSS RENTS* PER UNIT GROSS
A1 1BR 40 704 28,160 830 1.18 $33,200 $398,400 690.00 140.00 0.98 $27,600 9 1 8 3 0
A1V 1BR 32 704 22,528 860 1.22 $27,520 $330,240 690.00 55.00 1.10 $31,000 2 0 1 0 2
A2 1BR 18 910 16,380 935 1.03 $16,830 $201,960 690.00 245.00 0.76 $12,420 1 0 1 1 5
B1 2BR 24 808 19,392 895 1.11 $21,480 $257,760 830.00 65.00 1.03 $19,920 9 0 4 1 12
B1V 2BR 32 808 25,856 925 1.14 $29,600 $355,200 830.00 95.00 1.03 $26,560 0 0 0 0 0
C 2BR 42 977 41,034 1130 1.16 $47,460 $569,520 830.00 300.00 0.85 $34,860 11 1 5 0 13
C1 2BR 44 1,030 45,320 1150 1.12 $50,600 $607,200 830.00 320.00 0.81 $36,520 4 0 2 1 7
C1V 2BR 22 1,030 22,660 1180 1.15 $25,960 $311,520 830.00 350.00 0.81 $18,260 0 0 0 0 0
CV 2BR 24 977 23,448 1150 1.18 $27,600 $331,200 830.00 320.00 0.85 $19,920 0 0 0 0 0
D 2BR 16 1,030 16,480 1150 1.12 $18,400 $220,800 830.00 320.00 0.81 $13,280 0 0 0 0 5
DV 2BR 20 1,030 20,600 1180 1.15 $23,600 $283,200 830.00 350.00 0.81 $16,600 0 0 0 0 0
E 3BR 24 1,140 27,360 1245 1.09 $29,880 $358,560 1,145.00 100.00 1.00 $27,480 3 1 1 1 3
EV 3BR 4 1,140 4,560 1255 1.10 $5,020 $60,240 1,145.00 110.00 1.00 $4,580 0 0 0 0 0

TOTAL 342 917 313,778 $1,044 $1.14 $357,150 $4,285,800 $845 $213 0.92 $289,000 39 3 22 7 47
* Net of Concessions
MARKET SURVEY
Courtney Downs
November-06

Apartment Name Courtney Downs Coyote Ranch Windsor @ Meridian Pinnacle @ the Creek Dove Valley Cherrywood Village Reserve @ South Creek
Address 15849 E. Jamison Dr16363 E Freemont Ave 9875 Jefferson Pkwy 6107 S Parker Rd 7550 S Blackhawk 16950 E Carlson Dr 15611 E Jamison Dr
Phone 720-870-6114 303-693-8787 303-256-7700 303-766-2500 303-362-2000 303-805-7220 303-680-6696
Location Englewood, Co Aurora, Co Englewood, Co 80112 Centennial, Co Englewood, Co 80112 Parker, Co 80134 Englewood, Co 80112
# of units 342 507 653 216 312 380 168
Age of Property 4 4 7 4 5 4 5
Application Fee $50.00 $35.00 $40.00 $35.00 $35.00 $35.00 $40.00
Credit Card yes yes yes yes yes yes yes
Pets Allowed yes yes yes yes yes yes yes
Pet Deposit 300 n/r 350-600 150-300 $300 300-500 350-500 300
Sec. Deposit 150 275-325 300 100 199 275-325 125-250
W/D included Yes yes Only In Select Units Only Select Units no no no
Covered Parking no yes yes yes yes yes yes
Garage Detached yes yes yes yes yes yes
Cable Yes yes yes yes yes yes yes
Tennis Courts no no no no yes yes yes
# of pools 1 1 1 1 1 2 1
Weight Room yes yes yes yes yes yes yes
Jacuzzi yes 1 1 1 1 2 1
Ceiling Fans yes yes yes yes yes yes yes
Microwaves yes yes yes yes yes yes yes
Mini Blinds yes yes yes yes yes yes yes
FF Freezer yes yes yes yes yes yes yes
Icemakers yes yes yes yes yes yes yes
Fireplaces yes no yes yes yes yes yes
Access Gates no yes yes no yes yes yes
Alarm in Unit Prewired no yes yes yes no yes
Door to Door no no no no no no no
Aerobics/Kick Box no no no no no no no
Movie Room no yes yes yes yes yes yes
Computer Library yes yes yes yes yes yes yes
Indoor Basketball no no no no no no no
Water Charge yes no yes yes yes yes yes
MARKET SURVEY
Courtney Downs
November-06
(Concessions reduced rates)

PROPERTY: Courtney Downs Apt Coyote Ranch Windsor at Meridian Pinnacle @ the Creek Dove Valley Cherrywood Village Reserve@South Creek
PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF PRICE SIZE PSF
Efficiency
Efficiency
1B1B (A) 640 704 0.91 690 779 0.89 615 627 0.98 624 685 0.91 700 768 0.91 645 707 0.91 689 763 0.90
1B1B (B) 660 808 0.82 780 853 0.91 615 701 0.88 700 705 0.99 750 842 0.89
1B1B w/study 690 910 0.76 615 811 0.91 784 760 0.96
1B
1B
1B w/loft
1B1B w/study 875 956 0.92 784 1051 0.75
2B2B (E) 800 977 0.82 855 1105 0.77 1110 1044 1.06 1014 1120 0.91 810 1115 0.73 828 1033 0.80 820 1037 0.79
2B2B (F) 830 1030 0.81 910 1192 0.76 1440 1196 1.20 880 1220 0.72 832 1093 0.76
2B2B (G) 860 1030 0.83 1030 1180 0.87
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,100 1140 0.96 1215 1398 0.87 1510 1330 1.14 1064 1230 0.87 1050 1356 0.77 1151 1235 0.93 1099 1257 0.87
3B2B

% occ /leased 91 93.27 95% 96.8 99 98% 0 0% 93 91 94% 95.8 96 93% 93.0 94 94% 98.0 99 96%
Avg PSF 1 0.84 0.84 0.99 0.90 0.80 0.85 0.86
Avg Rents 797 1114 994 808 838 1131 995
/ Avail)
Units(Total 342 42 507 11 653 216 19 312 28 360 36 0 168 11

Special: 1x1 620.00, 2x2
800.00, as well as price Special:waive security Special: Discounted rents Special: Waive security
matching a few comps in the Special: Reduced pricing deposit and $150.00 gift on select units as well as deposit and $250 to $500 Special: Discounts on all
Rates area. for all floor plans. Sepcial:None card to any location. first months rent free.. off first months rent. available rents.
reflect these rates: $685 1/1 $805 2/2 $1310 3/2 $626 1/1 $800 2/2 $1275 3/2
specials: special was pulled off the internet
due to property will not give info.

Ren.: Keep all residents
4% under all new Ren: Info not avail per Ren: $40 increas for 12 Ren: Average $15 to $20 Ren: Free carpet cleaning
Ren: $50 increase residents. corporate Ren:Per corporate month lease increase. with 12mo.