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USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Jun 2007

ASSETS

Cash
Operating Cash 48,745.87
Money Market 0.00
Security Deposits 46,036.00
Total Cash $94,781.87

OTHER ASSETS
Accounts Receivable 16,977.96
Prepaid Expenses 38,961.44
Tax Escrow 83,561.22
Replacement Reserves 55,493.58
Capital / Repair Escrow 200,000.00
Total Other Assets 394,994.20

Total ASSETS 489,776.07

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 50,974.93
Other Accounts Payable 817,580.40
Accrued Taxes 170,002.26
Prepaid Rent 8,226.01
Security Deposits 45,242.63
Notes Payable (328.39)
Total Liabilities 1,091,697.84

CAPITAL

Owners Equity 100.00
Retained Earnings (602,021.77)
Total Capital (601,921.77)

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 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 352,560 345,950 343,190 338,114 331,407 327,521 350,465 349,860 349,255 348,650 348,045 347,440 4,132,457 12,083.21 13.17 364,160 5,204,198 15,216.95 16.59
- Vacancy (34,193) (31,453) (33,657) (26,399) (19,217) (11,745) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (246,664) (721.24) (0.79) (43,000) (320,386) (936.80) (1.02)
- Concessions & Disc. (77,240) (77,177) (74,811) (68,736) (56,781) (52,476) (58,387) (54,989) (49,108) (46,826) (42,919) (39,555) (699,006) (2,043.88) (2.23) (80,000) (863,527) (2,524.93) (2.75)
- Other Write-offs & Adj. (5,251) (7,154) (5,738) (5,449) (6,551) (6,386) (5,235) (5,242) (5,252) (5,250) (5,253) (5,257) (68,019) (198.88) (0.22) (6,085) (84,812) (247.99) (0.27)
Total Rental Income 235,876 230,165 228,984 237,529 248,858 256,914 271,843 274,629 279,895 281,573 284,873 287,628 3,118,768 9,119.20 9.94 235,075 3,935,473 11,507.23 12.54

Other Income 27,580 21,616 22,944 22,832 23,203 22,482 24,915 21,695 20,545 20,545 20,545 20,195 269,098 786.83 0.86 19,000 329,625 963.82 1.05
Total Revenue 263,457 251,781 251,928 260,361 272,061 279,396 296,758 296,324 300,440 302,118 305,418 307,823 3,387,865 9,906.04 10.80 254,075 4,265,098 12,471.05 13.59

Operating Expenses
Salary Expense 33,611 20,391 30,933 32,195 31,382 31,663 28,026 27,426 30,872 26,976 27,014 30,347 350,837 1,025.84 1.12 37,759 446,983 1,306.97 1.42
Operating Expense 2,710 2,821 2,230 3,652 3,228 3,040 3,965 3,845 3,725 3,725 3,725 3,665 40,331 117.93 0.13 3,030 50,870 148.74 0.16
Advertising Expense 6,159 5,921 9,117 4,298 6,292 4,400 9,390 8,192 7,393 6,993 6,993 6,394 81,543 238.43 0.26 6,885 102,055 298.41 0.33
Make Ready Expense 3,805 2,722 3,636 6,647 4,645 6,951 4,875 4,095 3,803 3,705 3,803 2,828 51,513 150.62 0.16 7,500 65,794 192.38 0.21
Maintenance Expense 2,027 1,541 2,485 2,639 1,612 1,405 2,425 2,425 2,425 15,095 2,425 2,425 38,929 113.83 0.12 2,295 46,188 135.05 0.15
Service Expense 6,403 10,329 1,917 3,299 5,923 4,883 3,085 3,085 5,585 5,585 6,385 1,835 58,315 170.51 0.19 2,395 69,101 202.05 0.22
Administrative Expense 15,368 15,798 15,451 15,440 14,701 16,179 19,640 17,122 17,235 17,209 17,247 17,301 198,692 580.97 0.63 14,969 248,791 727.46 0.79
Utility Expense 9,370 15,941 12,794 6,685 9,354 12,548 13,713 13,713 12,776 8,388 8,001 8,051 131,336 384.02 0.42 10,900 158,673 463.96 0.51
Taxes & Insurance 37,910 33,542 33,143 33,465 34,552 34,243 32,739 32,739 32,739 32,739 32,739 32,739 403,291 1,179.21 1.29 0 404,471 1,182.66 1.29
37,237 37,237 108.88 0.12
Total Operating Exp. 117,362 109,007 111,705 108,319 111,690 115,314 117,860 112,644 116,553 120,416 108,332 105,585 1,354,787 3,961.37 4.32
Net Operating Income 146,094 142,774 140,223 152,043 160,371 164,082 178,898 183,680 183,887 181,702 197,086 202,237 2,033,078 5,944.67 6.48 122,970 1,630,162 4,766.55 5.20
131,106 2,634,936 7,704.49 8.40
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 2,855 8.35 0.01
Partnership Expense 0 0 0 0 365 0 415 415 415 415 415 415 70,278 205.49 0.22 193,254 264,568 773.59 0.84
Capital Expense 1,601 4,113 10,791 8,376 13,906 2,091 4,900 4,900 4,900 4,900 4,900 4,900 0 0.00 0.00 0 9,800 28.65 0.03
3,300 3,300 9.65 0.01
Cash Flow Frm Operations (48,760) (54,592) (63,822) (49,586) (47,153) (31,262) (19,670) (14,888) (14,681) (16,867) (1,483) 3,669 1,959,944 5,730.83 6.25
(65,449) 2,357,268 6,892.60 7.51
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 0 0 0 0 0 0 (7,189)
Accounts Receivable (4,571) (717) 131,540 (134,406) 2,387 (1,420) 0 0 0 0 0 0 (1,433) 0 (1,433)
Prepaid Assets (7,749) 3,588 6,328 (4,460) 523 337 0 0 0 0 0 0 109,486 0 109,486
Escrow Deposits (30,394) (34,568) (34,568) (34,822) 322,388 (35,800) (7,125) (7,125) (7,125) (7,125) (7,125) (7,125) 0 0 (14,250)
(2,951) (2,951)
Cash Increase (Decreae) From Assets (42,714) (31,697) 107,861 (169,314) 328,037 (36,884) (7,125) (7,125) (7,125) (7,125) (7,125) (7,125) 100,865
(2,951) 90,852
Accounts Payable 36,334 64,458 (135,734) 185,452 117,385 41,375 0 0 0 0 0 0 (167,434)
Accrued Expenses 41,830 25,859 110,449 36,480 (411,342) 29,291 0 0 0 0 0 0 (12,468) 0 (12,468)
Other Payables (1,829) (1,300) (1,433) (4,374) (2,739) (793) 0 0 0 0 0 0 0 0 0
Mortgages Payable 0 (11,458) (5,571) 15,448 1,581 0 0 0 0 0 0 0 0 0 0
0 0
Cash Increase (Decrease) From Liab. 76,334 77,559 (32,289) 233,006 (295,115) 69,872 0 0 0 0 0 0 (179,902)
0 (12,468)

NET CASH FLOW (7,597) (12,219) 11,751 14,106 (14,231) 1,726 (26,795) (22,013) (21,806) (23,992) (8,608) (3,456) 1,880,907
CUMM. NET CASH FLOW 47,614 35,395 47,146 61,251 47,020 48,746 21,951 (63) (21,869) (45,861) (54,468) (57,924) 181,601 2,685,652
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 June 30, 2007

MTD MTD YTD YTD Annual
Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget
Revenue
Market Rent 294,410.00 351,070.00 (56,660.00) Variance due to concessions no longer 1,788,190.00 2,115,495.00 (327,305.00) 4,209,210.00
being offered, market rents changed to
reflect lower rents.
Loss / Gain to Lease 33,111.00 0.00 33,111.00 Variance due to the changing the 250,552.00 0.00 250,552.00 0.00
budget to reflect lower market rents.
This will continue to reduce over time
as last years concessions deplete.
Gross Potential Rent 327,521.00 351,070.00 (23,549.00) 2,038,742.00 2,115,495.00 (76,753.00) 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 (11,744.84) (24,544.68) 12,799.84 Variance due to closing out at 96.78% (156,664.41) (166,510.25) 9,845.84 (325,479.64)
occupied versus budgeted at 93.10%.

Upfront Rent Concessions (3,004.46) (6,525.00) 3,520.54 Current specials are only offered on (19,755.61) (35,235.00) 15,479.39 (59,160.00)
our two bedrooms and only with a look
and lease do they receive $350 off first
months rent.
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 (1,465.51) (655.52) (809.99) Variance due to skips and damages (7,005.00) (3,803.04) (3,201.96) (7,841.82)
from #10208.
Model Units (1,980.00) (1,625.00) (355.00) Two model units. (11,880.00) (9,750.00) (2,130.00) (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 Two associates live on site. (10,684.80) (12,300.00) 1,615.20 (24,600.00)
Housekeeping & Maintenance Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Guest Suite (1,160.00) (900.00) (260.00) Maintain one guest suite. (6,960.00) (5,400.00) (1,560.00) (10,800.00)
Lease Term Concessions (49,471.67) (53,218.12) 3,746.45 We have been able to reduce the (387,465.37) (365,082.65) (22,382.72) (632,942.99)
amount of concessions given off each
month to meet market needs. We have
also been renewing leases with fewer
concessions.
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 $256,913.72 $261,551.68 $(4,637.96) $1,438,326.81 $1,517,414.06 $(79,087.25) $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) 0.00 408.00 (408.00) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 2,168.00 1,650.00 518.00 Variance due to more residents paying 8,916.84 9,900.00 (983.16) 19,800.00
on time resulting in fewer fees
charged.
Month to Month Premium 535.00 200.00 335.00 There are three month to month leases. 3,594.99 1,200.00 2,394.99 2,400.00

Storage Fees 931.67 960.00 (28.33) 5,054.98 5,760.00 (705.02) 11,520.00
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 1,630.00 1,050.00 580.00 Variance due to 21 app fees budgeted 8,490.00 5,250.00 3,240.00 10,250.00
for and actual collected were 32.

Termination Fees & Damages 0.00 1,000.00 (1,000.00) Residents not paying at the time of 3,684.76 6,000.00 (2,315.24) 12,000.00
move-out, however all residents are
being turned over to our collection
agency every month.
Miscellaneous Income 577.55 1,160.00 (582.45) Includes collection of utility transfer 3,913.73 6,960.00 (3,046.27) 13,920.00
fees and credit card fees.
Renters Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest Income 0.00 0.00 0.00 3,488.53 0.00 3,488.53 0.00
Pet Rents & Fees 2,486.33 2,456.00 30.33 19,584.04 14,736.00 4,848.04 29,472.00
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 6,727.57 6,650.00 77.57 40,205.32 39,900.00 305.32 79,800.00
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 1,903.80 1,006.00 897.80 Cable and telephone commission. 7,590.80 6,036.00 1,554.80 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 34.57 90.00 (55.43) 2,197.07 540.00 1,657.07 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 3,750.00 3,600.00 150.00 18,300.00 17,400.00 900.00 33,800.00
Move-Out Charges 1,212.61 5,550.00 (4,337.39) Variance due to apartments being left 14,339.05 26,640.00 (12,300.95) 48,840.00
in better condition resulting in fewer
fees charged.
Short Term Lease Fees 525.00 300.00 225.00 1,297.44 2,250.00 (952.56) 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) We do not have any corporate units at 0.00 2,550.00 (2,550.00) 5,100.00
this time.
Corporate Units - expense 0.00 (1,750.00) 1,750.00 0.00 (10,500.00) 10,500.00 (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 22,482.10 24,415.00 (1,932.90) 140,657.55 135,030.00 5,627.55 263,470.00

Total Revenue $279,395.82 $285,966.68 $(6,570.86) $1,578,984.36 $1,652,444.06 $(73,459.70) $3,392,355.55
Expense
Managers Salary 9,818.23 12,013.16 2,194.93 Includes 4 Day's P/R Acc'l and May's 66,073.37 72,078.96 6,005.59 147,761.88
Bonus.
Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 11,735.38 11,223.48 (511.90) Includes 4 Day's P/R Acc'l and May's 77,227.98 67,340.88 (9,887.10) 138,048.78
Bonus.
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 6,509.22 6,074.09 (435.13) Includes 4 Day's P/R Acc'l and May's 24,745.45 19,423.18 (5,322.27) 39,026.28
Bonus.
Payroll Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Group Insurance 1,596.00 778.00 (818.00) Includes 4 Day's P/R Acc'l and May's 9,737.50 4,668.00 (5,069.50) 9,336.00
Bonus.
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 2,003.75 0.00 (2,003.75) Variance is due to use of temporary 2,390.50 0.00 (2,390.50) 0.00
labor to cover open positions.
Workers Comp 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Salary Expense 31,662.58 30,088.73 (1,573.85) 180,174.80 163,511.02 (16,663.78) 334,172.94

Office Operations & Supplies 875.26 1,000.00 124.74 3,150.08 6,000.00 2,849.92 12,000.00
Telephones 740.67 1,100.00 359.33 4,396.96 6,600.00 2,203.04 13,200.00
Answering Svc. & Pagers (34.50) 100.00 134.50 459.66 600.00 140.34 1,200.00
Postage & Delivery 95.83 170.00 74.17 1,141.57 1,020.00 (121.57) 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 0.00 540.00 540.00 1,080.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 193.25 115.00 (78.25) 2,538.89 690.00 (1,848.89) 1,380.00
Furniture Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Car Expenses 0.00 25.00 25.00 385.44 150.00 (235.44) 300.00
Permits & Fees 0.00 25.00 25.00 0.00 150.00 150.00 300.00
Credit Checks 685.50 630.00 (55.50) 2,347.50 3,150.00 802.50 6,150.00
Guest Suite Expense 484.36 650.00 165.64 3,261.38 3,900.00 638.62 7,800.00
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 3,040.37 3,905.00 864.63 17,681.48 22,800.00 5,118.52 45,450.00

Advertising & Promotions 2,711.26 2,600.00 (111.26) 21,164.89 20,900.00 (264.89) 36,900.00
Resident Promotions 321.62 798.00 476.38 2,392.15 4,788.00 2,395.85 9,576.00
Locators 1,367.38 2,603.16 1,235.78 Three locator palcements. 8,029.52 12,581.94 4,552.42 24,440.78
Resident Referrals 0.00 2,790.00 2,790.00 No refferal fees paid this month. 4,600.00 13,485.00 8,885.00 26,195.00
Total Advertising Expense 4,400.26 8,791.16 4,390.90 36,186.56 51,754.94 15,568.38 97,111.78

Paint & Drywall 306.15 720.00 413.85 1,287.40 3,870.00 2,582.60 7,852.50
Contract Cleaning Svcs. 3,715.00 250.00 (3,465.00) Varaince due to budget error. 15,585.00 1,500.00 (14,085.00) 3,000.00
Carpet Cleaning & Repairs 2,576.00 2,400.00 (176.00) 9,305.00 12,900.00 3,595.00 26,175.00
Window Coverings 227.08 100.00 (127.08) 1,389.84 600.00 (789.84) 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 50.00 364.31 300.00 (64.31) 600.00
Counter & Tub Resurfacing 0.00 416.67 416.67 75.00 2,500.02 2,425.02 5,000.04
Other Redecorating 0.00 25.00 25.00 0.00 150.00 150.00 300.00
Cleaning Supplies 126.62 133.33 6.71 398.76 799.98 401.22 1,599.96
Total Make Ready Expense 6,950.85 4,095.00 (2,855.85) 28,405.31 22,620.00 (5,785.31) 45,727.50

General Maintenance & Supplies 899.68 700.00 (199.68) 3,841.14 4,200.00 358.86 8,400.00
HVAC Parts & Repairs 2.46 100.00 97.54 1,096.20 600.00 (496.20) 1,200.00
Plumbing Parts & Repairs 23.37 140.00 116.63 359.62 840.00 480.38 5,055.00
Electric Parts & Repairs 0.00 150.00 150.00 0.00 900.00 900.00 1,800.00
Roof & Gutter Repairs 0.00 0.00 0.00 270.00 0.00 (270.00) 0.00
Pools & Fountains 1,120.93 450.00 (670.93) Replaved the pool filters and ordered 1,717.51 2,700.00 982.49 5,400.00
supplies.
Gates & Entrances 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Glass & Screens 260.24 160.00 (100.24) 817.10 960.00 142.90 1,920.00
Appliance Parts & Repairs 0.00 450.00 450.00 1,077.12 3,150.00 2,072.88 5,850.00
Hardware 0.00 75.00 75.00 149.87 450.00 300.13 900.00
Exterior Painting 0.00 25.00 25.00 355.34 150.00 (205.34) 300.00
Uniforms (1,000.00) 0.00 1,000.00 Reflects reversal of prior month 45.40 1,000.00 954.60 2,000.00
accruals.
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 98.66 175.00 76.34 1,980.18 1,050.00 (930.18) 10,395.00
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 1,405.34 2,425.00 1,019.66 11,709.48 16,000.00 4,290.52 43,220.00

Landscape & Grounds 3,931.69 2,500.00 (1,431.69) Includes cost to install seasonal color 11,390.07 10,000.00 (1,390.07) 30,000.00
and repairs to the irrigation.
Trash Removal 886.50 510.00 (376.50) Includes past due invoice for March. 4,527.54 3,060.00 (1,467.54) 6,120.00
Pest Control 65.26 75.24 9.98 465.26 451.44 (13.82) 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 0.00 0.00 0.00 16,370.42 3,800.00 (12,570.42) 5,850.00
Total Service Expense 4,883.45 3,085.24 (1,798.21) 32,753.29 17,311.44 (15,441.85) 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 11,810.42 11,438.67 (371.75) Based on % of total revenue. 65,431.20 66,097.76 666.56 135,694.22
Asset Management Fees 1,000.00 1,000.00 0.00 6,000.00 6,000.00 0.00 12,000.00
Investor Administration Fee 3,250.00 3,300.00 50.00 19,500.00 19,800.00 300.00 39,600.00
Legal Fees 118.90 1,300.00 1,181.10 Expensed seven evictions this month. 1,713.40 7,800.00 6,086.60 15,600.00
Includes resident riembursements for
fees.
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 57.48 57.48 114.96
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 0.00 169.30 0.00 (169.30) 0.00
Employee Activities 0.00 0.00 0.00 123.71 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 2,624.00 2,624.00 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 16,179.32 17,048.25 868.93 92,937.61 102,379.24 9,441.63 208,133.18

Electricity 2,809.80 3,340.00 530.20 Less usuage than anticipated. 16,195.39 20,040.00 3,844.61 40,080.00
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 1,163.09 2,565.00 1,401.91 Less usuage than anticipated. 13,987.64 15,390.00 1,402.36 30,780.00
Water & Sewer 15,598.57 8,965.00 (6,633.57) Variance due to increase of water 86,325.95 53,790.00 (32,535.95) 107,580.00
charges when only budgeted for a 3%
increse.
Water & Sewer - Resident Reimb (11,859.85) (6,275.50) 5,584.35 Collected 76%. (52,897.47) (37,653.00) 15,244.47 (75,306.00)
Water - irrigation 5,765.85 5,000.00 (765.85) Variance due to increase of water 6,057.79 6,000.00 (57.79) 23,500.00
charges when only budgeted for a 3%
increse.
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,252.30) (2,011.00) 241.30 (14,531.37) (12,066.00) 2,465.37 (24,132.00)
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 904.54 707.94 (196.60) 7,161.05 4,802.64 (2,358.41) 9,387.78
Utility - Vacant Gas 418.76 471.96 53.20 4,394.55 3,201.76 (1,192.79) 6,258.52
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 12,548.46 12,763.40 214.94 66,693.53 53,505.40 (13,188.13) 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 28,333.71 27,616.50 (717.21) Based on anticipated taxes. 170,002.26 165,699.00 (4,303.26) 331,398.00
Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 5,909.18 5,073.00 (836.18) Includes monthly pollution policy. 36,252.31 30,438.00 (5,814.31) 60,876.00
Tax Consultants 0.00 49.88 49.88 600.00 299.28 (300.72) 598.56
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 34,242.89 32,739.38 (1,503.51) 206,854.57 196,436.28 (10,418.29) 392,872.56
Total Operating Expenses 115,313.52 114,941.16 (372.36) 673,396.63 646,318.32 (27,078.31) 1,327,709.14
NET OPERATING INCOME 164,082.30 171,025.52 (6,943.22) 905,587.73 1,006,125.74 (100,538.01) 2,064,646.41

Base Rent - Interest Payment 106,586.67 106,586.67 0.00 639,520.02 639,520.02 0.00 1,279,040.04
Base Rent - Principal Payment 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Stated Rent 86,666.71 86,666.67 (0.04) 520,000.26 520,000.02 (0.24) 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) 1,159,520.28 1,159,520.04 (0.24) 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 1,020.00 1,020.00 2,040.00
Partnership Accounting Fees 0.00 170.00 170.00 365.00 1,020.00 655.00 2,040.00
Partnership Travel 0.00 75.00 75.00 0.00 450.00 450.00 900.00
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 0.00 415.00 415.00 365.00 2,490.00 2,125.00 4,980.00

Exterior Rehab 0.00 16,400.00 16,400.00 Savings due to parking lot not needing 0.00 18,946.00 18,946.00 18,946.00
restripping at this time. We have
opted to just do the filler of the parking
lot at this time.
Interior Rehab 0.00 0.00 0.00 0.00 3,250.00 3,250.00 3,250.00
HVAC Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Carpet & Floor Replacement 1,438.81 4,900.00 3,461.19 Replaced two carpets this month. 34,431.03 29,400.00 (5,031.03) 58,800.00
Refrigerators 0.00 0.00 0.00 585.06 600.00 14.94 600.00
Dishwashers & Ranges 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Washers / Dryers 0.00 0.00 0.00 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 652.55 0.00 (652.55) Reflects new enclosure for the golf 5,862.26 3,713.00 (2,149.26) 3,713.00
cart.
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 2,091.36 21,300.00 19,208.64 40,878.35 55,909.00 15,030.65 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) (31,262.44) (43,942.82) 12,680.38 (295,175.90) (211,793.30) (83,382.60) (344,682.67)

Rental Guarantee 0.00 0.00 0.00 4,054.35 0.00 4,054.35 0.00
(31,262.44) (43,942.82) 12,680.38 (291,121.55) (211,793.30) (79,328.25) (344,682.67)
YTD Variance Comment
Courtney Downs Apartments
Jun-07
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 19 INCOME THIS MONTH: $279,395.82
NUMBER OF MOVE OUTS: 13 INCOME LAST MONTH: $272,061.08
NET FOR THE MONTH: 6 DIFFERENCE: 7334.74

TOTAL # GARAGES 120
# GARAGES OCCUPIED 117
OCCUPIED/LEASED %: 96.8%, 86.8% GARAGES OCCUPIED % 98%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 8 0 * Job Transfer 7
APARTMENT GUIDE 8 2 * Too expensive. 15
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 0
OTHER. NET 6 0 * Just started looking. 19
BLUE BOOK 32 10 * Waiting for Home to Sell 7
RENT.NET 0 0 * Current Lease to Expire 6
LIVES IN AREA 22 5 * Needs Ground Floor 5
RESIDENT REFERRAL 5 2 * Moved Elsewhere 7
LOCATORS 6 1 * Will return with roommate or spouse 9
RENT.COM 0 0 * Realtor Looking for Client 0
WALK-IN 12 0 * Undecided 11
SIGNAGE 15 4 * Employment pending 0
WORD OF MOUTH 0 0 * House sale pending 4
* Rented at Competitor 0
TOTALS 114 24 TOTALS 90

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 June.
* 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 flyers 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 heavy concessions or discounted rents on selected units.
This translates into one bedroom effective rents of $695, two bedrooms at $805 and three bedrooms starting at $1110.
Look and leases are being locked in with $500.00 gift cards to local malls or a $500.00 flight voucher as well as prorating concessions on a 12 to 13 month lease
with most of our competitors.
RESIDENT RETENTION:
We had 29 leases expiring in the month of June. Six are moving due to purchasing a home and/or condo.
Three are moving due to relocating, one is loosing their roommate, two are moving back home, three are moving closer to work.
Overall our 14 renewals had an average increase of $63.92 per renewal.

INCIDENTS ON THE PROPERTY:
#2111 ran into garage #10.
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 17 REFRIGERATORS 0
COMPLETE PAINTS 7 DISHWASHERS 0
TOUCH UPS 10 WINDOWS 0
WORK ORDERS 124 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 12 12 WATER HEATERS 0
Electrical 0 33 33 ICE MAKERS 0
Punch 0 17 17 GARBAGE DISPOSALS 0
HVAC 0 11 11 MICROWAVES 0
Plumbing 0 46 46 CARPETS 2 16105, 10208.
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 5 5 TOILETS 0
Safety 0 0 0 A/C FAN MOTORS 0
Total 0 124 124 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0

16105-2, 19309-3, 13302-1, 10208-
1, 10207-2, 19112-3, 10106-1,
PLUMBING LEAKS 0 BLINDS 19 2204-2, 9108-2, 16105-1, 16203-1.
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A

PROBLEM AREAS NEEDING ATTENTION:
We will be painting the pool fence this month as it is fading and peeling and is in need of a touch up.
Still working on replacing the light weight concrete landing in building two.

CURRENT STAFF:

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

ACCOMPLISHMENTS FOR THE MONTH:
All breezways have been powerwashed on the property.
Courtney Downs
RENTAL SCHEDULE

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 $348,000 725 0.00 0.00 $- 0 1 6 1 4
A1V 1BR 32 704 22,528 725 1.22 $27,520 $330,240 725 0.00 1.22 $27,520 0 0 0 0 0
A2 1BR 18 910 16,380 850 1.03 $15,300 $183,600 850 0.00 1.03 $- 1 2 0 1 2
B1 2BR 24 808 19,392 750 1.11 $18,000 $216,000 750 0.00 1.11 $- 0 0 4 3 1
B1V 2BR 32 808 25,856 750 1.14 $24,000 $288,000 750 0.00 1.14 $- 0 0 0 0 0
C 2BR 42 977 41,034 875 1.16 $36,750 $441,000 875 0.00 1.16 $- 5 2 5 1 13
C1 2BR 44 1,030 45,320 900 1.12 $39,600 $475,200 900 0.00 1.12 $- 7 3 6 0 12
C1V 2BR 22 1,030 22,660 900 1.15 $19,800 $237,600 900 0.00 1.15 $- 0 0 0 0 0
CV 2BR 24 977 23,448 875 1.18 $21,000 $252,000 875 0.00 1.18 $- 0 0 0 0 0
D 2BR 16 1,030 16,480 925 0.90 $14,800 $177,600 925 0.00 0.00 $- 2 0 2 0 5
DV 2BR 20 1,030 20,600 925 0.90 $18,500 $222,000 925 0.00 0.00 $- 0 0 0 0 0
E 3BR 24 1,140 27,360 1150 1.01 $27,600 $331,200 1150 0.00 0.00 $- 1 1 2 0 3
EV 3BR 4 1,140 4,560 1150 1.01 $4,600 $55,200 1150 0.00 0.00 $- 0 0 0 0 0

TOTAL 342 917 313,778 $867 $0.94 $296,470 $3,557,640 $0 0.09 $27,520 16 9 25 6 40
* Net of Concessions
MARKET SURVEY
Courtney Downs
June-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 5 5 7 4 5 5 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
June\
(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 1.03 715 779 0.92 680 627 1.08 659 685 0.96 720 768 0.94 675 707 0.95 741 763 0.97
1B1B (B) 850 808 1.05 910 853 1.07 740 701 1.06 684 705 0.97 730 842 0.87 708 796
1B1B w/study 750 910 0.82 840 811 0.91 709 760 0.96 895 992 729 916
1B
1B
1B w/loft
1B1B w/study 820 956 0.86 809 1051 0.77
2B2B (E) 875 977 0.90 975 1105 0.88 920 1044 0.88 845 1120 0.75 885 1115 0.79 925 1033 0.90 965 1037 0.93
2B2B (F) 900 1030 0.87 1120 1192 0.94 1060 1196 0.89 935 888 970 1220 0.80 975 1093 0.89
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 1275 1398 0.91 1320 1330 0.99 1084 1230 0.88 1100 1356 0.81 1040 1235 0.84 1195 1257 0.95
3B2B

% occ /leased 93 88.30% 91% 96.1 99.6 98% 0 0% 94 96.00% 94% 93.0 91 93% 94.7 97 94% 97.0 96 98%
Avg PSF 1 0.94 0.94 0.95 0.88 0.84 0.90 0.95
Avg Rents 884 1114 994 808 883 1131 995
/ Avail)
Units(Total 342 40 507 18 653 216 20 312 13 360 43 0 168 4

Special: look and lease
special $150 security deposit Special:waive security Special: $400.00 off 1st
waived and $350 off first Special: Reduced pricing deposit and $150.00 gift month rent look and lease Special: Up to 3 months Special: Discounts on all
Rates months rent. for all floor plans. Sepcial:None card to any location. special. free on a 12 month lease. available rents.
reflect these rates:1 Bd $725 1 BD $715 to $910 $680 1/1 $820 2/2 $1320 3/2 1 Bd $659 to $719 1 Bd $720 to $895 1 Bd $675 to $729
specials: 2 Bd $875 2BD $975 to $1120 special was pulled off the internet
2 Bd $809 to $1046 2 Bd $885 to $970 2 Bd $925 to $975
3 Bd $1160 3BD $1275 due to property will not give info.
3BD $1084 to $1179 3 Bd $1100 3 Bd $1040

Ren.: Keep all residents
4% under all new Ren: Info not avail per Ren: $30 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.