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USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Jul 2007

ASSETS

Cash
Operating Cash 78,975.33
Money Market 0.00
Total Cash $78,975.33

OTHER ASSETS
Accounts Receivable 8,412.78
Prepaid Expenses 28,164.80
Tax Escrow 112,236.66
Replacement Reserves 62,618.58
Capital / Repair Escrow 200,000.00
Total Other Assets 411,432.82

Total ASSETS 490,408.15

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 163,508.39
Other Accounts Payable 747,332.34
Accrued Taxes 198,802.26
Prepaid Rent 4,136.03
Security Deposits 43,742.63
Notes Payable 11,933.20
Total Liabilities 1,169,454.85

CAPITAL

Owners Equity 100.00
Retained Earnings (679,146.70)
Total Capital (679,046.70)

Total LIABILITIES & CAPITAL 490,408.15
Total LIABILITIES & CAPITAL 489,776.07
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 Actual Actual Actual Actual Actual Actual Budget Budget Budget Budget Budget Total Unit Sq. Ft. Reforecast Total Unit Sq. Ft.
342 313,778 342 313,778
Revenue
Gross Potential Rent 352,560 345,950 343,190 338,114 331,407 327,521 321,211 321,211 321,211 321,211 321,211 321,211 3,966,008 11,596.51 12.64 364,160 4,984,199 14,573.68 15.88
- Vacancy (34,193) (31,453) (33,657) (26,399) (19,217) (11,745) (8,517) (9,000) (11,745) (11,745) (11,745) (11,745) (221,160) (646.67) (0.70) (43,000) (288,297) (842.97) (0.92)
- Concessions & Disc. (77,240) (77,177) (74,811) (68,736) (56,781) (52,476) (45,332) (49,000) (46,476) (46,476) (46,476) (46,476) (687,457) (2,010.11) (2.19) (80,000) (862,422) (2,521.70) (2.75)
- Other Write-offs & Adj. (5,251) (7,154) (5,738) (5,449) (6,551) (6,386) (5,803) (6,386) (6,386) (6,386) (6,386) (6,386) (74,264) (217.15) (0.24) (6,085) (93,339) (272.92) (0.30)
Total Rental Income 235,876 230,165 228,984 237,529 248,858 256,914 261,560 256,825 256,604 256,604 256,604 256,604 2,983,126 8,722.59 9.51 235,075 3,740,141 10,936.08 11.92

Other Income 27,580 21,616 22,944 22,832 23,203 22,482 19,521 22,500 20,545 20,545 20,545 20,195 264,508 773.42 0.84 19,000 325,022 950.36 1.04
Total Revenue 263,457 251,781 251,928 260,361 272,061 279,396 281,081 279,325 277,149 277,149 277,149 276,799 3,247,635 9,496.01 10.35 254,075 4,065,163 11,886.44 12.96

Operating Expenses
Salary Expense 33,611 20,391 30,933 32,195 31,382 31,663 40,842 27,426 30,872 26,976 27,014 30,347 363,652 1,063.31 1.16 37,759 459,836 1,344.55 1.47
Operating Expense 2,710 2,821 2,230 3,652 3,228 3,040 5,519 3,845 3,725 3,725 3,725 3,665 41,885 122.47 0.13 3,030 52,428 153.30 0.17
Advertising Expense 6,159 5,921 9,117 4,298 6,292 4,400 4,564 8,192 7,393 6,993 6,993 6,394 76,717 224.32 0.24 6,885 97,214 284.25 0.31
Make Ready Expense 3,805 2,722 3,636 6,647 4,645 6,951 5,843 4,095 3,803 3,705 3,803 2,828 52,481 153.45 0.17 7,500 66,764 195.22 0.21
Maintenance Expense 2,027 1,541 2,485 2,639 1,612 1,405 3,289 2,425 2,425 15,095 2,425 2,425 39,794 116.36 0.13 2,295 47,055 137.59 0.15
Service Expense 6,403 10,329 1,917 3,299 5,923 4,883 3,010 3,085 5,585 5,585 6,385 1,835 58,239 170.29 0.19 2,395 69,025 201.83 0.22
Administrative Expense 15,368 15,798 15,451 15,440 14,701 16,179 18,825 17,122 17,235 17,209 17,247 17,301 197,877 578.59 0.63 14,969 247,974 725.07 0.79
Utility Expense 9,370 15,941 12,794 6,685 9,354 12,548 12,990 13,713 12,776 8,388 8,001 8,051 130,613 381.91 0.42 10,900 157,947 461.83 0.50
Taxes & Insurance 37,910 33,542 33,143 33,465 34,552 34,243 64,955 32,739 32,739 32,739 32,739 32,739 435,507 1,273.41 1.39 0 436,782 1,277.14 1.39
37,237 37,237 108.88 0.12
Total Operating Exp. 117,362 109,007 111,705 108,319 111,690 115,314 159,837 112,644 116,553 120,416 108,332 105,585 1,396,764 4,084.11 4.45
Net Operating Income 146,094 142,774 140,223 152,043 160,371 164,082 121,244 166,681 160,595 156,732 168,816 171,213 1,850,870 5,411.90 5.90 122,970 1,672,262 4,889.65 5.33
131,106 2,392,902 6,996.79 7.63
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
Partnership Expense 0 0 0 0 365 0 690 415 415 415 415 415 3,130 9.15 0.01 193,254 197,223 576.68 0.63
Capital Expense 1,601 4,113 10,791 8,376 13,906 2,091 4,426 4,900 4,900 4,900 4,900 4,900 69,804 204.11 0.22 0 79,808 233.36 0.25
3,300 3,300 9.65 0.01
Cash Flow Frm Operations (48,760) (54,592) (63,822) (49,586) (47,153) (31,262) (77,125) (31,887) (37,973) (41,836) (29,752) (27,355) (541,104) (1,582.18) (1.72)
(65,449) 2,112,570 6,177.11 6.73
Rental Guarantees 7,543 (3,489) 0 0 0 0 0 0 0 0 0 0 0
250,000 250,000
Balance Sheet Adjustments
Cash - Non Operating Accounts 0 0 4,562 4,374 2,739 0 46,036 0 0 0 0 0 57,711
Accounts Receivable (4,571) (717) 131,540 (134,406) 2,387 (1,420) 8,565 0 0 0 0 0 1,377 0 1,377
Prepaid Assets (7,749) 3,588 6,328 (4,460) 523 337 10,797 0 0 0 0 0 9,364 0 9,364
Escrow Deposits (30,394) (34,568) (34,568) (34,822) 322,388 (35,800) (35,800) (7,125) (7,125) (7,125) (7,125) (7,125) 80,811 0 66,561
(2,951) (2,951)
Cash Increase (Decreae) From Assets (42,714) (31,697) 107,861 (169,314) 328,037 (36,884) 29,597 (7,125) (7,125) (7,125) (7,125) (7,125) 149,262
(2,951) 74,350
Accounts Payable 36,334 64,458 (135,734) 185,452 117,385 41,375 118,141 0 0 0 0 0 427,410
Accrued Expenses 41,830 25,859 110,449 36,480 (411,342) 29,291 (51,145) 0 0 0 0 0 (218,579) 0 (218,579)
Other Payables (1,829) (1,300) (1,433) (4,374) (2,739) (793) (1,500) 0 0 0 0 0 (13,968) 0 (13,968)
Mortgages Payable 0 (11,458) (5,571) 15,448 1,581 0 12,262 0 0 0 0 0 12,262 0 12,262
0 0
Cash Increase (Decrease) From Liab. 76,334 77,559 (32,289) 233,006 (295,115) 69,872 77,757 0 0 0 0 0 207,124
0 (220,285)

NET CASH FLOW (7,597) (12,219) 11,751 14,106 (14,231) 1,726 30,229 (39,012) (45,098) (48,961) (36,877) (34,480) (184,718)
CUMM. NET CASH FLOW 47,614 35,395 47,146 61,251 47,020 48,746 78,975 39,963 (5,135) (54,096) (90,973) (125,453) 181,601 2,216,635
55210.94 181,601

$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

Row 59 Row 60

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 July 31, 2007

MTD MTD YTD YTD
Account Actual Budget $ Variance MTD Variance Comment Actual Budget
Revenue
Market Rent 294,410.00 350,465.00 (56,055.00) Variance due to concessions no longer 2,082,600.00 2,465,960.00
being offered, market rents changed to
reflect lower rents.
Loss / Gain to Lease 26,801.00 0.00 26,801.00 277,353.00 0.00
Gross Potential Rent 321,211.00 350,465.00 (29,254.00) Explained above. 2,359,953.00 2,465,960.00
Prepaid Homeowners Dues 0.00 0.00 0.00 0.00 0.00
Residential Rent 0.00 0.00 0.00 0.00 0.00
Vacancy Loss (8,516.51) (23,504.56) 14,988.05 Variance due to closing out at 97.95% (165,180.92) (190,014.81)
versus 9.39% budgeted.
Upfront Rent Concessions (3,229.50) (7,830.00) 4,600.50 Current specials offered are on our two (22,985.11) (43,065.00)
bedrooms only, with a look and lease
special of $350.00 off move in cost.

Corporate Discount 0.00 0.00 0.00 0.00 0.00
Delinquent Rent 0.00 0.00 0.00 0.00 0.00
Adjustments & W/O (882.10) (660.00) (222.10) (7,887.10) (4,463.04)
Model Units (1,980.00) (1,625.00) (355.00) (13,860.00) (11,375.00)
Courtesy Officer Apt. 0.00 0.00 0.00 0.00 0.00
Employee Apartment (1,780.80) (2,050.00) 269.20 (12,465.60) (14,350.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00
Guest Suite (1,160.00) (900.00) (260.00) (8,120.00) (6,300.00)
Lease Term Concessions (42,102.00) (50,557.22) 8,455.22 Concessions have been reduced to (429,567.37) (415,639.87)
meet the market needs and we have
been renewing leases with fewer
concessions.
Homeowner's Assn Dues Income 0.00 0.00 0.00 0.00 0.00
Homeowner Dues Paid 0.00 0.00 0.00 0.00 0.00
Model Units 0.00 0.00 0.00 0.00 0.00
Lease Contract Difference 0.00 0.00 0.00 0.00 0.00
Total Rental Income $261,560.09 $263,338.22 $(1,778.13) $1,699,886.90 $1,780,752.28

Laundry Income 0.00 0.00 0.00 0.00 0.00
Vending Income 0.00 68.00 (68.00) 0.00 476.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 1,484.89 1,650.00 (165.11) 10,401.73 11,550.00
Month to Month Premium 968.87 200.00 768.87 Had seven people go on month to 4,563.86 1,400.00
month versus budgeted for two.
Storage Fees 980.00 960.00 20.00 6,034.98 6,720.00
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00
Application Fees 1,770.00 1,150.00 620.00 Budgeted for 23 application fees and 10,260.00 6,400.00
actual was 35.
Termination Fees & Damages 1,350.00 1,000.00 350.00 5,034.76 7,000.00
Miscellaneous Income 793.19 1,160.00 (366.81) 4,706.92 8,120.00
Renters Insurance 0.00 0.00 0.00 0.00 0.00
Interest Income 0.00 0.00 0.00 3,488.53 0.00
Pet Rents & Fees 2,409.68 2,456.00 (46.32) 21,993.72 17,192.00
Tower Rent 0.00 0.00 0.00 0.00 0.00
Asset Management Fee 0.00 0.00 0.00 0.00 0.00
Parking Spaces Income 0.00 0.00 0.00 0.00 0.00
Homeowners Assessments 0.00 0.00 0.00 0.00 0.00
Garage Income 6,992.03 6,650.00 342.03 47,197.35 46,550.00
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income (3,026.34) 1,006.00 (4,032.34) Reversal of $4,560.80 on prior 4,564.46 7,042.00
comcast acc'l.
HOA Contributions Developer 0.00 0.00 0.00 0.00 0.00
Developer HOA Dues 0.00 0.00 0.00 0.00 0.00
Forfeited Deposits 196.58 90.00 106.58 2,393.65 630.00
Developer Contributions 0.00 0.00 0.00 0.00 0.00
Interest Income Other 0.00 0.00 0.00 0.00 0.00
Thunder Income 0.00 0.00 0.00 0.00 0.00
Administration Fee 3,000.00 4,000.00 (1,000.00) 27 Administrations fees budgeted for 21,300.00 21,400.00
and actual collected were 20.
Move-Out Charges 1,728.85 5,550.00 (3,821.15) Variance due to apartments being left 16,067.90 32,190.00
in better condition and resulting in
fewer charges.
Short Term Lease Fees 872.79 300.00 572.79 Variance due to three short term fees 2,170.23 2,550.00
budgeted for and actual collected was
eight.
Extra-Ordinary Income 0.00 0.00 0.00 0.00 0.00
Corporate Rent 0.00 425.00 (425.00) 0.00 2,975.00
Corporate Units - expense 0.00 (1,750.00) 1,750.00 All charges being booked under guest 0.00 (12,250.00)
suite expense.
Deferred Revenue 0.00 0.00 0.00 0.00 0.00
HOA Developer Contributions 0.00 0.00 0.00 0.00 0.00
Acquisition Fees 0.00 0.00 0.00 0.00 0.00
Income - Rental 0.00 0.00 0.00 0.00 0.00
Income - C.A.M. 0.00 0.00 0.00 0.00 0.00
Income - Insurance 0.00 0.00 0.00 0.00 0.00
Income - Taxes 0.00 0.00 0.00 0.00 0.00
Income - Interest 0.00 0.00 0.00 0.00 0.00
Income - Other 0.00 0.00 0.00 0.00 0.00
Income - Condo Sales 0.00 0.00 0.00 0.00 0.00
Total Other Income 19,520.54 24,915.00 (5,394.46) Explained above. 160,178.09 159,945.00
Total Revenue $281,080.63 $288,253.22 $(7,172.59) Explained above. $1,860,064.99 $1,940,697.28

Expense
Managers Salary 16,617.94 12,613.82 (4,004.12) Variance includes final payroll and 82,691.31 84,692.78
vacation payout through end of July.
Salaries 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 15,589.27 11,784.65 (3,804.62) Variance includes final payroll and 92,817.25 79,125.53
vacation payout through end of July.
Salary - Administrative 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 6,488.06 2,850.00 (3,638.06) Variance includes final commissions 31,233.51 22,273.18
paid out for June and July.
Payroll Taxes 0.00 0.00 0.00 0.00 0.00
Group Insurance 1,140.00 778.00 (362.00) 10,877.50 5,446.00
Disability Insurance 0.00 0.00 0.00 0.00 0.00
401k Match 0.00 0.00 0.00 0.00 0.00
Contract Labor 1,006.25 0.00 (1,006.25) Variance due to temporary office help 3,396.75 0.00
to replace Shannon.
Workers Comp 0.00 0.00 0.00 0.00 0.00
Total Salary Expense 40,841.52 28,026.47 (12,815.05) Explained above. 221,016.32 191,537.49

Office Operations & Supplies 1,646.52 1,000.00 (646.52) Variance due to 6/07 wire charges and 4,796.60 7,000.00
bank fees as well as July's global
charges.
Telephones 593.39 1,100.00 506.61 Variance includes reversal of prior 4,990.35 7,700.00
acc'ls/LB.
Answering Svc. & Pagers 138.00 100.00 (38.00) 597.66 700.00
Postage & Delivery 469.12 170.00 (299.12) 1,610.69 1,190.00
Patrol Services 0.00 0.00 0.00 0.00 0.00
Membership Dues 0.00 0.00 0.00 0.00 0.00
Publications & Subscriptions 897.82 90.00 (807.82) Variance includes 7/1 to 6/08 897.82 630.00
apartment association membership
dues.
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00
Employee Training 479.04 115.00 (364.04) Variance is due to reimbursment of 3,017.93 805.00
Lynn expenses and airfare for
managers retreat.
Furniture Rental 0.00 0.00 0.00 0.00 0.00
Car Expenses 0.00 25.00 25.00 385.44 175.00
Permits & Fees 0.00 25.00 25.00 0.00 175.00
Credit Checks 645.50 690.00 44.50 2,993.00 3,840.00
Guest Suite Expense 649.39 650.00 0.61 3,910.77 4,550.00
Parking Cost 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 5,518.78 3,965.00 (1,553.78) Explained above. 23,200.26 26,765.00

Advertising & Promotions 3,402.07 2,600.00 (802.07) Variance due to buying of marketing 24,566.96 23,500.00
materials and purschasing of direct
mailers.
Resident Promotions 337.05 798.00 460.95 2,729.20 5,586.00
Locators 825.00 2,892.40 2,067.40 Variance due to seven locators 8,854.52 15,474.34
budgeted for and two actual used.
Resident Referrals 0.00 3,100.00 3,100.00 Six referrals budgeted for and zero 4,600.00 16,585.00
were used.
Total Advertising Expense 4,564.12 9,390.40 4,826.28 Explained above. 40,750.68 61,145.34

Paint & Drywall 195.05 900.00 704.95 1,482.45 4,770.00
Contract Cleaning Svcs. 3,565.00 250.00 (3,315.00) Variance due to budget error. 19,150.00 1,750.00
Carpet Cleaning & Repairs 1,618.00 3,000.00 1,382.00 Variance due to 14 actual cleans and 10,923.00 15,900.00
budgeted for was 25.
Window Coverings 158.39 100.00 (58.39) 1,548.23 700.00
Vinyl & Tile Repairs 0.00 0.00 0.00 0.00 0.00
Lock & Keys 0.00 50.00 50.00 364.31 350.00
Counter & Tub Resurfacing 0.00 416.67 416.67 75.00 2,916.69
Other Redecorating 0.00 25.00 25.00 0.00 175.00
Cleaning Supplies 306.35 133.33 (173.02) 705.11 933.31
Total Make Ready Expense 5,842.79 4,875.00 (967.79) Explained above. 34,248.10 27,495.00

General Maintenance & Supplies 710.67 700.00 (10.67) 4,551.81 4,900.00
HVAC Parts & Repairs 105.99 100.00 (5.99) 1,202.19 700.00
Plumbing Parts & Repairs 216.72 140.00 (76.72) 576.34 980.00
Electric Parts & Repairs 281.43 150.00 (131.43) 281.43 1,050.00
Roof & Gutter Repairs 0.00 0.00 0.00 270.00 0.00
Pools & Fountains 1,042.32 450.00 (592.32) Variance due to more pool filter's being 2,759.83 3,150.00
changed.
Gates & Entrances 0.00 0.00 0.00 0.00 0.00
Glass & Screens 366.81 160.00 (206.81) 1,183.91 1,120.00
Appliance Parts & Repairs 29.50 450.00 420.50 1,106.62 3,600.00
Hardware 317.64 75.00 (242.64) 467.51 525.00
Exterior Painting 0.00 25.00 25.00 355.34 175.00
Uniforms 0.00 0.00 0.00 45.40 1,000.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 218.22 175.00 (43.22) 2,198.40 1,225.00
Uninsured Losses 0.00 0.00 0.00 0.00 0.00
Locks & Keys 0.00 0.00 0.00 0.00 0.00
Bulbs & Ballasts 0.00 0.00 0.00 0.00 0.00
Total Maintenance Expense 3,289.30 2,425.00 (864.30) Explained above. 14,998.78 18,425.00

Landscape & Grounds 2,654.83 2,500.00 (154.83) 14,044.90 12,500.00
Trash Removal 354.92 510.00 155.08 4,882.46 3,570.00
Pest Control 0.00 75.24 75.24 465.26 526.68
Security Patrols 0.00 0.00 0.00 0.00 0.00
Window Cleaning Svc. 0.00 0.00 0.00 0.00 0.00
Interior Cleaning Svc. 0.00 0.00 0.00 0.00 0.00
Cable Television 0.00 0.00 0.00 0.00 0.00
Snow Removal 0.00 0.00 0.00 16,370.42 3,800.00
Total Service Expense 3,009.75 3,085.24 75.49 35,763.04 20,396.68

Expenses - CAM - Electric 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Water/Sewer 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Gas 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Grounds 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Trash Removal 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Cleaning Svcs 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Maintenance 0.00 0.00 0.00 0.00 0.00
Expenses - CAM - Insurance 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
Total CAM Expense 0.00 0.00 0.00 N/A 0.00 0.00

Management Fees 11,825.59 11,530.13 (295.46) 77,256.79 77,627.89
Asset Management Fees 1,000.00 1,000.00 0.00 7,000.00 7,000.00
Investor Administration Fee 3,250.00 3,300.00 50.00 22,750.00 23,100.00
Legal Fees (204.00) 1,300.00 1,504.00 Six evictions filed and all cost 1,509.40 9,100.00
recouped from residents.
Accounting Fees 0.00 0.00 0.00 0.00 0.00
Postage & Delivery 0.00 0.00 0.00 0.00 0.00
Bank Charges 0.00 9.58 9.58 0.00 67.06
Partnership Insurance 0.00 0.00 0.00 0.00 0.00
Other Administrative Expenses 0.00 0.00 0.00 0.00 0.00
Travel Expense 403.37 0.00 (403.37) Reimb of Deb Parker visit. 572.67 0.00
Employee Activities 0.00 0.00 0.00 123.71 0.00
Printing 0.00 0.00 0.00 0.00 0.00
Computer Consulting 0.00 0.00 0.00 0.00 0.00
Computer Expense 2,550.30 2,500.00 (50.30) 2,550.30 5,124.00
Bank Charges 0.00 0.00 0.00 0.00 0.00
Development Cost 0.00 0.00 0.00 0.00 0.00
Total Admin. Expense 18,825.26 19,639.71 814.45 Explained above. 111,762.87 122,018.95

Electricity 3,270.68 3,340.00 69.32 19,466.07 23,380.00
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00
Natural Gas 754.92 2,565.00 1,810.08 Includes a $1,814.22 reversal of prior 14,742.56 17,955.00
acc'ls/LB.
Water & Sewer 9,726.13 8,965.00 (761.13) Includes a $1,274.75 reversal of prior 96,052.08 62,755.00
acc'ls/LB.
Water & Sewer - Resident Reimb (5,631.70) (6,275.50) (643.80) Includes a $16,553.43 reversal of prior (58,529.17) (43,928.50)
acc'ls/LB.
Water - irrigation 5,765.63 6,000.00 234.37 11,823.42 12,000.00
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (1,972.60) (2,011.00) (38.40) (16,503.97) (14,077.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 910.84 677.94 (232.90) 8,071.89 5,480.58
Utility - Vacant Gas 165.80 451.96 286.16 4,560.35 3,653.72
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 12,989.70 13,713.40 723.70 Explained above. 79,683.23 67,218.80

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

Property Taxes 28,800.00 27,616.50 (1,183.50) Variance due to $28,800 accrue 198,802.26 193,315.50
property taxes.
Franchise Tax 0.00 0.00 0.00 0.00 0.00
Insurance 36,155.35 5,073.00 (31,082.35) Variance includes $30,522.40 w/o ins 72,407.66 35,511.00
penalty from 2006 as well as
$5,632.95 Insurance amort incld pull
out.
Tax Consultants 0.00 49.88 49.88 600.00 349.16
MIP 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 64,955.35 32,739.38 (32,215.97) 271,809.92 229,175.66
Total Operating Expenses 159,836.57 117,859.60 (41,976.97) 833,233.20 764,177.92
NET OPERATING INCOME 121,244.06 170,393.62 (49,149.56) Explained above. 1,026,831.79 1,176,519.36

Base Rent - Interest Payment 106,586.67 106,586.67 0.00 746,106.69 746,106.69
Base Rent - Principal Payment 0.00 0.00 0.00 0.00 0.00
Stated Rent 86,666.71 86,666.67 (0.04) 606,666.97 606,666.69
Office Rent 0.00 0.00 0.00 0.00 0.00
Total Rent Expense 193,253.38 193,253.34 (0.04) 1,352,773.66 1,352,773.38

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

Partnership Legal Fees 0.00 170.00 170.00 0.00 1,190.00
Partnership Accounting Fees 0.00 170.00 170.00 365.00 1,190.00
Partnership Travel 282.40 75.00 (207.40) 282.40 525.00
Partnership - Meals 407.41 0.00 (407.41) 407.41 0.00
Partnership Fees - Other 0.00 0.00 0.00 0.00 0.00
Partnership Expense 0.00 0.00 0.00 0.00 0.00
Due Diligence Cost 0.00 0.00 0.00 0.00 0.00
Dead Deal Cost 0.00 0.00 0.00 0.00 0.00
Partnership Exp- Leaseup Costs 0.00 0.00 0.00 0.00 0.00
Total Partnership Expense 689.81 415.00 (274.81) 1,054.81 2,905.00

Exterior Rehab 0.00 0.00 0.00 0.00 18,946.00
Interior Rehab 0.00 0.00 0.00 0.00 3,250.00
HVAC Replacement 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 4,425.80 4,900.00 474.20 38,856.83 34,300.00
Refrigerators 0.00 0.00 0.00 585.06 600.00
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 0.00 0.00 0.00 0.00 0.00
Fire Alarm Replacement 0.00 0.00 0.00 0.00 0.00
Other Capital Improvements 0.00 0.00 0.00 5,862.26 3,713.00
Boiler Replacement 0.00 0.00 0.00 0.00 0.00
Roof Replacement 0.00 0.00 0.00 0.00 0.00
Total Capital Expenses 4,425.80 4,900.00 474.20 45,304.15 60,809.00
Casualty Losses 0.00 0.00 0.00 0.00 0.00
Casualty Recovery 0.00 0.00 0.00 0.00 0.00
Total Casualty Loss 0.00 0.00 0.00 0.00 0.00
NET INCOME (LOSS) (77,124.93) (28,174.72) (48,950.21) (372,300.83) (239,968.02)

Rental Guarantee 0.00 0.00 0.00 4,054.35 0.00
(77,124.93) (28,174.72) (48,950.21) (368,246.48) (239,968.02)
Annual
$ Variance Budget YTD Variance Comment

(383,360.00) 4,209,210.00

277,353.00 0.00
(106,007.00) 4,209,210.00
0.00 0.00
0.00 0.00
24,833.89 (325,479.64)

20,079.89 (59,160.00)

0.00 0.00
0.00 0.00
(3,424.06) (7,841.82)
(2,485.00) (19,500.00)
0.00 0.00
1,884.40 (24,600.00)
0.00 0.00
(1,820.00) (10,800.00)
(13,927.50) (632,942.99)

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
$(80,865.38) $3,128,885.55

0.00 0.00
(476.00) 816.00
0.00 0.00
(1,148.27) 19,800.00
3,163.86 2,400.00

(685.02) 11,520.00
0.00 0.00
3,860.00 10,250.00

(1,965.24) 12,000.00
(3,413.08) 13,920.00
0.00 0.00
3,488.53 0.00
4,801.72 29,472.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
647.35 79,800.00
0.00 0.00
(2,477.54) 12,072.00

0.00 0.00
0.00 0.00
1,763.65 1,080.00
0.00 0.00
0.00 0.00
0.00 0.00
(100.00) 33,800.00

(16,122.10) 48,840.00

(379.77) 3,600.00

0.00 0.00
(2,975.00) 5,100.00
12,250.00 (21,000.00)

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
233.09 263,470.00
$(80,632.29) $3,392,355.55

2,001.47 147,761.88

0.00 0.00
(13,691.72) 138,048.78

0.00 0.00
(8,960.33) 39,026.28

0.00 0.00
(5,431.50) 9,336.00
0.00 0.00
0.00 0.00
(3,396.75) 0.00

0.00 0.00
(29,478.83) 334,172.94

2,203.40 12,000.00

2,709.65 13,200.00

102.34 1,200.00
(420.69) 2,040.00
0.00 0.00
0.00 0.00
(267.82) 1,080.00

0.00 0.00
(2,212.93) 1,380.00

0.00 0.00
(210.44) 300.00
175.00 300.00
847.00 6,150.00
639.23 7,800.00
0.00 0.00
3,564.74 45,450.00

(1,066.96) 36,900.00

2,856.80 9,576.00
6,619.82 24,440.78

11,985.00 26,195.00

20,394.66 97,111.78

3,287.55 7,852.50
(17,400.00) 3,000.00
4,977.00 26,175.00

(848.23) 1,200.00
0.00 0.00
(14.31) 600.00
2,841.69 5,000.04
175.00 300.00
228.20 1,599.96
(6,753.10) 45,727.50

348.19 8,400.00
(502.19) 1,200.00
403.66 5,055.00
768.57 1,800.00
(270.00) 0.00
390.17 5,400.00

0.00 0.00
(63.91) 1,920.00
2,493.38 5,850.00
57.49 900.00
(180.34) 300.00
954.60 2,000.00
0.00 0.00
(973.40) 10,395.00
0.00 0.00
0.00 0.00
0.00 0.00
3,426.22 43,220.00

(1,544.90) 30,000.00
(1,312.46) 6,120.00
61.42 902.88
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
(12,570.42) 5,850.00
(15,366.36) 42,872.88

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

371.10 135,694.22
0.00 12,000.00
350.00 39,600.00
7,590.60 15,600.00

0.00 0.00
0.00 0.00
67.06 114.96
0.00 0.00
0.00 0.00
(572.67) 0.00
(123.71) 0.00
0.00 0.00
0.00 0.00
2,573.70 5,124.00
0.00 0.00
0.00 0.00
10,256.08 208,133.18

3,913.93 40,080.00
0.00 0.00
3,212.44 30,780.00

(33,297.08) 107,580.00

14,600.67 (75,306.00)

176.58 23,500.00
0.00 0.00
2,426.97 (24,132.00)
0.00 0.00
(2,591.31) 9,387.78
(906.63) 6,258.52
0.00 0.00
(12,464.43) 118,148.30

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

(5,486.76) 331,398.00

0.00 0.00
(36,896.66) 60,876.00

(250.84) 598.56
0.00 0.00
(42,634.26) 392,872.56
(69,055.28) 1,327,709.14
(149,687.57) 2,064,646.41

0.00 1,279,040.04
0.00 0.00
(0.28) 1,040,000.04
0.00 0.00
(0.28) 2,319,040.08

0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00

1,190.00 2,040.00
825.00 2,040.00
242.60 900.00
(407.41) 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
1,850.19 4,980.00

18,946.00 18,946.00
3,250.00 3,250.00
0.00 0.00
(4,556.83) 58,800.00
14.94 600.00
0.00 0.00
0.00 0.00
0.00 0.00
(2,149.26) 3,713.00
0.00 0.00
0.00 0.00
15,504.85 85,309.00
0.00 0.00
0.00 0.00
0.00 0.00
(132,332.81) (344,682.67)

4,054.35 0.00
(128,278.46) (344,682.67)
Courtney Downs Apartments
Jul-07
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 24 INCOME THIS MONTH: $281,080.63
NUMBER OF MOVE OUTS: 19 INCOME LAST MONTH: $279,395.82
NET FOR THE MONTH: 5 DIFFERENCE: $1,684.81

TOTAL # GARAGES 120
# GARAGES OCCUPIED 115
OCCUPIED/LEASED %: 97.9%, 98.5% GARAGES OCCUPIED % 96%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 4
APARTMENT GUIDE 4 1 * Too expensive. 0
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 11
OTHER. NET 4 0 * Just started looking. 0
BLUE BOOK 15 8 * Waiting for Home to Sell 6
RENT.NET 7 0 * Current Lease to Expire 9
LIVES IN AREA 32 6 * Needs Ground Floor 14
RESIDENT REFERRAL 8 1 * Moved Elsewhere 5
LOCATORS 10 1 * Will return with roommate or spouse 18
RENT.COM 0 0 * Realtor Looking for Client 0
WALK-IN 8 1 * Undecided 4
SIGNAGE 5 0 * Employment pending 2
WORD OF MOUTH 0 0 * House sale pending 2
* Rented at Competitor 0
TOTALS 93 18 TOTALS 75

CLOSING RATIO: 33%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Took brochures to Regal Entertainment for preferred employer program.
* Took flyers and brochures to Sky Ridge Human Resources for new employees to the area.
* Took flyers to Parker Adventist Hospital.
* Took locators lunch and new prices for the month.
* Updated all internet ads with new pricing and specials for the month of April .
* Brochures and lunch were taken to Direct TV Human Resources.
* Met with Metro Brokers sales team with options of temporary housing for new home buyers.
* Dropped off cookie basket and brochures to Nextel.
* Dropped off doughnuts and brochures to Marriott extended stay hotels.
* Took cookie and candy bag with flyer's to Ryland Homes team.
* Took cookie bag and brochures to Ford dealership.
* Took cookie and candy bag to Richmond homes.
OVERVIEW OF COMPARABLE PROPERTIES:
The surrounding comps are still offering discounted rents on selected units.
This translates into one bedroom effective rents of $710, two bedrooms at $825and three bedrooms starting at $900.
Look and leases are being locked in with $250 to $500 off 1st rent on a 12 to 13 month lease.

RESIDENT RETENTION:
We had 33 leases expiring in the month of July. Nine are moving due to purchasing a home and/or condo,
six are moving due to relocating, three is loosing their roommate, three due to price increase, one is moving closer to work.
Overall we had 11 renewals with an average increase of $30.09 per renewal.

INCIDENTS ON THE PROPERTY:
N/A
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 16 REFRIGERATORS 0
COMPLETE PAINTS 9 DISHWASHERS 0
TOUCH UPS 7 WINDOWS 0
WORK ORDERS 160 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 32 32 WATER HEATERS 0
Electrical 0 21 21 ICE MAKERS 0
Punch 0 16 16 GARBAGE DISPOSALS 0
HVAC 0 28 28 MICROWAVES 0
Plumbing 0 52 52 CARPETS 4 9308, 7105, 9204, 10309.
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 11 11 TOILETS 0
Safety 0 0 0 A/C FAN MOTORS 0
Total 0 160 160 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
16105-2, 19309-1, 12302-1, 10208-
1, 10207-2, 4307-1, 4305-1, 19209-
2, 7110-1, 12212-1, 4203-2, 7105-
PLUMBING LEAKS 0 BLINDS 17 2.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A

PROBLEM AREAS NEEDING ATTENTION:
Working with landscaping company to fix watering timing.

CURRENT STAFF:

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

ACCOMPLISHMENTS FOR THE MONTH:
Filled cracks in the parking lot areas.
Repaired landings in Building two and six.
Reseeded pet kill areas.
Courtney Downs
RENTAL SCHEDULE
July

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 $- 1 1 5 0 3
A1V 1BR 32 704 22,528 725 1.22 $27,520 $330,240 0.00 55.00 0.00 0 0 0 0 0
A2 1BR 18 910 16,380 850 1.03 $15,300 $183,600 0.00 850.00 0.00 $- 0 0 2 0 2
B1 2BR 24 808 19,392 750 1.11 $18,000 $216,000 0.00 750.00 0.00 $- 0 0 6 0 4
B1V 2BR 32 808 25,856 760 1.14 $24,320 $291,840 0.00 760.00 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 $- 1 0 5 2 3
C1 2BR 44 1,030 45,320 900 1.12 $39,600 $475,200 0.00 900.00 0.00 $- 3 2 7 4 3
C1V 2BR 22 1,030 22,660 925 1.15 $20,350 $244,200 0.00 925.00 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 $- 0 0 4 1 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 1160 1.02 $27,840 $334,080 0.00 1,160.00 0.00 $- 0 0 7 2 5
EV 3BR 4 1,140 4,560 1160 1.02 $4,640 $55,680 0.00 1,160.00 0.00 $- 0 0 0 0 0

TOTAL 342 917 313,778 $870 $0.95 $297,620 $3,571,440 $- $837 0.00 $- 5 3 36 9 23
* Net of Concessions
MARKET SURVEY
Courtney Downs
July-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 303-805-7200 303-680-6696
Location Englewood, Co Aurora, Co Englewood, Co 80112 Centennial, Co Englewood, Co 80112 Parker, Co 80134 Englewood, Co 80112
# of units 342 507 653 216 312 360 168
Age of Property 5 5 7 4 6 6 6
Application Fee $50.00 $35.00 $40.00 $35.00 $40.00 $35.00 $40.00
Credit Card yes yes yes no yes no 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 $300 $100.00 $200-300 100
W/D included Yes yes Only In Select Units Only Select Units no yes no
Covered Parking no yes yes yes no no no
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
July-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 1.03 710 779 0.91 680 627 1.08 713 685 1.04 720 768 0.94 690 707 0.98 689 763 0.90
1B1B (B) 850 808 1.05 900 853 1.06 740 701 1.06 688 705 1.02 730 842 0.87 708 796 729 763 1.05
1B1B w/study 750 910 0.82 840 811 0.91 739 760 1.03 895 992 1040 916
1B
1B
1B w/loft
1B1B w/study 820 956 0.86 900 1051 0.86
2B2B (E) 875 977 0.90 950 1105 0.86 920 1044 0.88 975 1120 0.87 885 1115 0.79 900 1033 0.87 813 1037 0.78
2B2B (F) 900 1030 0.87 1015 1192 0.85 1060 1196 0.89 970 1220 0.80 965 1093 0.88 840 1037 1.23
2B2B (G) 925 1030 0.90 1090 1180 0.92
2B2B (H)
2B2B
2B w/study
2B2B TH
2B2B TH
3B2B 1,160 1140 1.02 1270 1398 0.91 1320 1330 0.99 1100 1230 0.89 1100 1356 0.81 1290 1235 1.04 897 1257 0.71
3B2B 1340 1398 0.91 1305 1235 1.04 1134 1257 1.10

% occ /leased 98 98.50% 91% 96.1 99.6 98% 0 0% 93.4 94.00% 94% 95.0 90 93% 93.9 94 94% 95.0 97 98%
Avg PSF 1 0.94 0.92 0.95 0.95 0.84 0.96 0.96
Avg Rents 884 1114 994 808 883 1131 995
/ Avail)
Units(Total 342 5 507 18 653 216 14 312 7 360 25 0 168 4

Special: look and lease
special $150 security deposit
waived and $350 off first Special: $400.00 off 1st
months rent only on Special: Reduced pricing Will not give out any Special:waive security month rent look and lease Special: All of August free, Special: $150 off the 1st
Rates steepelchases and arlingtons. for all floor plans. information. deposit. special. Look and Lease. months rent.
reflect these rates:
specials:

Ren.: 11% increase on all Ren: Info not avail per Ren: $15 to $30 increas Ren: Average $10 to $25 Ren: Free carpet cleaning
Ren: $35 to $50 increase. renewals. corporate Ren:Per corporate for 12 month lease increase. with 12mo.