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USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Jan 2007

ASSETS

Cash
Operating Cash 47,614.01
Money Market 0.00
Security Deposits 57,710.71
Total Cash $105,324.72

OTHER ASSETS
Accounts Receivable 14,360.82
Prepaid Expenses 45,277.43
Tax Escrow 274,428.89
Cash in Bank-Wrk Cap Reserve 47,255.43
Capital / Repair Escrow 200,000.00
Total Other Assets 581,322.57

Total ASSETS 686,647.29

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 23,520.36
Other Accounts Payable 603,722.36
Accrued Taxes 367,623.43
Prepaid Rent 2,206.61
Security Deposits 55,881.71
Notes Payable (328.39)
Total Liabilities 1,052,626.08

CAPITAL

Owners Equity 100.00
Retained Earnings (366,078.79)
Total Capital (365,978.79)

Total LIABILITIES & CAPITAL 686,647.29
USA Courtney Downs LeaseCo, LLC
Cash Flow (Actual + Budget)
Books = Accrual
For the 12 Months Ending Dec 2007

Jan 2007 Feb 2007 Mar 2007 Apr 2007 May 2007 Jun 2007 Jul 2007 Aug 2007 Sep 2007 Oct 2007 Nov 2007 Dec 2007 12 Month $/ $/ Dec 2006 12 Month $/ $/
Account Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Total Unit Sq. Ft. Reforecast Total Unit Sq. Ft.
342 313,778 342 313,778
Revenue
Gross Potential Rent 352,560 352,885 352,885 352,280 351,675 351,070 350,465 349,860 349,255 348,650 348,045 347,440 4,207,070 12,301.37 13.41 364,160 5,279,030 15,435.76 16.82
- Vacancy (34,193) (28,705) (28,705) (30,785) (28,705) (24,545) (23,505) (23,505) (24,805) (27,145) (29,485) (30,525) (334,608) (978.39) (1.07) (43,000) (438,598) (1,282.45) (1.40)
- Concessions & Disc. (77,240) (68,161) (68,161) (66,797) (63,849) (59,743) (58,387) (54,989) (49,108) (46,826) (42,919) (39,555) (695,737) (2,034.32) (2.22) (80,000) (860,248) (2,515.34) (2.74)
- Other Write-offs & Adj. (5,251) (5,204) (5,204) (5,200) (5,211) (5,231) (5,235) (5,242) (5,252) (5,250) (5,253) (5,257) (62,789) (183.59) (0.20) (6,085) (79,568) (232.65) (0.25)
Total Rental Income 235,876 250,815 250,815 249,497 253,909 261,552 263,338 266,124 270,090 269,428 270,388 272,102 3,113,936 9,105.08 9.92 235,075 3,900,617 11,405.31 12.43

Other Income 27,580 13,926 21,345 24,565 25,565 24,415 24,915 21,695 20,545 20,545 20,545 20,195 265,836 777.30 0.85 19,000 326,354 954.25 1.04
Total Revenue 263,457 264,741 272,160 274,062 279,474 285,967 288,253 287,819 290,635 289,973 290,933 292,297 3,379,772 9,882.37 10.77 254,075 4,226,971 12,359.56 13.47

Operating Expenses
Salary Expense 33,611 15,819 29,789 26,715 26,715 30,089 28,026 27,426 30,872 26,976 27,014 30,347 333,398 974.85 1.06 37,759 429,494 1,255.83 1.37
Operating Expense 2,710 1,344 3,785 3,905 4,025 3,905 3,965 3,845 3,725 3,725 3,725 3,665 42,324 123.76 0.13 3,030 52,868 154.59 0.17
Advertising Expense 9,943 507 7,993 8,791 9,990 8,791 9,390 8,192 7,393 6,993 6,993 6,394 91,372 267.17 0.29 6,885 111,912 327.23 0.36
Make Ready Expense 3,805 1,125 4,095 4,875 4,095 4,095 4,875 4,095 3,803 3,705 3,803 2,828 45,197 132.16 0.14 7,500 59,460 173.86 0.19
Maintenance Expense 2,027 320 2,425 3,425 2,425 2,425 2,425 2,425 2,425 15,095 2,425 2,425 40,267 117.74 0.13 2,295 47,530 138.98 0.15
Service Expense 6,403 10,329 1,385 3,585 5,585 3,085 3,085 3,085 5,585 5,585 6,385 1,835 55,934 163.55 0.18 2,395 66,713 195.07 0.21
Administrative Expense 15,368 5,349 16,496 16,572 16,789 17,048 19,640 17,122 17,235 17,209 17,247 17,301 193,375 565.42 0.62 14,969 243,459 711.87 0.78
Utility Expense 9,370 (3,914) 7,963 8,563 8,463 12,763 13,713 13,713 12,776 8,388 8,001 8,051 107,852 315.36 0.34 10,900 135,120 395.09 0.43
Management Expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0.00 0 0 0.00 0.00
Taxes & Insurance 37,910 0 32,739 32,739 32,739 32,739 32,739 32,739 32,739 32,739 32,739 32,739 365,304 1,068.14 1.16 37,237 469,088 1,371.60 1.49

Total Operating Exp. 121,146 30,878 106,670 109,171 110,826 114,941 117,860 112,644 116,553 120,416 108,332 105,585 1,275,024 3,728.14 4.06 122,970 1,615,643 4,724.10 5.15
Net Operating Income 142,310 233,863 165,490 164,891 168,649 171,026 170,394 175,175 174,082 169,557 182,601 186,712 2,104,748 6,154.24 6.71 131,106 2,611,328 7,635.46 8.32

Rent Expense 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 193,253 2,319,040 6,780.82 7.39 193,254 2,905,589 8,495.87 9.26
Partnership Expense 0 0 415 415 415 415 415 415 415 415 415 415 4,150 12.13 0.01 0 4,992 14.60 0.02
Capital Expense 1,601 2,031 4,900 4,900 7,446 21,300 4,900 4,900 4,900 4,900 4,900 4,900 71,578 209.29 0.23 3,300 84,888 248.21 0.27

Cash Flow Frm Operations (52,544) 38,578 (33,079) (33,677) (32,466) (43,943) (28,175) (23,393) (24,486) (29,012) (15,968) (11,856) (290,020) (848.01) (0.92) (65,449) (384,142) (1,123.22) (1.22)

Rental Guarantees 7,543 0 0 0 0 0 0 0 0 0 0 0 7,543 250,000 257,543

Balance Sheet Adjustments
Cash - Non Operating Accounts 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accounts Receivable (4,571) (8,833) 0 0 0 0 0 0 0 0 0 0 (13,404) 0 (13,404)
Prepaid Assets (7,749) 5,073 5,073 5,073 5,073 5,073 5,073 5,073 5,073 5,073 5,073 5,073 48,054 0 58,200
Escrow Deposits (30,394) (34,568) (34,568) (34,568) (34,568) (34,568) (34,568) (34,568) (34,568) (34,568) (34,568) (34,568) (410,640) (2,951) (482,727)

Cash Increase (Decreae) From Assets (42,714) (38,328) (29,495) (29,495) (29,495) (29,495) (29,495) (29,495) (29,495) (29,495) (29,495) (29,495) (375,991) (2,951) (437,931)

Accounts Payable 40,118 0 0 0 0 0 0 0 0 0 0 0 40,118 0 40,118
Accrued Expenses 41,830 0 0 0 0 0 0 0 0 0 0 0 41,830 0 41,830
Other Payables (1,829) 0 0 0 0 0 0 0 0 0 0 0 (1,829) 0 (1,829)
Mortgages Payable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Increase (Decrease) From Liab. 80,118 0 0 0 0 0 0 0 0 0 0 0 80,118 0 80,118

NET CASH FLOW (7,597) 250 (62,573) (63,172) (61,961) (73,438) (57,670) (52,888) (53,981) (58,506) (45,463) (41,351) (578,349) 181,601 (484,412)
CUMM. NET CASH FLOW 47,114 47,364 (15,209) (78,381) (140,342) (213,780) (271,449) (324,337) (378,318) (436,825) (482,287) (523,639) 181,601
54710.94
$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$-

$(100,000)

$(200,000)

$(300,000)
Jan 2007 Feb 2007 Mar 2007 Apr 2007 May 2007 Jun 2007 Jul 2007 Aug 2007 Sep 2007 Oct 2007 Nov 2007 Dec 2007

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
W30: administrator:
assume insurance increases by 50%

W47: administrator:
replacement reserve + reduction in tax escrow due to overage
USA Courtney Downs LeaseCo, LLC
Budget Comparison
Books = Accrual
For the period ending January 31, 2007

MTD MTD YTD YTD Annual
Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget YTD Variance Comment
Revenue
Market Rent 316,140.00 354,095.00 (37,955.00) Variance due to no 316,140.00 354,095.00 (37,955.00) 4,209,210.00
longer offering any
concessions, market
rents were lowered.
Loss / Gain to Lease 36,420.00 0.00 36,420.00 Variance due to 36,420.00 0.00 36,420.00 0.00
adjustment in the market
rents.
Gross Potential Rent 352,560.00 354,095.00 (1,535.00) 352,560.00 354,095.00 (1,535.00) 4,209,210.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Residential Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Vacancy Loss (34,192.82) (26,104.86) (8,087.96) Variance due to closing (34,192.82) (26,104.86) (8,087.96) (325,479.64)
out at 90% versus
92.66% budgeted.
Upfront Rent Concessions (898.97) (2,610.00) 1,711.03 Decreased the (898.97) (2,610.00) 1,711.03 (59,160.00)
concessions amounts
given away up front for
the month. Includes
holiday contest winners.
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 (150.00) (629.35) 479.35 (150.00) (629.35) 479.35 (7,841.82)
Model Units (1,980.00) (1,625.00) (355.00) Two model units. (1,980.00) (1,625.00) (355.00) (19,500.00)
Courtesy Officer Apt. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Apartment (1,780.80) (2,050.00) 269.20 Fewer associates living (1,780.80) (2,050.00) 269.20 (24,600.00)
on site.
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Guest Suite (1,340.14) (900.00) (440.14) Reflects one quest suite. (1,340.14) (900.00) (440.14) (10,800.00)

Lease Term Concessions (76,341.03) (69,065.00) (7,276.03) Concessions are no (76,341.03) (69,065.00) (7,276.03) (632,942.99)
longer being offerred.
This will reduce over
time.
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 $235,876.24 $251,110.79 $(15,234.55) $235,876.24 $251,110.79 $(15,234.55) $3,128,885.55

Laundry Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Vending Income 0.00 68.00 (68.00) 0.00 68.00 (68.00) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 1,815.00 1,650.00 165.00 1,815.00 1,650.00 165.00 19,800.00
Month to Month Premium 505.00 200.00 305.00 505.00 200.00 305.00 2,400.00
Storage Fees 704.36 960.00 (255.64) Fewer rentals than 704.36 960.00 (255.64) 11,520.00
anticipated. Offering
some storage as leasing
incentives.
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 1,010.00 400.00 610.00 More leases than 1,010.00 400.00 610.00 10,250.00
anticipated.
Termination Fees & Damages 3,102.50 1,000.00 2,102.50 Aggressive collections 3,102.50 1,000.00 2,102.50 12,000.00
on lease break fees, one
full break lease fee
collected and partial
payment on balance
due.
Miscellaneous Income 691.55 1,160.00 (468.45) 691.55 1,160.00 (468.45) 13,920.00
Renters Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income 3,485.00 0.00 3,485.00 Last rental guarantee 3,485.00 0.00 3,485.00 0.00
draw,guarantee escrow
acct @ landamerica.
Pet Rents & Fees 1,655.17 2,456.00 (800.83) 41 pet rents were 1,655.17 2,456.00 (800.83) 29,472.00
collected and 4 pet fees
collected for the month,
variance due to lower
occupancy than
budgeted.
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 6,761.75 6,650.00 111.75 6,761.75 6,650.00 111.75 79,800.00
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 1,151.00 1,006.00 145.00 1,151.00 1,006.00 145.00 12,072.00
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 300.00 90.00 210.00 300.00 90.00 210.00 1,080.00
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 1,950.00 1,000.00 950.00 Variance due to 14 1,950.00 1,000.00 950.00 33,800.00
admin fees collected
versus 7 budgeted.
Move-Out Charges 4,298.98 3,330.00 968.98 Positive variance with 4,298.98 3,330.00 968.98 48,840.00
lease charges and
damages on move out
charges.
Short Term Lease Fees 150.00 300.00 (150.00) 150.00 300.00 (150.00) 3,600.00
Extra-Ordinary Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Rent 0.00 425.00 (425.00) 0.00 425.00 (425.00) 5,100.00
Corporate Units - expense 0.00 (1,750.00) 1,750.00 0.00 (1,750.00) 1,750.00 (21,000.00)
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 27,580.31 18,945.00 8,635.31 27,580.31 18,945.00 8,635.31 263,470.00

Total Revenue $263,456.55 $270,055.79 $(6,599.24) $263,456.55 $270,055.79 $(6,599.24) $3,392,355.55

Expense
Managers Salary 12,845.11 12,013.16 (831.95) Variance due to two pay 12,845.11 12,013.16 (831.95) 147,761.88
periods plus accrued for
eight days in Jan.

Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 16,587.48 11,223.48 (5,364.00) Variance includes 16,587.48 11,223.48 (5,364.00) 138,048.78
overtime for snow
removal.
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 2,648.60 825.00 (1,823.60) Accrual for Dec was less 2,648.60 825.00 (1,823.60) 39,026.28
than the actual bonus.
Includes new move ins
and renewals.
Payroll Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Group Insurance 1,529.50 778.00 (751.50) Includes two pay periods 1,529.50 778.00 (751.50) 9,336.00
plus accrual for eights
days.
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 0.00 0.00 0.00 0.00
Workers Comp 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Salary Expense 33,610.69 24,839.64 (8,771.05) 33,610.69 24,839.64 (8,771.05) 334,172.94

Office Operations & Supplies 427.33 1,000.00 572.67 Savings due to the 427.33 1,000.00 572.67 12,000.00
purchasing of fewer
office items this month.
Telephones 764.60 1,100.00 335.40 764.60 1,100.00 335.40 13,200.00
Answering Svc. & Pagers 153.00 100.00 (53.00) 153.00 100.00 (53.00) 1,200.00
Postage & Delivery 287.30 170.00 (117.30) Postage meter fee. 287.30 170.00 (117.30) 2,040.00
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 90.00 90.00 0.00 90.00 90.00 1,080.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 355.78 115.00 (240.78) Includes apt association 355.78 115.00 (240.78) 1,380.00
function.
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 0.00 25.00 25.00 0.00 25.00 25.00 300.00
Permits & Fees 0.00 25.00 25.00 0.00 25.00 25.00 300.00
Credit Checks 243.50 240.00 (3.50) 243.50 240.00 (3.50) 6,150.00
Guest Suite Expense 478.65 650.00 171.35 478.65 650.00 171.35 7,800.00
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 2,710.16 3,515.00 804.84 2,710.16 3,515.00 804.84 45,450.00

Advertising & Promotions 7,500.00 7,500.00 0.00 7,500.00 7,500.00 0.00 36,900.00
Resident Promotions 416.85 798.00 381.15 416.85 798.00 381.15 9,576.00
Locators 1,526.44 723.10 (803.34) We received four locator 1,526.44 723.10 (803.34) 24,440.78
leases this month, we
were budgeted for two.

Resident Referrals 500.00 775.00 275.00 500.00 775.00 275.00 26,195.00
Total Advertising Expense 9,943.29 9,796.10 (147.19) 9,943.29 9,796.10 (147.19) 97,111.78

Paint & Drywall 39.25 360.00 320.75 39.25 360.00 320.75 7,852.50
Contract Cleaning Svcs. 2,690.00 250.00 (2,440.00) Variance due to budget 2,690.00 250.00 (2,440.00) 3,000.00
is incorrect. Missed at
final review. Cleaned
ready units and common
area.
Carpet Cleaning & Repairs 960.00 1,200.00 240.00 960.00 1,200.00 240.00 26,175.00
Window Coverings 115.65 100.00 (15.65) 115.65 100.00 (15.65) 1,200.00
Vinyl & Tile Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Lock & Keys 0.00 50.00 50.00 0.00 50.00 50.00 600.00
Counter & Tub Resurfacing 0.00 416.67 416.67 0.00 416.67 416.67 5,000.04
Other Redecorating 0.00 25.00 25.00 0.00 25.00 25.00 300.00
Cleaning Supplies 0.00 133.33 133.33 0.00 133.33 133.33 1,599.96
Total Make Ready Expense 3,804.90 2,535.00 (1,269.90) 3,804.90 2,535.00 (1,269.90) 45,727.50

General Maintenance & Supplies 337.58 700.00 362.42 Fewer supplies needed 337.58 700.00 362.42 8,400.00
this month.
HVAC Parts & Repairs 791.33 100.00 (691.33) Heat exchanger needed 791.33 100.00 (691.33) 1,200.00
to be replaced in
apartment #2305.
Plumbing Parts & Repairs 28.24 140.00 111.76 28.24 140.00 111.76 5,055.00
Electric Parts & Repairs 0.00 150.00 150.00 0.00 150.00 150.00 1,800.00
Roof & Gutter Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Pools & Fountains 0.00 450.00 450.00 0.00 450.00 450.00 5,400.00
Gates & Entrances 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Glass & Screens 0.00 160.00 160.00 0.00 160.00 160.00 1,920.00
Appliance Parts & Repairs 0.00 900.00 900.00 No repairs or parts 0.00 900.00 900.00 5,850.00
needed this month.
Hardware 11.93 75.00 63.07 11.93 75.00 63.07 900.00
Exterior Painting 0.00 25.00 25.00 0.00 25.00 25.00 300.00
Uniforms 0.00 0.00 0.00 0.00 0.00 0.00 2,000.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 807.96 175.00 (632.96) Quarterly bill for 807.96 175.00 (632.96) 10,395.00
monitoring of security
system and installation
of pull station in Bldg #6.

Uninsured Losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Locks & Keys 50.00 0.00 (50.00) 50.00 0.00 (50.00) 0.00
Bulbs & Ballasts 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Maintenance Expense 2,027.04 2,875.00 847.96 2,027.04 2,875.00 847.96 43,220.00

Landscape & Grounds 0.00 0.00 0.00 0.00 0.00 0.00 30,000.00
Trash Removal 797.34 510.00 (287.34) Monthly service. 797.34 510.00 (287.34) 6,120.00
Pest Control 75.00 75.24 0.24 75.00 75.24 0.24 902.88
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 0.00 0.00 0.00 0.00 0.00 0.00
Snow Removal 5,530.36 1,250.00 (4,280.36) Variance due to removal 5,530.36 1,250.00 (4,280.36) 5,850.00
of 27 inches of snow, as
well as rental of back
hoe for the property and
extra man power for
shoveling of snow.

Total Service Expense 6,402.70 1,835.24 (4,567.46) 6,402.70 1,835.24 (4,567.46) 42,872.88

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 10,545.04 10,802.23 257.19 10,545.04 10,802.23 257.19 135,694.22
Asset Management Fees 1,000.00 1,000.00 0.00 1,000.00 1,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,300.00 50.00 3,250.00 3,300.00 50.00 39,600.00
Legal Fees 448.90 1,300.00 851.10 7 evictions budgeted for 448.90 1,300.00 851.10 15,600.00
and actual filed were 4.

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 9.58 9.58 0.00 9.58 9.58 114.96
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 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Activities 123.71 0.00 (123.71) Management activity. 123.71 0.00 (123.71) 0.00
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 0.00 0.00 0.00 5,124.00
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 15,367.65 16,411.81 1,044.16 15,367.65 16,411.81 1,044.16 208,133.18

Electricity 2,563.74 3,340.00 776.26 Includes a $700 accrual 2,563.74 3,340.00 776.26 40,080.00
adjustment.
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 4,165.07 2,565.00 (1,600.07) Increase of gas usage 4,165.07 2,565.00 (1,600.07) 30,780.00
due to extended cold
weather.
Water & Sewer 10,841.47 8,965.00 (1,876.47) Increase in water 10,841.47 8,965.00 (1,876.47) 107,580.00
charges not anticipated.

Water & Sewer - Resident Reimb (7,624.13) (6,275.50) 1,348.63 Collected 70% of billing. (7,624.13) (6,275.50) 1,348.63 (75,306.00)
Water - irrigation 0.00 0.00 0.00 0.00 0.00 0.00 23,500.00
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,398.57) (2,011.00) 387.57 Includes per door trash (2,398.57) (2,011.00) 387.57 (24,132.00)
fee plus resident
riembursment for an
additional trash fee.
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 895.89 752.94 (142.95) 895.89 752.94 (142.95) 9,387.78
Utility - Vacant Gas 926.58 501.96 (424.62) Higher usuage due to 926.58 501.96 (424.62) 6,258.52
extreme weather.
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 9,370.05 7,838.40 (1,531.65) 9,370.05 7,838.40 (1,531.65) 118,148.30

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 32,836.82 27,616.50 (5,220.32) Includes personal 32,836.82 27,616.50 (5,220.32) 331,398.00
property tax not
budgeted.
Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 5,073.00 5,073.00 0.00 5,073.00 5,073.00 0.00 60,876.00
Tax Consultants 0.00 49.88 49.88 0.00 49.88 49.88 598.56
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 37,909.82 32,739.38 (5,170.44) 37,909.82 32,739.38 (5,170.44) 392,872.56
Total Operating Expenses 121,146.30 102,385.57 (18,760.73) 121,146.30 102,385.57 (18,760.73) 1,327,709.14
NET OPERATING INCOME 142,310.25 167,670.22 (25,359.97) 142,310.25 167,670.22 (25,359.97) 2,064,646.41

Base Rent 106,586.67 106,586.67 0.00 106,586.67 106,586.67 0.00 1,279,040.04
Stated Rent 86,666.71 86,666.67 (0.04) 86,666.71 86,666.67 (0.04) 1,040,000.04
Office Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Rent Expense 193,253.38 193,253.34 (0.04) 193,253.38 193,253.34 (0.04) 2,319,040.08

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 0.00 170.00 170.00 0.00 170.00 170.00 2,040.00
Partnership Accounting Fees 0.00 170.00 170.00 0.00 170.00 170.00 2,040.00
Partnership Travel 0.00 75.00 75.00 0.00 75.00 75.00 900.00
Partnership - Meals 0.00 0.00 0.00 0.00 0.00 0.00 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 0.00 415.00 415.00 0.00 415.00 415.00 4,980.00

Exterior Rehab 0.00 0.00 0.00 0.00 0.00 0.00 18,946.00
Interior Rehab 0.00 3,250.00 3,250.00 Deffered purchase of 0.00 3,250.00 3,250.00 3,250.00
the dehumidifier and file
cabinet due to overages
in budget.
HVAC Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 1,016.03 4,900.00 3,883.97 Replaced one carpet, 1,016.03 4,900.00 3,883.97 58,800.00
budgeted for five.
Refrigerators 585.06 600.00 14.94 Replaced one 585.06 600.00 14.94 600.00
refrigerator
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fire Alarm Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other Capital Improvements 0.00 1,800.00 1,800.00 Heat exchanger for the 0.00 1,800.00 1,800.00 3,713.00
hot tub was replaced
and billed last month.
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 1,601.09 10,550.00 8,948.91 1,601.09 10,550.00 8,948.91 85,309.00

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) (52,544.22) (36,548.12) (15,996.10) (52,544.22) (36,548.12) (15,996.10) (344,682.67)

Rental Guarantee 7,542.88 0.00 7,542.88 7,542.88 0.00 7,542.88 0.00
(45,001.34) (36,548.12) (8,453.22) (45,001.34) (36,548.12) (8,453.22) (344,682.67)
Courtney Downs Apartments
Jan-07
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 7 INCOME THIS MONTH: $263,456.00
NUMBER OF MOVE OUTS: 11 INCOME LAST MONTH: $255,866.00
NET FOR THE MONTH: -4 DIFFERENCE: 7590

TOTAL # GARAGES 120
# GARAGES OCCUPIED 117
OCCUPIED/LEASED %: 91.5%, 89.7% GARAGES OCCUPIED % 98%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 7 0 * Job Transfer 2
APARTMENT GUIDE 0 0 * Too expensive. 12
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 6 0 * Just started looking. 0
BLUE BOOK 12 3 * Waiting for Home to Sell 15
RENT.NET 3 0 * Current Lease to Expire 7
LIVES IN AREA 24 7 * Needs Ground Floor 6
RESIDENT REFERRAL 8 1 * Moved Elsewhere 0
LOCATORS 10 0 * Will return with roommate or spouse 18
RENT.COM 0 0 * Realtor Looking for Client 3
WALK-IN 0 0 * Undecided 0
SIGNAGE 26 3 * Employment pending 8
WORD OF MOUTH 0 0 * House sale pending 9
* Rented at Competitor 2
TOTALS 96 14 TOTALS 82

CLOSING RATIO: 14%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Met with Comcast Human Resources.
* Took flyers and brochures to Colorado Athletic Club for breakroom.
* Updated all locators with pricing and specials all month.
* Met with Richmond sales team and dropped off brochures and flyers.
* Updated all internet ads with new pricing and specials for the month of December.
* Brochures were taken to Human Resources at Albertsons Supermarket.
* Met with Engle sales team with options of temporary housing for new home buyers.
* Dropped off cookie basket and brochures and price sheets at Marriot Inn.
* Dropped off doughnuts and brochures to John Elway Dodge.
* Took lunch and flyers to First Data Corporation.
* Took cookie and candy bag to Burt Chevrolet with brochures.
* Took cookie and candy bag to 1st Bank with brochures.
OVERVIEW OF COMPARABLE PROPERTIES:
The surrounding comps are still offering discounted rents on selected units.
This translates into one bedroom effective rents of $625, two bedrooms at $784 and three bedrooms starting at $1025.
Look and leases are being locked in with $500.00 off move in as well as prorating concessions on a 12 to 13 month lease with some of our competitors.

RESIDENT RETENTION:
We had 10 leases expiring in the month of January. Two are moving due to buying and/or renting houses,
1 is moving due to relocating, 1 is going closer to work, 1 are going MTM and 1 skipped.
Overall our 4 renewals had an average increase of $56.25 per renewal.

INCIDENTS ON THE PROPERTY:
3201 slipped in the parking lot/ major snow fall throughout the property.
Compactor sent to shop for repairs.
Compactor door was damaged due to driver backing into door.
Sidewalks lifting and cracking due to thawing and freezing cycles.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 12 REFRIGERATORS 0
COMPLETE PAINTS 5 DISHWASHERS 0
TOUCH UPS 7 HEAT EXCHANGE 1 2305
WORK ORDERS 105 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 23 23 WATER HEATERS 0
Electrical 0 10 10 ICE MAKERS 0
Punch 0 12 12 GARBAGE DISPOSALS 0
HVAC 0 5 5 MICROWAVES 0
Plumbing 0 30 30 CARPETS 4 6312, 9302, 10202, 7211.
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 25 25 TOILETS 0
Safety 0 0 0 A/C FAN MOTORS 0
Total 0 105 105 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 1 15202
7109-3, 2304-2, 7112-2, 4202-2,
PLUMBING LEAKS 0 BLINDS 14 2304-1, 6312-3, 7205-1.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A

PROBLEM AREAS NEEDING ATTENTION:
Side walks and gates that are lifting due to thawing and freezing cycles.

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:
Replaced heat exchange in apt 2305.
Removed lots of snow and are still in the process of removing ice that has built up.
Courtney Downs
RENTAL SCHEDULE
January 2007

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 28,160 725 1.03 $29,000 $348,000 0.00 725.00 0.00 $- 4 1 8 3 8
A1V 1BR 32 704 22,528 725 1.22 $27,520 $330,240 0.00 55.00 0.00 $- 0 0 1 0 1
A2 1BR 18 910 16,380 850 1.03 $15,300 $183,600 0.00 850.00 0.00 $- 2 0 1 1 3
B1 2BR 24 808 19,392 750 1.11 $18,000 $216,000 0.00 750.00 0.00 $- 0 0 4 1 3
B1V 2BR 32 808 25,856 750 1.14 $24,000 $288,000 0.00 750.00 0.00 $- 0 0 0 0 0
C 2BR 42 977 41,034 875 1.16 $36,750 $441,000 0.00 875.00 0.00 $- 12 1 5 0 17
C1 2BR 44 1,030 45,320 900 1.12 $39,600 $475,200 0.00 900.00 0.00 $- 1 0 2 1 2
C1V 2BR 22 1,030 22,660 900 1.15 $19,800 $237,600 0.00 900.00 0.00 $- 0 0 0 0 0
CV 2BR 24 977 23,448 875 1.18 $21,000 $252,000 0.00 875.00 0.00 $- 0 0 0 0 0
D 2BR 16 1,030 16,480 925 0.90 $14,800 $177,600 0.00 925.00 0.00 $- 3 0 0 0 3
DV 2BR 20 1,030 20,600 925 0.90 $18,500 $222,000 0.00 925.00 0.00 $- 0 0 0 0 0
E 3BR 24 1,140 27,360 1150 1.01 $27,600 $331,200 0.00 1,150.00 0.00 $- 5 1 1 1 4
EV 3BR 4 1,140 4,560 1150 1.01 $4,600 $55,200 0.00 1,150.00 0.00 $- 0 0 0 0 0

TOTAL 342 917 313,778 $867 $0.94 $296,470 $3,557,640 $- $833 0.00 $- 27 3 22 7 41
* Net of Concessions
MARKET SURVEY
Courtney Downs
January-07

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 $30.00 $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 300-600 150-300 $100 300-500 400-500 300
Sec. Deposit 150 275-325 300 100 99 100-200 100
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
January-07
(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) 725 704 1.03 675 779 0.87 680 627 1.08 624 685 0.91 720 768 0.94 675 707 0.95 715 763 0.94
1B1B (B) 850 808 1.05 780 853 0.91 725 701 1.03 700 705 0.99 750 842 0.89
1B1B w/study 750 910 0.82 880 811 0.91 784 760 0.96
1B
1B
1B w/loft
1B1B w/study 860 956 0.90 784 1051 0.75
2B2B (E) 875 977 0.90 855 1105 0.77 955 1044 0.91 1014 1120 0.91 885 1115 0.79 859 1033 0.83 865 1037 0.83
2B2B (F) 900 1030 0.87 910 1192 0.76 1110 1196 0.93 965 1220 0.79 945 1093 0.86
2B2B (G) 925 1030 0.90 1265 1180 1.07
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,150 1140 1.01 1075 1398 0.77 1385 1330 1.04 1064 1230 0.87 1050 1356 0.77 1235 1235 1.00 1108 1257 0.88
3B2B

% occ /leased 90 91.52 95% 98 99 98% 0 0% 91.3 93 94% 95.0 98 93% 92.5 94 94% 95.0 97 96%
Avg PSF 1 0.94 0.82 0.99 0.90 0.84 0.91 0.88
Avg Rents 882 1114 994 808 874 1131 995
/ Avail)
Units(Total 342 41 507 22 653 216 21 312 17 360 22 0 168 22

Special: $350 Look and Lease. Special:waive security Special: $400.00 off 1st
As well as price matching up Special: Reduced pricing deposit and $150.00 gift month rent look and lease Special: $500 Look and Special: Discounts on all
Rates front only. for all floor plans. Sepcial: $500 Look and Lease card to any location. special. Lease. available rents.
reflect these rates:1 Bd $725 1 BD $675 to $735 $680 1/1 $860 2/2 $1385 3/2 1 Bd $624 to $784 1 Bd $650 to $880 1 Bd $675 to $784
specials: 2 Bd $875 2BD $855 to $1000 special was pulled off the internet
2 Bd $784 to $1014 2 Bd $895 to $920 2 Bd $859 to $945
3 Bd $1150 3BD $1075 due to property will not give info. 3 Bd $1110 to $1120 3 Bd $1235 none available.

Ren.: Keep all residents
4% under all new Ren: Info not avail per Ren: $40 increas for 12 Ren: Average $10 to $25 Ren: Free carpet cleaning
Ren: $25 to $50 increase. residents. corporate Ren:Per corporate month lease increase. with 12mo.