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USA Courtney Downs LeaseCo, LLC

Balance Sheet
Books = Accrual
Sep 2007

ASSETS

Cash
Operating Cash 32,697.73
Money Market 0.00
Total Cash $32,697.73

OTHER ASSETS
Accounts Receivable (197.17)
Prepaid Expenses 16,898.90
Tax Escrow 169,587.54
Replacement Reserves 76,868.58
Capital / Repair Escrow 200,000.00
Total Other Assets 463,157.85

Total ASSETS 495,855.58

LIABILITIES & CAPITAL

LIABILITIES
Accounts Payable - Trade 175,927.73
Other Accounts Payable 731,085.05
Accrued Taxes 256,402.26
Prepaid Rent 8,002.67
Security Deposits 38,442.63
Total Liabilities 1,209,860.34

CAPITAL

Owners Equity 100.00
Retained Earnings (714,104.76)
Total Capital (714,004.76)

Total LIABILITIES & CAPITAL 495,855.58
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 Actual Actual Budget Budget Budget Total Unit Sq. Ft. Reforecast Total Unit Sq. Ft.
342 313,778 342 313,778
Revenue
Gross Potential Rent 352,560 345,950 343,190 338,114 331,407 327,521 321,211 314,121 309,900 321,211 321,211 321,211 3,947,607 11,542.71 12.58 364,160 4,965,744 14,519.72 15.83
- Vacancy (34,193) (31,453) (33,657) (26,399) (19,217) (11,745) (8,517) (14,496) (17,176) (11,745) (11,745) (11,745) (232,088) (678.62) (0.74) (43,000) (299,257) (875.02) (0.95)
- Concessions & Disc. (77,240) (77,177) (74,811) (68,736) (56,781) (52,476) (45,332) (33,435) (26,860) (46,476) (47,500) (49,500) (656,324) (1,919.08) (2.09) (80,000) (835,245) (2,442.24) (2.66)
- Other Write-offs & Adj. (5,251) (7,154) (5,738) (5,449) (6,551) (6,386) (5,803) (8,688) (5,798) (6,386) (6,386) (6,386) (75,978) (222.16) (0.24) (6,085) (95,058) (277.95) (0.30)
Total Rental Income 235,876 230,165 228,984 237,529 248,858 256,914 261,560 257,502 260,065 256,604 255,580 253,580 2,983,218 8,722.86 9.51 235,075 3,736,185 10,924.52 11.91

Other Income 27,580 21,616 22,944 22,832 23,203 22,482 19,521 31,663 27,802 20,545 20,545 20,195 280,928 821.43 0.90 19,000 341,490 998.51 1.09
Total Revenue 263,457 251,781 251,928 260,361 272,061 279,396 281,081 289,166 287,867 277,149 276,125 273,775 3,264,146 9,544.29 10.40 254,075 4,077,675 11,923.03 13.00

Operating Expenses
Salary Expense 33,611 20,391 30,933 32,195 31,382 31,663 40,842 22,827 31,229 26,976 27,014 30,347 359,409 1,050.90 1.15 37,759 455,581 1,332.11 1.45
Operating Expense 2,710 2,821 2,230 3,652 3,228 3,040 5,519 2,088 3,595 3,725 3,725 3,665 39,998 116.95 0.13 3,030 50,535 147.76 0.16
Advertising Expense 6,159 5,921 9,117 4,298 6,292 4,400 4,564 7,230 3,448 6,993 6,993 6,394 71,810 209.97 0.23 6,885 92,293 269.86 0.29
Make Ready Expense 3,805 2,722 3,636 6,647 4,645 6,951 5,843 4,190 7,774 3,705 3,803 2,828 56,547 165.34 0.18 7,500 70,842 207.14 0.23
Maintenance Expense 2,027 1,541 2,485 2,639 1,612 1,405 3,289 2,097 2,185 15,095 2,425 2,425 39,226 114.70 0.13 2,295 46,486 135.92 0.15
Service Expense 6,403 10,329 1,917 3,299 5,923 4,883 3,010 3,137 3,150 5,585 6,385 1,835 55,856 163.32 0.18 2,395 66,635 194.84 0.21
Administrative Expense 15,368 15,798 15,451 15,440 14,701 16,179 18,825 16,316 16,541 17,209 17,247 17,301 196,377 574.20 0.63 14,969 246,469 720.67 0.79
Utility Expense 9,370 15,941 12,794 6,685 9,354 12,548 12,990 1,571 8,672 8,388 8,001 8,051 114,367 334.41 0.36 10,900 141,653 414.19 0.45
Taxes & Insurance 37,910 33,542 33,143 33,465 34,552 34,243 64,955 34,433 34,062 32,739 32,739 32,739 438,523 1,282.23 1.40 0 439,807 1,285.99 1.40
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 93,888 110,656 120,416 108,332 105,585 1,372,112 4,012.02 4.37
Net Operating Income 146,094 142,774 140,223 152,043 160,371 164,082 121,244 195,277 177,211 156,732 167,793 168,189 1,892,034 5,532.26 6.03 122,970 1,647,537 4,817.36 5.25
131,106 2,430,138 7,105.67 7.74
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 0 690 273 735 415 415 415 3,308 9.67 0.01 193,254 197,401 577.20 0.63
Capital Expense 1,601 4,113 10,791 8,376 13,906 2,091 4,426 11,143 8,759 4,900 4,900 4,900 79,907 233.65 0.25 0 89,941 262.99 0.29
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) (9,392) (25,537) (41,836) (30,776) (30,379) (510,222) (1,491.88) (1.63)
(65,449) 2,139,496 6,255.84 6.82
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 8,625 (43) 0 0 0 9,958 0 9,958
Prepaid Assets (7,749) 3,588 6,328 (4,460) 523 337 10,797 5,633 5,633 0 0 0 20,630 0 20,630
Escrow Deposits (30,394) (34,568) (34,568) (34,822) 322,388 (35,800) (35,800) (35,800) (35,800) (7,125) (7,125) (7,125) 23,460 0 9,210
(2,951) (2,951)
Cash Increase (Decreae) From Assets (42,714) (31,697) 107,861 (169,314) 328,037 (36,884) 29,597 (21,543) (30,210) (7,125) (7,125) (7,125) 111,758
(2,951) 36,847
Accounts Payable 36,334 64,458 (135,734) 185,452 117,385 41,375 118,141 24,714 18,696 0 0 0 470,819
Accrued Expenses 41,830 25,859 110,449 36,480 (411,342) 29,291 (51,145) (11,371) 25,600 0 0 0 (204,350) 0 (204,350)
Other Payables (1,829) (1,300) (1,433) (4,374) (2,739) (793) (1,500) (2,763) (2,538) 0 0 0 (19,268) 0 (19,268)
Mortgages Payable 0 (11,458) (5,571) 15,448 1,581 0 12,262 0 (11,933) 0 0 0 328 0 328
0 0
Cash Increase (Decrease) From Liab. 76,334 77,559 (32,289) 233,006 (295,115) 69,872 77,757 10,580 29,825 0 0 0 247,530
0 (223,290)

NET CASH FLOW (7,597) (12,219) 11,751 14,106 (14,231) 1,726 30,229 (20,355) (25,922) (48,961) (37,901) (37,504) (150,933)
CUMM. NET CASH FLOW 47,614 35,395 47,146 61,251 47,020 48,746 78,975 58,620 32,698 (16,263) (54,164) (91,668) 181,601 2,203,053
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 September 30, 2007

MTD MTD YTD YTD Annual
Account Actual Budget $ Variance MTD Variance Comment Actual Budget $ Variance Budget
Revenue
Market Rent 294,410.00 349,255.00 (54,845.00) Concessions are no longer being 2,671,420.00 3,165,075.00 (493,655.00) 4,209,210.00
offered, market rents changed to
reflect lower rents.
Loss / Gain to Lease 15,490.00 0.00 15,490.00 We have changed the budget to 312,554.00 0.00 312,554.00 0.00
reflect lower market rents, this
will continue to reduce over time
as last years concessions
deplete.
Gross Potential Rent 309,900.00 349,255.00 (39,355.00) Explained above. 2,983,974.00 3,165,075.00 (181,101.00) 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 (17,176.43) (24,804.71) 7,628.28 We closed out our occupany at (196,853.12) (238,324.08) 41,470.96 (325,479.64)
95.32% versus budgeted at
93.03%.
Upfront Rent Concessions (2,000.01) (3,480.00) 1,479.99 Current specials are $500 off of (26,726.96) (53,505.00) 26,778.04 (59,160.00)
all vacant units and/or reduced
prices for 10 month leases.
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 (877.50) (676.92) (200.58) (12,531.54) (5,806.94) (6,724.60) (7,841.82)
Model Units (1,980.00) (1,625.00) (355.00) Market Rent is higher than (17,820.00) (14,625.00) (3,195.00) (19,500.00)
anticipated.
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 on site. (16,027.20) (18,450.00) 2,422.80 (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) (10,440.00) (8,100.00) (2,340.00) (10,800.00)
Lease Term Concessions (24,860.00) (45,627.89) 20,767.89 We have been able to reduce the (486,120.86) (509,297.12) 23,176.26 (632,942.99)
amount of concessions given off
each month to meet market
needs. We have also been
renewing leases at market rent.

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 $260,065.26 $270,090.48 $(10,025.22) $2,217,454.32 $2,316,966.86 $(99,512.54) $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) 0.00 612.00 (612.00) 816.00
Covered Parking Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Late Charges & NSF Fees 2,239.04 1,650.00 589.04 Eight nsf fees collected and 20 14,566.77 14,850.00 (283.23) 19,800.00
late fees assessed.
Month to Month Premium 800.00 200.00 600.00 Five month to month leases 6,075.80 1,800.00 4,275.80 2,400.00
versus two budgeted.
Storage Fees 1,154.00 960.00 194.00 8,234.43 8,640.00 (405.57) 11,520.00
Repair & Maintenance Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Application Fees 1,320.00 750.00 570.00 31 application fees collected 13,749.90 8,100.00 5,649.90 10,250.00
versus 15 budgeted
Termination Fees & Damages 3,170.06 1,000.00 2,170.06 Collected one buy out fee and 10,929.82 9,000.00 1,929.82 12,000.00
two lease break fees.
Miscellaneous Income 754.39 1,160.00 (405.61) Collected 18 utility transfer fees 6,137.54 10,440.00 (4,302.46) 13,920.00
10 credit card fees and 1
transfer on site fee collected.
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 5,036.32 2,456.00 2,580.32 12 non-refundable pet fees 32,142.39 22,104.00 10,038.39 29,472.00
collected as well as new pet rent.

Tower Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Asset Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Parking Spaces Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Homeowners Assessments 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Garage Income 7,114.63 6,650.00 464.63 Garages are 97% occupied, 60,929.64 59,850.00 1,079.64 79,800.00
budgeted 92%. Average fee is
$90.
Water/Sewer Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cable/Telephone Income 0.00 1,006.00 (1,006.00) Qrtly revenue not received this 4,564.46 9,054.00 (4,489.54) 12,072.00
month, will reflect next month.
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 450.00 90.00 360.00 3,443.65 810.00 2,633.65 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 2,550.00 2,400.00 150.00 26,900.00 27,000.00 (100.00) 33,800.00
Move-Out Charges 2,068.24 3,330.00 (1,261.76) Apartments left in better 23,364.59 38,850.00 (15,485.41) 48,840.00
condition resulting in fewer fees
charged.
Short Term Lease Fees 1,145.00 150.00 995.00 Nine short term fees collected 4,640.23 3,000.00 1,640.23 3,600.00
versus one budgeted
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) No corporate units as budgeted. 475.41 3,825.00 (3,349.59) 5,100.00
Corporate Units - expense 0.00 (1,750.00) 1,750.00 Bills being paid under guest suite 0.00 (15,750.00) 15,750.00 (21,000.00)
expense.
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 27,801.68 20,545.00 7,256.68 219,643.16 202,185.00 17,458.16 263,470.00

Total Revenue $287,866.94 $290,635.48 $(2,768.54) $2,437,097.48 $2,519,151.86 $(82,054.38) $3,392,355.55

Expense
Managers Salary 12,327.07 12,613.82 286.75 Fewer hours reported this period. 102,842.84 109,920.42 7,077.58 147,761.88

Salaries 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maintenance Salary 11,690.22 11,784.65 94.43 115,704.42 102,694.83 (13,009.59) 138,048.78
Salary - Administrative 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commissions & Bonus 5,369.20 5,695.30 326.10 36,602.71 30,218.48 (6,384.23) 39,026.28
Payroll Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Group Insurance 1,842.36 778.00 (1,064.36) Maintained associates benefits 15,322.22 7,002.00 (8,320.22) 9,336.00
from Contravest.
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 4,599.88 0.00 (4,599.88) 0.00
Workers Comp 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Salary Expense 31,228.85 30,871.77 (357.08) 275,072.07 249,835.73 (25,236.34) 334,172.94

Office Operations & Supplies 879.70 1,000.00 120.30 6,117.56 9,000.00 2,882.44 12,000.00
Telephones 1,035.89 1,100.00 64.11 6,698.60 9,900.00 3,201.40 13,200.00
Answering Svc. & Pagers 182.66 100.00 (82.66) 906.15 900.00 (6.15) 1,200.00
Postage & Delivery 301.46 170.00 (131.46) 2,003.37 1,530.00 (473.37) 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 238.00 90.00 (148.00) 1,135.82 810.00 (325.82) 1,080.00
Conventions/Seminars 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Employee Training 130.27 115.00 (15.27) 3,402.18 1,035.00 (2,367.18) 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 25.00 385.44 225.00 (160.44) 300.00
Permits & Fees 0.00 25.00 25.00 0.00 225.00 225.00 300.00
Credit Checks 324.11 450.00 125.89 3,317.11 4,860.00 1,542.89 6,150.00
Guest Suite Expense 502.73 650.00 147.27 4,916.88 5,850.00 933.12 7,800.00
Parking Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Operating Expense 3,594.82 3,725.00 130.18 In line with budget 28,883.11 34,335.00 5,451.89 45,450.00

Advertising & Promotions 2,513.00 3,000.00 487.00 Internet, print adverstising and 32,070.44 29,100.00 (2,970.44) 36,900.00
used a human directional this
month.
Resident Promotions 536.71 798.00 261.29 3,904.14 7,182.00 3,277.86 9,576.00
Locators 398.30 1,735.44 1,337.14 Two locators used versus nine 10,854.24 19,523.70 8,669.46 24,440.78
budgeted for.
Resident Referrals 0.00 1,860.00 1,860.00 No referrals used at this time. 4,600.00 20,925.00 16,325.00 26,195.00
Total Advertising Expense 3,448.01 7,393.44 3,945.43 51,428.82 76,730.70 25,301.88 97,111.78

Paint & Drywall 502.57 652.50 149.93 2,111.86 6,142.50 4,030.64 7,852.50
Contract Cleaning Svcs. 3,835.00 250.00 (3,585.00) Budget number should be 25,075.00 2,250.00 (22,825.00) 3,000.00
$2500. Missed at review.
Carpet Cleaning & Repairs 2,369.00 2,175.00 (194.00) 14,310.00 20,475.00 6,165.00 26,175.00
Window Coverings 753.53 100.00 (653.53) Extra blinds needed for turns due 2,539.34 900.00 (1,639.34) 1,200.00
to damage
Vinyl & Tile Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Lock & Keys 77.05 50.00 (27.05) 652.13 450.00 (202.13) 600.00
Counter & Tub Resurfacing 0.00 416.67 416.67 No counter tops repaired at this 75.00 3,750.03 3,675.03 5,000.04
time.
Other Redecorating 0.00 25.00 25.00 0.00 225.00 225.00 300.00
Cleaning Supplies 236.74 133.33 (103.41) 1,448.37 1,199.97 (248.40) 1,599.96
Total Make Ready Expense 7,773.89 3,802.50 (3,971.39) 46,211.70 35,392.50 (10,819.20) 45,727.50

General Maintenance & Supplies 498.49 700.00 201.51 5,310.80 6,300.00 989.20 8,400.00
HVAC Parts & Repairs 62.24 100.00 37.76 1,368.48 900.00 (468.48) 1,200.00
Plumbing Parts & Repairs 48.19 140.00 91.81 836.59 1,260.00 423.41 5,055.00
Electric Parts & Repairs 47.82 150.00 102.18 374.57 1,350.00 975.43 1,800.00
Roof & Gutter Repairs 0.00 0.00 0.00 270.00 0.00 (270.00) 0.00
Pools & Fountains 512.43 450.00 (62.43) 3,749.99 4,050.00 300.01 5,400.00
Gates & Entrances 125.00 0.00 (125.00) 125.00 0.00 (125.00) 0.00
Glass & Screens 0.00 160.00 160.00 1,183.91 1,440.00 256.09 1,920.00
Appliance Parts & Repairs 614.92 450.00 (164.92) 2,127.66 4,500.00 2,372.34 5,850.00
Hardware 275.89 75.00 (200.89) 1,167.49 675.00 (492.49) 900.00
Exterior Painting 0.00 25.00 25.00 355.34 225.00 (130.34) 300.00
Uniforms 0.00 0.00 0.00 45.40 1,000.00 954.60 2,000.00
Elevator Service & Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security & Fire Systems 0.00 175.00 175.00 2,365.48 1,575.00 (790.48) 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 2,184.98 2,425.00 240.02 In line with budget 19,280.71 23,275.00 3,994.29 43,220.00

Landscape & Grounds 2,327.45 5,000.00 2,672.55 Winter flowers not in as of yet, 18,590.35 20,000.00 1,409.65 30,000.00
may replace with mulch and/or
rock.
Trash Removal 720.24 510.00 (210.24) One more pick up called in, than 5,964.02 4,590.00 (1,374.02) 6,120.00
budgeted
Pest Control 102.00 75.24 (26.76) 1,125.26 677.16 (448.10) 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 3,149.69 5,585.24 2,435.55 42,050.05 29,067.16 (12,982.89) 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 11,514.68 11,625.42 110.74 Based on % of collection 100,338.09 100,766.07 427.98 135,694.22
Asset Management Fees 1,000.00 1,000.00 0.00 9,000.00 9,000.00 0.00 12,000.00
Investor Administration Fee 3,150.00 3,300.00 150.00 29,150.00 29,700.00 550.00 39,600.00
Legal Fees 876.70 1,300.00 423.30 Three evictions scheduled vs. 2,885.10 11,700.00 8,814.90 15,600.00
seven budgeted for.
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 0.01 9.58 9.57 0.01 86.22 86.21 114.96
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 0.00 572.67 0.00 (572.67) 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 2,550.30 5,124.00 2,573.70 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 16,541.39 17,235.00 693.61 144,619.88 156,376.29 11,756.41 208,133.18

Electricity 2,621.63 3,340.00 718.37 Includes a reversal of $1,500.00 24,606.27 30,060.00 5,453.73 40,080.00
from 8/07.
Electricity Gas - Resident 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Natural Gas 1,800.00 2,565.00 765.00 Accrue electric 9/07 of $1,800.00. 16,044.00 23,085.00 7,041.00 30,780.00

Water & Sewer 8,999.53 8,965.00 (34.53) 113,844.96 80,685.00 (33,159.96) 107,580.00
Water & Sewer - Resident Reimb (8,407.25) (6,275.50) 2,131.75 Aggressive collections in house. (79,378.99) (56,479.50) 22,899.49 (75,306.00)
Occupancy higher than
anticipated
Water - irrigation 5,134.68 5,000.00 (134.68) 21,491.42 23,000.00 1,508.58 23,500.00
Electric - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trash Reimbursement (2,444.63) (2,011.00) 433.63 Occupancy higher than (21,446.20) (18,099.00) 3,347.20 (24,132.00)
anticipated
Water - Tenant Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Utility -Vacant Electric 984.73 715.44 (269.29) 10,249.05 6,873.96 (3,375.09) 9,387.78
Utility - Vacant Gas (16.27) 476.96 493.23 4,544.08 4,582.64 38.56 6,258.52
Tenant Reimbursement - Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Utility Expense 8,672.42 12,775.90 4,103.48 89,954.59 93,708.10 3,753.51 118,148.30

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 28,800.00 27,616.50 (1,183.50) Accrued monthy property tax. 256,402.26 248,548.50 (7,853.76) 331,398.00
Franchise Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Insurance 5,262.37 5,073.00 (189.37) Includes pollution policy 83,302.98 45,657.00 (37,645.98) 60,876.00
Tax Consultants 0.00 49.88 49.88 600.00 448.92 (151.08) 598.56
MIP 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Taxes & Insurance 34,062.37 32,739.38 (1,322.99) 340,305.24 294,654.42 (45,650.82) 392,872.56
Total Operating Expenses 110,656.42 116,553.23 5,896.81 1,037,806.17 993,374.90 (44,431.27) 1,327,709.14
NET OPERATING INCOME 177,210.52 174,082.25 3,128.27 1,399,291.31 1,525,776.96 (126,485.65) 2,064,646.41

Base Rent - Interest Payment 106,586.67 106,586.67 0.00 959,280.03 959,280.03 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) 780,000.39 780,000.03 (0.36) 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) 1,739,280.42 1,739,280.06 (0.36) 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 1,530.00 1,530.00 2,040.00
Partnership Accounting Fees 0.00 170.00 170.00 365.00 1,530.00 1,165.00 2,040.00
Partnership Travel 465.49 75.00 (390.49) Two visits this month to meet 973.35 675.00 (298.35) 900.00
with brokers.
Partnership - Meals 269.56 0.00 (269.56) see above. 724.38 0.00 (724.38) 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 735.05 415.00 (320.05) 2,062.73 3,735.00 1,672.27 4,980.00

Exterior Rehab 0.00 0.00 0.00 0.00 18,946.00 18,946.00 18,946.00
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 8,240.84 4,900.00 (3,340.84) Eight carpets replaced and Five 51,449.14 44,100.00 (7,349.14) 58,800.00
budgeted for.
Refrigerators 0.00 0.00 0.00 1,227.02 600.00 (627.02) 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 518.63 0.00 (518.63) Pump motor for hot tub replaced. 12,530.89 3,713.00 (8,817.89) 3,713.00

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 8,759.47 4,900.00 (3,859.47) 65,207.05 70,609.00 5,401.95 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) (25,537.38) (24,486.09) (1,051.29) (407,258.89) (287,847.10) (119,411.79) (344,682.67)

Rental Guarantee 0.00 0.00 0.00 4,054.35 0.00 4,054.35 0.00
(25,537.38) (24,486.09) (1,051.29) (403,204.54) (287,847.10) (115,357.44) (344,682.67)
YTD Variance Comment
Courtney Downs Apartments
September 07
LEASING & OCCUPANCY

NUMBER OF MOVE INS: 18 INCOME THIS MONTH: $287,667.00
NUMBER OF MOVE OUTS: 23 INCOME LAST MONTH: $289,166.00
NET FOR THE MONTH: -5 DIFFERENCE: -$1,499.00

TOTAL # GARAGES 120
# GARAGES OCCUPIED 116
OCCUPIED/LEASED %: 95%/97% GARAGES OCCUPIED % 97%

SOURCE OF TRAFFIC: REASONS WHY PROSPECTS DID NOT LEASE:
Traffic Leased
APTGUIDE.COM 0 0 * Job Transfer 7
APARTMENT GUIDE 7 0 * Too expensive. 5
YELLOW PAGES 0 0 * Future/No Availability/Waiting list 4
OTHER. NET 0 0 * Just started looking. 9
BLUE BOOK 21 8 * Waiting for Home to Sell 6
RENT.NET 0 0 * Current Lease to Expire 0
LIVES IN AREA 15 6 * Needs Ground Floor 10
RESIDENT REFERRAL 4 1 * Moved Elsewhere 0
LOCATORS 8 1 * Will return with roommate or spouse 7
RENT.COM 3 0 * Realtor Looking for Client 0
WALK-IN 5 0 * Undecided 0
SIGNAGE 3 2 * Employment pending 0
WORD OF MOUTH 0 0 * House sale pending 0
* Rented at Competitor 0
TOTALS 66 18 TOTALS 48

CLOSING RATIO: 27%

MARKETING ACTIVITIES & SOURCES FOR THE MONTH

* Took brochures to David Weekly Homes.
* Took flyers and brochures to Richmond sales team.
* Took flyers to Sky Ridge Hospital Human Resourses.
* Took locators lunch and new prices for the month.
* Updated all internet ads with new pricing and specials for the month of September.
* 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 King Soopers.
* Dropped off doughnuts and brochures to Marriott extended stay hotels.
* Took cookie and candy bag with flyer's to Nextel team.
* Took cookie bag and brochures to Parker Adventist Hospital.
* Took cookie and candy bag to Numan Homes sales center.
OVERVIEW OF COMPARABLE PROPERTIES:
The surrounding comps are still offering discounted rents on selected units.
This translates into one bedroom effective rents of $690, two bedrooms at $815and three bedrooms starting at $1045.
Look and leases are being locked in with $500 off 1st rent on a 12 to 13 month lease.

RESIDENT RETENTION:
We had 29 leases expiring in the month of Sept. Five are moving due to purchasing a home and/or condo,
two are moving due to relocating, three are moving out of state, three are moving back home, .
five have not decided yet, and will be going month to month, and 11 renewed.
Overall we had 10 renewals with an average increase of $51.60 per renewal.
INCIDENTS ON THE PROPERTY:
N/A
MAINTENANCE: ROUTINE REPLACEMENTS:
Number
Number of: Replaced Apt. #
MARKET READY UNITS 21 REFRIGERATORS 0
COMPLETE PAINTS 9 DISHWASHERS 1 9207
TOUCH UPS 12 WINDOWS 0
WORK ORDERS 145 A/C COMPRESSORS 0
Pending Completed 0 CONDENSING UNITS 0
Misc 0 44 44 WATER HEATERS 0
Electrical 0 18 18 ICE MAKERS 0
Punch 0 21 21 GARBAGE DISPOSALS 0
HVAC 0 12 12 MICROWAVES 0
Plumbing 0 16 16 CARPETS 5 12306, 4103, 9107, 12209, 16301
Property Ext. 0 0 0 CEILING FANS 0
Appliances 0 27 27 TOILETS 0
Safety 0 7 7 A/C FAN MOTORS 0
Total 0 145 145 COUNTER TOPS 0
ROOF LEAKS 0 CABINETS RESURFACED KITCHEN 0
7309-2, 9110-1, 12306-2, 16108-2,
16301-2, 16304-2, 5202-2, 122606-
PLUMBING LEAKS 0 BLINDS 23 2, 4103-2, 7101-3, 2310-3
TUBS RESURFACED 0
TUB TILES 0

CAPITAL IMPROVEMENTS IN PROGRESS:
N/A

PROBLEM AREAS NEEDING ATTENTION:
Still working on replacing summer flowers with mulch & rock

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:
Repaired curbs & gutters through out the property
Flower pulled near the office and mulch put in
Mail center repaired & painted
All breezeways powerwashed & cleaned
Courtney Downs
RENTAL SCHEDULE
September 07

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 $348,000 725.00 1.03 $29,000 0 3 10 0 10
A1V 1BR 32 704 22,528 725 1.03 $27,520 $330,240 725.00 1.03 $27,520 0 1 1 0 1
A2 1BR 18 910 16,380 850 0.93 $15,300 $183,600 850.00 0.93 $15,300 1 0 3 0 4
B1 2BR 24 808 19,392 750 0.93 $18,000 $216,000 750.00 0.93 $18,000 0 2 7 0 7
B1V 2BR 32 808 25,856 760 0.94 $24,320 $291,840 760.00 0.94 $24,320 0 0 0 0 0
C 2BR 42 977 41,034 875 0.90 $36,750 $441,000 875.00 0.90 $36,750 1 1 11 2 12
C1 2BR 44 1,030 45,320 900 0.87 $39,600 $475,200 900.00 0.87 $39,600 4 1 5 4 9
C1V 2BR 22 1,030 22,660 925 0.90 $20,350 $244,200 925.00 0.90 $20,350 0 0 0 0 0
CV 2BR 24 977 23,448 875 0.90 $21,000 $252,000 875.00 0.90 $21,000 0 0 0 0 0
D 2BR 16 1,030 16,480 925 0.90 $14,800 $177,600 925.00 0.90 $14,800 2 0 2 1 4
DV 2BR 20 1,030 20,600 925 0.90 $18,500 $222,000 925.00 0.90 $18,500 0 0 0 0 0
E 3BR 24 1,140 27,360 1160 1.02 $27,840 $334,080 1,160.00 1.02 $27,840 3 0 4 2 7
EV 3BR 4 1,140 4,560 1160 1.02 $4,640 $55,680 1,160.00 1.02 $4,640 0 0 0 0 0

TOTAL 342 917 313,778 $870 $0.95 $297,620 $3,571,440 $870 0.95 $297,620 11 8 43 9 54
* Net of Concessions
MARKET SURVEY
Courtney Downs
September-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
September-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 1 97.00% 98% 99% 0 0% 95% 96.00% 94.0% 95% 92.0% 94% 93.0% 95%
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 6 507 0 653 216 9 312 13 360 22 0 168 4

Special: look and lease
special $150 security deposit
waived and $500 off first Special: $500.00 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 October free, Special: $500 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 $45 to $75 Ren: Free carpet cleaning
Ren: $75 to $100 increase. renewals. corporate Ren:Per corporate for 12 month lease increase. with 12mo.