Usa Courtney Downs June 2007

USA Courtney Downs LeaseCo, LLC Balance Sheet Books = Accrual Jun 2007

ASSETS Cash Operating Cash Money Market Security Deposits Total Cash

48,745.87 0.00 46,036.00 $94,781.87

OTHER ASSETS Accounts Receivable Prepaid Expenses Tax Escrow Replacement Reserves Capital / Repair Escrow Total Other Assets

16,977.96 38,961.44 83,561.22 55,493.58 200,000.00 394,994.20

Total ASSETS

489,776.07

LIABILITIES & CAPITAL LIABILITIES Accounts Payable - Trade Other Accounts Payable Accrued Taxes Prepaid Rent Security Deposits Notes Payable Total Liabilities

50,974.93 817,580.40 170,002.26 8,226.01 45,242.63 (328.39) 1,091,697.84

CAPITAL Owners Equity Retained Earnings Total Capital Total LIABILITIES & CAPITAL

100.00 (602,021.77) (601,921.77) 489,776.07

USA Courtney Downs LeaseCo, LLC Cash Flow (Actual + Budget) Books = Accrual For the 12 Months Ending Dec 2007 Jan 2007 Actual

Account

Feb 2007 Actual

Mar 2007 Actual

Apr 2007 Actual

May 2007 Actual

Jun 2007 Actual

Jul 2007 Budget

Aug 2007 Budget

Sep 2007 Budget

Oct 2007 Budget

Nov 2007 Budget

Dec 2007 Budget

12 Month Total

342

$/ Sq. Ft. 313,778

4,132,457 (246,664) (699,006) (68,019) 3,118,768

12,083.21 (721.24) (2,043.88) (198.88) 9,119.20

13.17 (0.79) (2.23) (0.22) 9.94

364,160 (43,000) (80,000) (6,085) 235,075

20,195 307,823

269,098 3,387,865

786.83 9,906.04

0.86 10.80

30,347 3,665 6,394 2,828 2,425 1,835 17,301 8,051 32,739

350,837 40,331 81,543 51,513 38,929 58,315 198,692 131,336 403,291

1,025.84 117.93 238.43 150.62 113.83 170.51 580.97 384.02 1,179.21

1.12 0.13 0.26 0.16 0.12 0.19 0.63 0.42 1.29

108,332 197,086

105,585 202,237

1,354,787 2,033,078

3,961.37 5,944.67

4.32 6.48

193,253 415 4,900

193,253 415 4,900

2,855 70,278 0

8.35 205.49 0.00

0.01 0.22 0.00

(1,483)

3,669

1,959,944

5,730.83

6.25

Revenue Gross Potential Rent - Vacancy - Concessions & Disc. - Other Write-offs & Adj. Total Rental Income

352,560 (34,193) (77,240) (5,251) 235,876

345,950 (31,453) (77,177) (7,154) 230,165

343,190 (33,657) (74,811) (5,738) 228,984

338,114 (26,399) (68,736) (5,449) 237,529

331,407 (19,217) (56,781) (6,551) 248,858

327,521 (11,745) (52,476) (6,386) 256,914

350,465 (15,000) (58,387) (5,235) 271,843

349,860 (15,000) (54,989) (5,242) 274,629

349,255 (15,000) (49,108) (5,252) 279,895

348,650 (15,000) (46,826) (5,250) 281,573

348,045 (15,000) (42,919) (5,253) 284,873

347,440 (15,000) (39,555) (5,257) 287,628

Other Income Total Revenue

27,580 263,457

21,616 251,781

22,944 251,928

22,832 260,361

23,203 272,061

22,482 279,396

24,915 296,758

21,695 296,324

20,545 300,440

20,545 302,118

20,545 305,418

33,611 2,710 6,159 3,805 2,027 6,403 15,368 9,370 37,910

20,391 2,821 5,921 2,722 1,541 10,329 15,798 15,941 33,542

30,933 2,230 9,117 3,636 2,485 1,917 15,451 12,794 33,143

32,195 3,652 4,298 6,647 2,639 3,299 15,440 6,685 33,465

31,382 3,228 6,292 4,645 1,612 5,923 14,701 9,354 34,552

31,663 3,040 4,400 6,951 1,405 4,883 16,179 12,548 34,243

28,026 3,965 9,390 4,875 2,425 3,085 19,640 13,713 32,739

27,426 3,845 8,192 4,095 2,425 3,085 17,122 13,713 32,739

30,872 3,725 7,393 3,803 2,425 5,585 17,235 12,776 32,739

26,976 3,725 6,993 3,705 15,095 5,585 17,209 8,388 32,739

27,014 3,725 6,993 3,803 2,425 6,385 17,247 8,001 32,739

Total Operating Exp. Net Operating Income

117,362 146,094

109,007 142,774

111,705 140,223

108,319 152,043

111,690 160,371

115,314 164,082

117,860 178,898

112,644 183,680

116,553 183,887

120,416 181,702

Rent Expense Partnership Expense Capital Expense

193,253 0 1,601

193,253 0 4,113

193,253 0 10,791

193,253 0 8,376

193,253 365 13,906

193,253 0 2,091

193,253 415 4,900

193,253 415 4,900

193,253 415 4,900

193,253 415 4,900

Cash Flow Frm Operations

(48,760)

(54,592)

(63,822)

(49,586)

(47,153)

(31,262)

(19,670)

(14,888)

(14,681)

(16,867)

Operating Expenses Salary Expense Operating Expense Advertising Expense Make Ready Expense Maintenance Expense Service Expense Administrative Expense Utility Expense Taxes & Insurance

$/ Unit

Dec 2006 Reforecast

342

$/ Sq. Ft. 313,778

5,204,198 (320,386) (863,527) (84,812) 3,935,473

15,216.95 (936.80) (2,524.93) (247.99) 11,507.23

16.59 (1.02) (2.75) (0.27) 12.54

19,000 254,075

329,625 4,265,098

963.82 12,471.05

1.05 13.59

37,759 3,030 6,885 7,500 2,295 2,395 14,969 10,900 0 37,237

446,983 50,870 102,055 65,794 46,188 69,101 248,791 158,673 404,471 37,237

1,306.97 148.74 298.41 192.38 135.05 202.05 727.46 463.96 1,182.66 108.88

1.42 0.16 0.33 0.21 0.15 0.22 0.79 0.51 1.29 0.12

122,970 131,106

1,630,162 2,634,936

4,766.55 7,704.49

5.20 8.40

193,254 0 3,300

264,568 9,800 3,300

773.59 28.65 9.65

0.84 0.03 0.01

2,357,268

6,892.60

7.51

(65,449) Rental Guarantees

7,543

(3,489)

Balance Sheet Adjustments Cash - Non Operating Accounts Accounts Receivable Prepaid Assets Escrow Deposits

0 (4,571) (7,749) (30,394)

0 (717) 3,588 (34,568)

Cash Increase (Decreae) From Assets

0

0

0

0

0

0

0

0

0

0

0 250,000

4,562 131,540 6,328 (34,568)

4,374 (134,406) (4,460) (34,822)

2,739 2,387 523 322,388

0 (1,420) 337 (35,800)

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

0 0 0 (7,125)

(7,125)

(7,125)

(7,125)

(7,125)

(7,125)

(7,125)

(42,714)

(31,697)

107,861

(169,314)

328,037

(36,884)

Accounts Payable Accrued Expenses Other Payables Mortgages Payable

36,334 41,830 (1,829) 0

64,458 25,859 (1,300) (11,458)

(135,734) 110,449 (1,433) (5,571)

185,452 36,480 (4,374) 15,448

117,385 (411,342) (2,739) 1,581

41,375 29,291 (793) 0

Cash Increase (Decrease) From Liab.

76,334

77,559

(32,289)

233,006

(295,115)

69,872

NET CASH FLOW CUMM. NET CASH FLOW

(7,597) 47,614

(12,219) 35,395

11,751 47,146

14,106 61,251

(14,231) 47,020

1,726 48,746

(7,189) (1,433) 109,486 0

0 0 0 (2,951)

0 0 0 0

0

0

0 0 0 0 0

0 0 0 0 0

0 0 0 0

0 0 0 0

0

0

(167,434) (12,468) 0 0

0 0 0 0

(22,013) (63)

(21,806) (21,869)

(23,992) (45,861)

(8,608) (54,468)

(3,456) (57,924)

181,601 181,601

$700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $$(100,000) $(200,000)

Feb 2007

Mar 2007

Apr 2007

May 2007

Jun 2007

Row 59

Jul 2007

Aug 2007

Sep 2007

Oct 2007

Nov 2007

90,852 (12,468) 0 0 0 (12,468)

1,880,907

55210.94

$(300,000) Jan 2007

(1,433) 109,486 (14,250) (2,951)

(179,902) 0

(26,795) 21,951

250,000

100,865 (2,951)

0 0 0 0

12 Month Total

Dec 2007

Row 60

Units Sq. Ft. ### 384807 bayclub2 castlep cedar congress jackson lee rem ric parkside polo sat sweet trailapt vlgcrest walnut westo wind usacourt usawalcr

160 356 300 257 247 10 428 5 300 440 440 240 280 120 284 12 346 280 284

146,080 384,807 274,080 254,074 221,730 22,160 398,868 24,952 305,832 403,761 548,750 264,892 286,056 108,276 254,103 48,309 433,196 299,111 254,103

2,685,652

$/ Unit

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

Account Revenue Market Rent Loss / Gain to Lease

Gross Potential Rent Prepaid Homeowners Dues Residential Rent Vacancy Loss

MTD Actual

MTD Budget

$ Variance

294,410.00

351,070.00

33,111.00

0.00

MTD Variance Comment

YTD Actual

YTD Budget

$ Variance

Annual Budget

(56,660.00) Variance due to concessions no longer being offered, market rents changed to reflect lower rents. 33,111.00 Variance due to the changing the budget to reflect lower market rents. This will continue to reduce over time as last years concessions deplete. (23,549.00) 0.00 0.00 12,799.84 Variance due to closing out at 96.78% occupied versus budgeted at 93.10%.

1,788,190.00

2,115,495.00

(327,305.00)

4,209,210.00

250,552.00

0.00

250,552.00

0.00

2,038,742.00 0.00 0.00 (156,664.41)

2,115,495.00 0.00 0.00 (166,510.25)

(76,753.00) 0.00 0.00 9,845.84

4,209,210.00 0.00 0.00 (325,479.64)

3,520.54 Current specials are only offered on our two bedrooms and only with a look and lease do they receive $350 off first months rent. 0.00 0.00 (809.99) Variance due to skips and damages from #10208. (355.00) Two model units. 0.00 269.20 Two associates live on site. 0.00 (260.00) Maintain one guest suite. 3,746.45 We have been able to reduce the amount of concessions given off each month to meet market needs. We have also been renewing leases with fewer concessions. 0.00 0.00 0.00 0.00 $(4,637.96)

(19,755.61)

(35,235.00)

15,479.39

(59,160.00)

0.00 0.00 (7,005.00)

0.00 0.00 (3,803.04)

0.00 0.00 (3,201.96)

0.00 0.00 (7,841.82)

(11,880.00) 0.00 (10,684.80) 0.00 (6,960.00) (387,465.37)

(9,750.00) 0.00 (12,300.00) 0.00 (5,400.00) (365,082.65)

(2,130.00) 0.00 1,615.20 0.00 (1,560.00) (22,382.72)

(19,500.00) 0.00 (24,600.00) 0.00 (10,800.00) (632,942.99)

0.00 0.00 0.00 0.00 $1,438,326.81

0.00 0.00 0.00 0.00 $1,517,414.06

0.00 0.00 0.00 0.00 $(79,087.25)

0.00 0.00 0.00 0.00 $3,128,885.55

0.00 (68.00) 0.00 518.00 Variance due to more residents paying on time resulting in fewer fees charged. 335.00 There are three month to month leases.

0.00 0.00 0.00 8,916.84

0.00 408.00 0.00 9,900.00

0.00 (408.00) 0.00 (983.16)

0.00 816.00 0.00 19,800.00

327,521.00 0.00 0.00 (11,744.84)

351,070.00 0.00 0.00 (24,544.68)

Upfront Rent Concessions

(3,004.46)

(6,525.00)

Corporate Discount Delinquent Rent Adjustments & W/O

0.00 0.00 (1,465.51)

0.00 0.00 (655.52)

(1,980.00) 0.00 (1,780.80) 0.00 (1,160.00) (49,471.67)

(1,625.00) 0.00 (2,050.00) 0.00 (900.00) (53,218.12)

0.00 0.00 0.00 0.00 $256,913.72

0.00 0.00 0.00 0.00 $261,551.68

0.00 0.00 0.00 2,168.00

0.00 68.00 0.00 1,650.00

535.00

200.00

3,594.99

1,200.00

2,394.99

2,400.00

931.67 0.00 1,630.00

960.00 0.00 1,050.00

(28.33) 0.00 580.00 Variance due to 21 app fees budgeted for and actual collected were 32.

5,054.98 0.00 8,490.00

5,760.00 0.00 5,250.00

(705.02) 0.00 3,240.00

11,520.00 0.00 10,250.00

0.00

1,000.00

3,684.76

6,000.00

(2,315.24)

12,000.00

577.55

1,160.00

3,913.73

6,960.00

(3,046.27)

13,920.00

0.00 0.00 2,486.33 0.00 0.00 0.00 0.00 6,727.57 0.00 1,903.80 0.00 0.00 34.57 0.00 0.00 0.00 3,750.00 1,212.61

0.00 0.00 2,456.00 0.00 0.00 0.00 0.00 6,650.00 0.00 1,006.00 0.00 0.00 90.00 0.00 0.00 0.00 3,600.00 5,550.00

0.00 3,488.53 19,584.04 0.00 0.00 0.00 0.00 40,205.32 0.00 7,590.80 0.00 0.00 2,197.07 0.00 0.00 0.00 18,300.00 14,339.05

0.00 0.00 14,736.00 0.00 0.00 0.00 0.00 39,900.00 0.00 6,036.00 0.00 0.00 540.00 0.00 0.00 0.00 17,400.00 26,640.00

0.00 3,488.53 4,848.04 0.00 0.00 0.00 0.00 305.32 0.00 1,554.80 0.00 0.00 1,657.07 0.00 0.00 0.00 900.00 (12,300.95)

0.00 0.00 29,472.00 0.00 0.00 0.00 0.00 79,800.00 0.00 12,072.00 0.00 0.00 1,080.00 0.00 0.00 0.00 33,800.00 48,840.00

525.00 0.00 0.00

300.00 0.00 425.00

1,297.44 0.00 0.00

2,250.00 0.00 2,550.00

(952.56) 0.00 (2,550.00)

3,600.00 0.00 5,100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22,482.10

(1,750.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24,415.00

(1,000.00) Residents not paying at the time of move-out, however all residents are being turned over to our collection agency every month. (582.45) Includes collection of utility transfer fees and credit card fees. 0.00 0.00 30.33 0.00 0.00 0.00 0.00 77.57 0.00 897.80 Cable and telephone commission. 0.00 0.00 (55.43) 0.00 0.00 0.00 150.00 (4,337.39) Variance due to apartments being left in better condition resulting in fewer fees charged. 225.00 0.00 (425.00) We do not have any corporate units at this time. 1,750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (1,932.90)

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 140,657.55

(10,500.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 135,030.00

10,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,627.55

(21,000.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 263,470.00

$279,395.82

$285,966.68

$1,578,984.36

$1,652,444.06

$(73,459.70)

$3,392,355.55

Model Units Courtesy Officer Apt. Employee Apartment Housekeeping & Maintenance Fee Guest Suite Lease Term Concessions

Homeowner's Assn Dues Income Homeowner Dues Paid Model Units Lease Contract Difference Total Rental Income Laundry Income Vending Income Covered Parking Income Late Charges & NSF Fees Month to Month Premium Storage Fees Repair & Maintenance Fees Application Fees Termination Fees & Damages

Miscellaneous Income Renters Insurance Interest Income Pet Rents & Fees Tower Rent Asset Management Fee Parking Spaces Income Homeowners Assessments Garage Income Water/Sewer Income Cable/Telephone Income HOA Contributions Developer Developer HOA Dues Forfeited Deposits Developer Contributions Interest Income Other Thunder Income Administration Fee Move-Out Charges Short Term Lease Fees Extra-Ordinary Income Corporate Rent Corporate Units - expense Deferred Revenue HOA Developer Contributions Acquisition Fees Income - Rental Income - C.A.M. Income - Insurance Income - Taxes Income - Interest Income - Other Income - Condo Sales Total Other Income Total Revenue

$(6,570.86)

Expense Managers Salary

9,818.23

12,013.16

0.00 11,735.38

0.00 11,223.48

Salary - Administrative Commissions & Bonus

0.00 6,509.22

0.00 6,074.09

Payroll Taxes Group Insurance

0.00 1,596.00

0.00 778.00

Disability Insurance 401k Match Contract Labor

0.00 0.00 2,003.75

0.00 0.00 0.00

Workers Comp Total Salary Expense

0.00 31,662.58

0.00 30,088.73

Office Operations & Supplies Telephones Answering Svc. & Pagers Postage & Delivery Patrol Services Membership Dues Publications & Subscriptions Conventions/Seminars Employee Training Furniture Rental Car Expenses Permits & Fees Credit Checks Guest Suite Expense Parking Cost Total Operating Expense

875.26 740.67 (34.50) 95.83 0.00 0.00 0.00 0.00 193.25 0.00 0.00 0.00 685.50 484.36 0.00 3,040.37

1,000.00 1,100.00 100.00 170.00 0.00 0.00 90.00 0.00 115.00 0.00 25.00 25.00 630.00 650.00 0.00 3,905.00

Advertising & Promotions Resident Promotions Locators Resident Referrals Total Advertising Expense

2,711.26 321.62 1,367.38 0.00 4,400.26

2,600.00 798.00 2,603.16 2,790.00 8,791.16

Paint & Drywall Contract Cleaning Svcs. Carpet Cleaning & Repairs Window Coverings Vinyl & Tile Repairs Lock & Keys Counter & Tub Resurfacing Other Redecorating Cleaning Supplies Total Make Ready Expense

306.15 3,715.00 2,576.00 227.08 0.00 0.00 0.00 0.00 126.62 6,950.85

720.00 250.00 2,400.00 100.00 0.00 50.00 416.67 25.00 133.33 4,095.00

899.68 2.46 23.37 0.00 0.00 1,120.93

700.00 100.00 140.00 150.00 0.00 450.00

Salaries Maintenance Salary

General Maintenance & Supplies HVAC Parts & Repairs Plumbing Parts & Repairs Electric Parts & Repairs Roof & Gutter Repairs Pools & Fountains

2,194.93 Includes 4 Day's P/R Acc'l and May's Bonus. 0.00 (511.90) Includes 4 Day's P/R Acc'l and May's Bonus. 0.00 (435.13) Includes 4 Day's P/R Acc'l and May's Bonus. 0.00 (818.00) Includes 4 Day's P/R Acc'l and May's Bonus. 0.00 0.00 (2,003.75) Variance is due to use of temporary labor to cover open positions. 0.00 (1,573.85) 124.74 359.33 134.50 74.17 0.00 0.00 90.00 0.00 (78.25) 0.00 25.00 25.00 (55.50) 165.64 0.00 864.63 (111.26) 476.38 1,235.78 Three locator palcements. 2,790.00 No refferal fees paid this month. 4,390.90 413.85 (3,465.00) Varaince due to budget error. (176.00) (127.08) 0.00 50.00 416.67 25.00 6.71 (2,855.85) (199.68) 97.54 116.63 150.00 0.00 (670.93) Replaved the pool filters and ordered supplies.

66,073.37

72,078.96

6,005.59

147,761.88

0.00 77,227.98

0.00 67,340.88

0.00 (9,887.10)

0.00 138,048.78

0.00 24,745.45

0.00 19,423.18

0.00 (5,322.27)

0.00 39,026.28

0.00 9,737.50

0.00 4,668.00

0.00 (5,069.50)

0.00 9,336.00

0.00 0.00 2,390.50

0.00 0.00 0.00

0.00 0.00 (2,390.50)

0.00 0.00 0.00

0.00 180,174.80

0.00 163,511.02

0.00 (16,663.78)

0.00 334,172.94

3,150.08 4,396.96 459.66 1,141.57 0.00 0.00 0.00 0.00 2,538.89 0.00 385.44 0.00 2,347.50 3,261.38 0.00 17,681.48

6,000.00 6,600.00 600.00 1,020.00 0.00 0.00 540.00 0.00 690.00 0.00 150.00 150.00 3,150.00 3,900.00 0.00 22,800.00

2,849.92 2,203.04 140.34 (121.57) 0.00 0.00 540.00 0.00 (1,848.89) 0.00 (235.44) 150.00 802.50 638.62 0.00 5,118.52

12,000.00 13,200.00 1,200.00 2,040.00 0.00 0.00 1,080.00 0.00 1,380.00 0.00 300.00 300.00 6,150.00 7,800.00 0.00 45,450.00

21,164.89 2,392.15 8,029.52 4,600.00 36,186.56

20,900.00 4,788.00 12,581.94 13,485.00 51,754.94

(264.89) 2,395.85 4,552.42 8,885.00 15,568.38

36,900.00 9,576.00 24,440.78 26,195.00 97,111.78

1,287.40 15,585.00 9,305.00 1,389.84 0.00 364.31 75.00 0.00 398.76 28,405.31

3,870.00 1,500.00 12,900.00 600.00 0.00 300.00 2,500.02 150.00 799.98 22,620.00

2,582.60 (14,085.00) 3,595.00 (789.84) 0.00 (64.31) 2,425.02 150.00 401.22 (5,785.31)

7,852.50 3,000.00 26,175.00 1,200.00 0.00 600.00 5,000.04 300.00 1,599.96 45,727.50

3,841.14 1,096.20 359.62 0.00 270.00 1,717.51

4,200.00 600.00 840.00 900.00 0.00 2,700.00

358.86 (496.20) 480.38 900.00 (270.00) 982.49

8,400.00 1,200.00 5,055.00 1,800.00 0.00 5,400.00

Gates & Entrances Glass & Screens Appliance Parts & Repairs Hardware Exterior Painting Uniforms

0.00 260.24 0.00 0.00 0.00 (1,000.00)

0.00 160.00 450.00 75.00 25.00 0.00

Elevator Service & Repairs Security & Fire Systems Uninsured Losses Locks & Keys Bulbs & Ballasts Total Maintenance Expense

0.00 98.66 0.00 0.00 0.00 1,405.34

0.00 175.00 0.00 0.00 0.00 2,425.00

Landscape & Grounds

3,931.69

2,500.00

Trash Removal Pest Control Security Patrols Window Cleaning Svc. Interior Cleaning Svc. Cable Television Snow Removal Total Service Expense

886.50 65.26 0.00 0.00 0.00 0.00 0.00 4,883.45

510.00 75.24 0.00 0.00 0.00 0.00 0.00 3,085.24

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

Management Fees Asset Management Fees Investor Administration Fee Legal Fees

11,810.42 1,000.00 3,250.00 118.90

11,438.67 1,000.00 3,300.00 1,300.00

Accounting Fees Postage & Delivery Bank Charges Partnership Insurance Other Administrative Expenses Travel Expense Employee Activities Printing Computer Consulting Computer Expense Bank Charges Development Cost Total Admin. Expense

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16,179.32

0.00 0.00 9.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,048.25

2,809.80 0.00 1,163.09 15,598.57

3,340.00 0.00 2,565.00 8,965.00

Water & Sewer - Resident Reimb Water - irrigation

(11,859.85) 5,765.85

(6,275.50) 5,000.00

Electric - Tenant Reimbursement Trash Reimbursement Water - Tenant Reimbursement Utility -Vacant Electric Utility - Vacant Gas Tenant Reimbursement - Gas Total Utility Expense

0.00 (2,252.30) 0.00 904.54 418.76 0.00 12,548.46

0.00 (2,011.00) 0.00 707.94 471.96 0.00 12,763.40

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

Electricity Electricity Gas - Resident Natural Gas Water & Sewer

0.00 (100.24) 450.00 75.00 25.00 1,000.00 Reflects reversal of prior month accruals. 0.00 76.34 0.00 0.00 0.00 1,019.66

0.00 817.10 1,077.12 149.87 355.34 45.40

0.00 960.00 3,150.00 450.00 150.00 1,000.00

0.00 142.90 2,072.88 300.13 (205.34) 954.60

0.00 1,920.00 5,850.00 900.00 300.00 2,000.00

0.00 1,980.18 0.00 0.00 0.00 11,709.48

0.00 1,050.00 0.00 0.00 0.00 16,000.00

0.00 (930.18) 0.00 0.00 0.00 4,290.52

0.00 10,395.00 0.00 0.00 0.00 43,220.00

11,390.07

10,000.00

(1,390.07)

30,000.00

4,527.54 465.26 0.00 0.00 0.00 0.00 16,370.42 32,753.29

3,060.00 451.44 0.00 0.00 0.00 0.00 3,800.00 17,311.44

(1,467.54) (13.82) 0.00 0.00 0.00 0.00 (12,570.42) (15,441.85)

6,120.00 902.88 0.00 0.00 0.00 0.00 5,850.00 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

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

(371.75) Based on % of total revenue. 0.00 50.00 1,181.10 Expensed seven evictions this month. Includes resident riembursements for fees. 0.00 0.00 9.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 868.93

65,431.20 6,000.00 19,500.00 1,713.40

66,097.76 6,000.00 19,800.00 7,800.00

666.56 0.00 300.00 6,086.60

135,694.22 12,000.00 39,600.00 15,600.00

0.00 0.00 0.00 0.00 0.00 169.30 123.71 0.00 0.00 0.00 0.00 0.00 92,937.61

0.00 0.00 57.48 0.00 0.00 0.00 0.00 0.00 0.00 2,624.00 0.00 0.00 102,379.24

0.00 0.00 57.48 0.00 0.00 (169.30) (123.71) 0.00 0.00 2,624.00 0.00 0.00 9,441.63

0.00 0.00 114.96 0.00 0.00 0.00 0.00 0.00 0.00 5,124.00 0.00 0.00 208,133.18

530.20 Less usuage than anticipated. 0.00 1,401.91 Less usuage than anticipated. (6,633.57) Variance due to increase of water charges when only budgeted for a 3% increse. 5,584.35 Collected 76%. (765.85) Variance due to increase of water charges when only budgeted for a 3% increse. 0.00 241.30 0.00 (196.60) 53.20 0.00 214.94

16,195.39 0.00 13,987.64 86,325.95

20,040.00 0.00 15,390.00 53,790.00

3,844.61 0.00 1,402.36 (32,535.95)

40,080.00 0.00 30,780.00 107,580.00

(52,897.47) 6,057.79

(37,653.00) 6,000.00

15,244.47 (57.79)

(75,306.00) 23,500.00

0.00 (14,531.37) 0.00 7,161.05 4,394.55 0.00 66,693.53

0.00 (12,066.00) 0.00 4,802.64 3,201.76 0.00 53,505.40

0.00 2,465.37 0.00 (2,358.41) (1,192.79) 0.00 (13,188.13)

0.00 (24,132.00) 0.00 9,387.78 6,258.52 0.00 118,148.30

(1,431.69) Includes cost to install seasonal color and repairs to the irrigation. (376.50) Includes past due invoice for March. 9.98 0.00 0.00 0.00 0.00 0.00 (1,798.21) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

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

Property Taxes Franchise Tax Insurance Tax Consultants MIP Total Taxes & Insurance Total Operating Expenses NET OPERATING INCOME

28,333.71 0.00 5,909.18 0.00 0.00 34,242.89 115,313.52 164,082.30

27,616.50 0.00 5,073.00 49.88 0.00 32,739.38 114,941.16 171,025.52

Base Rent - Interest Payment Base Rent - Principal Payment Stated Rent Office Rent Total Rent Expense

106,586.67 0.00 86,666.71 0.00 193,253.38

106,586.67 0.00 86,666.67 0.00 193,253.34

Mortgage Interest Loan Fees Interest Expense Interest Expense Total Debt Service

0.00 0.00 0.00 0.00 0.00

Partnership Legal Fees Partnership Accounting Fees Partnership Travel Partnership - Meals Partnership Fees - Other Partnership Expense Due Diligence Cost Dead Deal Cost Partnership Exp- Leaseup Costs Total Partnership Expense

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

170,002.26 0.00 36,252.31 600.00 0.00 206,854.57 673,396.63 905,587.73

165,699.00 0.00 30,438.00 299.28 0.00 196,436.28 646,318.32 1,006,125.74

(4,303.26) 0.00 (5,814.31) (300.72) 0.00 (10,418.29) (27,078.31) (100,538.01)

331,398.00 0.00 60,876.00 598.56 0.00 392,872.56 1,327,709.14 2,064,646.41

0.00 0.00 (0.04) 0.00 (0.04)

639,520.02 0.00 520,000.26 0.00 1,159,520.28

639,520.02 0.00 520,000.02 0.00 1,159,520.04

0.00 0.00 (0.24) 0.00 (0.24)

1,279,040.04 0.00 1,040,000.04 0.00 2,319,040.08

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

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

170.00 170.00 75.00 0.00 0.00 0.00 0.00 0.00 0.00 415.00

170.00 170.00 75.00 0.00 0.00 0.00 0.00 0.00 0.00 415.00

0.00 365.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 365.00

1,020.00 1,020.00 450.00 0.00 0.00 0.00 0.00 0.00 0.00 2,490.00

1,020.00 655.00 450.00 0.00 0.00 0.00 0.00 0.00 0.00 2,125.00

2,040.00 2,040.00 900.00 0.00 0.00 0.00 0.00 0.00 0.00 4,980.00

0.00

16,400.00

0.00

18,946.00

18,946.00

18,946.00

0.00 0.00 1,438.81 0.00 0.00 0.00 0.00 652.55

0.00 0.00 4,900.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 34,431.03 585.06 0.00 0.00 0.00 5,862.26

3,250.00 0.00 29,400.00 600.00 0.00 0.00 0.00 3,713.00

3,250.00 0.00 (5,031.03) 14.94 0.00 0.00 0.00 (2,149.26)

3,250.00 0.00 58,800.00 600.00 0.00 0.00 0.00 3,713.00

Boiler Replacement Roof Replacement Total Capital Expenses

0.00 0.00 2,091.36

0.00 0.00 21,300.00

0.00 0.00 40,878.35

0.00 0.00 55,909.00

0.00 0.00 15,030.65

0.00 0.00 85,309.00

Casualty Losses Casualty Recovery Total Casualty Loss NET INCOME (LOSS)

0.00 0.00 0.00 (31,262.44)

0.00 0.00 0.00 (43,942.82)

0.00 0.00 0.00 12,680.38

0.00 0.00 0.00 (295,175.90)

0.00 0.00 0.00 (211,793.30)

0.00 0.00 0.00 (83,382.60)

0.00 0.00 0.00 (344,682.67)

Rental Guarantee

0.00 (31,262.44)

0.00 (43,942.82)

0.00 12,680.38

4,054.35 (291,121.55)

0.00 (211,793.30)

4,054.35 (79,328.25)

0.00 (344,682.67)

Exterior Rehab

Interior Rehab HVAC Replacement Carpet & Floor Replacement Refrigerators Dishwashers & Ranges Washers / Dryers Fire Alarm Replacement Other Capital Improvements

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 (717.21) Based on anticipated taxes. 0.00 (836.18) Includes monthly pollution policy. 49.88 0.00 (1,503.51) (372.36) (6,943.22)

16,400.00 Savings due to parking lot not needing restripping at this time. We have opted to just do the filler of the parking lot at this time. 0.00 0.00 3,461.19 Replaced two carpets this month. 0.00 0.00 0.00 0.00 (652.55) Reflects new enclosure for the golf cart. 0.00 0.00 19,208.64

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

YTD Variance Comment

Courtney Downs Apartments Jun-07 LEASING & OCCUPANCY NUMBER OF MOVE INS: NUMBER OF MOVE OUTS: NET FOR THE MONTH:

19 13 6

OCCUPIED/LEASED %:

96.8%, 86.8%

SOURCE OF TRAFFIC:

$279,395.82 $272,061.08 7334.74

TOTAL # GARAGES # GARAGES OCCUPIED GARAGES OCCUPIED %

120 117 98%

REASONS WHY PROSPECTS DID NOT LEASE: Traffic 8 8 0 6 32 0 22 5 6 0 12 15 0

Leased 0 2 0 0 10 0 5 2 1 0 0 4 0

TOTALS

114

24

CLOSING RATIO:

33%

APTGUIDE.COM APARTMENT GUIDE YELLOW PAGES OTHER. NET BLUE BOOK RENT.NET LIVES IN AREA RESIDENT REFERRAL LOCATORS RENT.COM WALK-IN SIGNAGE WORD OF MOUTH

INCOME THIS MONTH: INCOME LAST MONTH: DIFFERENCE:

* * * * * * * * * * * * * *

Job Transfer Too expensive. Future/No Availability/Waiting list Just started looking. Waiting for Home to Sell Current Lease to Expire Needs Ground Floor Moved Elsewhere Will return with roommate or spouse Realtor Looking for Client Undecided Employment pending House sale pending Rented at Competitor TOTALS

7 15 0 19 7 6 5 7 9 0 11 0 4 0 90

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:

MARKET READY UNITS COMPLETE PAINTS TOUCH UPS WORK ORDERS Pending Misc 0 Electrical 0 Punch 0 HVAC 0 Plumbing 0 Property Ext. 0 Appliances 0 Safety 0 Total 0 ROOF LEAKS

ROUTINE REPLACEMENTS:

Completed 12 33 17 11 46 0 5 0 124

Number of: 17 7 10 124 0 12 33 17 11 46 0 5 0 124 0

PLUMBING LEAKS

0

REFRIGERATORS DISHWASHERS WINDOWS A/C COMPRESSORS CONDENSING UNITS WATER HEATERS ICE MAKERS GARBAGE DISPOSALS MICROWAVES CARPETS CEILING FANS TOILETS A/C FAN MOTORS COUNTER TOPS CABINETS RESURFACED KITCHEN

BLINDS TUBS RESURFACED TUB TILES

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 Assistant Manager Leasing Consultant Leasing Consultant Maintenance Supervisor Assistant Maintenance Maintenance/ Grounds

Nancy Howland Wendy Gillan Carrie McMillan Shannon Murphy Gabriel Tellez Russell Briley Jorge Chavez and Jorge Bernal

ACCOMPLISHMENTS FOR THE MONTH: All breezways have been powerwashed on the property.

Number Replaced 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0

19 0 0

Apt. #

16105, 10208.

16105-2, 19309-3, 13302-1, 102081, 10207-2, 19112-3, 10106-1, 2204-2, 9108-2, 16105-1, 16203-1.

Courtney Downs RENTAL SCHEDULE

UNIT TYPE A1 A1V A2 B1 B1V C C1 C1V CV D DV E EV TOTAL

1BR 1BR 1BR 2BR 2BR 2BR 2BR 2BR 2BR 2BR 2BR 3BR 3BR

#UNITS

SIZE

40 32 18 24 32 42 44 22 24 16 20 24 4

704 704 910 808 808 977 1,030 1,030 977 1,030 1,030 1,140 1,140

TOTAL S/F 28,160 22,528 16,380 19,392 25,856 41,034 45,320 22,660 23,448 16,480 20,600 27,360 4,560

342

917

313,778

MKT RENT PER UNIT 725 725 850 750 750 875 900 900 875 925 925 1150 1150 $867

MKT RENT MONTHLY PER S/F GROSS 1.03 $29,000 1.22 $27,520 1.03 $15,300 1.11 $18,000 1.14 $24,000 1.16 $36,750 1.12 $39,600 1.15 $19,800 1.18 $21,000 0.90 $14,800 0.90 $18,500 1.01 $27,600 1.01 $4,600 $0.94

$296,470

ANNUAL GROSS $348,000 $330,240 $183,600 $216,000 $288,000 $441,000 $475,200 $237,600 $252,000 $177,600 $222,000 $331,200 $55,200 $3,557,640

EFFECTIVE CONCESSION RENTS* 725 725 850 750 750 875 900 900 875 925 925 1150 1150

CONCESSION PER UNIT 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 * Net of Concessions

0.00 1.22 1.03 1.11 1.14 1.16 1.12 1.15 1.18 0.00 0.00 0.00 0.00

EFFECTIVE MONTHLY GROSS $$27,520 $$$$$$$$$$$-

0.09

$27,520

EFFECTIVE PER S/F

Vacants

Vacants Leased

Notice

Notice Leased

Net Available

0 0 1 0 0 5 7 0 0 2 0 1 0

1 0 2 0 0 2 3 0 0 0 0 1 0

6 0 0 4 0 5 6 0 0 2 0 2 0

1 0 1 3 0 1 0 0 0 0 0 0 0

4 0 2 1 0 13 12 0 0 5 0 3 0

16

9

25

6

40

MARKET SURVEY Courtney Downs June-07 Apartment Name

Address Phone Location # of units Age of Property Application Fee Credit Card Pets Allowed Pet Deposit Sec. Deposit W/D included Covered Parking Garage Cable Tennis Courts # of pools Weight Room Jacuzzi Ceiling Fans Microwaves Mini Blinds FF Freezer Icemakers Fireplaces Access Gates Alarm in Unit Door to Door Aerobics/Kick Box Movie Room Computer Library Indoor Basketball Water Charge

Courtney Downs

Coyote Ranch

15849 E. Jamison Dr16363 E Freemont Ave 720-870-6114 303-693-8787 Englewood, Co Aurora, Co 342 507 5 5 $50.00 $35.00 yes yes yes yes 300 n/r 300-600 150 275-325 Yes yes no yes Detached yes Yes yes no no 1 1 yes yes yes 1 yes yes yes yes yes yes yes yes yes yes yes no no yes Prewired no no no no no no yes yes yes no no yes no

Windsor @ Meridian

Pinnacle @ the Creek

Dove Valley

9875 Jefferson Pkwy 303-256-7700 Englewood, Co 80112 653 7 $40.00 yes yes 150-300 300 Only In Select Units yes yes yes no 1 yes 1 yes yes yes yes yes yes yes yes no no yes yes no yes

6107 S Parker Rd 303-766-2500 Centennial, Co 216 4 $35.00 yes yes $100 100 Only Select Units yes yes yes no 1 yes 1 yes yes yes yes yes yes no yes no no yes yes no yes

7550 S Blackhawk 303-362-2000 Englewood, Co 80112 312 5 $30.00 yes yes 300-500 99 no yes yes yes yes 1 yes 1 yes yes yes yes yes yes yes yes no no yes yes no yes

Cherrywood Village

16950 E Carlson Dr 303-805-7220 Parker, Co 80134 380 5 $35.00 yes yes 400-500 100-200 no yes yes yes yes 2 yes 2 yes yes yes yes yes yes yes no no no yes yes no yes

Reserve @ South Creek

15611 E Jamison Dr 303-680-6696 Englewood, Co 80112 168 5 $40.00 yes yes 300 100 no yes yes yes yes 1 yes 1 yes yes yes yes yes yes yes yes no no yes yes no yes

MARKET SURVEY Courtney Downs June\

(Concessions reduced rates) PROPERTY:

Courtney Downs Apt PRICE

Efficiency Efficiency 1B1B (A) 1B1B (B) 1B1B w/study 1B 1B 1B w/loft 1B1B w/study 2B2B (E) 2B2B (F) 2B2B (G) 2B2B (H) 2B2B 2B w/study 2B2B TH 2B2B TH 3B2B 3B2B

% occ /leased Avg PSF Avg Rents Units(Total / Avail)

SIZE

Coyote Ranch

PSF

PRICE

SIZE

Windsor at Meridian

PSF

715 910

PRICE

779 853

0.92 1.07

SIZE

Pinnacle @ the Creek

PSF

PRICE

SIZE

Dove Valley

PSF

PRICE

SIZE

PSF

725 850

704 808

1.03 1.05

680 740

627 701

1.08 1.06

659 684

685 705

0.96 0.97

720 730

768 842

750

910

0.82

840

811

0.91

709

760

0.96

895

992

820 920

956 1044

0.86 0.88

809

1051

845 935

1120 888

0.77 0.75

1084

1230

94

96.00%

875

977

0.90

975

1105

0.88

900 925

1030 1030

0.87 0.90

1120

1192

0.94

1060 1090

1196 1180

0.89 0.92

1,160

1140

1.02

1275

1398

0.91

1320

1330

0.99

93 1 884 342

88.30%

0

0% 0.95

91% 0.94

40

96.1 1114 507

99.6

98% 0.94

18

Special: look and lease special $150 security deposit waived and $350 off first Special: Reduced pricing Rates months rent. for all floor plans. reflect these rates:1 Bd $725 1 BD $715 to $910 specials: 2 Bd $875 2BD $975 to $1120 3 Bd $1160 3BD $1275

Ren: $25 to $50 increase.

Ren.: Keep all residents 4% under all new residents.

994 653

808 216

0.88

94% 0.88

20

PRICE

0.94 0.87

Cherrywood Village SIZE PSF

675 708

707 796

729

916

741

763

0.97

965

1037

0.93

1195

1257

885

1115

0.79

925

1033

0.90

970

1220

0.80

975

1093

0.89

1100

1356

0.81

1040

1235

0.84

93.0 883 312

91

93% 0.84

13

94.7 1131 360

97

43

94% 0.90 0

Special:waive security deposit and $150.00 gift Sepcial:None card to any location. $680 1/1 $820 2/2 $1320 3/2 1 Bd $659 to $719 special was pulled off the internet 2 Bd $809 to $1046 due to property will not give info. 3BD $1084 to $1179

Special: $400.00 off 1st month rent look and lease Special: Up to 3 months special. free on a 12 month lease. 1 Bd $720 to $895 1 Bd $675 to $729 2 Bd $885 to $970 2 Bd $925 to $975 3 Bd $1100 3 Bd $1040

Ren: Info not avail per corporate

Ren: $30 increas for 12 month lease

Ren:Per corporate

Reserve@South Creek SIZE PSF

PRICE

0.95

Ren: Average $10 to $25 increase.

97.0 995 168

96

0.95

98% 0.95

4

Special: Discounts on all available rents.

Ren: Free carpet cleaning with 12mo.