As filed with the Securities and Exchange Commission
on April 29, 1998
Registration No. 333-13113
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
POST-EFFECTIVE AMENDMENT NO6
TO FORM S-11
REGISTRATION STATEMENT
under
THE SECURITIES ACT OF 1933
REDWOOD MORTGAGE INVESTORS VIII, a California Limited Partnership
(Exact name of registrant as specified in its charter)
CALIFORNIA 6611 94-3158788
(State of other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification No.)
650 El Camino Real, Suite G, Redwood City, California 94063 (650) 365-5341
(Address and telephone number of principal executive offices)
650 El Camino Real, Suite G, Redwood City, California 94063 (650) 365-5341
(Address of principal place of business or intended principal place of business)
D. Russell Burwell
650 El Camino Real, Suite G, Redwood City, California 94063 (650) 365-5341
(Name, address, including zip code and telephone number,including area code of
agent for service)
Copies to:
Stephen C. Ryan, Esq.
Anne R. Knowles, Esq.
Landels Ripley & Diamond, LLP
350 The Embarcadero
San Francisco, CA 94105
Approximate date of commencement
of proposed sale to public:
As soon as practicable after this Registration Statement becomes effective.
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933 check the following box: X
Supplement No. 4 dated
to the Prospectus Dated April 24, 1998
Redwood Mortgage Investors VIII,
A California Limited Partnership
The following information updates the Prospectus of Redwood Mortgage
Investors VIII, a California limited partnership (the "Partnership") dated
December 4, 1996, and replaces in their entirety Supplements Number 1, Number 2,
and Number 3. This information is part of and must accompany the Prospectus.
1. Summary of Partnership Activities. The Partnership is engaged in
business as a mortgage lender, for the primary purpose of making Mortgage
Investments secured primarily by first and second deeds of trust on California
real estate. The Partnership's initial offering of $15,000,000 of limited
partnership units (the Units) commenced in February 1993. The initial offering
was fully subscribed and closed on October 31, 1996. At the time the offering
was closed, the Partnership had received a total of $14,932,017 of
subscriptions. In connection with its initial offering, the Partnership incurred
approximately $12,500 in organizational and offering costs and $569,865 in
syndication costs, which was less than anticipated. (See section of the original
prospectus dated May 19, 1993 and the supplements thereto entitled SOURCES AND
USES OF PROCEEDS).
The General Partners elected in September, 1996, to continue the offering
of Units in the Partnership in order to increase the Partnerships mortgage
investment portfolio, thereby increasing diversity and adding additional safety
to the portfolio. The Partnerships second offering of $30,000,000 of Units
commenced in December, 1996. As this new offering is part of the Partnerships
ongoing business, there is no escrow and all proceeds from the sale of Units are
paid directly to the Partnership.
As of December 31, 1997, the Partnership had received $5,557,659 of
subscriptions in connection with its second offering bringing total aggregate
subscriptions to $20,489,676. As set forth below in the section of this
Supplement entitled Description of Open Loans for the Partnership as of
December 31, 1997 the Partnership had outstanding Mortgage Investments with a
total principal balance of $25,304,989. As of December 31, 1997, the Partnership
had, in connection with its second offering of $30,000,000 of Units, incurred
approximately $0.00 in organizational costs and $291,166 in syndication costs.
As of the date of this Supplement, there have been no adverse business
developments or conditions in the Partnership, or any prior limited
partnerships, that would be material to a prospective investor.
2. Financial Statements. The Financial Statements of the Partnership
included in this Supplement as Attachment III have been audited by Parodi &
Cropper, independent auditors, as of December 31, 1997. Additionally, the
financial statements of Gymno Corporation, the corporate general partner, have
been updated to December 31, 1997, and, 1996, are included as Attachment IV.
3. Plan of Distribution. As described in the Prospectus, sales commissions
are not paid directly by the Partnership out of the offering proceeds. Instead,
the Partnership lends to Redwood Home Loan Company doing business as Redwood
Mortgage, an affiliate of the General Partners, funds from the offering proceeds
equal to the sales commission. For ease of reference, the loan is referred to as
the "Formation Loan". (See, section of the Prospectus entitled "RISKS -
Formation Loan" and "PLAN OF DISTRIBUTION - Formation Loan"). The initial
Formation Loan (the First Formation Loan) made in connection with the initial
offering of $15,000,000, is unsecured and is to be repaid in ten (10) equal
annual installments of principal, without interest, commencing on December 31 of
the year in which the offering terminates, which in connection with the initial
offering of $15,000,000 was December 31, 1996. In connection with the First
Formation Loan, as of December 31, 1996, the Partnership has lent $1,074,840 to
Redwood Mortgage from the offering proceeds to pay sales commissions and
$124,042 had been repaid. In connection with the ongoing Offering of
$30,000,000, the Formation Loan (the Second Formation Loan) during the offering
period will be repaid in annual installments of one-tenth of the principal
balance of the Formation Loan as of December 31 of each year. Such payment shall
be due and payable by December 31 of the following year with the first payment
due by December 31, 1997. Upon the completion of the offering, the balance of
the Formation Loan will be repaid in ten (10) equal annual installments of
principal, without interest, commencing on December 31 of the year following the
year the offering terminates. As of, December 31, 1997, the Partnership, in
connection with the Second Formation Loan, had lent $435,895 to Redwood Mortgage
from the offering proceeds to pay sales commissions.
The General Partners may accept unsolicited orders for Units directly from
an Investor who did not utilize the services of a Participating Broker Dealer,
but instead utilized the services of a registered investment advisor. In
connection with such sales, Redwood Mortgage will pay to the Partnership, an
amount equal to the sales commissions otherwise attributable to a sale of a Unit
through a Participating Broker Dealer. The Partnership will in turn credit such
amounts received by Redwood Mortgage to the account of the Investor who placed
the unsolicited order.
Investors who acquire Units directly from the Partnership will have the
election, in their subscription document, to authorize the Partnership to pay
their registered investment advisor an estimated quarterly amount of no more
than 2% annually of the Investor's Capital Account that would otherwise be paid
to the Investor as Periodic Cash Distributions or compounded as Earnings
("Client Fees"). In the event that the Investor has elected to compound
Earnings, then the amount of the Earnings reinvested by such Investor will be
reduced by an amount equal to the amount of the Client Fees paid. Thus, the
amount of the Periodic Cash Distributions paid or the amount of Earnings
compounded will be less for investors who elect to pay Client Fees through the
Partnership. The authorization to pay Client Fees is solely at the election of
the Investor and is not a requirement of investment.
All Client Fees paid will be paid from those amounts that would otherwise
be paid to the Investor or compounded in his capital account. The payment of all
Client Fees is noncumulative and subject to the availability of sufficient
Earnings in the Capital Account of the Investor to make such payments. In no
event will any such fees be paid by the Partnership as sales commissions or
other compensation. The Partnership is merely agreeing to pay to the registered
investment advisor, as an administrative convenience to the Investor, those
amounts that would otherwise be paid to the Investor. In no event will the total
of all compensation including sales commissions, expense reimbursements, sales
seminar and/or due diligence expenses exceed ten percent (10%) of the program
proceeds received plus an additional one-half percent (0.5%) for bona fide due
diligence expenses as set forth in Rule 2810 of the NASD Conduct Rules.
All registered investment advisors will represent and warrant to the
Partnership that, among other things, that the investment in the Units is
suitable for the Investor, that he has informed the Investor of all pertinent
facts relating to the liquidity and marketability of Units, and that if he is
affiliated with an NASD registered broker or dealer, that all Client Fees
received by him in connection with this transaction will be run through the
books and records of the NASD member in compliance with Notice to Members 96-33
and Rules 3030 and 3040 of the NASD Conduct Rules.
4. Terms of the Offering. As of October 31, 1996, the initial offering of
$15,000,000 of limited partnership units was closed. At the time the offering
was closed the Partnership had received a total of $14,932,017 of subscriptions.
The General Partners elected in September, 1996, to continue the offering of
Units. The Partnerships second offering of $30,000,000 of Units commenced in
December, 1996. As this new offering is part of the Partnerships ongoing
business, there is no escrow and all proceeds from the sale of Units is paid
directly to the Partnership. As of December 31, 1997, the Partnership had
received a total of $5,557,659 in new subscriptions in connection with its
second offering. The aggregate combined subscriptions total $20,489,676.
5. Compensation of General Partners. For the period from inception to
December 31, 1997, the General Partners and their Affiliates have received the
following compensation. (See, section of the Prospectus entitled "COMPENSATION
OF THE GENERAL PARTNERS AND AFFILIATES").
(a) Compensation of General Partners and Affiliates by Partnership.
- ------------------------------------------------------------------- ------------
Entity Receiving Description of Compensation Amount
Compensation
- ------------------------------------------------------------------- ------------
Redwood Mortgage Mortgage Servicing Fee for Servicing
Mortgage Investments $465,688
- --------------------- -------------------------------------------- ------------
General Partner Asset Management Fee for managing assets $59,704
- ------------------------------------------------------------------ ------------
General Partner 1% interest in profits, losses and distributions
of cash available for distribution $39,356
- --------------------- --------------------------------------------- ------------
(b) Fees Paid by Borrowers on Mortgage Investments to Affiliates of the
General Partners.
- ----------------------------------------------------------------- ------------
Entity Receiving Description of Compensation Amount
Compensation
- --------------------- -------------------------------------------- ------------
Redwood Mortgage Mortgage Brokerage Commission for services in
connection with review, selection, evaluation. $1,883,329
- --------------------- --------------------------------------------- ------------
Redwood Mortgage Processing and Escrow Fees for services in
connection with notary, document preparation, credit
investigation and escrow fees. $45,244
- --------------------- ----------------------------------------------------------
6. Description of Open Mortgage Investments For The Partnership As Of
December 31, 1997. As ofDecember 31, 1997, the Partnership had outstanding fifty
five(55) Mortgage Investments with a principal outstanding balance totalling
$25,304,989. The original amount of the outstanding Mortgage Investments was
$28,678,280. The following chart summarizes the original principal amounts and
characteristics of Mortgage Investments made by the Partnership up through
December 31, 1997.
Amount of Mortgage Appraised
1st Mort. at 2nd Mort. At Investment at Value at Loan to Value
County Funding Funding Funding Funding Ratio at Funding
- ------------------ ----------------- --------------- --------------------- --------------- -----------------
Single Family Residences (county)
- ------------------------------------ -------- -------- ----------------- ----------------- -----------------
San Francisco 2 $ 266,462 0 $ 39,000 $ 411,000 74.32%
Contra Costa 2 255,604 0 62,500 452,500 70.30%
Santa Clara 2 574,306 0 98,969 968,400 69.52%
Contra Costa 1 0 0 50,000 75,158 66.53%
San Mateo 3 111,952 16,000 46,400 238,000 73.26%
Sonoma 2 87,236 0 65,000 250,611 60.75%
Santa Clara 2 351,366 0 100,000 663,333 68.05%
El Dorado 2 37,236 0 130,000 244,361 68.44%
San Mateo 1 0 0 130,000 175,484 74.08%
San Francisco 1 0 0 65,000 195,000 33.33%
San Mateo 1 0 0 196,800 319,000 61.69%
San Francisco 1 0 0 70,125 100,179 70.00%
Alameda 1 0 0 300,000 477,499 62.83%
Sonoma 2 63,244 0 93,400 210,000 74.59%
San Mateo 2 166,610 0 100,000 470,000 56.73%
Alameda 2 163,709 0 50,000 340,000 62.86%
Alameda 1 0 0 60,000 136,000 44.12%
Santa Clara 2 578,690 0 250,000 1,160,000 71.44%
San Mateo 2 220,349 0 40,000 325,000 80.11%
San Mateo 2 346,881 0 215,000 700,000 80.27%
San Mateo 1 0 0 132,000 165,000 80.00%
San Mateo 2 132,000 0 50,000 320,000 56.88%
San Mateo 2 139,663 0 65,000 290,000 70.57%
San Mateo 2 44,605 0 40,000 455,000 18.59%
San Francisco 2 820,713 0 175,000 1,422,000 70.02%
San Francisco 1 0 0 171,974 395,000 43.54%
San Francisco 2 1,060,486 0 325,000 2,000,000 69.27%
Sonoma 1 0 0 151,875 202,500 75.00%
Monterey 1 0 0 245,000 350,000 70.00%
San Mateo 2 259,886 0 80,000 430,000 79.04%
Marin 2 195,062 0 50,000 455,000 53.86%
Alameda 2 74,551 0 66,000 265,000 53.04%
Santa Clara 2 201,638 0 293,000 715,000 69.18%
Stanislaus 1 0 0 50,000 130,000 38.46%
San Francisco 2 395,597 0 250,000 1,075,000 60.06%
Marin 1 0 0 770,000 1,650,000 46.67%
San Mateo 1 0 0 225,000 370,000 60.81%
Alameda 1 0 0 59,000 112,500 52.44%
San Mateo 1 0 0 300,000 400,000 75.00%
San Mateo 3 346,092 215,000 58,500 837,500 73.98%
San Francisco 1 0 0 105,000 140,000 75.00%
San Francisco 2 150,301 0 125,000 455,000 60.51%
San Mateo 1 0 0 530,000 730,000 72.60%
San Mateo 1 0 0 325,000 460,000 70.65%
Marin 1 0 0 910,000 186,000 48.92%
Mendocino 1 0 0 125,000 660,000 18.94%
San Mateo 1 0 0 65,000 165,000 39.39%
San Mateo 2 372,417 0 445,000 1,095,000 74.65%
Amount of
Mortgage
1st Mort. at 2nd Mort. At Investment at Appraised Value Loan to Value
County Funding Funding Funding at Funding Ratio at Funding
- ------------------ ----------------- ----------------- ----------------- ----------------- -----------------
Single Family Residences (county)
(continued)
- ------------------------------------ -------- -------- ----------------- ----------------- -----------------
Contra Costa 1 0 0 37,500 50,000 75.00%
San Francisco 1 0 0 420,000 580,000 72.41%
Alameda 2 262,342 0 50,000 405,000 77.12%
Marin 2 910,000 0 120,000 1,860,000 55.38%
San Francisco 1 0 0 390,000 565,000 69.03%
Monterey 2 350,668 0 700,000 1,570,000 60.55%
San Francisco 1 0 0 579,300 800,000 72.41%
San Francisco 2 579,300 0 1,320,000 2,450,000 77.52%
San Francisco 2 210,000 0 561,750 1,102,500 70.00%
San Mateo 1 0 0 250,000 435,000 57.47%
San Francisco 1 0 0 2,400,000 3,403,034 70.53%
Marin 1 0 0 1,300,000 1,770,000 73.45%
Alameda 1 0 0 690,000 1,249,500 55.22%
- ------------------ ----------------- ----------------- ----------------- ----------------- -----------------
Amount of
Mortgage
1st Mort. at 2nd Mort. At Investment at Appraised Value Loan to Value
County Funding Funding Funding at Funding Ratio at Funding
- ------------------ ----------------- ----------------- ----------------- ----------------- -----------------
Multiple Units
- ------------------------------------ -------- -------- ----------------- ----------------- -----------------
- ------------------ ----------------- ----------------- ----------------- ----------------- -----------------
Contra Costa 2 $ 2,638,835 0 662,000 4,829,023 68.35%
San Joaquin 2 713,917 0 200,000 1,270,000 71.96%
Contra Costa 2 775,649 0 350,000 2,030,000 55.45%
San Francisco 1 0 0 400,000 583,333 68.57%
Alameda 2 308,000 0 13,000 510,000 62.94%
San Francisco 1 0 0 200,000 450,000 44.44%
San Joaquin 2 1,773,424 0 385,000 3,132,500 68.90%
San Mateo 1 0 0 425,000 900,000 47.22%
San Francisco 1 0 0 883,750 1,932,500 45.73%
San Francisco 2 883,750 0 1,427,500 3,225,000 71.67%
Alameda 2 6,714,769 0 1,800,000 11,780,270 72.28%
San Mateo 1 0 0 945,000 1,450,000 65.17%
San Mateo 1 0 0 2,200,000 3,470,000 63.40%
- ------------------ ----------------- ----------------- ----------------- ----------------- -----------------
Amount of
Mortgage
1st Mort. at 2nd Mort. At Investment at Appraised Value Loan to Value
County Funding Funding Funding at Funding Ratio at Funding
- ------------------ ----------------- ----------------- ----------------- ----------------- -----------------
Commercial Properties (County)
- ------------------------------------ -------- -------- ----------------- ----------------- -----------------
Alameda 2 $ 343,536 0 114,000 640,000 71.49%
San Francisco 2 295,872 0 99,000 607,895 64.96%
Merced 1 0 0 45,000 175,000 25.71%
Alameda 1 0 0 82,500 130,000 63.46%
Sacramento 2 846,019 0 67,500 1,343,500 68.00%
San Francisco 2 11,864 0 200,000 428,333 49.62%
Alameda 1 0 0 192,500 256,667 75.00%
Santa Clara 1 0 0 390,000 585,000 66.67%
Tuolumne 1 0 0 99,724 285,714 34.90%
San Mateo 1 0 0 280,000 480,000 58.33%
San Mateo 2 4,128,000 0 600,000 6,960,000 67.93%
Alameda 1 0 0 310,000 730,000 42.47%
Santa Clara 2 112,643 500,000 980,000 62.51%
Santa Clara 1 0 0 50,000 191,111 26.16%
Santa Barbara 1 0 0 425,000 850,000 50.00%
San Mateo 2 1,450,000 0 250,000 3,179,000 53.48%
Nevada 1 0 0 59,500 85,000 70.00%
San Mateo 1 0 0 225,000 399,706 56.29%
Alameda 1 0 0 410,000 700,000 58.57%
Santa Clara 1 0 0 50,000 191,111 26.16%
Fresno 1 0 0 130,000 225,000 57.78%
San Mateo 2 1,500,000 0 375,000 2,725,000 68.81%
Alameda 2 290,711 0 60,000 610,000 57.49%
Santa Clara 3 5,188,689 70,458 950,000 8,130,417 76.37%
San Joaquin 1 0 0 320,000 570,000 56.14%
Contra Costa 1 0 0 104,000 190,000 54.74%
San Mateo 1 0 0 700,000 2,550,000 27.45%
Santa Clara 2 5,492,794 0 955,000 8,665,033 74.41%
San Mateo 1 0 0 75,000 265,000 28.30%
Santa Clara 2 5,492,788 0 955,000 9,665,032 74.41%
San Luis Obispo 3 214,088 360,000 300,000 1,968,000 44.42%
Santa Clara 2 6,000,000 0 800,000 8,650,000 78.61%
San Mateo 2 74,754 0 65,000 265,000 52.74%
San Francisco 1 0 0 975,000 1,950,000 50.00%
Santa Clara 2 468,000 0 18,000 585,000 83.08%
Stanislaus 2 273,795 0 1,450,000 4,829,613 35.69%
San Francisco 1 0 0 700,000 2,100,000 33.33%
San Mateo 1 0 0 370,000 495,000 74.75%
Alameda 1 0 0 2,100,000 4,500,000 46.67%
San Mateo 1 0 0 400,000 600,000 66.67%
San Francisco 1 0 0 1,350,000 2,432,500 55.50%
San Francisco 1 0 0 150,000 1,440,000 10.42%
San Francisco 1 0 0 325,000 595,000 54.62%
Solano 1 0 0 480,000 1,885,000 25.46%
Alameda 2 156,750 0 169,555 568,125 57.43%
San Francisco 3 972,234 885,000 50,000 2,750,000 69.35%
San Francisco 2 973,900 0 885,000 2,750,000 67.60%
Alameda 1 0 0 1,075,000 1,440,094 74.65%
- -------------------- --------------- ----------------- ----------------- ----------------- -----------------
<FN>
1 Indicates a First Deed of Trust on the property.
2 Indicates a Second Deed of Trust on the property.
3 Indicates a Third Deed of Trust on the property.
</FN>
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
On December 31, 1997, the Partnership was in the offering stage of its
second offering of ($30,000,000). Contributed capital from Limited Partners
totalled $14,932,017 for the first offering and $5,557,659 for the second
offering with an aggregate of $20,489,676. Of this amount, $0 remained in
applicant status. Accordingly, together with initial approved offering of
$15,000,000 the Partnership has approval for an aggregate offering of
$45,000,000 in Units of $100 each.
At December 31, 1997, the Partnerships Mortgage Investments outstanding
totalled $25,304,989. The primary reason for an increase in Mortgage Investments
Outstanding from $6,484,707 in 1994, to $12,047,252 in 1995, to $15,642,990 in
1996, and to $25,304,989 was the additional capital admitted to the Partnership
through sale of Limited Partnership Units. Additional Partners Capital
contributions totalled $4,508,824, $3,834,799, $3,863,536 and $5,565,372 and the
reinvestment of earnings by partners who have elected to reinvest earnings have
totalled $239,956, $524,988, $800,218 and $1,119,465 for the years ended
December 31, 1994, December 31, 1995, December 31, 1996 and December 31, 1997,
respectively. To a lesser extent, Mortgage Investments outstanding have also
increased through the utilization of the Partnerships line of credit. The
effect of more outstanding Mortgage Investments raised the interest earned on
Mortgage Investments for the years ended December 31, 1994, 1995, 1996 and 1997,
to $480,110, $1,031,029, $1,718,208 and $2,613,008 respectively. Interest rates
on Mortgage Investments ranged from 8.00% to 14.00%. The Partnership began
funding Mortgage Investments on April 14, 1993 and as of December 31, 1997,
distributed earnings at an average annualized yield of 8.36%.
Currently, mortgage interest rates have decreased from those prevalent at
the inception of the Partnership. New loans will be originated at these lower
interest rates which will reduce the average return across the entire Mortgage
Investment portfolio held by the Partnership. In the future, interest rates
likely will change from their current levels. The General Partners cannot at
this time predict at what levels interest rates will be in the future. Although
the rates charged by the Partnership are influenced by the level of interest
rates in the market, the General Partners do not anticipate that rates charged
by the Partnership to its borrowers will change significantly from the beginning
of 1997 over the next 12 months. Based upon the rates payable in connection with
the existing Mortgage Investments, the current and anticipated interest rates to
be charged by the Partnership and the General Partners experience, the General
Partners anticipate that the annualized yield will range between eight & nine
percent (8% - 9%).
During 1994, the Partnership did not have a credit line; therefore Interest
on Note Payable-Bank was -0-. In 1995, the Partnership established a line of
credit with a commercial bank secured by its Mortgage Investments and has
increased the limit from $3,000,000 to $6,000,000. For the years ended 1995,
1996 and December 31, 1997, interest on Note Payable-Bank was $25,889, $188,635
and $340,633 respectively. The primary reason for this increase during 1996, was
that the Partnership did not have access to the credit facility until September,
1995. For 1997, the increase in interest on notes payable-Bank has been
attributed to a higher overall credit facility utilization. Currently, the
Partnership has borrowed $5,640,000 at an interest rate of prime + 1/2%. This
facility could increase as the Partnerships capital increases. This added
source of funds will help in maximizing the Partnership yield by allowing the
Partnership to minimize the amount of funds in lower yield investment accounts
when appropriate Mortgage Investments are not currently available. Additionally,
the Mortgage Investments made by the Partnership bear interest at a rate in
excess of the rate payable to the bank which extended the line of credit, the
amount to be retained by the Partnership, after payment of the line of credit
cost, will be greater than without the use of the line of credit. As of December
31, 1997, the balance remained at $5,640,000 and in accordance with the line of
credit, the Partnership paid all accrued interest as of that date.
The Partnerships income and expenses, accruals and delinquencies are within
the normal range of the General Partners expectations, based upon their
experience in managing similar partnerships over the last twenty years.
Borrowers foreclosures, as set forth under Results of Operations, are a normal
aspect of Partnership operations and the General Partners anticipate that they
will not have a material effect on liquidity. Cash is constantly being generated
from interest earnings, late charges, pre-payment penalties, amortization of
principal and pay-off on Mortgage Investments. Currently, cash flow exceeds
Partnership expenses and earnings payout requirements. As Mortgage Investment
opportunities become available, excess cash and available funds are invested in
new Mortgage Investments.
The General Partners regularly review the Mortgage Investments portfolio,
examining the status of delinquencies, the underlying collateral securing these
Mortgage Investments, borrowers payment records, etc. Data from the local real
estate market and of the national and local economy are reviewed. Based upon
this information and other data, loss reserves are increased or decreased. In
1995, 1996, and 1997, the Partnership made provisions for doubtful accounts of
$26,032, $55,383, and $139,804, respectively. These provisions for doubtful
accounts were made primarily as a prudent action to guard against unidentified
collection losses. The provision for doubtful accounts as of December 31, 1997,
of $257,500 is considered by the General Partners to be adequate. Because of the
number of variables involved, the magnitude of the swings possible and the
General Partners inability to control many of these factors actual results may
and do sometimes differ significantly from estimates made by the General
Partners.
Its now clear the Northern California recession reached bottom in 1993.
Since then, the California economy has been improving, slowly at first, but now,
more vigorously. This improvement is reflected in increasing property values, in
job growth, personal income growth, etc., which all translates into more loan
activity, which of course, is healthy for lending activity.
At the time of subscription to the Partnership, Limited Partners make an
irrevocable decision to either take distributions of earnings monthly, quarterly
or annually or to compound earnings in their capital account. For the years
ended December 31, 1995, December 31, 1996, and December 31, 1997, the
Partnership made distributions of earnings to Limited Partners after allocation
of syndication costs of, $303,477, $418,380 and $495,480 respectively.
Distribution of Earnings to Limited Partners after allocation of syndication
costs for the years ended December 31, 1995, December 31, 1996 and December 31,
1997, to Limited Partners capital accounts and not withdrawn was $524,988,
$800,218 and $1,119,465 respectively. As of December 31, 1995, December 31, 1996
and December 31, 1997, Limited Partners electing to withdraw earnings
represented 40%, 34% and 30% respectively of the Limited Partners outstanding
capital accounts. The decreases in percentage of Limited Partners electing to
withdraw earnings is due to an increase in percent of new Limited Partners
choosing to compound earnings and the dilution effect occurring when compounding
Limited Partners capital accounts grow through earnings reinvestment compared to
Limited Partners that have chosen to liquidate earnings.
The Partnership also allows the Limited Partners to withdraw their capital
account subject to certain limitations (see liquidation provisions of
Partnership Agreement). Once a Limited Partners initial five year hold period
has passed the General Partners expect to see an increase in liquidations due to
the ability of Limited Partners to withdraw without penalty. This ability to
withdraw five years after a Limited Partners investment has the effect of
providing Limited Partner liquidity which the General Partners then expect a
portion of the Limited Partners to avail themselves of. This has the anticipated
effect of the Partnership growing, primarily through reinvestment of earnings in
years one through five. The General Partners expect to see increasing numbers of
Limited Partner withdrawals in years five through eleven, at which time the bulk
of those Limited Partners who have sought withdrawal have been liquidated. After
year eleven, liquidation generally subsides and the Partnership capital again
tends to increase through earnings reinvestment. Since the five year hold period
has yet to expire, as of December 31, 1997, Limited Partners may not as yet
avail themselves of this provision for liquidation. Additionally, Limited
Partners may withdraw over a period of one year subject to certain limitations
and penalties. For the years ended December 31, 1995, December 31, 1996, and
December 31, 1997, $5,640, $146,755 and $132,619 respectively were liquidated
subject to the 10% penalty for early withdrawal. These withdrawals are within
the normally anticipated range that the General Partners would expect in their
experience in this and other partnerships. The General Partners expect that a
small percentage of Limited Partners will elect to liquidate their capital
accounts over one year with a 10% early withdrawal penalty. In originally
conceiving the Partnership, the General Partners wanted to provide Limited
Partners needing their capital returned a degree of liquidity. Generally,
Limited Partners electing to withdraw over one year need to liquidate investment
to raise cash. The trend the Partnership is experiencing in withdrawals by
Limited Partners electing a one year liquidation program represents a small
percentage of Limited Partner capital as of December 31, 1995, December 31, 1996
and December 31, 1997, respectively and is expected by the General Partners to
commonly occur at these levels.
8. Experts. The Financial Statements of the Partnership as of December 31,
1997, and of the Corporate General Partner, Gymno Corporation, as of December
31, 1997, included herein, have been examined by Parodi & Cropper, independent
certified public accountants as set forth in their report thereon appearing
elsewhere herein and have been included herein in reliance on such reports and
authority of such firm as experts in accounting and auditing. Financial
Statements of the Partnership as of December 31, 1997, are audited. (see
section of the Prospectus entitled Managements Discussion and Analysis of
Financial Condition and Results of Operation).
9. Prior Program Mortgage Investments and Prior Program Mortgage
Investments Summaries. Tables I and II of the Prior Performance Tables set forth
in Appendix I of the Prospectus have been updated to provide information as of
December 31, 1997, and are included on the following pages of this Supplement as
Attachment I. The Prior Program Mortgage Investments Summaries set forth on
pages 42 and 43 have been updated to provide information as of December 31,
1997, and are attached to this Supplement No. 3 as Attachment II.
10. Geographic Area of Lending Activity: The Partnership will invest in
Deeds of Trust secured by property located in California. The General Partners
anticipate that approximately 75% of the Partnerships Mortgage Investments will
be secured by Deeds of Trust on properties located in the San Francisco Bay
Area. (The counties composing the San Francisco Bay Area are San Francisco
County, San Mateo County, Santa Clara County, Marin County, Alameda County and
Contra Costa County). As of 12/31/97, 84.4% of the Partnership's Mortgage
Investments are secured by Deeds of Trust on properties in the San Francisco Bay
Area. The remaining Mortgage Investments are located in California. The economy
of a lending area is an important factor in protecting real estate value. The
San Francisco Bay Area has an aggregate population of over 3.5 million people, a
broad diversified economic base, an expanding working population and a minimum
of buildable sites. The General Partners believe these factors contribute to a
more stable market for real estate. Although the general real estate market in
California like most of the country, suffered a decline in property values
during the early 1990s, the California real estate property values have
improved somewhat beginning in 1995. The General Partners believe the strength
of the California economy especially in the Bay Area, will continue to protect
real estate values over the longer term.
Over the last 30 months the number of seriously delinquent mortgages, that
is, mortgages more than 90 days past due, reported by many of the largest
California lenders has decreased. This decrease indicates, as predicted by the
General Partners, that the California economy, especially Northern California,
is improving.
The Federal Reserve Bank of San Francisco has recently reported an
increased demand for business credit. Over the last thirty months large banks in
California have reported an increase in demand for business loans from middle
market borrowers for inventory financing and investment purposes. Smaller banks
are also reporting an increase in demand for business loans. Commercial and
consumer loan growth rates in California exceeded last years. This increase in
consumer and business loans reflects increased business activity, an improving
economy and increased confidence among employers.
This increased confidence and business activity has also been reflected in
the real estate market. Real estate loans outstanding exceeded their
year-earlier levels, marking this the third positive year-over-year increase.
ATTACHMENT I
to
SUPPLEMENT NO. 4 DATED APRIL 24, 1998
UPDATED PRIOR PERFORMANCE TABLES
The prior performance tables as referenced in the Prior Performance Summary
of the Prospectus present information on programs previously sponsored by the
General Partners.
The purpose of the tables is to provide information on the performance of
these partnerships to assist prospective investors in evaluating the experience
of the General Partners as sponsors of such partnerships. While none of the
information represents activities of an entity whose investment objectives and
criteria are identical to the Partnership, in the opinion of the General
Partners all of the partnerships included in the tables had investment
objectives which were similar to those of the Partnership. Factors considered in
making such determination included the type of investments, expected benefits
from investment and structure of the programs. Each of such prior programs had
the following objectives: (i) annual distributions of cash or credits to a
Partner's capital account for additional Mortgage Investments; and (ii)
preservation of the Partnership's capital. Redwood Mortgage Investors VI,
Redwood Mortgage Investors VII, and the Partnership differ from the prior
programs in that they will amortize organizational costs over a five (5) year
period instead of a ten (10) year period and will invest in a greater percentage
of first deeds of trust. In addition, the Partnership's Loan Servicing Fees may
be slightly higher and interest earned on the Mortgage Investments made by the
partnership will differ due to economic considerations and other factors at the
present time. Accordingly, such prior programs differed in certain respects from
the Partnership, and inclusion of these tables does not imply that investors of
the Partnership will experience results comparable to those experienced in the
partnerships referred to in the tables.
The updated tables consist of:
Table I Experience in Raising and Investing Funds.
Table II Compensation to General Partners and Affiliates.
Table III Operating Results of Prior Limited Partnerships.
Table V Payment of Mortgage Investments.
Persons who purchase Interests in the Partnership will not thereby acquire
any ownership interest in any of the partnerships to which these tables relate.
The inclusion of the following tables in the Prospectus does not imply that the
Partnership will make investments comparable to those reflected in the tables
with respect to cash flow, income tax consequences available to investors, or
other factors, nor does it imply that they will experience returns, if any,
comparable to those experienced by investors in the partnerships referred to
below.
The General Partners have sponsored two (2) other public programs
registered with the Securities and Exchange Commission. Therefore, the following
tables also include information about prior non-public programs whose investment
objectives are similar to those of the Partnership. These partnerships were
offered without registration under the Securities Act of 1933 in reliance upon
the intrastate offering exemption from the registration requirements thereunder
and/or the exemption for transactions not involving a public offering.
Additional information regarding the Description of Open Loans of Prior
Limited Partnerships is provided in Table VI in Part II of this Registration
Statement. The Partnership will furnish without charge to each person to whom
this Prospectus is delivered, upon request, a copy of Table VI.
Definitions and Glossary of Terms
The following terms used in the Tables have the following meanings:
"Cash Generated From Operations" shall mean excess or deficiency of operating
cash receipts over operating cash expenditures.
"GAAP" shall mean generally accepted accounting principles.
"Months to Invest 90% of Amount Available For Investment" shall mean the
time period from commencement of the offering to date of close of escrow of
initial Partnership Loans.
The following is a brief description of the Tables:
TABLE I - EXPERIENCE IN RAISING AND INVESTING FUNDS
Table I summarizes, as a percentage basis, all funds through December 31,
1997 for partnerships which completed funding during the three (3) years ending
on such date.
TABLE II - COMPENSATION TO GENERAL PARTNERS AND AFFILIATES
Table II summarizes the compensation paid the General Partners and
Affiliates by those partnership which completed their offering during the three
(3) years ended December 31, 1997.
TABLE III - OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
Table III summarizes the annual operating results through December 31, 1997
for partnerships which closed their offering during the ten (10) years ending
December 31, 1997.
TABLE V - PAYMENT OF MORTGAGE INVESTMENTS
Table V presents information on the payment of the partnership Mortgage
Investments within the three (3) years ending December 31, 1997.
Some of the Mortgage Investments are fractionalized and held as undivided
interests with other partnerships and third parties. The information presented
in Table V as to fractionalized loans represents only that partnership's
interest in a certain loan.
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
RMI VII
---------------
Dollar Amount Offered $12,000,000
Dollar Amount Raised $11,998,359
Percentage of Amount Raised 100.00%
Less Offering Expenses:
Organization Expense 3.55%
Percentage Available for Investment
Net of Offering Expenses 96.45%
Mortgage Investments Funded from Offering
Proceeds
Secured by Deeds of Trust 86.85%
Formation Loan (1): 7.62%
Selling Commissions Paid to Non-Affiliates 1.00%
Selling Commissions Paid to Affiliates 0
Mortgage Investments Commitments (2): 0
Mortgage Investment Application or Mortgage
Investment Processing Fees 0
Funds Available for Future Commitments 0
Reserve 0.98%
===============
Total 96.45%
===============
Date Offering Commenced 10/20/89
Length of Offering 36 months
Months to Commit 90% of Amount
Available for Investment
(Measured from Beginning of.
Offering) 38 months
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)~
RMI VI
--------------
Dollar Amount Offered $12,000,000
Dollar Amount Raised $ 9,772,594
Percentage of Amount Raised 100.00%
Less Offering Expenses:
Organization Expense 2.63%
Selling Commissions Paid to Non-Affiliates 1.00%
Selling Commissions Paid to Affiliates 0
Percentage Available for Investment,
Net of Offering Expenses 96.37%
Mortgage Investments Funded from Offering
Proceeds Secured by Deeds of Trust 86.04%
Formation Loan (1): 6.27%
Mortgage Investment Commitments 0
Mortgage Investment Application or Mortgage Investment
Processing Fees 0
Funds Available for Future
Commitments 1.06%
Reserve 3.00%
==============
Total 96.37%
==============
Date Offering Commenced 09/03/87
Length of Offering 24 months
Months to Commit 90% of Amount Available for
Investment(Measured from Beginning of Offering) 25 months
TABLE II
COMPENSATION TO GENERAL PARTNERS AND AFFILIATES
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS)
RMI VII
--------------
Date Offering Commenced 10/20/89
Dollar Amount Raised $11,998,359
Amount Paid to General Partners and Affiliates from:
Offering Proceeds 0
Selling Commissions 0
Loan Application or Loan
Processing Fees 0
Reimbursement of Expenses, at Cost 86,082
Acquisition Fees 0
Advisory Fees 0
Other 0
Loan Points, Processing and Other Fees Paid by the Borrowers to Affiliates:
Points (1) $1,670,280
Processing Fees (1) 48,836
Other (1) 7,345
Dollar Amount of Cash Generated from Operations Before Deducting from
Payments to General Partners and Affiliates: 10,358,271
Amount Paid to General Partners and Affiliates from Operations:
Partnership Management Fees 53,246
Earnings Distribution 61,829
Mortgage Servicing Fee 383,000
Late Charges 0
Reimbursement of Expenses, at Cost 185,430
Prepayment Fee 0
<FN>
(1) These sums were paid by borrowers of Partnership funds, and were not expenses of the Partnership.
</FN>
TABLE II
COMPENSATION TO GENERAL PARTNERS AND AFFILIATES
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
RMI VI
--------------
Date Offering Commenced 9/03/87
Dollar Amount Raised $ 9,772,594
Amount Paid to General Partners and Affiliates from:
Offering Proceeds 0
Selling Commissions 0
Loan Application or Loan Processing Fees 0
Reimbursement of Expenses, at Cost 103,708
Acquisition Fees 0
Advisory Fees 0
Other 0
Loan Points, Processing and Other Fees Paid by the Borrowers to Affiliates:
Points (1) $1,470,079
Processing Fees (1) 59,948
Other (1) 8,181
Dollar Amount of Cash Generated from Operations Before Deducting
Payments to General Partners and Affiliates: $13,283,392
Amount Paid to General Partners and Affiliates from Operations:
Partnership Management Fees $74,296
Earnings Fee 78,249
Mortgage Servicing Fee 599,452
Reimbursement of Expenses, at Cost 245,566
<FN>
(1) These sums were paid by borrowers of Partnership funds, and were not expenses of the Partnerships.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1989 1990 1991
------------ ------------ ------------
5 days in December 1989
Gross Revenues $1,682 $238,949 $759,828
Less: General Partners' Mgmt Fee 0 4,795 7,506
Mortgage Servicing Fee 0 14,172 42,177
Administrative Expenses 191 5,304 36,595
Provision for Uncollected Accts 0 3,000 19,398
Amortization of Organization and Syndication Costs 3 773 894
Offering Period Interest Expense to Limited Partners 1,241 14,616 23,114
Interest Expense 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $247 $196,289 $630,144
------------ ------------ ------------
Sources of Funds - Net Income $247 $196,289 $630,144
Reduction in Assets 0 0 0
Increase in Liabilities 28,696 0 13,531
Early Withdrawal Penalties Applied to Synd. Costs 0 0 370
Increase in Applicant's Deposit 163,632 27,290 134,278
Increase in Partners' Capital 135,743 2,866,189 4,957,724
------------ ------------ ------------
Cash generated from Operations $328,318 $3,089,768 $5,736,047
Use of Funds-Increase in Assets $287,117 $2,720,557 $5,549,077
Reduction in Liabilities 0 27,876 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 188 5,094 9,379
Investment Income Pd to LP's 52 58,001 228,039
Return of Capital to LP's 0 0 10,893
------------ ------------ ------------
Net Increase (Decrease) in Cash $40,961 $278,240 $(61,341)
Cash at the beginning of the year 0 $40,961 $319,201
Cash at the end of the year $40,961 $319,201 $257,860
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $1.46 $108.02 $102.02
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $1.46 $102.99 $97.51
Cash Distribution to Investors for $1,000 Invested
Income (1) $0.38 $35.41(1) $39.22(1)
Capital (1) 0 0 $1.87
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $9.10 $119.03 $109.67
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $8.33 $113.40 $104.83
<FN>
NOTES:
(1) Based upon year's average capital balances.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1992 1993 1994
------------ ------------ ------------
Gross Revenues $1,468,593 $1,711,092 $1,489,882
Less: General Partners' Mgmt Fee 14,202 16,735 10,008
Mortgage Servicing Fee 53,628 58,802 0
Administrative Expenses 95,526 152,782 78,822
Provision for Uncollected Accts 125,618 235,423 335,955
Amortization of Organization and Syndication Costs 2,016 2,016 2,016
Offering Period Interest Expense to Limited Partners 13,361 0 0
Interest Expense 68,226 119,351 135,790
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $1,096,016 $1,125,983 927,291
------------ ------------ ------------
Sources of Funds - Net Income $1,096,016 $1,125,983 $927,291
Reduction in Assets 0 883,182 0
Increase in Liabilities 1,999,649 0 956,846
Early Withdrawal Penalties Applied to Synd. Costs 1,173 7,195 10,635
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 4,091,481 0 0
------------ ------------ ------------
Cash generated from Operations $7,188,319 $2,016,360 $1,894,772
Use of Funds-Increase in Assets $6,239,730 -0- $1,316,184
Reduction in Liabilities 0 1,032,580 0
Decrease in Applicant's Deposit 310,539 0 0
Offering Period Interest Expense to Limited Partners 5,202 0 0
Investment Income Pd to LP's 360,641 339,746 263,206
Return of Capital to LP's 456,787 230,004 340,011
------------ ------------ ------------
Net Increase (Decrease) in Cash $ (184,580) $ 414,030 $(24,629)
Cash at the beginning of the year $ 257,860 $ 73,280 $487,310
Cash at the end of the year $ $ 487,310 $462,681
73,280
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $93.03 $80.06 $62.85
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $89.27 $77.76 $61.09
Cash Distribution to Investors for $1,000 Invested
Income (1) $42.48 $26.43 $19.61
Capital (1) $53.80 $17.89 $25.34
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $100.70 $92.76 $76.88
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $96.64 $89.52 $74.67
<FN>
NOTES:
(1) Based upon year's average capital balances.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1995 1996 1997
------------ ------------ --------------
Gross Revenues $1,483,881 $1,580,501 $1,623,863
Less: General Partners' Mgmt Fee 0 0 0
Mortgage Servicing Fee 33,394 97,268 83,559
Administrative Expenses 66,371 76,875 80,614
Provision for Uncollected Accts 306,779 419,437 434,495
Amortization of Organization and Syndication Costs 2,016 368 0
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 163,361 127,454 198,316
------------ ------------ --------------
Net Income (GAAP Basis) dist. to Limited Partners 911,960 859,099 826,879
------------ --------------
------------
Sources of Funds - Net Income $911,960 $859,099 826,879
Reduction in Assets 0 1,110,429 0
Increase in Liabilities 63,206 0 1,081,907
Early Withdrawal Penalties Applied to Synd. Costs 3,344 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital -collection on Formation Loan 0 0 87,888
------------ --------------
------------
Cash generated from Operations $978,510 $1,969,528 $1,996,674
Use of Funds-Increase in Assets $471,434 0 610,362
Reduction in Liabilities 0 670,402 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 270,760 336,341 407,648
Return of Capital to LP's 184,157 722,536 1,212,916
------------ ------------ --------------
Net Increase (Decrease) in Cash $52,159 $240,249 $(234,252)
Cash at the beginning of the year $462,681 $514,840 $755,089
Cash at the end of the year $514,840 $755,089 520,837
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $60.01 $60.22 $61.02
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $58.43 $58.62 $59.38
Cash Distribution to Investors for $1,000 Invested
Income (1) $19.69 $23.66 $30.01
Capital (1) $13.39 $50.83 $89.28
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $65.75 $63.24 $75.49
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $64.01 $61.86 $73.81
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1987 1988(2) 1989
------------ ------------ ------------
Gross Revenues $35,485 $600,194 $1,284,180
Less: General Partners' Mgmt Fee 833 15,726 0
Mortgage Servicing Fee 2,659 46,393 90,434
Administrative Expenses 494 19,837 53,083
Provision for Uncollected Accts 0 0 50,631
Amortization of Organization and Syndication Costs 102 2,196 2,952
Offering Period Interest Expense to Limited Partners 8,072 44,871 18,976
Interest Expense 0 0 108,883
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $ 23,325 $ 471,171 $ 959,221
------------ ------------
------------
Sources of Funds - Net Income $ 23,325 $ 471,171 $ 959,221
Reduction in Assets 0 0 0
Increase in Liabilities 44,060 0 1,580,600
Early Withdrawal Penalties Applied to Synd. Costs 0 0 0
Increase in Applicant's Deposit 1,114,238 0 0
Increase in Partners' Capital 1,158,336 5,811,540 2,537,274
------------ ------------
------------
Cash generated from Operations $2,339,959 $6,282,711 $5,077,095
Use of Funds-Increase in Assets $1,342,112 $5,836,269 $4,438,494
Reduction in Liabilities 0 37,472 0
Decrease in Applicant's Deposit 0 567,520 546,718
Offering Period Interest Expense to Limited Partners 1,585 16,691 9,802
Investment Income Pd to LP's 7,864 144,038 326,195
Return of Capital to LP's 0 0 8,369
------------ ------------ ------------
Net Increase (Decrease) in Cash $988,398 $(319,279) $(252,483)
Cash at the beginning of the year 0 $988,398 $669,119
Cash at the end of the year $988,398 $669,119 $416,636
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $24.33 $101.64 $100.56
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $20.78 $97.18 $96.18
Cash Distribution to Investors for $1,000 Invested
Income (1) $18.41(1) $29.19(1) $44.76(1)
Capital (1) 0 0 $1.15
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $26.07 $109.34 $107.58
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $22.50 $104.50 $102.92
<FN>
NOTES:
(1) Based upon years average capital balances
(2) The offering terminated in September, 1989.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1990 1991 1992
------------ ------------ ------------
Gross Revenues $1,527,697 $1,587,354 $1,661,779
Less: General Partners' Mgmt Fee 3,496 14,489 15,287
Mortgage Servicing Fee 105,405 54,390 79,326
Administrative Expenses 113,610 76,692 93,282
Provision for Uncollected Accts 13,687 174,290 266,786
Amortization of Organization and Syndication Costs 3,167 3,167 3,166
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 154,187 142,442 145,395
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $1,134,145 $1,121,884 $1,058,537
------------ ------------
------------
Sources of Funds - Net Income $1,134,145 $1,121,884 $1,058,537
Reduction in Assets 0 0 0
Increase in Liabilities 0 0 1,401,613
Early Withdrawal Penalties Applied to Synd. Costs 3,813 1,345 5,518
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $1,137,958 $1,123,229 $2,465,668
Use of Funds-Increase in Assets $500,209 $380,888 $2,073,362
Reduction in Liabilities 232,193 293,099 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 375,864 341,505 323,037
Return of Capital to LP's 100,628 41,254 232,370
------------ ------------ ------------
Net Increase (Decrease) in Cash $(70,936) $66,483 $(163,101)
Cash at the beginning of the year $416,636 $345,700 $412,183
Cash at the end of the year $345,700 $412,183 $249,082
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $100.09 $93.40 $82.87
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $95.75 $89.62 $79.88
Cash Distribution to Investors for $1,000 Invested
Income (1) $36.01 $30.74 $27.26
Capital (1) $9.64 $3.71 $19.61
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $108.29 $99.00 $91.00
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $103.60 $95.00 $87.71
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) The offering terminated in September, 1989.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1993 1994 1995
------------ ------------ ------------
Gross Revenues $1,713,378 $1,391,088 $1,277,782
Less: General Partners' Mgmt Fee 15,523 8,942 0
Mortgage Servicing Fee 94,306 0 42,056
Administrative Expenses 123,473 59,346 59,656
Provision for Uncollected Accts 420,583 472,967 344,807
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 161,705 185,131 212,915
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $897,788 $664,702 $618,348
------------ ------------
------------
Sources of Funds - Net Income $897,788 $664,702 $618,348
Reduction in Assets 676,847 18,749 749,375
Increase in Liabilities 0 374,511 0
Early Withdrawal Penalties Applied to Synd. Costs 3,700 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $1,578,335 $1,057,962 $1,367,723
Use of Funds-Increase in Assets 0 0 0
Reduction in Liabilities 498,663 0 335,500
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 377,712 303,014 303,098
Return of Capital to LP's 528,737 729,449 892,953
------------ ------------ ------------
Net Increase (Decrease) in Cash $173,223 $25,499 $(163,828)
Cash at the beginning of the year $249,082 $422,305 $447,804
Cash at the end of the year $422,305 $447,804 $283,976
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $72.01 $54.95 $53.03
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $69.74 $53.62 $51.79
Cash Distribution to Investors for $1,000 Invested
Income (1) $30.57 $24.53 $25.29
Capital (1) $42.79 $59.06 $74.51
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $92.72 $49.87 $59.39
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $89.90 $48.66 $58.00
<FN>
NOTES:
(1) Based upon years average capital balances
(2) The offering terminated in September, 1989.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997
------------ --------------
Gross Revenues $1,167,859 $1,036,596
Less: General Partners' Mgmt Fee 0 0
Mortgage Servicing Fee 44,565 39,918
Administrative Expenses 64,273 65,813
Provision for Uncollected Accts 312,684 268,101
Amortization of Organization and Syndication Costs 0 0
Offering Period Interest Expense to Limited Partners 0 0
Interest Expense 158,175 133,577
------------ --------------
Net Income (GAAP Basis) dist. to Limited Partners $588,162 $529,187
--------------
------------
Sources of Funds - Net Income $588,162 $529,187
Reduction in Assets 1,278,214 1,763,235
Increase in Liabilities 0 0
Early Withdrawal Penalties Applied to Synd. Costs 0 0
Increase in Applicant's Deposit 0 0
Increase in Partners' Capital - Collection of Formation Loan 0 62,328
------------ --------------
Cash generated from Operations $1,866,376 $2,354,750
Use of Funds-Increase in Assets 0 0
Reduction in Liabilities 491,978 649,124
Decrease in Applicant's Deposit 0 0
Offering Period Interest Expense to Limited Partners 0 0
Investment Income Pd to LP's 294,678 257,670
Return of Capital to LP's 1,183,099 1,297,410
------------ --------------
Net Increase (Decrease) in Cash $(103,379) $150,546
Cash at the beginning of the year $283,976 180,597
Cash at the end of the year $180,597 331,143
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $53.50 $52.88
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $52.23 $51.64
Cash Distribution to Investors for $1,000 Invested
Income (1) $25.83 $24.79
Capital (1) $103.72 $124.81
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $50.71 $30.48
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $49.72 $29.89
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) The offering terminated in September, 1989.
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1986 1987 1988
------------ ------------ ------------
(1 month only)
Gross Revenues $20,794 $460,522 $627,223
Less: General Partners' Mgmt Fee 342 7,922 5,260
Mortgage Servicing Fee 1,052 40,010 50,274
Administrative Expenses 753 16,702 44,802
Provision for Uncollected Accts 1,740 0 22,119
Amortization of Organization and Syndication Costs 271 502 606
Offering Period Interest Expense to Limited Partners 7,114 23,135 0
Interest Expense 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $9,522 $372,251 $504,162
------------ ------------
------------
Sources of Funds - Net Income $9,522 $372,251 $504,162
Reduction in Assets 0 0 0
Increase in Liabilities 7,815 0 0
Early Withdrawal Penalties Applied to Synd. Costs 0 0 0
Increase in Applicant's Deposit 515,356 0 0
Increase in Partners' Capital 1,369,469 3,540,065 0
------------ ------------
------------
Cash generated from Operations $1,902,162 $3,912,316 $504,162
Use of Funds-Increase in Assets $1,743,843 $2,842,678 $566,387
Reduction in Liabilities 0 5,169 834
Decrease in Applicant's Deposit 0 515,356 0
Offering Period Interest Expense to Limited Partners 1,790 9,119 0
Investment Income Pd to LP's 2,962 137,682 178,902
Return of Capital to LP's 0 0 0
------------ ------------ ------------
Net Increase (Decrease) in Cash $153,567 $402,312 $(241,961)
Cash at the beginning of the year 0 $153,567 $555,879
Cash at the end of the year $153,567 $555,879 $313,918
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $110 $101 $95
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $106 $96 $91
Cash Distribution to Investors for $1,000 Invested
Income (1) $26 $39 $35
Capital (1) 0 0 0
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $114 $103 $97
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $109 $99 $93
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1989 1990 1991
------------ ------------ ------------
Gross Revenues $755,856 $775,058 $745,102
Less: General Partners' Mgmt Fee 9,395 7,323 7,487
Mortgage Servicing Fee 47,501 57,395 29,117
Administrative Expenses 46,129 46,319 67,569
Provision for Uncollected Accts 63,984 51,770 61,411
Amortization of Organization and Syndication Costs 631 631 631
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 61,600 67,569 24,462
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $526,616 $544,051 $554,425
------------ ------------
------------
Sources of Funds - Net Income $526,616 $544,051 $554,425
Reduction in Assets 0 591,879 36,728
Increase in Liabilities 808,466 0 0
Early Withdrawal Penalties Applied to Synd. Costs 0 8,003 4,658
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $1,335,082 $1,143,933 $ 595,811
Use of Funds-Increase in Assets $1,272,177 0 0
Reduction in Liabilities 0 586,933 17,593
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 178,180 191,970 172,259
Return of Capital to LP's 78,120 283,253 170,711
------------ ------------ ------------
Net Increase (Decrease) in Cash $(193,395) $81,777 $235,248
Cash at the beginning of the year $313,918 $120,523 $202,300
Cash at the end of the year $120,523 $202,300 $437,548
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $93 $94 $94
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $89 $91 $90
Cash Distribution to Investors for $1,000 Invested
Income (1) $33 $34 $30
Capital (1) $14 $49 $29
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $107 $106 $99
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $102 $101 $95
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1992 1993 1994
------------ ------------ ------------
Gross Revenues $840,592 $826,774 $557,036
Less: General Partners' Mgmt Fee 14,746 12,084 2,333
Mortgage Servicing Fee 42,526 42,609 0
Administrative Expenses 59,495 80,006 39,594
Provision for Uncollected Accts 114,162 141,059 140,499
Amortization of Organization and Syndication Costs 631 631 629
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 68,662 79,848 79,951
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $540,370 $470,537 $294,030
------------ ------------
------------
Sources of Funds - Net Income $540,370 $470,537 $294,030
Reduction in Assets 0 554,553 418,962
Increase in Liabilities 945,442 0 9,731
Early Withdrawal Penalties Applied to Synd. Costs 1,833 1,617 634
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $1,487,645 $1,026,707 $723,357
Use of Funds-Increase in Assets $1,389,730 0 0
Reduction in Liabilities 0 62,234 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 179,048 233,928 139,550
Return of Capital to LP's $280,929 $546,248 $640,685
------------ ------------ ------------
Net Increase (Decrease) in Cash $(362,062) $184,297 $(56,878)
Cash at the beginning of the year $437,548 $75,486 $259,783
Cash at the end of the year $75,486 $259,783 $202,905
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $89 $77 $50
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $85 $75 $49
Cash Distribution to Investors for $1,000 Invested
Income (1) $30 $38 $24
Capital (1) $47 $89 $110
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $97 $93 $10
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $93 $90 $10
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1995 1996 1997
------------ ------------ ---------------
Gross Revenues $567,540 $419,823 $320,600
Less: General Partners' Mgmt Fee 0 0 0
Mortgage Servicing Fee 0 0 0
Administrative Expenses 30,593 31,312 30,085
Provision for Uncollected Accts 182,162 91,880 56,504
Amortization of Organization and Syndication Costs 627 741 0
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 95,941 77,789 53,466
------------ ------------ ---------------
Net Income (GAAP Basis) dist. to Limited Partners $258,217 $218,101 $180,545
------------ ---------------
------------
Sources of Funds - Net Income 258,217 218,101 180,545
Reduction in Assets 464,011 1,003,642 1,278,194
Increase in Liabilities 0 0 0
Early Withdrawal Penalties Applied to Synd. Costs 0 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 27,954
------------
------------ ---------------
Cash generated from Operations $722,228 $1,221,743 $1,486,693
Use of Funds-Increase in Assets 0 0 0
Reduction in Liabilities 69,000 337,607 627,326
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 124,329 101,335 82,504
Return of Capital to LP's 689,307 701,283 792,784
------------ ------------
---------------
Net Increase (Decrease) in Cash $(160,408) $81,518 $(15,921)
Cash at the beginning of the year $202,905 $42,497 $124,015
Cash at the end of the year $42,497 $124,015 $108,094
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $50 $48 $46.12
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $49 $47 $45.17
Cash Distribution to Investors for $1,000 Invested
Income (1) $23 $21 $19.89
Capital (1) $130 $147 $191.08
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $51 $48 $58
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $50 $47 $57
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1985 1986 1987
------------ ------------ ------------
Gross Revenues $236,437 $870,719 $1,104,423
Less: General Partners' Mgmt Fee 5,253 21,185 30,732
Mortgage Servicing Fee 11,375 44,077 93,423
Administrative Expenses 3,384 49,905 66,321
Provision for Uncollected Accts 7,441 22,830 (5,457)
Amortization of Organization and Syndication Costs 3,510 13,429 3,953
Offering Period Interest Expense to Limited Partners 22,680 43,310 0
Interest Expense 0 35,242 94,461
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $ 182,794 $ 640,741 $ 820,990
------------ ------------
------------
Sources of Funds - Net Income $ 182,794 $ 640,741 $ 820,990
Reduction in Assets 0 0 559,202
Increase in Liabilities 7,669 1,012,556 0
Early Withdrawal Penalties Applied to Synd. Costs 0 0 0
Increase in Applicant's Deposit 605,351 0 0
Increase in Partners' Capital 3,323,145 4,238,412 0
------------ ------------
------------
Cash generated from Operations $4,118,959 $5,891,709 $1,380,192
Use of Funds-Increase in Assets $3,327,257 $5,131,576 0
Reduction in Liabilities 0 0 277,205
Decrease in Applicant's Deposit 0 605,351 0
Offering Period Interest Expense to Limited Partners 20,118 45,713 0
Investment Income Pd to LP's 73,959 279,521 322,880
Return of Capital to LP's 0 0 0
------------ ------------ ------------
Net Increase (Decrease) in Cash $697,625 $(170,452) $780,107
Cash at the beginning of the year 0 $697,625 $527,173
Cash at the end of the year $697,625 $527,173 $1,307,280
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $137 $120 $101
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $126 $114 $97
Cash Distribution to Investors for $1,000 Invested
Income (1) $28 $88 $ 41
Capital (1) 0 0 0
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $138 $122 $104
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $128 $116 $100
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1997
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1988 1989 1990
------------ ------------ ------------
Gross Revenues $1,129,031 $1,211,845 $1,277,106
Less: General Partners' Mgmt Fee 29,706 34,382 23,258
Mortgage Servicing Fee 88,759 75,527 86,746
Administrative Expenses 63,560 60,693 73,780
Provision for Uncollected Accts 53,594 76,840 31,384
Amortization of Organization and Syndication Costs 405 1,974 1,975
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 85,230 121,043 160,574
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $807,777 $841,386 $899,389
------------ ------------
------------
Sources of Funds - Net Income $807,777 841,386 $899,389
Reduction in Assets 0 0 0
Increase in Liabilities 0 506,746 567,797
Early Withdrawal Penalties Applied to Synd. Costs 0 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $807,777 $1,348,132 $1,467,186
Use of Funds-Increase in Assets $1,346,774 $1,282,363 $826,609
Reduction in Liabilities 136,669 0 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 290,113 259,531 293,775
Return of Capital to LP's 0 353 94,721
------------ ------------ ------------
Net Increase (Decrease) in Cash $ (965,779) $(194,115) $252,081
Cash at the beginning of the year $1,307,280 $341,501 $147,386
Cash at the end of the year $341,501 $147,386 $399,467
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $92 $93 $94
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $91 $89 $90
Cash Distribution to Investors for $1,000 Invested
Income (1) $35 $29 $31
Capital (1) 0 0 $10
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $94 $101 $94
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $90 $97 $90
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1991 1992 1993
------------ ------------ ------------
Gross Revenues $1,261,526 $1,329,074 $1,186,369
Less: General Partners' Mgmt Fee 12,644 6,306 12,315
Mortgage Servicing Fee 0 44,638 71,037
Administrative Expenses 90,490 70,546 62,545
Provision for Uncollected Accts 165,786 295,550 367,250
Amortization of Organization and Syndication Costs 1,975 1,975 1,975
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 118,355 122,990 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $872,276 $787,069 $671,247
------------ ------------
------------
Sources of Funds - Net Income $872,276 $787,069 $671,247
Reduction in Assets 0 1,548,510 607,766
Increase in Liabilities 3,732 0 0
Early Withdrawal Penalties Applied to Synd. Costs 2,329 958 118
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $878,337 $2,336,537 $1,279,131
Use of Funds-Increase in Assets $103,300 0 0
Reduction in Liabilities 0 1,670,953 9,828
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 327,082 331,750 292,590
Return of Capital to LP's 454,911 613,524 742,194
------------ ------------ ------------
Net Increase (Decrease) in Cash $(6,956) $(279,690) $234,519
Cash at the beginning of the year $399,467 $392,511 $112,822
Cash at the end of the year $392,511 $112,821 $347,341
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $87 $79 $68
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $84 $76 $66
Cash Distribution to Investors for $1,000 Invested
Income (1) $33 $33 $30
Capital (1) $45 $61 $75
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $87 $90 $82
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $83 $87 $79
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1994 1995 1996
------------ ------------ ------------
Gross Revenues $994,076 $1,016,152 $954,899
Less: General Partners' Mgmt Fee 11,687 10,959 10,309
Mortgage Servicing Fee 88,072 73,032 46,809
Administrative Expenses 56,734 54,789 57,868
Provision for Uncollected Accts 243,856 189,026 218,317
Amortization of Organization and Syndication Costs 1,975 1,241 0
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 9,585 139,708 123,308
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $582,167 $547,397 $498,288
------------ ------------
------------
Sources of Funds - Net Income $582,167 $547,397 $498,288
Reduction in Assets 0 0 1,016,682
Increase in Liabilities 1,111,875 396,156 0
Early Withdrawal Penalties Applied to Synd. Costs 1,400 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $1,695,442 $943,553 $1,514,970
Use of Funds-Increase in Assets $520,319 $74,528 $0
Reduction in Liabilities 0 0 309,097
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 261,074 233,353 212,280
Return of Capital to LP's 907,454 864,922 728,553
------------ ------------ ------------
Net Increase (Decrease) in Cash $6,595 $(229,250) $265,040
Cash at the beginning of the year $347,341 $353,936 $124,686
Cash at the end of the year $353,936 $124,686 $389,726
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $62 $63 $61
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $60 $61 $60
Cash Distribution to Investors for $1,000 Invested
Income (1) $27 $26 $25
Capital (1) $95 $97 $87
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $44 $67 $62
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $43 $66 $60
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1997
--------------
Gross Revenues $947,233
Less: General Partners' Mgmt Fee 9,803
Mortgage Servicing Fee 53,475
Administrative Expenses 47,083
Provision for Uncollected Accts 237,122
Amortization of Organization and Syndication Costs 0
Offering Period Interest Expense to Limited Partners 0
Interest Expense 127,795
--------------
Net Income (GAAP Basis) dist. to Limited Partners $471,955
--------------
Sources of Funds - Net Income 471,955
Reduction in Assets 0
Increase in Liabilities 297,222
Early Withdrawal Penalties Applied to Synd. Costs 0
Increase in Applicant's Deposit 0
Increase in Partners' Capital 0
--------------
Cash generated from Operations $769,177
Use of Funds-Increase in Assets $48,154
Reduction in Liabilities 0
Decrease in Applicant's Deposit 0
Offering Period Interest Expense to Limited Partners 0
Investment Income Pd to LP's 208,313
Return of Capital to LP's 647,257
--------------
Net Increase (Decrease) in Cash $(134,547)
Cash at the beginning of the year $389,726
Cash at the end of the year $255,179
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $61
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $60
Cash Distribution to Investors for $1,000 Invested
Income (1) $26
Capital (1) $81
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $85
Federal Income Tax Results for $1,000 Invested for a
Limited
Partner Receiving Monthly Earnings Distributions $83
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1984 1985 1986
------------ ------------ ------------
Gross Revenues $121,765 $215,150 $200,934
Less: General Partners' Mgmt Fee 5,878 11,488 12,240
Mortgage Servicing Fee 5,384 9,421 12,118
Administrative Expenses 4,001 7,368 16,210
Provision for Uncollected Accts 1,228 10,420 7,612
Amortization of Organization and Syndication Costs 789 1,051 1,051
Offering Period Interest Expense to Limited Partners 4,501 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $99,984 $175,402 $151,703
------------ ------------
------------
Sources of Funds - Net Income $99,984 $175,402 $151,703
Decrease in Assets 0 0 73,219
Increase in Liabilities 15,080 0 914
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 1,429,624 0 0
------------ ------------
------------
Cash generated from Operations $1,544,688 $175,402 $225,836
Use of Funds-Increase in Assets $1,476,990 $47,801 0
Decrease in Liabilities 0 14,848 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 40,333 77,652 58,391
Return of Capital to LP's 0 0 0
------------ ------------ ------------
Net Increase (Decrease) in Cash $27,365 $35,101 $167,445
Cash at the beginning of the year 0 $27,365 $62,466
Cash at the end of the year $27,365 $62,466 $229,911
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $123 $119 $97
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $121 $114 $93
Cash Distribution to Investors for $1,000 Invested
Income (1) $27 $52 $37
Capital (1) 0 0 0
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $124 $120 $96
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $121 $113 $92
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1987 1988 1989
------------ ------------ ------------
Gross Revenues $165,951 $190,856 $211,062
Less: General Partners' Mgmt Fee 1,050 0 3,408
Mortgage Servicing Fee 3,989 8,678 11,179
Administrative Expenses 14,664 16,186 16,281
Provision for Uncollected Accts 13,886 22,486 30,612
Amortization of Organization and Syndication Costs 462 578 990
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $131,900 $142,928 $148,592
------------ ------------
------------
Sources of Funds - Net Income $131,900 $142,928 $148,592
Decrease in Assets 48,139 0 0
Increase in Liabilities 2,656 1,580 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $182,695 $144,508 $148,592
Use of Funds-Increase in Assets 0 $290,071 $5,767
Decrease in Liabilities 0 0 4,532
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 53,836 61,267 94,559
Return of Capital to LP's 0 0 116,362
------------ ------------ ------------
Net Increase (Decrease) in Cash $128,859 $(206,830) $ (72,628)
Cash at the beginning of the year $229,911 $358,770 $151,940
Cash at the end of the year $358,770 $151,940 $79,312
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $78 $81 $83
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $76 $78 $80
Cash Distribution to Investors for $1,000 Invested
Income (1) $32 $35 $51
Capital (1) 0 0 $63
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $79 $82 $83
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $76 $79 $80
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1990 1991 1992
------------ ------------ ------------
Gross Revenues $196,540 $169,921 $177,555
Less: General Partners' Mgmt Fee 12,833 11,454 7,915
Mortgage Servicing Fee 9,561 8,008 9,842
Administrative Expenses 12,596 12,399 22,371
Provision for Uncollected Accts 5,828 4,040 9,977
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 $57
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $155,722 $134,020 $127,393
------------ ------------
------------
Sources of Funds - Net Income $155,722 $134,020 $127,393
Decrease in Assets 124,828 229,739 0
Increase in Liabilities 0 735 764
Increase in Applicant's Deposit 0 0 80,000
Increase in Partners' Capital 0 0 345,151
------------ ------------
------------
Cash generated from Operations $280,550 $364,494 $553,308
Use of Funds-Increase in Assets 0 0 206,184
Decrease in Liabilities 1,279 0 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 123,195 96,512 84,590
Return of Capital to LP's 219,305 238,846 230,697
------------ ------------ ------------
Net Increase (Decrease) in Cash $(63,229) $29,136 $31,837
Cash at the beginning of the year $79,312 $16,083 $45,219
Cash at the end of the year $16,083 $45,219 $77,056
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $94 $90 $88
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $90 $87 $85
Cash Distribution to Investors for $1,000 Invested
Income (1) $69 $61 $61
Capital (1) $123 $150 $166
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $98 $111 $97
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $107 $93 $94
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1993 1994 1995
------------ ------------ ------------
Gross Revenues $236,762 $165,126 $166,111
Less: General Partners' Mgmt Fee 2,993 6,065 6,399
Mortgage Servicing Fee 11,917 12,068 11,267
Administrative Expenses 23,634 15,883 16,954
Provision for Uncollected Accts 66,633 683 43
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners $242 $396 $54
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $131,343 $130,031 $131,394
------------ ------------
------------
Sources of Funds - Net Income $131,343 $130,031 $131,394
Decrease in Assets 128,311 -0- 0
Increase in Liabilities 0 3,818 324
Increase in Applicant's Deposit 10,000 0 0
Increase in Partners' Capital 110,242 290,396 25,054
------------ ------------
------------
Cash generated from Operations $379,896 $424,245 $156,772
Use of Funds-Increase in Assets 0 192,646 67,506
Decrease in Liabilities 1,099 0 0
Decrease in Applicant's Deposit 0 90,000 0
Offering Period Interest Expense to Limited Partners 173 283 54
Investment Income Pd to LP's 85,197 77,734 81,250
Return of Capital to LP's 236,366 129,391 65,478
------------ ------------ ------------
Net Increase (Decrease) in Cash $57,061 $(65,809) $(57,516)
Cash at the beginning of the year $77,056 $134,117 $68,308
Cash at the end of the year $134,117 $68,308 $10,792
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $82 $80 $77
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $79 $77 $74
Cash Distribution to Investors for $1,000 Invested
Income (1) $55 $53 $48
Capital (1) $153 $88 $39
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $116 $81 $71
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $112 $79 $69
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997
------------ --------------
Gross Revenues $166,395 $168,046
Less: General Partners' Mgmt Fee 2,191 2,229
Mortgage Servicing Fee 14,696 7,791
Administrative Expenses 14,270 13,950
Provision for Uncollected Accts 8,279 20,790
Amortization of Organization and Syndication Costs 0 0
Offering Period Interest Expense to Limited Partners 0 0
------------ --------------
Net Income (GAAP Basis) dist. to Limited Partners $126,959 $123,286
--------------
------------
Sources of Funds - Net Income $126,959 $123,286
Decrease in Assets 134,161 56,244
Increase in Liabilities 2,458 0
Increase in Applicant's Deposit 0 0
Increase in Partners' Capital 70,000 4,812
------------ --------------
Cash generated from Operations $333,578 $184,342
Use of Funds-Increase in Assets 0 0
Decrease in Liabilities 0 6,724
Decrease in Applicant's Deposit 0 0
Offering Period Interest Expense to Limited Partners 0 0
Investment Income Pd to LP's 79,413 79,219
Return of Capital to LP's 30,874 46,854
------------
--------------
Net Increase (Decrease) in Cash $223,291 $51,545
Cash at the beginning of the year $10,792 $234,083
Cash at the end of the year $234,083 $285,628
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $72 $70
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $70 $68
Cash Distribution to Investors for $1,000 Invested
Income (1) $47 $45
Capital (1) $18 $27
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $57 $80
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $56 $78
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1984 1985 1986
------------ ------------ ------------
Gross Revenues $207,656 $218,404 $210,308
Less: General Partners' Mgmt Fee 13,621 14,712 15,480
Mortgage Servicing Fee 9,591 11,334 13,950
Administrative Expenses 6,089 7,500 13,922
Provision for Uncollected Accts 8,282 12,056 4,132
Amortization of Organization and Syndication Costs 755 831 584
Offering Period Interest Expense to Limited Partners 211 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $169,107 $171,971 $162,240
------------ ------------
------------
Sources of Funds - Net Income $169,107 $171,971 $162,240
Decrease in Assets 0 0 0
Increase in Liabilities 0 217 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 116,982 10,320 0
------------ ------------
------------
Cash generated from Operations $286,089 $182,508 $162,240
Use of Funds-Increase in Assets $221,005 $44,365 $10,802
Decrease in Liabilities 1,277 0 340
Decrease in Applicant's Deposit 113,968 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 65,285 75,311 50,444
Return of Capital to LP's 0 0 70,043
------------ ------------ ------------
Net Increase (Decrease) in Cash $(115,446) $62,832 $30,612
Cash at the beginning of the year $177,223 $61,777 $124,609
Cash at the end of the year $61,777 $124,609 $155,221
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $130 $122 $109
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $123 $116 $104
Cash Distribution to Investors for $1,000 Invested
Income (1) $54 $53 $33
Capital (1) 0 0 $46
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $130 $122 $109
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $123 $116 $104
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1987 1988 1989
------------ ------------ ------------
Gross Revenues $208,807 $232,361 $190,156
Less: General Partners' Mgmt Fee 16,238 16,619 14,306
Mortgage Servicing Fee 16,558 17,876 10,740
Administrative Expenses 16,116 16,759 10,208
Provision for Uncollected Accts 0 19,946 4,666
Amortization of Organization and Syndication Costs 0 -0- -0-
Offering Period Interest Expense to Limited Partners 0 -0- -0-
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $159,895 $161,161 $150,236
------------ ------------
------------
Sources of Funds - Net Income $159,895 $161,161 $150,236
Decrease in Assets 55,985 0 258,519
Increase in Liabilities 0 6,421 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $215,880 $167,582 $408,755
Use of Funds-Increase in Assets 0 $123,504 0
Decrease in Liabilities 8,607 0 7,854
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 45,516 66,746 70,915
Return of Capital to LP's -0- 264,015 327,020
------------ ------------ ------------
Net Increase (Decrease) in Cash $161,757 $(286,683) $2,966
Cash at the beginning of the year $155,221 $316,978 $30,295
Cash at the end of the year $316,978 $30,295 $33,261
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $100 $100 $109
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $97 $96 $104
Cash Distribution to Investors for $1,000 Invested
Income (1) $29 $40 $47
Capital (1) $0 $156 $215
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $102 $115 $109
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $97 $110 $106
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1990 1991 1992
------------ ------------ ------------
Gross Revenues $131,811 $93,683 $92,678
Less: General Partners' Mgmt Fee 11,221 0 0
Mortgage Servicing Fee 5,395 0 2,156
Administrative Expenses 10,146 10,950 12,948
Provision for Uncollected Accts 5,434 57,690 16,886
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $99,615 $25,043 $60,688
------------ ------------
------------
Sources of Funds - Net Income $99,615 $25,043 $60,688
Decrease in Assets 58,107 69,363 0
Increase in Liabilities 0 11,604 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $157,722 $106,010 $60,688
Use of Funds-Increase in Assets 0 0 11,908
Decrease in Liabilities 845 0 9,935
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 40,172 27,856 5,765
Return of Capital to LP's 130,796 54,362 66,267
------------ ------------ ------------
Net Increase (Decrease) in Cash $(14,091) $23,792 $(33,187)
Cash at the beginning of the year $ 33,261 $19,170 $42,962
Cash at the end of the year $ 19,170 $42,962 $9,775
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $83 $20 $53
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $80 $20 $53
Cash Distribution to Investors for $1,000 Invested
Income (1) $32 $23 $5
Capital (1) $103 $45 $58
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $88 $15 $67
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $85 $16 $67
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1993 1994 1995
------------ ------------ ------------
Gross Revenues $130,958 $102,122 $100,734
Less: General Partners' Mgmt Fee 1,523 3,533 9,858
Mortgage Servicing Fee 8,626 7,131 6,124
Administrative Expenses 10,950 14,130 10,232
Provision for Uncollected Accts 68,644 33,851 27,874
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $41,215 $43,477 $46,646
------------ ------------
------------
Sources of Funds - Net Income $41,215 $43,477 $46,646
Decrease in Assets 213,667 0 121,620
Increase in Liabilities 0 535 4,723
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $ 254,882 $ 44,012 $ 172,989
Use of Funds-Increase in Assets 0 $ 99,062 0
Decrease in Liabilities 355 0 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 16,423 19,630 21,689
Return of Capital to LP's 78,361 87,614 100,673
------------ ------------ ------------
Net Increase (Decrease) in Cash $159,743 $(162,294) $50,627
Cash at the beginning of the year $9,775 $169,518 $7,224
Cash at the end of the year $169,518 $7,224 $57,851
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $37 $41 $48
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $37 $41 $47
Cash Distribution to Investors for $1,000 Invested
Income (1) $15 $18 $21
Capital (1) $69 $81 $99
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $100 $(6) $77
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $98 $(6) $75
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997
------------ ---------------
Gross Revenues $100,382 $88,149
Less: General Partners' Mgmt Fee 3,061 2,841
Mortgage Servicing Fee 18,314 4,577
Administrative Expenses 10,597 9,811
Provision for Uncollected Accts 20,670 17,950
Amortization of Organization and Syndication Costs 0 0
Offering Period Interest Expense to Limited Partners 0 0
------------ ---------------
Net Income (GAAP Basis) dist. to Limited Partners $47,740 $52,970
---------------
------------
Sources of Funds - Net Income 47,740 52,970
Decrease in Assets 168,233 0
Increase in Liabilities 0 0
Increase in Applicant's Deposit 0 0
Increase in Partners' Capital 0 0
------------ ---------------
Cash generated from Operations $215,973 $52,970
Use of Funds-Increase in Assets 0 15,540
Decrease in Liabilities 6,572 14,830
Decrease in Applicant's Deposit 0 0
Offering Period Interest Expense to Limited Partners 0 0
Investment Income Pd to LP's 21,264 23,690
Return of Capital to LP's 89,158 97,517
------------
---------------
Net Increase (Decrease) in Cash $98,979 $(98,607)
Cash at the beginning of the year $57,851 $156,830
Cash at the end of the year $156,830 $58,223
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $53 $63
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $51 $62
Cash Distribution to Investors for $1,000 Invested
Income (1) $23 $27
Capital (1) $95 $111
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $49 $75
Federal Income Tax Results for $1,000 Invested for a Limited
Partner Receiving Monthly Earnings Distributions $48 $73
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1984 1985 1986
------------ ------------ ------------
Gross Revenues $188,289 $205,116 $206,710
Less: General Partners' Mgmt Fee 1,539 1,434 1,491
Mortgage Servicing Fee 10,735 11,808 13,240
Administrative Expenses 2,734 8,476 15,253
Provision for Uncollected Accts 22,278 51,508 15,498
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $151,003 $131,890 $161,228
------------ ------------
------------
Sources of Funds - Net Income $151,003 $131,890 $161,228
Decrease in Assets 0 0 0
Increase in Liabilities 0 591 4,677
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $151,003 $132,481 $165,905
Use of Funds-Increase in Assets $209,076 $8,249 $42,076
Decrease in Liabilities 952 0 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 2,205 15,746 14,701
Return of Capital to LP's 53,363 100,073 76,449
------------ ------------ ------------
Net Increase (Decrease) in Cash $(114,593) $8,413 $32,679
Cash at the beginning of the year $187,939 $73,346 $81,759
Cash at the end of the year $73,346 $81,759 $114,438
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $107 $87 $105
Cash Distribution to Investors for $1,000 Invested
Income (1) $2 $10 $9
Capital (1) $37 $65 $49
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $107 $87 $105
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1987 1988 1989
------------ ------------ ------------
Gross Revenues $207,133 $217,668 $209,477
Less: General Partners' Mgmt Fee 9,278 12,359 12,504
Mortgage Servicing Fee 13,099 14,742 12,654
Administrative Expenses 15,674 15,015 12,971
Provision for Uncollected Accts 16,734 23,499 7,993
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $152,348 $152,053 $163,355
------------ ------------
------------
Sources of Funds - Net Income $152,348 $152,053 $163,355
Decrease in Assets 34,814 0 0
Increase in Liabilities 0 4,608 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $187,162 $156,661 $163,355
Use of Funds-Increase in Assets 0 $85,795 $86,738
Decrease in Liabilities 1,142 0 6,916
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 16,331 25,710 37,745
Return of Capital to LP's 112,317 113,029 119,469
------------ ------------ ------------
Net Increase (Decrease) in Cash $57,372 $(67,873) $(87,513)
Cash at the beginning of the year $114,438 $171,810 $103,937
Cash at the end of the year $171,810 $103,937 $16,424
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $96 $95 $101
Cash Distribution to Investors for $1,000 Invested
Income (1) $10 $16 $23
Capital (1) $69 $69 $72
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $96 $95 $101
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1997
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1990 1991 1992
------------ ------------ ------------
Gross Revenues $187,920 $152,401 $143,619
Less: General Partners' Mgmt Fee 12,398 11,129 0
Mortgage Servicing Fee 10,551 0 3,562
Administrative Expenses 10,999 12,481 20,051
Provision for Uncollected Accts 5,681 56,012 52,860
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $148,291 $72,779 $67,146
------------ ------------
------------
Sources of Funds - Net Income $148,291 $72,779 $67,146
Decrease in Assets 226,219 0 0
Increase in Liabilities 0 11,215 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $374,510 $83,994 $67,146
Use of Funds-Increase in Assets 0 $67,263 $51,385
Decrease in Liabilities 2,500 0 10,129
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 51,260 25,014 7,600
Return of Capital to LP's 149,425 93,506 66,017
------------ ------------ ------------
Net Increase (Decrease) in Cash $171,325 $(101,789) $(67,985)
Cash at the beginning of the year $16,424 $187,749 $85,960
Cash at the end of the year $187,749 $85,960 $17,975
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $92 $45 $43
Cash Distribution to Investors for $1,000 Invested
Income (1) $31 $15 $5
Capital (1) $90 $58 $42
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $98 $40 $77
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1993 1994 1995
------------ ------------ ------------
Gross Revenues $214,168 $151,237 $153,757
Less: General Partners' Mgmt Fee 1,942 3,819 5,597
Mortgage Servicing Fee 12,231 9,961 9,579
Administrative Expenses 31,039 23,433 11,724
Provision for Uncollected Accts 96,493 37,822 48,471
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $72,463 $76,202 $78,386
------------ ------------
------------
Sources of Funds - Net Income $72,463 $76,202 $78,386
Decrease in Assets 207,128 0 41,320
Increase in Liabilities 9,332 0 16
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $288,923 $76,202 $119,722
Use of Funds-Increase in Assets 0 $75,654 0
Decrease in Liabilities 0 9,152 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 18,867 28,658 28,580
Return of Capital to LP's 78,090 69,512 124,513
------------ ------------ ------------
Net Increase (Decrease) in Cash $191,966 $(106,774) $(33,371)
Cash at the beginning of the year $17,975 $209,941 $103,167
Cash at the end of the year $209,941 $103,167 $69,796
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $47 $50 $53
Cash Distribution to Investors for $1,000 Invested
Income (1) $12 $19 $19
Capital (1) $50 $45 $82
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $9 $(18) $80
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997
------------ ---------------
Gross Revenues $135,273 $130,974
Less: General Partners' Mgmt Fee 10,686 3,431
Mortgage Servicing Fee 24,133 7,499
Administrative Expenses 12,170 12,038
Provision for Uncollected Accts 8,845 20,435
Amortization of Organization and Syndication Costs 0 0
Offering Period Interest Expense to Limited Partners 0 0
------------ ---------------
Net Income (GAAP Basis) dist. to Limited Partners $79,439 $87,571
---------------
------------
Sources of Funds - Net Income $79,439 $87,571
Decrease in Assets 208,623 0
Increase in Liabilities 23,127 0
Increase in Applicant's Deposit 0 0
Increase in Partners' Capital 0 0
------------ ---------------
Cash generated from Operations $311,189 $87,571
Use of Funds-Increase in Assets $0 $140,251
Decrease in Liabilities 0 24,992
Decrease in Applicant's Deposit 0 0
Offering Period Interest Expense to Limited Partners 0 0
Investment Income Pd to LP's 25,439 29,816
Return of Capital to LP's 101,605 130,035
------------
---------------
Net Increase (Decrease) in Cash $184,145 $(237,523)
Cash at the beginning of the year $69,796 $253,941
Cash at the end of the year $253,941 $16,418
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $56 $65
Cash Distribution to Investors for $1,000 Invested
Income (1) $18 $21
Capital (1) $71 $93
Federal Income Tax Results for $1,000 Invested Capital
for a Compounding Ltd. Partner $31 $68
<FN>
NOTES:
(1) Based upon years initial capital balances
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1984 1985 1986
------------ ------------ ------------
Gross Revenues $592,783 $567,307 $515,812
Less: General Partners' Mgmt Fee 28,027 5,366 5,336
Mortgage Servicing Fee 28,169 33,756 42,630
Administrative Expenses 28,900 34,833 58,759
Provision for Uncollected Accts 77,966 155,408 171,844
Amortization of Organization and Syndication Costs 2,123 1,132 1,877
Offering Period Interest Expense to Limited Partners 3,529 2,997 1,849
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $424,069 $333,815 $233,518
------------ ------------
------------
Sources of Funds - Net Income $424,069 $333,815 233,518
Decrease in Assets 274,181 873,340 919,823
Increase in Liabilities 1,323 3,129 6,384
Increase in Applicant's Deposit 42,433 0 0
Increase in Partners' Capital 233,005 228,018 223,959
------------ ------------
------------
Cash generated from Operations $975,011 $1,438,302 $1,383,684
Use of Funds-Increase in Assets 0 0 0
Decrease in Liabilities 0 0 0
Decrease in Applicant's Deposit 0 44,725 15,712
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 95,851 123,166 125,074
Return of Capital to LP's 969,496 1,521,375 1,171,920
------------ ------------ ------------
Net Increase (Decrease) in Cash $(90,336) $(250,964) $70,979
Cash at the beginning of the year $432,118 $341,782 $90,818
Cash at the end of the year $341,782 $ 90,818 $161,797
Income & Distribution Data for $1,000 Invested Net Income
CMI (Original Portfolio) (GAAP Basis) $59 $47 $32
Net Income CMI II (New Portfolio of CMI) (GAAP Basis) $128 $122 $108
Cash Distribution to Investors for $1,000 Invested: CMI
(Original Portfolio)
Income (1) $13 $18 $23
Capital (1) $130 $224 $216
CMI II (New Portfolio of CMI)
Income (1) 0 0 0
Capital (1) 0 0 0
Federal Income Tax Results for $1,000 Invested Capital
Ordinary Income from Operations CMI (Original Portfolio) $59 $47 $32
Ordinary Income from Operations CMI II (New Portfolio of
CMI $130 $123 $110
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1987 1988 1989
------------ ------------ ------------
Gross Revenues $454,722 $327,040 $355,951
Less: General Partners' Mgmt Fee 6,884 7,631 8,223
Mortgage Servicing Fee 26,258 25,206 9,007
Administrative Expenses 45,785 40,102 27,002
Provision for Uncollected Accts 140,639 75,443 170,176
Amortization of Organization and Syndication Costs 800 793 0
Offering Period Interest Expense to Limited Partners 255 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $234,101 $177,865 $141,543
------------ ------------
------------
Sources of Funds - Net Income $234,101 $177,865 $141,543
Decrease in Assets 977,963 963,036 423,042
Increase in Liabilities 0 4,680 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 70,223 1 0
------------ ------------
------------
Cash generated from Operations $1,282,287 $1,145,582 $564,585
Use of Funds-Increase in Assets 0 0 0
Decrease in Liabilities 9,039 0 6,543
Decrease in Applicant's Deposit 56,068 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 50,657 59,413 33,471
Return of Capital to LP's 1,249,210 765,486 604,010
------------ ------------ ------------
Net Increase (Decrease) in Cash $(82,687) $320,683 $(79,439)
Cash at the beginning of the year $161,797 $79,110 $399,793
Cash at the end of the year $79,110 $399,793 $320,354
Income & Distribution Data for $1,000 Invested Net Income
CMI (Original Portfolio) (GAAP Basis) $37 $28 $18
Net Income CMI II (New Portfolio of CMI) (GAAP Basis) $100 $98 $92
Cash Distribution to Investors for $1,000 Invested: CMI
(Original Portfolio)
Income (1) $12 $17 $10
Capital (1) $292 $243 $243
CMI II (New Portfolio of CMI)
Income (1) 0 $6 $9
Capital (1) 0 $6 $21
Federal Income Tax Results for $1,000 Invested Capital
Ordinary Income from Operations CMI (Original Portfolio) $37 $28 $19
Ordinary Income from Operations CMI II (New Portfolio of
CMI $102 $101 $96
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1990 1991 1992
------------ ------------ ------------
Gross Revenues $294,299 $310,196 $279,365
Less: General Partners' Mgmt Fee 9,821 18,751 17,149
Mortgage Servicing Fee 12,034 18,904 21,171
Administrative Expenses 22,840 23,084 24,763
Provision for Uncollected Accts 129,980 80,123 32,831
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $119,624 $169,334 $183,451
------------ ------------
------------
Sources of Funds - Net Income $119,624 $169,334 $183,451
Decrease in Assets 287,077 298,408 0
Increase in Liabilities 0 14,202 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $406,701 $481,944 $183,451
Use of Funds-Increase in Assets 0 0 74,593
Decrease in Liabilities 1,718 0 2,981
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 28,704 46,573 48,497
Return of Capital to LP's 477,549 356,864 259,493
------------ ------------ ------------
Net Increase (Decrease) in Cash $(101,270) $78,507 $(202,113)
Cash at the beginning of the year $320,354 $219,084 $297,591
Cash at the end of the year $219,084 $297,591 $95,478
Income & Distribution Data for $1,000 Invested Net Income
CMI (Original Portfolio) (GAAP Basis) $7 $58 $82
Net Income CMI II (New Portfolio of CMI) (GAAP Basis) $93 $81 $82
Cash Distribution to Investors for $1,000 Invested: CMI
(Original Portfolio)
Income (1) $3 $18 $18
Capital (1) $249 $204 $142
CMI II (New Portfolio of CMI)
Income (1) $20 $18 $22
Capital (1) $20 $63 $81
Federal Income Tax Results for $1,000 Invested Capital
Ordinary Income from Operations CMI (Original Portfolio) $7 $105 $75
Ordinary Income from Operations CMI II (New Portfolio of
CMI $100 $101 $75
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1993 1994 1995
------------ ------------ ------------
Gross Revenues $258,338 $204,608 $210,590
Less: General Partners' Mgmt Fee 16,318 15,274 14,180
Mortgage Servicing Fee 18,665 12,451 18,193
Administrative Expenses 17,943 16,687 14,485
Provision for Uncollected Accts 72,551 74,215 69,692
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
------------ ------------ ------------
Net Income (GAAP Basis) dist. to Limited Partners $132,861 $ 85,981 $94 040
------------ ------------
------------
Sources of Funds - Net Income $132,861 $85,981 $94,040
Decrease in Assets 220,577 140,444 29,224
Increase in Liabilities 0 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
------------ ------------
------------
Cash generated from Operations $353,438 $226,425 $123,264
Use of Funds-Increase in Assets 0 0 0
Decrease in Liabilities 2,954 2,600 0
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 37,370 26,841 33,554
Return of Capital to LP's 235,477 188,064 214,560
------------ ------------ ------------
Net Increase (Decrease) in Cash $77,637 $8,920 $(124,850)
Cash at the beginning of the year $95,478 $173,115 $182,035
Cash at the end of the year $173,115 $182,035 $57,185
Income & Distribution Data for $1,000 Invested Net Income
CMI (Original Portfolio) (GAAP Basis) $61 $42 $50
Net Income CMI II (New Portfolio of CMI) (GAAP Basis) $61 $42 $50
Cash Distribution to Investors for $1,000 Invested: CMI
(Original Portfolio)
Income (1) $18 $17 $24
Capital (1) $138 $122 $137
CMI II (New Portfolio of CMI)
Income (1) $14 $10 $12
Capital (1) $77 $64 $89
Federal Income Tax Results for $1,000 Invested Capital
Ordinary Income from Operations CMI (Original Portfolio) $23 $53 $93
Ordinary Income from Operations CMI II (New Portfolio of
CMI $23 $53 $93
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
</FN>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1997)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997
------------ ---------------
Gross Revenues $193,218 $180,117
Less: General Partners' Mgmt Fee 13,117 12,229
Mortgage Servicing Fee 18,050 14,935
Administrative Expenses 14,341 14,182
Provision for Uncollected Accts 49,281 32,877
Amortization of Organization and Syndication Costs 0 0
Offering Period Interest Expense to Limited Partners 0 0
------------ ---------------
Net Income (GAAP Basis) dist. to Limited Partners $98,429 $105,894
---------------
------------
Sources of Funds - Net Income $98,429 $105,894
Decrease in Assets 143,063 204,288
Increase in Liabilities 3,900 0
Increase in Applicant's Deposit 0 0
Increase in Partners' Capital 0 0
------------ ---------------
Cash generated from Operations $245,392 $310,182
Use of Funds-Increase in Assets 0 0
Decrease in Liabilities 0 3,738
Decrease in Applicant's Deposit 0 0
Offering Period Interest Expense to Limited Partners 0 0
Investment Income Pd to LP's 28,260 33,904
Return of Capital to LP's 189,391 206,685
------------
---------------
Net Increase (Decrease) in Cash $27,741 $65,855
Cash at the beginning of the year $57,185 $84,926
Cash at the end of the year $84,926 $150,781
Income & Distribution Data for $1,000 Invested Net Income
CMI (Original Portfolio) (GAAP Basis) $57 $66
Net Income CMI II (New Portfolio of CMI) (GAAP Basis) $57 $66
Cash Distribution to Investors for $1,000 Invested: CMI
(Original Portfolio)
Income (1) $21 $20
Capital (1) $149 $169
CMI II (New Portfolio of CMI)
Income (1) $12 $21
Capital (1) $74 $93
Federal Income Tax Results for $1,000 Invested Capital
Ordinary Income from Operations CMI (Original Portfolio) $84 $76
Ordinary Income from Operations CMI II (New Portfolio of $84 $76
CMI)
<FN>
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VIII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
==================== ================== ====================== ====================== =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================== ====================== ====================== =================== -----------------
Santa Clara 06/01/93 03/13/95 99000.00 17191.42 116191.42
San Mateo 07/19/94 06/20/95 40000.00 3076.20 43076.20
Santa Clara 06/04/93 12/31/95 100000.00 26825.94 126825.94
Santa Clara 05/31/95 02/09/96 278207.20 17936.60 296143.80
San Mateo 10/08/93 02/15/96 130000.00 *29280.87 159280.87
Santa Clara 12/29/94 03/13/96 250000.00 *17701.60 267701.60
San Mateo 02/21/96 05/20/96 58500.00 *1932.93 60432.93
San Mateo 11/15/94 05/30/96 213717.85 *18344.35 232062.20
San Mateo 09/15/95 06/06/96 3277600.49 *355868.81 3,633,469.30
Marin 05/05/94 06/14/96 300000.00 *65081.60 365081.60
Alameda 12/05/95 07/24/96 49753.82 *2853.90 52607.72
Alameda 11/29/94 08/05/96 60000.00 *10253.51 70253.51
Monterey 02/14/95 08/30/96 239507.90 *34227.09 273734.99
Marin 05/11/95 11/06/96 50000.00 *8446.53 58446.53
San Mateo 03/22/94 11/15/96 100000.00 *25983.46 125983.46
Alameda 08/05/94 11/22/96 410000.00 *88249.87 498249.87
San Mateo 04/30/96 12/11/96 453720.67 *25915.39 479636.06
San Francisco 03/27/96 03/18/97 125000.00 *14059.97 139059.97
San Francisco 04/15/93 03/19/97 70125.00 *22935.84 93060.84
San Mateo 03/09/95 03/27/97 80000.00 *18925.90 98952.90
San Mateo 04/11/96 04/21/97 325000.00 *32826.90 357826.90
Sonoma 03/04/94 04/25/97 93400.00 *27746.86 121146.86
Tuolomne 03/26/93 05/14/97 100000.00 *43838.58 143838.58
Santa Clara 06/30/95 06/06/97 44000.00 *9251.29 53251.29
Marin 10/17/95 06/09/97 770000.00 *105256.69 875256.69
San Mateo 08/09/96 06/24/97 65000.00 *6511.02 71511.02
Stanislaus 08/04/95 09/08/97 50000.00 *10746.68 60746.68
San Francisco 09/12/95 10/01/97 250000.00 *57678.67 307678.67
San Mateo 08/30/96 10/06/97 445000.00 *44544.27 489544.27
- -------------------- ------------------ ---------------------- ---------------------- ------------------- -----------------
MULTIPLE 5+ UNITS (county)
==================== ================== ====================== ====================== =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================== ====================== ====================== =================== -----------------
Alameda 04/28/93 12/01/95 50000.00 9239.47 59239.47
San Francisco 07/20/94 01/19/96 175000.00 *12148.49 187148.49
Contra Costa 01/06/94 01/19/96 1073720.93 *147243.75 1220964.68
Alameda 03/17/95 05/31/96 13000.00 *1721.25 14721.25
San Francisco 02/05/96 12/27/96 883750.00 *50570.34 934320.34
- -------------------- ------------------ ---------------------- ---------------------- ------------------- -----------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VIII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
COMMERCIAL (county) CONTINUED
==================== ================== ===================== ======================= =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================== ===================== ======================= =================== -----------------
Merced 06/02/93 10/31/94 45000.00 7163.32 52163.32
Alameda 01/14/94 03/17/95 300000.00 34922.50 334922.50
Alameda 10/14/94 05/31/95 310000.00 20774.14 330774.14
Santa Clara 01/26/96 03/21/96 1125000.00 *18882.96 1143882.96
San Francisco 03/19/93 06/28/96 116500.00 *36543.05 153043.05
Santa Clara 12/30/94 06/30/96 95000.00 *15257.72 110257.72
San Francisco 03/10/93 02/15/96 114000.00 *39249.06 153249.06
San Mateo 07/25/94 09/26/96 700000.00 *184662.96 884662.96
Santa Clara 10/31/94 10/01/96 500000.00 *100224.84 600224.84
San Luis Obispo 03/14/96 05/23/97 300000.00 *45007.71 345007.71
San Mateo 05/26/94 05/30/97 280000.00 *86457.95 366457.95
San Francisco 10/28/96 07/17/97 975000.00 *82881.25 1057881.25
San Francisco 01/15/97 07/17/97 745474.49 *32064.27 777538.76
San Francisco 04/30/97 07/17/97 50000.00 *1300.00 51300.00
San Francisco 04/20/95 09/18/97 400000.00 *55785.90 455785.90
San Mateo 08/28/95 10/14/97 750000.00 *210514.55 960514.55
Santa Clara 03/27/96 10/24/97 800000.00 *151285.28 951285.28
Santa Barbara 05/10/94 10/31/97 425000.00 *167181.54 592181.54
San Mateo 06/30/95 12/05/97 130000.00 *45729.11 175729.11
Santa Clara 09/29/95 12/18/97 1050000.00 *278130.56 1328130.56
- -------------------- ------------------ --------------------- ----------------------- ------------------- -----------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $189,692 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
=================== ================= ====================== ======================== =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================= ====================== ======================== =================== -----------------
Solano 09/21/91 02/22/95 294500.00 -19094.98 275405.02
Alameda 08/07/92 03/31/95 135000.00 39743.01 174743.01
San Mateo 08/12/91 03/10/95 196000.00 -17431.30 178568.70
San Mateo 12/11/91 04/18/95 95000.00 -16923.29 78076.71
San Mateo 07/28/93 07/14/95 60000.00 12275.08 72275.08
Alameda 02/23/93 06/13/95 104000.00 27469.23 131469.23
San Mateo 07/26/91 08/21/95 71000.00 25231.62 -45768.38
Monterey 09/18/92 09/27/95 110000.00 -72503.76 37496.24
San Mateo 11/09/93 09/29/95 153000.00 25546.76 178546.76
San Mateo 12/07/93 09/29/95 25000.00 4467.56 29467.56
San Mateo 03/10/95 11/29/95 200000.00 11018.65 211018.65
Santa Clara 06/04/93 12/31/95 25000.00 6858.86 31858.86
Contra Costa 03/17/93 03/29/96 73231.67 *5525.66 78,757.33
Mendocino 08/06/93 03/31/96 330000.00 *93954.87 393954.87
San Mateo 02/21/96 05/20/96 58500.00 *1932.94 60432.94
San Mateo 11/15/94 05/30/96 213717.85 *18705.09 232422.94
Marin 05/05/94 06/14/96 150000.00 *33530.02 183530.02
Santa Clara 10/29/92 07/23/96 209500.00 *83174.41 292674.41
Monterey 02/14/95 08/30/96 239507.90 *35047.91 274555.81
Sonoma 01/26/93 09/26/96 13420.13 *12659.66 26,079.79
Sonoma 01/26/93 09/30/96 13420.13 *12683.14 26,103.27
San Mateo 12/31/89 09/30/96 57959.24 *91871.30 149,830.54
San Mateo 06/24/92 03/13/97 81000.00 *45775.04 126775.04
San Francisco 04/15/93 03/19/97 50000.00 *17967.50 67967.50
Alameda 08/16/91 04/11/97 66000.00 *41506.43 107506.43
San Mateo 10/10/96 04/14/97 29944.39 *1234.15 31178.54
San Francisco 07/15/96 05/09/97 320000.00 *20144.66 340144.66
Tuolomne 03/26/93 05/14/97 175000.00 *36244.52 211244.52
San Mateo 08/12/91 05/31/97 108270.70 *71684.54 179955.24
San Mateo 06/19/92 06/18/97 42500.00 *25030.01 67030.01
San Mateo 12/30/90 06/19/97 15000.00 *14166.94 29166.94
San Francisco 07/16/91 08/22/97 108000.00 *89977.37 197977.37
San Mateo 03/29/90 08/29/97 63960.00 *61632.29 125592.29
San Mateo 06/10/92 09/05/97 145000.00 *95692.30 240692.30
San Francisco 10/09/96 09/12/97 238000.00 *12930.41 250730.41
Marin 05/20/91 09/30/97 63922.80 *100305.42 164228.22
San Francisco 04/16/91 10/23/97 343719.78 *90066.64 433786.42
San Francisco 11/06/92 11/04/97 6133.33 *1932.57 8065.90
Alameda 12/24/91 12/31/97 37984.50 *17405.28 68376.95
- ------------------- ------------------ --------------------- ------------------------ ------------------- -----------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
MULTIPLE 5+ UNITS (county)
=================== ================== ====================== ======================= =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ======================= =================== -----------------
San Francisco 05/29/90 01/11/95 75000.00 -21412.94 53587.06
San Francisco 12/09/91 10/31/95 25000.00 9554.33 34554.33
Alameda 04/28/93 12/01/95 150000.00 28283.23 178283.23
Contra Costa 01/06/94 01/19/96 1226744.19 *194323.82 1421068.01
Alameda 03/17/95 05/31/96 28166.67 *3920.62 32087.29
San Mateo 07/15/92 02/16/96 175000.00 *75675.23 250675.23
San Francisco 02/05/96 12/27/96 883750.00 *50570.34 934320.34
- ------------------- ------------------ ---------------------- ----------------------- ------------------- -----------------
COMMERCIAL (county)
=================== ================== ====================== ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ======================= ================== ------------------
Alameda 01/14/94 03/17/95 650000.00 87376.02 737376.02
Shasta 06/06/90 05/10/95 100000.00 3005.47 103005.47
Alameda 02/12/92 11/03/95 240000.00 62538.96 320296.01
Solano 04/30/92 11/30/95 200000.00 37668.49 237904.59
San Francisco 01/25/91 12/15/95 80000.00 50960.94 130960.94
San Mateo 08/28/95 03/19/96 375000.00 *50593.75 425593.75
Santa Clara 01/26/96 03/21/96 1125000.00 *18882.96 1143882.96
San Francisco 03/19/93 06/28/96 129800.00 *46251.69 176051.69
Santa Clara 01/22/92 06/30/96 325000.00 *120178.74 445178.74
San Francisco 04/30/86 09/12/96 600320.06 *866468.12 1466788.18
San Mateo 07/25/94 09/26/96 650000.00 *197114.21 847114.21
Santa Clara 09/28/90 09/30/96 202577.92 *219868.67 422,446.59
Santa Clara 10/31/94 10/01/96 275000.00 *56956.67 331956.67
Alameda 12/13/91 01/31/97 52760.73 *67026.76 119787.49
Alameda 12/12/90 03/24/97 50461.02 *68068.88 118529.90
Santa Cruz 09/23/94 03/28/97 100000.00 *17765.69 117765.69
Alameda 11/05/90 03/31/97 236177.62 *106668.62 342846.24
San Francisco 01/15/97 04/01/97 442500.00 *4022.19 446522.19
Contra Costa 04/26/91 06/23/97 182475.81 *246883.76 429359.57
San Francisco 04/20/95 09/18/97 200000.00 *56821.69 256821.69
Contra Costa 03/19/91 09/30/97 227957.56 *-186615.23 41342.33
Santa Clara 03/27/96 10/24/97 400000.00 *54360.37 454360.37
Santa Barbara 05/10/94 10/31/97 125000.00 *50276.97 175276.97
Santa Clara 09/29/95 12/18/97 700000.00 *169533.33 869533.33
San Mateo 12/02/92 12/31/97 55000.00 *33308.16 88308.16
- ------------------- ------------------ ---------------------- ----------------------- ------------------ ------------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $83,559 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VI
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
=================== ================== ====================== ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ======================= ================== ------------------
Alameda 11/23/88 02/10/95 50000.00 37945.22 87945.22
Solano 09/21/92 02/22/95 190016.46 -13169.40 176847.06
Contra Costa 10/30/92 03/02/95 89500.00 15442.55 104942.55
Contra Costa 11/20/90 04/14/95 50000.00 330.88 50330.88
San Mateo 12/11/91 04/18/95 95000.0 16246.05 111246.05
Contra Costa 04/02/91 07/18/95 72000.00 -30261.48 41738.52
Napa 12/22/88 08/31/95 200000.00 160662.42 360662.42
Monterey 09/18/92 09/27/95 100000.00 -65098.70 34901.30
San Mateo 10/17/88 12/08/95 91400.00 79779.21 171179.21
Santa Clara 06/04/93 12/31/95 25000.00 6858.86 31858.86
San Mateo 10/08/93 02/15/96 57425.00 *13219.04 70644.04
Contra Costa 03/17/93 03/29/96 73231.70 *5525.66 78,757.36
San Mateo 03/03/89 03/31/96 160000.00 *102333.91 262333.91
San Mateo 08/12/92 05/15/96 207211.23 *217482.42 424,693.65
Marin 05/05/94 06/14/96 200000.00 *44706.69 244706.69
Santa Clara 10/29/92 07/23/96 209500.00 *83174.41 292674.41
Sonoma 01/26/93 09/26/96 25811.78 *24007.81 49,819.59
Sonoma 01/26/93 09/30/96 25666.55 *24889.91 50,556.46
Santa Cruz 08/20/91 09/31/96 120000.00 *62342.34 182342.34
San Mateo 07/01/88 10/06/96 22500.00 *21468.10 43968.10
San Mateo 06/29/89 10/11/96 69396.16 *113467.71 182,863.87
San Mateo 10/10/96 04/14/97 37055.61 *1527.25 38582.86
Alameda 07/01/90 07/02/97 233367.46 *-127393.18 105974.28
Sacramento 03/13/92 10/31/97 55307.12 *-47694.39 7612.73
Alameda 01/24/92 12/19/97 87300.00 *32875.31 120175.31
Alameda 12/24/91 12/31/97 67257.75 *30820.92 98078.67
- ------------------- ------------------ ---------------------- ----------------------- ------------------ ------------------
MULTIPLE 5+ UNITS (county)
=================== ================== ====================== ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ======================= ================== ------------------
San Francisco 05/29/90 01/11/95 75000.00 -21792.60 53207.40
San Francisco 01/13/93 02/03/95 30000.00 7430.37 37430.37
Alameda 04/28/93 12/01/95 100000.00 18853.45 118853.45
Contra Costa 01/06/94 01/19/96 516279.07 *90368.97 606648.04
San Mateo 08/12/92 05/15/96 175000.00 *42482.37 217482.37
Alameda 03/17/95 05/31/96 9750.00 *1322.29 11072.29
San Mateo 07/15/92 02/16/96 100000.00 *43242.94 143242.94
Sacramento 08/19/88 07/28/97 509985.54 *-214554.68 295430.86
- ------------------- ------------------ ---------------------- ----------------------- ------------------ ------------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VI
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
COMMERCIAL (county)
=================== ================== ====================== ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ======================= ================== ------------------
Alameda 01/14/94 03/17/95 225000.00 29899.40 254899.40
Shasta 06/06/90 05/10/95 100000.00 2637.03 102637.03
San Mateo 01/25/91 08/03/95 162500.00 95276.39 257776.39
San Francisco 01/25/91 12/15/95 100000.00 63892.44 163892.44
Alameda 08/03/90 01/30/96 200000.00 *142969.07 342969.07
Santa Clara 02/01/96 03/21/96 392829.43 *6722.72 399552.15
San Francisco 03/19/93 06/28/96 110000.00 *5670.35 115670.35
Santa Clara 09/10/92 06/30/96 100000.00 *45702.20 145702.20
Santa Clara 01/22/92 06/30/96 175000.00 *89015.60 264015.60
San Francisco 04/30/86 09/12/96 149400.14 *214170.66 363570.80
San Mateo 07/25/94 09/26/96 550000.00 *157005.74 707005.74
Alameda 11/05/90 03/31/97 78740.20 *105095.44 183835.64
San Mateo 08/01/90 01/24/97 50000.00 *42561.13 92561.13
Alameda 12/12/90 03/24/97 210034.69 *283065.26 493099.95
Sonoma 07/06/89 08/01/97 100000.00 *91374.72 191374.72
Contra Costa 03/19/91 09/30/97 227755.59 *-186413.27 41342.32
Santa Barbara 05/10/94 10/31/97 100000.00 *40222.70 140222.70
Santa Clara 09/29/95 12/18/97 550000.00 *83866.67 633866.67
- ------------------- ------------------ ---------------------- ----------------------- ------------------ ------------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $39,918in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS V
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
=================== ================== ====================== ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ======================= ================== ------------------
Contra Costa 02/14/92 04/27/95 264500.00 -44659.84 219840.16
San Mateo 11/04/92 05/22/95 30000.00 9458.37 39458.37
San Mateo 09/28/89 09/03/96 54000.00 41863.50 95863.50
Sonoma 01/26/93 09/26/96 24030.31 21893.70 45,924.01
Sonoma 01/26/93 09/30/96 24030.32 22625.93 46,656.25
Marin 01/23/87 12/13/96 60000.00 *57433.82 117433.82
San Francisco 04/15/93 03/19/97 93500.00 *23305.54 116805.54
San Francisco 12/09/94 06/10/97 14000.00 *3110.57 17110.57
San Francisco 04/16/91 10/23/97 342442.77 *91841.37 434284.14
Sacramento 03/12/92 10/31/97 27664.73 *-23852.44 3812.29
San Mateo 11/18/92 12/10/97 25000.00 *15165.60 40165.60
Alameda 01/24/92 12/19/97 87300.00 *33156.31 120456.31
- ------------------- ------------------ ---------------------- ----------------------- ------------------ ------------------
MULTIPLE 5+ UNITS (county)
=================== ================== ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ====================== =================== ------------------
Santa Clara 09/21/88 06/19/95 100000.00 74156.73 174156.73
Alameda 04/28/93 12/01/95 100000.00 19070.91 119070.91
Contra Costa 01/06/94 01/19/96 187116.28 *7299.89 194416.17
Alameda 03/17/95 05/31/96 3250.00 *452.38 3702.38
- ------------------- ------------------ ---------------------- ---------------------- ------------------- ------------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS V
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
COMMERCIAL (county)
=================== ================== ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ====================== =================== ------------------
Alameda 01/14/94 03/17/95 75000.00 9966.47 84966.47
Shasta 06/06/90 05/10/95 70000.00 2831.72 72831.72
San Francisco 03/19/93 06/28/96 90000.00 *5786.25 95670.35
Santa Clara 09/10/92 06/30/96 150000.00 *69007.73 219007.73
Santa Clara 01/22/92 06/30/96 100000.00 *40642.26 140642.26
San Francisco 04/30/86 09/12/96 304280.17 *224718.72 528998.89
San Mateo 07/25/94 09/26/96 300000.00 *92108.08 392108.08
San Mateo 08/01/90 01/24/97 50000.00 *42804.93 92804.93
Contra Costa 04/26/91 06/23/97 115032.96 *154302.43 269335.39
Contra Costa 11/16/93 07/03/97 235000.00 *56654.84 291651.84
Sonoma 07/06/89 08/01/97 100000.00 *91651.43 191651.43
Santa Clara 09/29/95 12/18/97 100000.00 *26660.60 126666.60
- ------------------- ------------------ ---------------------- ---------------------- ------------------- ------------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $0.00 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS IV
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
=================== ================== ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ====================== =================== ------------------
- ------------------- ================== ====================== ====================== =================== ------------------
Contra Costa 02/14/92 04/27/95 303281.45 257935.00 561,216.45
Marin 04/29/88 06/02/95 67000.00 55264.42 122264.42
San Mateo 12/30/94 07/03/95 328583.63 13353.36 341936.99
San Mateo 09/28/89 09/03/96 54000.00 *41577.53 95577.53
Alameda 09/02/92 07/15/97 78750.00 *45066.81 123816.81
San Mateo 03/20/90 08/29/97 80000.00 *77498.01 157498.01
San Francisco 11/06/92 11/04/97 12266.67 *5240.50 17507.17
Santa Clara 04/26/94 11/05/97 87500.00 *31938.26 119438.26
Alameda 12/24/91 12/31/97 67257.75 *30392.45 97650.20
- ------------------- ------------------ ---------------------- ---------------------- ------------------- ------------------
MULTIPLE 5+ UNITS (county)
=================== ================== ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ====================== =================== ------------------
San Francisco 05/29/90 01/11/95 50000.00 -13804.88 36195.12
Santa Clara 09/21/88 06/19/95 100000.00 74222.65 174222.65
San Francisco 03/06/91 11/29/95 60000.00 39835.76 99835.76
Alameda 04/28/93 12/01/95 100000.00 18472.90 118472.90
Contra Costa 01/06/94 01/19/96 418604.65 *69501.29 488105.94
San Joaquin 07/11/95 03/19/96 275000.00 *10172.36 285172.36
Alameda 03/17/95 05/30/96 6500.00 *860.62 7360.62
Sacramento 12/16/87 05/30/96 536592.80 *368067.66 904,660.46
Santa Clara 09/28/90 09/30/96 204900.08 *220007.50 424,907.58
- ------------------- ------------------ ---------------------- ---------------------- ------------------- ------------------
COMMERCIAL (county)
=================== ================== ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ================== ====================== ====================== =================== ------------------
Alameda 01/14/94 03/17/95 250000.00 23414.86 273414.86
Fresno 05/31/85 07/11/95 160000.00 196652.27 356652.27
San Mateo 01/25/91 08/03/95 162500.00 62530.67 225030.67
San Francisco 03/10/93 02/15/96 171000.00 *60864.67 231864.67
San Francisco 04/30/86 09/12/96 830000.78 *1082625.62 1912626.40
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS IV
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
COMMERCIAL (county) CONTINUED
==================== ================= ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== =================== ------------------
San Mateo 07/25/94 09/26/96 200000.00 *58334.75 258334.75
Lake 01/30/91 10/04/96 16000.00 *13245.50 29245.50
San Luis Obispo 03/14/96 05/23/97 200000.00 *30005.13 230005.13
Alameda 12/12/90 03/24/97 201671.45 *271459.89 473131.34
Contra Costa 04/26/91 06/23/97 114952.65 *154302.43 269255.08
San Mateo 12/31/90 12/05/97 260000.00 *205321.34 465321.34
Santa Clara 09/29/95 12/18/97 300000.00 *79483.33 379483.33
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $53,475 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS III
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
==================== ================= ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== =================== ------------------
Santa Clara 03/31/93 03/13/95 110000.00 3733.39 113733.39
Napa 08/31/90 08/31/95 73281.93 44487.64 117769.57
Sonoma 01/26/93 09/24/96 8523.84 7989.07 16,512.91
Sonoma 01/26/93 09/24/96 8523.84 8256.88 16,780.72
Santa Cruz 08/20/91 09/31/96 80253.55 *10031.41 90284.96
Alameda 11/29/94 05/19/97 60000.00 *15662.20 75662.20
Alameda 11/03/94 07/10/97 73000.00 *19586.80 92586.80
Alameda 09/02/92 07/15/97 100000.00 *57227.60 157227.60
San Mateo 08/16/94 11/14/97 75000.00 *28380.54 103380.54
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
MULTIPLE 5+ UNITS (county)
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
- -------------------- ================= ====================== ====================== =================== ------------------
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
COMMERCIAL (county)
==================== ================= ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== =================== ------------------
San Mateo 09/30/92 08/03/95 81250.00 31562.66 112812.66
Santa Clara 12/22/92 09/29/95 40000.00 13206.65 53206.65
Alameda 09/30/95 01/30/96 138015.68 *6530.55 144546.23
Santa Clara 09/10/92 06/30/96 75000.00 *33772.22 108772.22
San Francisco 04/30/86 09/12/96 164999.74 *214521.09 379520.83
San Francisco 08/24/94 06/30/97 87500.00 *27241.69 114741.69
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $7,791 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS II
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
==================== ================= ====================== ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== =================== ------------------
San Mateo 11/04/94 10/24/95 119000.00 13294.21 132294.21
Marin 01/23/87 12/13/96 50500.01 *6277.71 56777.72
Santa Clara 02/11/94 06/06/97 88000.00 *19621.27 107621.27
Sacramento 03/12/97 10/31/97 13760.71 *-12627.29 1133.42
- -------------------- ----------------- ---------------------- ---------------------- ------------------- ------------------
MULTIPLE 5+ UNITS (county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
COMMERCIAL (county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
San Francisco 04/30/86 09/12/96 291224.54 *262811.34 554035.88
Alameda 01/12/94 12/02/96 30000.00 *7553.14 37553.14
Santa Barbara 05/10/94 10/31/97 50000.00 *19780.28 69780.28
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $4,577 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
Napa 12/22/88 08/31/95 50000.00 40203.57 90203.57
Sonoma 01/26/93 09/24/96 5475.51 *5155.95 10,631.46
Sonoma 01/26/93 09/30/96 5488.04 *5343.29 10,831.33
Santa Clara 02/11/94 06/06/97 88000.00 *29191.54 117191.54
Marin 05/20/91 09/30/97 71000.00 *4894.30 75894.30
Sacramento 03/13/92 10/31/97 13812.08 *-11914.86 1897.22
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
MULTIPLE 5+ UNITS (county)
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
Alameda 03/17/95 05/31/96 2166.67 *286.88 2453.55
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
COMMERCIAL (county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
Alameda 01/14/94 03/17/95 50000.00 6481.93 56481.93
Fresno 05/31/85 07/11/95 75000.00 92143.53 167143.53
Santa Clara 12/22/92 09/29/95 30000.00 9905.00 39905.00
San Francisco 04/30/86 09/12/96 164997.74 *302563.65 467561.39
San Mateo 07/25/94 09/27/96 200000.00 *58334.75 258334.75
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $7,499 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
CORPORATE MORTGAGE INVESTORS I & II
FOR THE THREE YEARS ENDING
DECEMBER 31, 1997
SINGLE FAMILY 1-4 UNITS (county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
San Francisco 03/05/85 04/12/95 172624.22 127435.71 300059.93
San Francisco 05/23/90 07/28/95 50000.00 7856.50 57856.58
San Mateo 01/10/92 08/29/95 130000.00 57349.62 187349.62
Mariposa 01/27/95 09/18/95 77000.00 4351.26 81351.26
Santa Clara 03/31/90 12/04/95 80262.02 56152.77 136414.79
Alameda 01/31/95 01/25/96 80000.00 *8863.88 88863.88
San Mateo 01/31/96 04/29/96 175000.00 *5226.02 180226.02
San Mateo 03/06/90 08/29/96 19000.00 *14725.47 33725.47
San Mateo 09/29/95 09/05/96 70000.00 *8176.88 78176.88
Alameda 11/29/94 03/13/97 60000.00 *13896.74 73896.74
Amador 02/23/96 06/03/97 45000.00 *5047.64 50047.64
Santa Clara 04/26/94 11/05/97 87500.00 *31938.26 119438.26
San Mateo 02/28/97 12/29/97 35000.00 *3097.18 38097.18
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
MULTIPLE 5+ UNITS(county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
Contra Costa 01/06/94 01/19/96 239534.88 *26161.33 265696.21
Sacramento 12/15/87 05/30/96 102000.00 *-24018.43 77981.57
Alameda 03/17/95 05/31/96 2166.67 *286.88 2453.55
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
COMMERCIAL (county)
==================== ================= ====================== ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ================= ====================== ====================== ==================== -----------------
San Mateo 04/12/90 02/20/95 100000.00 45757.46 145757.46
Alameda 01/14/94 03/17/95 50000.00 6481.93 56481.93
San Francisco 03/19/93 06/28/96 35000.00 *36011.72 71011.72
San Francisco 04/30/86 09/12/96 180025.14 *20073.65 200098.79
Santa Clara 01/31/94 10/01/96 100000.00 *20044.97 120044.97
Contra Costa 06/21/88 04/07/97 54600.00 *28890.31 83490.31
San Francisco 08/24/94 06/30/97 87500.00 *27241.68 114741.68
Santa Barbara 05/10/94 10/31/97 100000.00 *39560.36 139560.36
- -------------------- ----------------- ---------------------- ---------------------- -------------------- -----------------
<FN>
* Interest payment received for 1996, and thereafter, shown as gross of
mortgage servicing fee. Prior to 1996 interest payments shown as net of mortgage
servicing fee. In 1997, the Partnership paid $14,935 in such fees to Redwood
Mortgage, the mortgage servicing agent.
</FN>
ATTACHMENT II
to
SUPPLEMENT NO. 4 DATED APRIL 24, 1998
SUMMARY OF MORTGAGE INVESTMENTS ORIGINATED BY PRIOR LIMITED PARTNERSHIP
The following table provides a summary of the mortgage investments
originated by prior programs of Affiliates for the three year period ending
December 31, 1997. The last column of the following chart reflects total
mortgage investment balances on all mortgage investments for each prior program,
including those which originated prior to the three year period ending December
31, 1997. This information updates the information provided on page 36 of the
Prospectus.
Name of Number of Estimated Total Outstanding Mortgage Total Outstanding
Partnership Mortgage Amount. of Investments Balances Mortgage Investments
Investments Mortgage Originated 01/01/95 Balances as of
Investments to 12/31/97 12/31/97 (from
inception)
- --------------- ------------- -- ----------------- -- ----------------------- ---- ------------------------
CMI 18 $1,465,266.67 $843,070.69 $1,403,563.46
RMI 13 $565,002.59 $645,223.29 $1,245,094.31
RMI II 8 $391,430.77 $340,930.77 $716,361.56
RMI III 11 $812,348.72 $805,905.37 $1,327,307.23
RMI IV 20 $3,864,698.69 $2,789,827.79 $8,377,848.77
RMI V 9 $506,022.74 $205,161.80 $2,375,830.09
RMI VI 25 $4,647,356.00 $1,914,240.15 $8,104,984.41
RMI VII 46 $20,995,761.32 $9,483,267.24 $13,449,741.09
=============== =========== ==== ================= ===== =================== ====== ====================
TOTAL 150 $33,247,887.50 $17,027,627.10 $37,000,730.92
=============== =========== ==== ================= ===== =================== ====== ====================
ATTACHMENT II
to
SUPPLEMENT NO. 4 DATED APRIL 24 , 1998
BREAKDOWN OF PRIOR PROGRAM MORTGAGE INVESTMENTS
The following is a breakdown of prior program mortgage investments
according to type of deed of trust, the location of the property securing the
mortgage investment, and the type of property securing the mortgage investment.
This information updates the information contained on page 37 of the Prospectus.
Mortgage Investments
First Trust Deeds $17,545,887.50
Second Trust Deeds 13,833,000.00
Third Trust Deeds 1,869,000.00
=================
Total $33,247,887.50
Location of Mortgage Investments by County
San Francisco $8,893,444.39
Santa Clara 7,429,680.00
Alameda 6,133,500.00
San Mateo 3,706,025.61
Stanislaus 1,625,000.00
Ventura 1,131,000.00
Monterey 1,097,000.00
Solano 540,000.00
Sacramento 495,000.00
Contra Costa 382,500.00
Riverside 300,000.00
San Joaquin 275,000.00
Marin 225,500.00
Shasta 225,000.00
San Luis Obispo 200,000.00
Santa Cruz 192,000.00
Sonoma 137,037.50
El Dorado 88,200.00
Mariposa 77,000.00
Placer 55,000.00
Napa 40,000.00
-----------------
Total $33,247,887.50
=================
Type of Property
Commercial $14,625,880.00
Owner Occupied Homes 1,756,051.89
Apartments 6,898,750.00
Non-Owner Homes 6,329,805.61
Raw Land 3,637,400.00
-----------------
Total $33,247,887.50
=================
ATTACHMENT III
to
SUPPLEMENT NO. 4 DATED APRIL 24 , 1998
FINANCIAL STATEMENTS
OF
REDWOOD MORTGAGE INVESTORS VIII
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
FINANCIAL STATEMENTS
DECEMBER 31, 1997 and 1996
(With Auditor's Report Thereon)
PARODI & CROPPER
CERTIFIED PUBLIC ACCOUNTANTS
3658 Mount Diablo Blvd., Suite #205
Lafayette CA 94549
(510) 284-3590
INDEPENDENT AUDITORS REPORT
THE PARTNERS
REDWOOD MORTGAGE INVESTORS VIII
We have audited the financial statements and related schedules of REDWOOD
MORTGAGE INVESTORS VIII (A California Limited Partnership) listed in Item 8 on
form 10-K including balance sheets as of December 31, 1997 and 1996 and the
statements of income, changes in partners capital and cash flows for the three
years ended December 31,1997. These financial statements are the responsibility
of the Partnerships management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of REDWOOD MORTGAGE INVESTORS
VIII as of December 31, 1997 and 1996, and the results of its operations and
cash flows for the three years ended December 31, 1997, in conformity with
generally accepted accounting principles. Further, it is our opinion that the
schedules referred to above present fairly the information set forth therein in
compliance with the applicable accounting regulations of the Securities and
Exchange Commission.
/s/ Parodi & Cropper
PARODI & CROPPER
Lafayette, California
February 27,1998
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
ASSETS
1997 1996
--------------- ---------------
Cash $663,159 $664,434
--------------- ---------------
Accounts receivable:
Mortgage Investments, secured by deeds of trust 25,304,989 15,642,990
Accrued Interest on Mortgage Investments 341,976 196,530
Advances on Mortgage Investments 205,804 8,679
Accounts receivables, unsecured 62,844 75,334
--------------- ---------------
25,915,613 15,923,533
Less allowance for doubtful accounts 257,500 117,803
--------------- ---------------
25,658,113 15,805,730
--------------- ---------------
Real Estate owned, acquired through foreclosure,
held for sale 70,138 66,991
Investment in limited liability corporation, at cost which
approximates market 251,139 191,139
Organization costs, less accumulated amortization of $10,625
and $8,125, respectively 1,875 4,375
Due from related companies 2,999 311
Prepaid expense-deferred loan fee 10,151 20,720
--------------- ---------------
$26,657,574 $16,753,700
=============== ===============
<FN>
See accompanying notes to financial statements
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
LIABILITIES AND PARTNERS CAPITAL
1997 1996
--------------- ---------------
Liabilities:
Accounts payable and accrued expenses $3,355 $20,625
Note payable - bank line of credit 5,640,000 1,500,000
Deferred interest income 83,066 217,480
Subscriptions to partnership in applicant status 0 310,937
--------------- ---------------
5,726,421 2,049,042
--------------- ---------------
Partners Capital:
Limited partners capital, subject to redemption (note 4E):
Net of unallocated syndication costs of $431,994 and
$414,190 for 1997 and 1996, respectively:
and formation loan receivable of $1,386,693 and
$1,073,706 for 1997 and 1996, respectively 20,914,721 14,693,293
General Partners Capital, net of unallocated syndication
costs
of $4,364 and $4184 for 1997 and 1996, respectively 16,432 11,365
--------------- ---------------
Total Partners Capital 20,931,153 14,704,658
--------------- ---------------
Total Liabilities and Partners Capital $26,657,574 $16,753,700
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF INCOME
FOR THE THREE YEARS ENDED DECEMBER 31, 1997
YEARS ENDED DECEMBER 31,
----------------------------------------------------
1997 1996 1995
------------- -------------- --------------
Revenues:
Interest on Mortgage Investments $2,613,008 $1,718,208 $1,031,029
Interest on bank deposits 9,487 4,083 13,120
Late charges 6,432 3,847 3,876
Miscellaneous 530 497 2,211
------------- -------------- --------------
2,629,457 1,726,635 1,050,236
------------- -------------- --------------
Expenses:
Mortgage servicing fees 189,692 155,912 85,456
Interest on note payable - bank 340,633 188,638 25,889
Amortization of loan origination fees 16,819 11,999 2,531
Provision for doubtful accounts and losses on real estate
acquired through foreclosure 139,804 55,383 26,032
Asset management fee - General Partner 24,966 17,053 11,587
Amortization of organization costs 2,500 2,500 2,500
Clerical costs through Redwood Mortgage 54,549 38,799 22,769
Professional services 36,717 17,687 16,178
Printing, supplies and postage 9,584 1,192 92
Other 5,673 3,947 1,461
------------- -------------- --------------
820,937 493,110 194,495
------------- -------------- --------------
Income before interest credited to partners in applicant 1,808,520 1,233,525 855,741
status
Interest credited to partners in applicant status 9,562 2,618 18,908
------------- -------------- --------------
Net Income $1,798,958 $1,230,907 $836,833
============= ============== ==============
Net income: To General Partners(1%) $17,990 $12,309 $8,368
To Limited Partners (99%) 1,780,968 1,218,598 828,465
============= ============== ==============
Total - net income $1,798,958 $1,230,907 $836,833
============= ============== ==============
Net income per $1,000 invested by Limited
Partners for entire period:
- -where income is reinvested and compounded $84 $ 84 $ 83
============= ============== ==============
- -where partner receives income in monthly distributions $81 $ 81 $ 80
============= ============== ==============
<FN>
See accompanying notes to financial statements.
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
FOR THE THREE YEARS ENDED DECEMBER 31, 1997
PARTNERS CAPITAL
--------------------------------------------------------------
LIMITED PARTNERS CAPITAL
--------------------------------------------------------------
Capital
Partners In Account Unallocated Formation
Applicant Limited Syndication Loan
Status Partners Costs Receivable Total
-------------- ------------ ------------- ------------ ------------
Balances at December 31, 1994 $189,300 $7,519,424 $(234,303) $(525,256) $6,759,865
Contributions of Application 3,634,264 0 0 (250,373) (250,373)
Formation Loan increases 0 0 0 0 0
Interest credited to partners in 18,908 0 0 0 0
applicant status
Upon admission to Partnership:
Interest withdrawn (7,673) 0 0 0 0
Transfers to Partners capital (3,834,799) 3,831,211 0 0 3,831,211
Net Income 0 828,465 0 0 828,465
Syndication costs incurred 0 0 (173,581) 0 (173,581)
Allocation of syndication costs 0 (85,045) 85,045 0 0
Partners withdrawals 0 (308,554) 0 0 (308,554)
Early withdrawal penalties 0 (564) 162 400 (2)
-------------- ------------ ------------- ------------ ------------
Balances at December 31, 1995 0 11,784,937 (322,677) (775,229) 10,687,031
Contributions on Application 4,172,718 0 0 0 0
Formation Loan increases 0 0 0 (314,996) (314,996)
Formation Loan payments 0 0 0 8,961 8,961
Interest credited to partners in 2,618 0 0 0 0
applicant status
Upon admission to Partnership:
Interest withdrawn (863) 0 0 0 0
Transfers to Partners capital (3,863,536) 3,859,312 0 0 3,859,312
Net Income 0 1,218,598 0 0 1,218,598
Syndication costs incurred 0 0 (212,542) 0 (212,542)
Allocation of syndication costs 0 (116,523) 116,523 0 0
Partners withdrawals 0 (553,027) 0 0 (553,027)
Early withdrawal penalties 0 (12,108) 4,506 7,558 (44)
-------------- ------------ ------------- ------------ ------------
Balances at December 31, 1996 310,937 16,181,189 (414,190) 14,693,293
(1,073,706)
Contributions on Application 5,251,969 0 0 0 0
Formation Loan increases 0 0 0 (420,510) (420,510)
Formation Loan payments 0 0 0 98,999 98,999
Interest credited to partners in 9,562 0 0 0 0
applicant status
Upon admission to Partnership:
Interest withdrawn (1,849) 0 0 0 0
Transfers to Partners capital (5,570,619) 5,565,372 0 0 5,565,372
Net Income 0 1,780,968 0 0 1,780,968
Syndication costs incurred 0 0 (188,517) 0 (188,517)
Allocation of syndication costs 0 (166,023) 166,023 0 0
Partners withdrawals 0 (614,837) 0 0 (614,837)
Early withdrawal penalties 0 (13,261) 4,690 8,524 (47)
-------------- ------------ ------------- ------------ ------------
Balances at December 31, 1997 $0 $22,733,408 $(431,994) $(1,386,693) $20,914,721
============== ============ ============= ============ ============
<FN>
See accompanying notes to financial statements
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
FOR THE THREE YEARS ENDED DECEMBER 31, 1997
PARTNERS CAPITAL
------------------------------------------------------------------------------
GENERAL PARTNERS CAPITAL
----------------------------------------------------------
Capital Unallocated Total
Account Syndication Total Partners
General Costs Capital
Partners
---------------- ----------------- ----------------- ---------------
Balances at December 31, 1994 $7,737 $(2,366) $5,371 $6,765,236
Contributions of Application 0 0 0 0
Formation loan increases 0 0 0 (250,373)
Interest credited to partners in 0 0 0 0
applicant status
Upon admission to partnership:
Interest withdrawn 0 0 0 0
Transfers to Partners capital 3,588 0 3,588 3,834,799
Net Income 8,368 0 8,368 836,833
Syndication costs incurred 0 (1,753) (1,753) (175,334)
Allocation of syndication costs (859) 859 0 0
Partners withdrawals (7,509) 0 (7,509) (316,063)
Early withdrawal penalties 0 2 2 0
---------------- ----------------- ----------------- ---------------
Balances at December 31, 1995 11,325 (3,258) 8,067 10,695,098
Contributions on Application 0 0 0 0
Formation loan increases 0 0 0 (314,996)
Formation loan payments 8,961
Interest credited to partners in 0 0 0 0
applicant status
Upon admission to partnership:
Interest withdrawn 0 0 0 0
Transfers to Partners capital 4,224 0 4,224 3,863,536
Net Income 12,309 0 12,309 1,230,907
Syndication costs incurred 0 (2,147) (2,147) (214,689)
Allocation of syndication costs (1,177) 1,177 0 0
Partners withdrawals (11,132) 0 (11,132) (564,159)
Early withdrawal penalties 0 44 44 0
---------------- ----------------- ----------------- ---------------
Balances at December 31, 1996 15,549 (4,184) 11,365 14,704,658
Contributions on Application 0 0 0 0
Formation Loan increases 0 0 0 (420,510)
Formation Loan payments 0 0 0 98,999
Interest credited to partners in 0 0 0 0
applicant status
Upon admission to partnership:
Interest withdrawn 0 0 0 0
Transfers to Partners capital 5,247 0 5,247 5,570,619
Net Income 17,990 0 17,990 1,798,958
Syndication costs incurred 0 (1,904) (1,904) (190,421)
Allocation of syndication costs (1,677) 1,677 0 0
Partners withdrawals (16,313) 0 (16,313) (631,150)
Early withdrawal penalties 0 47 47 0
---------------- ----------------- ----------------- ---------------
Balances at December 31, 1997 $20,796 $(4,364) $16,432 $20,931,153
================ ================= ================= ===============
<FN>
See accompanying notes to financial statements
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE YEARS ENDED DECEMBER 31, 1997
1997 1996 1995
-------------- -------------- -------------
Cash flows from operating activities:
Net income $1,798,958 $1,230,907 $836,833
Adjustments to reconcile net income to net cash provided by
operating activities:
Amortization of organization costs 2,500 2,500 2,500
Provision for doubtful accounts. 139,804 78,651 26,032
Provision for losses (gains) on real estate held for sale 0 (23,268) 0
Increase (decrease) in accounts payable (17,270) 16,615 4,010
(Increase) in accrued interest & advances (342,571) (83,477) (45,334)
(Increase) decrease in amount due from related companies (2,688) 2,738 (3,049)
(Increase) decrease in deferred loan fee 10,569 (3,002) (17,718)
Increase (decrease ) in deferred interest income (134,414) 217,480 0
-------------- -------------- -------------
--------------
Net cash provided by operating activities 1,454,888 1,439,144 803,274
-------------- -------------- -------------
Cash flows from investing activities:
Principal collected on Mortgage Investments 10,279,337 9,019,190 1,508,190
Mortgage Investments made (19,941,336) (13,148,944) (7,133,221)
Disposition of real estate held for sale 0 299,154 0
Additions to real estate held for sale (3,254) 0 0
Additions to Limited Liability Corporation (60,000) 0 0
Accounts receivables, unsecured - (disbursements) receipts 12,490 (4,018) (8,830)
--------------- -------------- -------------
Net cash used in investing activities (9,712,763) (3,834,618) (5,633,861)
--------------- -------------- -------------
Cash flows from financing activities
Increase (decrease) in note payable-bank 4,140,000 (410,000) 1,910,000
Contributions by partner applicants 5,251,969 4,172,718 3,634,264
Interest credited to partners in applicant status 9,562 2,618 18,908
Interest withdrawn by partners in applicant status (1,849) (863) (7,673)
Partners withdrawals (631,150) (564,159) (316,063)
Syndication costs incurred (190,421) (214,689) (175,334)
Formation Loan increases (420,510) (314,996) (250,373)
Formation Loan collections 98,999 8,961 0
--------------- -------------- -------------
Net cash provided by financing activities 8,256,600 2,679,590 4,813,729
--------------- -------------- -------------
Net increase (decrease) in cash and cash equivalents (1,275) 284,116 (16,858)
Cash - beginning of period 664,434 380,318 397,176
--------------- -------------- -------------
Cash - end of period $663,159 $664,434 $380,318
=============== ============== =============
<FN>
See accompanying notes to financial statements.
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 1 - ORGANIZATION AND GENERAL
Redwood Mortgage Investors VIII, (the Partnership) is a California
Limited Partnership, of which the General Partners are D. Russell Burwell,
Michael R. Burwell and Gymno Corporation, a California corporation owned and
operated by the individual General Partners. The Partnership was organized to
engage in business as a mortgage lender for the primary purpose of making
Mortgage Investments secured by Deeds of Trust on California real estate.
Mortgage Investments are being arranged and serviced by Redwood Home Loan Co.
dba Redwood Mortgage, an affiliate of the General Partners. At December 31,
1997, the Partnership was in the offering stage, wherein contributed capital
totalled $20,489,676 in limited partner contributions of an approved aggregate
offering of $45,000,000, in units of $100 each (204,897).
A minimum of 2,500 units ($250,000) and a maximum of 150,000 units
($15,000,000) were initially offered through qualified broker-dealers. This
initial offering was closed in October, 1996. In December 1996, the Partnership
commenced a second offering of an additional 300,000 Units ($30,000,000) As
Mortgage Investments are identified, partners are transferred from applicant
status to admitted partners participating in Mortgage Investment operations.
Each months income is distributed to partners based upon their proportionate
share of partners capital. Some partners have elected to withdraw income on a
monthly, quarterly or annual basis.
A. Sales Commissions - Formation Loan Sales commissions are not paid
directly by the Partnership out of the offering proceeds. Instead, the
Partnership loans to Redwood Mortgage, an affiliate of the General Partners,
amounts to pay all sales commissions and amounts payable in connection with
unsolicited orders. This loan is referred to as the Formation Loan. It is
unsecured and non-interest bearing.
The Formation Loan relating to the initial $15,000,000 offering totalled
$1,074,840, which was 7.2% of limited partners contributions of $14,932,017
(under the limit of 9.1% relative to the initial offering). It is to be repaid,
without interest, in ten annual installments of principal, which commenced on
January 1, 1997, following the year the initial offering closed, which was in
1996.
The Formation Loan relating to the second offering ($30,000,000) totalled
$435,895 at December 31, 1997, which was 7.8% of the limited partners
contributions of $5,557,659. Sales commissions range from 0% (units sold by
General Partners) to 9% of gross proceeds. The Partnership anticipates that the
sales commissions will approximate 7.6% based on the assumption that 65% of
investors will elect to reinvest earnings, thus generating 9% commissions. The
principal balance of the Formation Loan will increase as additional sales of
units are made each year. The amount of the annual installment payment to be
made by Redwood Mortgage, during the offering stage, will be determined at
annual installments of one-tenth of the principal balance of the Formation Loan
as of December 31 of each year. Such payment shall be due and payable by
December 31 of the following year with the first such payment beginning December
31, 1997. Upon completion of the offering, the balance will be repaid in ten
equal annual installments.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
The following summarizes Formation Loan transactions to December 31, 1997:
Initial Subsequent Total
Offering of Offering of
$15,000,000 $30,000,000
--------------- --------------- ---------------
Limited Partner contributions $14,932,017 $5,557,659 $20,489,676
=============== =============== ===============
Formation Loan made $1,074,840 435,895 1,510,735
Payments to date (107,960) 0 (107,960)
Early withdrawal penalties applied (16,082) 0 (16,082)
--------------- --------------- ---------------
Balance December 31, 1996 $950,798 $435,895 $1,386,693
=============== =============== ===============
Percent loaned of Partners contributions 7.2% 7.8% 7.4%
=============== =============== ===============
<FN>
The Formation Loan, which is receivable from Redwood Mortgage, an affiliate
of the General Partners, has been deducted from Limited Partners Capital in the
balance sheet. As amounts are collected from Redwood Mortgage, the deduction
from capital will be reduced.
</FN>
B. Other Organizational and Offering Expenses Organizational and offering
expenses, other than sales commissions, (including printing costs, attorney and
accountant fees, registration and filing fees and other costs), will be paid by
the Partnership.
Through December 31, 1997, organization costs of $12,500 and syndication
costs of $861,031 had been incurred by the Partnership with the following
distribution:
Syndication Costs
--------------------------------------------
Offering
----------------------------
Initial Subsequent Organization
15,000,000 30,000,000 Total Costs Total
----------- ----------- ----------- --------- -----------
Costs incurred $569,865 291,166 861,031 12,500 873,531
Early withdrawal penalties (9,451) 0 (9,451) 0 (9,451)
applied
Allocated and amortized to (386,296) (28,926) (415,222) (10,625) (425,847)
date
----------- ---- ----------- --- ----------- ---- --------- ---- -----------
December 31, 1997 balance $174,118 262,240 436,358 1,875 438,233
=========== ==== =========== === =========== ==== ========= ==== ===========
<FN>
Organization and syndication costs attributable to the initial offering
($15,000,000) were limited to the lesser of 10% of the gross proceeds or
$600,000 with any excess being paid by the General Partners. Applicable gross
proceeds were $14,932,017. Related expenditures totalled $582,365 ($569,865
syndication costs plus $12,500 organization expense) or 3.90%.
As of December 31, 1997, syndication costs attributable to the subsequent
offering ($30,000,000) totalled $291,166, with the costs of the offering
document being greater at the initial stages. The syndication costs payable by
the Partnership are estimated to be $1,200,000 if the maximum is sold (4% of
$30,000,000). The General Partners will pay any syndication expenses (excluding
selling commissions) in excess of ten percent of the gross proceeds or
$1,200,000.
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A Accrual Basis
Revenues and expenses are accounted for on the accrual basis of accounting
wherein income is recognized as earned and expenses are recognized as incurred.
Once a Mortgage Investment is categorized as impaired, interest is no longer
accrued thereon.
B. Management Estimates
In preparing the financial statements, management is required to make
estimates based on the information available that affect the reported amounts of
assets and liabilities as of the balance sheet date and revenues and expenses
for the related periods. Such estimates relate principally to the determination
of the allowance for doubtful accounts, including the valuation of impaired
mortgage investments, and the valuation of real estate acquired through
foreclosure. Actual results could differ significantly from these estimates.
C. Mortgage Investments, Secured by Deeds of Trust
The Partnership has both the intent and ability to hold the Mortgage
Investments to maturity, i.e., held for long-term investment. They are therefore
valued at cost for financial statement purposes with interest thereon being
accrued by the simple interest method.
Financial Accounting Standards Board Statements (SFAS) 114 and 118
(effective January 1, 1995) provide that if the probable ultimate recovery of
the carrying amount of a Mortgage Investment, with due consideration for the
fair value of collateral, is less than the recorded investment and related
amounts due and the impairment is considered to be other than temporary, the
carrying amount of the investment (cost) shall be reduced to the present value
of future cash flows. The adoption of these statements did not have a material
effect on the financial statements of the Partnership because that was the
valuation method previously used on impaired loans.
At December 31, 1997, 1996, and 1995, there were no Mortgage Investments
categorized as impaired by the Partnership. Had there been a computed amount for
the reduction in carrying values of impaired loans, the reduction would have
been included in the allowance for doubtful accounts.
As presented in Note 10 to the financial statements, the average Mortgage
Investment to appraised value of security at the time the losses were
consummated was 55.83%. When a loan is valued for impairment purposes, an
updating is made in the valuation of collateral security. However, such a low
loan to value ratio has the tendency to minimize reductions for impairment.
D. Cash and Cash Equivalents
For purposes of the statements of cash flows, cash and cash equivalents
include interest bearing and non-interest bearing bank deposits.
E. Real Estate Owned, Held for Sale
Real Estate owned, held for sale, includes real estate acquired through
foreclosure and is stated at the lower of the recorded investment in the
property, net of any senior indebtedness, or at the propertys estimated fair
value, less estimated costs to sell. At December 31, 1997, there was one such
piece of property with costs totaling $75,138 less a reduction of $5,000 to
arrive at the net fair value of $70,138.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Effective January 1, 1996, the Partnership adopted the provisions of
Statement No 121 (SFAS 121) of the Financial Accounting Standards Board,
Accounting for the Impairment of Long Lived Assets and for Long Lived Assets to
be disposed of. The adoption of SFAS 121 did not have a material impact on the
Partnerships financial position because the methods indicated were essentially
those previously used by the Partnership.
F. Investment in Limited Liability Corporation (see Note 7)
The Partnership carries its investment in a Limited Liability Corporation
as investment in real estate, which is at the lower of costs or fair value, less
estimated costs to sell.
G. Income Taxes
No provision for Federal and State income taxes is made in the financial
statements since income taxes are the obligation of the partners if and when
income taxes apply.
H. Organization and Syndication Costs
The Partnership bears its own organization and syndication costs (other
than certain sales commissions and fees described above) including legal and
accounting expenses, printing costs, selling expenses, and filing fees.
Organizational costs have been capitalized and will be amortized over a five
year period. Syndication costs are charged against partners capital and are
being allocated to individual partners consistent with the partnership
agreement.
I. Allowance for Doubtful Accounts
Mortgage Investments and the related accrued interest, fees, and advances
are analyzed on a continuous basis for recoverability. Delinquencies are
identified and followed as part of the Mortgage Investment system. A provision
is made for doubtful accounts to adjust the allowance for doubtful accounts to
an amount considered by management to be adequate, with due consideration to
collateral values, to provide for unrecoverable accounts receivable, including
impaired Mortgage Investments, unspecified mortgage investments, accrued
interest and advances on Mortgage Investments, and other accounts receivable
(unsecured). The composition of the allowance for doubtful accounts as of
December 31, 1997, and 1996 was as follows:
December 31,
----------------------------------------------
1997 1996
-------------- ---------------
Impaired mortgage investments $0 $0
Unspecified mortgage investments 213,500 72,803
Amounts receivable, unsecured 44,000 45,000
--------- ---------------
$257,500 $117,803
========== ===============
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
J. Net Income Per $1,000 Invested
Amounts reflected in the statements of income as net income per $1,000
invested by Limited Partners for the entire period are actual amounts allocated
to Limited Partners who have their investment throughout the period and have
elected to either leave their earnings to compound or have elected to receive
monthly distributions of their net income. Individual income is allocated each
month based on the Limited Partners pro rata share of Partners Capital.
Because the net income percentage varies from month to month, amounts per $1,000
will vary for those individuals who made or withdrew investments during the
period, or select other options. However, the net income per $1,000 average
invested has approximated those reflected for those whose investments and
options have remained constant.
NOTE 3 - GENERAL PARTNERS AND RELATED PARTIES
The following are commissions and/or fees which are paid to the General
Partners and/or related parties.
A. Mortgage Brokerage Commissions
For fees in connection with the review, selection, evaluation, negotiation
and extension of Partnership Mortgage Investments in an amount up to 12% of the
Mortgage Investments until 6 months after the termination date of the offering.
Thereafter, Mortgage Investment brokerage commissions will be limited to an
amount not to exceed 4% of the total Partnership assets per year. The Mortgage
Investment brokerage commissions are paid by the borrowers, and thus, not an
expense of the Partnership. In 1997, Mortgage Investment brokerage commissions
paid by the borrowers was $837,399.
B. Mortgage Servicing Fees
Monthly mortgage servicing fees of up to 1/8 of 1% (1.5% annual) of the
unpaid principal, is paid to Redwood Mortgage, or such lesser amount as is
reasonable and customary in the geographic area where the property securing the
mortgage is located. Mortgage servicing fees of $189,692, $155,912 and $85,456
were incurred for years 1997, 1996 and 1995 respectively.
C. Asset Management Fee
The General Partners receive monthly fees for managing the Partnerships
Mortgage Investment portfolio and operations up to 1/32 of 1% of the net asset
value (3/8 of 1% annual). Management fees of $24,966, $17,053 and $11,587 were
incurred for years 1997, 1996 and 1995, respectively.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
D. Other Fees
The Partnership Agreement provides for other fees such as reconveyance,
mortgage assumption and mortgage extension fees. Such fees are incurred by the
borrowers and are paid to parties related to the General Partners.
E. Income and Losses
All income will be credited or charged to partners in relation to their
respective partnership interests. The partnership interest of the General
Partners (combined) shall be a total of 1%.
F. Operating Expenses
The General Partners or their affiliate (Redwood Mortgage) are reimbursed
by the Partnership for all operating expenses actually incurred by them on
behalf of the Partnership, including without limitation, out-of-pocket general
and administration expenses of the Partnership, accounting and audit fees, legal
fees and expenses, postage and preparation of reports to Limited Partners. Such
reimbursements are reflected as expenses in the Statement of Income.
The General Partners collectively or severally were to contribute 1/10 of
1% in cash contributions as proceeds from the offering are admitted to limited
Partner capital. As of December 31, 1997 a General Partner, GYMNO Corporation,
had contributed $20,488, as capital in accordance with Section 4.02(a) of the
Partnership Agreement.
NOTE 4 - OTHER PARTNERSHIP PROVISIONS
A. Applicant Status
Subscription funds received from purchasers of units are not admitted to
the Partnership until appropriate lending opportunities are available. During
the period prior to the time of admission, which is anticipated to be between
1-120 days in most cases, purchasers subscriptions will remain irrevocable and
will earn interest at money market rates, which are lower than the anticipated
return on the Partnerships Mortgage Investment portfolio.
During the periods ending December 31, 1997, 1996, and 1995, interest
totalling $9,562, $2,618 and $18,908 respectively, was credited to partners in
applicant status. As Mortgage Investments were made and partners were
transferred to regular status to begin sharing in income from Mortgage
Investments secured by deeds of trust, the interest credited was either paid to
the investors or transferred to partners capital along with the original
investment.
B. Term of the Partnership
The term of the Partnership is approximately 40 years, unless sooner
terminated as provided. The provisions provide for no capital withdrawal for the
first five years, subject to the penalty provision set forth in (E) below.
Thereafter, investors have the right to withdraw over a five-year period, or
longer.
C. Election to Receive Monthly, Quarterly or Annual Distributions
Upon subscriptions, investors elect either to receive monthly, quarterly or
annual distributions of earnings allocations, or to allow earnings to compound.
Subject to certain limitations, a compounding investor may subsequently change
his election, but an investors election to have cash distributions is
irrevocable.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
D. Profits and Losses
Profits and losses are allocated among the Limited Partners according to
their respective capital accounts after 1% is allocated to the General Partners.
E. Liquidity, Capital Withdrawals and Early Withdrawals
There are substantial restrictions on transferability of Units and
accordingly an investment in the Partnership is illiquid. Limited Partners have
no right to withdraw from the Partnership or to obtain the return of their
capital account for at least one year from the date of purchase of Units. In
order to provide a certain degree of liquidity to the Limited Partners after the
one-year period, Limited Partners may withdraw all or part of their Capital
Accounts from the Partnership in four quarterly installments beginning on the
last day of the calendar quarter following the quarter in which the notice of
withdrawal is given, subject to a 10% early withdrawal penalty. The 10% penalty
is applicable to the amount withdrawn as stated in the Notice of Withdrawal and
will be deducted from the Capital Account and the balance distributed in four
quarterly installments. Withdrawal after the one-year holding period and before
the five-year holding period will be permitted only upon the terms set forth in
the Partnership Agreement.
Limited Partners will also have the right after five years from the date of
purchase of the Units to withdraw from the Partnership on an installment basis,
generally over a five year period in twenty (20) quarterly installments or
longer. Once this five year period expires, no penalty will be imposed if
withdrawal is made in twenty (20) quarterly installments or longer.
Notwithstanding the five-year (or longer) withdrawal period, the General
Partners will liquidate all or part of a Limited Partners capital account in
four quarterly installments beginning on the last day of the calendar quarter
following the quarter in which the notice of withdrawal is given, subject to a
10% early withdrawal penalty applicable to any sums withdrawn prior to the time
when such sums could have been withdrawn pursuant to the five-year (or longer)
withdrawal period.
The Partnership will not establish a reserve from which to fund withdrawals
and, accordingly, the Partnerships capacity to return a Limited Partners
capital is restricted to the availability of Partnership cash flow.
F. Guaranteed Interest Rate For Offering Period
During the period commencing with the day a Limited Partner is admitted to
the Partnership and ending 3 months after the offering termination date, the
General Partners shall guarantee an earnings rate equal to the greater of actual
earnings from mortgage operations or 2% above The Weighted Average cost of Funds
Index for the Eleventh District Savings Institutions (Savings & Loan & Thrift
Institutions) as computed by the Federal Home Loan Bank of San Francisco on a
monthly basis, up to a maximum interest rate of 12%. To date, actual realization
exceeded the guaranteed amount for each month.
NOTE 5- LEGAL PROCEEDINGS
The Partnership is not a defendant in any legal actions.
NOTE 6 - NOTE PAYABLE - BANK LINE OF CREDIT
The Partnership has a bank line of credit expiring September 30, 1999, of
up to $6,000,000 at .5% over prime secured by its Mortgage Investment portfolio.
The note payable balances were $5,640,000 and $1,500,000 at December 31, 1997,
and 1996, respectively, and the interest rate was 9% at December 31, 1997,
(8.50% prime plus .50%).
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 7 - INVESTMENT IN LIMITED LIABILITY CORPORATION
As a result of acquiring real property through foreclosure, the Partnership
has contributed its interest (principally land) to a Limited Liability
Corporation, which is owned 100% by the Partnership, will complete the
construction and sell the property. The Partnership expects to realize a profit
from the venture.
NOTE 8 - INCOME TAXES
The following reflects a reconciliation from net assets (Partners Capital)
reflected in the financial statements to the tax basis of those net assets:
December 31,
------------------------------------------
1997 1996
----------------- ---------------
Net Assets - Partners Capital per financial statements $20,931,153 $14,704,658
Unamortized syndication costs 436,358 418,374
Allowance for doubtful accounts 257,500 117,803
Formation loans receivable 1,386,693 1,073,706
----------------- ---------------
Net assets tax basis $23,011,704 $16,314,541
================= ===============
<FN>
In 1997, approximately 61% of taxable income was allocated to tax exempt
organizations, i.e., retirement plans. Such plans do not have to file income tax
returns unless their unrelated business income exceeds $1,000. Applicable
amounts become taxable when distribution is made to participants.
</FN>
NOTE 9 - FAIR VALUE OF FINANCIAL INVESTMENTS
The following methods and assumptions were used to estimate the fair value
of financial instruments:
(a) Cash and Cash Equivalents The carrying amount equals fair value. All
amounts, including interest bearing, are subject to immediate withdrawal.
(b) The carrying value of mortgage investments (see note 2(c) is
$25,304,989. The fair value of these investments of $25,710,340 is estimated
based upon projected cash flows discounted at the estimated current interest
rates at which similar loans would be made. The applicable amount of the
allowance for doubtful accounts along with accrued interest and advances related
thereto should also be considered in evaluating the fair value versus the
carrying value.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 10- ASSET CONCENTRATIONS AND CHARACTERISTICS
The Mortgage Investments are secured by recorded deeds of trust. At
December 31, 1997, there were 55 Mortgage Investments outstanding with the
following characteristics:
Number of Mortgage Investments outstanding 55
Total Mortgage Investments outstanding $25,304,989
Average Mortgage Investment outstanding $460,091
Average Mortgage Investment as percent of total 1.82%
Average Mortgage Investment as percent of Partners Capital 2.20%
Largest Mortgage Investment outstanding 2,100,000
Largest Mortgage Investment as percent of total 8.30%
Largest Mortgage Investment as percent of Partners Capital 10.03%
Number of counties where security is located (all California) 14
Largest percentage of Mortgage Investments in one county 23.85%
Average Mortgage Investment to appraised value of security at time loan was consummated 55.83%
Number of Mortgage Investments in foreclosure status 1
Amount of Mortgage Investments in foreclosure $118,811
The following categories of mortgage investments are pertinent at December 31, 1997 and 1996:
December 31,
------------------------------------------
1997 1996
----------------- ---------------
First Trust Deeds $17,103,865 $6,545,779
Second Trust Deeds 8,163,624 8,797,211
Third Trust Deeds 37,500 300,000
----------------- ---------------
Total mortgage investments 25,304,989 15,642,990
Prior liens due other lenders 24,224,566 25,161,374
----------------- ---------------
Total debt $49,529,555 $40,804,364
================= ===============
Appraised property value at time of loan $88,714,541 $70,100,408
================= ===============
Total investments as a percent of appraisals 55.83% 58.21%
================= ===============
Investments by Type of Property
Owner occupied homes $2,445,423 $1,808,921
Non-Owner occupied homes 5,318,722 2,288,036
Apartments 5,982,649 2,521,515
Commercial 11,558,195 9,024,518
================= ===============
$25,304,989 $15,642,990
================= ===============
<FN>
The interest rates on the mortgage investments range from 8.00% to 14.00% at December 31, 1997.
</FN>
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Scheduled maturity dates of mortgage investments as of December 31, 1997
are as follows:
Year Ending
December 31,
-------------------
1998 $3,631,543
1999 7,707,533
2000 5,016,894
2001 1,887,779
2002 1,546,742
Thereafter 5,514,498
===============
$25,304,989
===============
The scheduled maturities for 1998 include approximately $1,123,089 in
Mortgage Investments which are past maturity at December 31, 1997. Interest
payment on these loans are current.
One Mortgage Investment in the principal amount of $118,811 had interest
paid through September 1, 1996, and is in foreclosure. That Mortgage Investment
which is the only loan categorized as delinquent, is not considered impaired
because the underlying security is sufficient to cover amount due.
The cash balance at December 31, 1997 of $663,159 was in one bank with
interest bearing balances totalling $597,751. The balances exceeded FDIC
insurance limits (up to $100,000 per bank) by $563,159. This bank is the same
financial institution that has provided the Partnership with the $6,000,000
limit line of credit. At December 31, 1997, draw down against this facility was
$5,640,000. As and when deposits in the Partnerships bank accounts increase
significantly beyond the insured limit, the funds are either placed on new
Mortgage Investments or used to pay-down on the line of credit balance.
PARODI & CROPPER
CERTIFIED PUBLIC ACCOUNTANTS
3658 MOUNT DIABLO BOULEVARD, SUITE #205
LAFAYETTE, CALIFORNIA 94549
(510) 284-3590
FAX (510) 284-3593
INDEPENDENT AUDITORS REPORT
BOARD OF DIRECTORS
GYMNO CORPORATION
We have audited the accompanying balance sheets of GYMNO Corporation as of
December 31, 1997, and 1996, and the related statements of income (loss),
stockholders equity and cash flows for the year ended December 31, 1997 and the
six months ended December 31, 1996 These financial statements are the
responsibility of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial positions of GYMNO Corporation as of
December 31, 1997, and 1996, and the results of its operations and cash flows
for the periods then ended in conformity with generally accepted accounting
principles.
/S/ Parodi & Cropper
PARODI & CROPPER
Lafayette, California
April 8, 1998
GYMNO CORPORATION
BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
ASSETS
1997 1996
-------------------- -------------------
Cash and equivalents $1,338 $1,666
Deferred income tax benefits 136 120
-------------------- -------------------
Total current assets 1,474 1,786
-------------------- -------------------
Investment in partnerships, at net equity:
Redwood Mortgage Investors IV 7,500 7,500
Redwood Mortgage Investors V 5,000 5,000
Redwood Mortgage Investors VI 9,773 9,773
Redwood Mortgage Investors VII 12,448 12,648
Redwood Mortgage Investors VIII 20,488 15,241
-------------------- -------------------
55,209 50,162
-------------------- -------------------
$56,683 $51,948
==================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable - Stockholders $436 $436
Accounts payable 0 2,311
Accrued income taxes 382 710
Loan from Redwood Mortgage at 8% interest 9,138 7,518
-------------------- -------------------
Total current liabilities 9,956 10,975
-------------------- -------------------
Stockholders' Equity:
Common stock at stated value:
Authorized 1,000,000 shares of no par value
issued and outstanding 500 shares 5,000 5,000
Paid-in surplus 7,500 7,500
Retained earnings 34,227 28,473
-------------------- -------------------
Total stockholders' equity 46,727 40,973
-------------------- -------------------
$56,683 $51,948
==================== ===================
<FN>
See accompanying notes to financial statements.
</FN>
GYMNO CORPORATION
STATEMENTS OF INCOME
DECEMBER 31, 1997 AND Six Months ended December 31, 1996
SIX MONTHS
YEAR ENDED ENDED
DECEMBER 31, DECEMBER 31,
1997 1996
------------------- -------------------
REVENUE
Partnership earnings - as General Partner $13,009 $5,971
Reconveyance fees 5,175 2,800
Other partnership earnings 34 21
-------------------
-------------------
18,218 8,792
-------------------
-------------------
EXPENSES
Management services - Stockholders 5,818 3,303
Professional Services 3,569 4,417
Interest expense 608 195
Recording Fees 0 200
Other 278 0
-------------------
-------------------
10,273 8,115
Income before provision for income taxes 7,945 677
------------------- -------------------
Provision for income taxes:
California 863 800
Federal 1,328 920
------------------- -------------------
2,191 1,720
-------------------
-------------------
Net income (loss) $5,754 $(1,043)
=================== ===================
Per share (500 shares) $11.51 $(2.09)
=================== ===================
<FN>
See accompanying notes to financial statements.
</FN>
GYMNO CORPORATION
STATEMENTS OF STOCKHOLDERS EQUITY
YEAR ENDED DECEMBER 31, 1997 AND SIX MONTHS ENDED DECEMBER 31, 1996
Common Stock Paid-In Retained
-----------------------
Shares Amount Surplus Earnings Total
Balances - June 30, 1996 500# $5,000 $7,500 $29,516 $42,016
Net income (loss) for the six months ended
December 31, 1996 0 0 0 (1,043) (1,043)
--------- --------- --------- ---------- ----------
Balances - December 31, 1996 500# 5,000 7,500 28,473 40,973
Net income (loss) for the year ended
December 31, 1997 0 0 0 5,754 5,754
--------- --------- --------- ---------- ----------
Balances - December 31, 1997 500# $5,000 $7,500 $34,227 $46,727
========= ========= ========= ========== ==========
<FN>
See accompanying notes to financial statements.
</FN>
GYMNO CORPORATION
STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1997 AND
SIX MONTHS ENDED DECEMBER 31, 1996,
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31,
1997 1996
----------------- ------------------
Cash flows from operating activities:
Net income (Loss) $5,754 $(1,043)
Adjustments to reconcile net income to net cash
provided by operating activities:
(Increase) decrease in recoverable income taxes (16) 0
Increase (decrease) in accounts payable and accrued (2,639) 1,664
liabilities
----------------- ------------------
3,099 621
----------------- ------------------
Cash flows from investing activities:
(increase) decrease in:
Cash invested in partnerships (5,047) (2,871)
----------------- ------------------
Cash flows for financing activities:
Increase (decrease) in:
Loan from Redwood Mortgage 1,620 3,518
----------------- ------------------
Net increase (decrease) in cash equivalents (328) 1,268
Cash equivalents at beginning of year 1,666 398
----------------- ------------------
Cash equivalents at end of year
(consisting of cash in bank) $1,338 $1,666
================= ==================
<FN>
See accompanying notes to financial statements.
</FN>
GYMNO CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 1 - ORGANIZATION GYMNO Corporation (the Company) was formed in July,
1986 by D. Russell Burwell and Michael R. Burwell, each owning 250 shares, for
the purpose of serving as corporate General Partner of California limited
partnerships, (presently Redwood Mortgage Investors I, II, III, IV, V, VI, VII
and VIII) which invest in high-yield debt instruments, primarily promissory
notes secured by deeds of trust on California real estate.
As corporate General Partner, the Company receives management fees and/or a
small percentage of income for its services which are performed by the stock
holders. In addition, the company receives reconveyance fees.
The Company has also acquired limited partnership interests in Redwood
Mortgage Investors VII. The Company receives investment income from such limited
partnership interests.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES The accompanying financial
statements were prepared on the accrual basis of accounting wherein revenue is
recognized when earned and expenses are recognized when incurred.
Earnings per share, included in the statements of income, were calculated
by dividing net income by the weighted average of common stock shares
outstanding during the period. There is only one class of shares (common stock)
and there are no provisions or agreements which could dilute earnings per share.
During 1996, GYMNO changed its corporate tax year end from June 30 to
December 31. This change facilitates the accounting for GYMNO which is a general
partner in eight mortgage investing limited partnerships which have calendar
year requirements. Because of the change in fiscal year, the attached financial
statements reflect results for the six months ended December 31, 1996 as well as
for the year ended December 31, 1997.
GYMNO CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1997 and 1996
NOTE 3 - INCOME TAXES The following reflects the income taxes for the
periods ending December 31, 1996 and 1997:
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1996 DECEMBER 31, 1997
CALIFORNIA FEDERAL CALIFORNIA FEDERAL
-------------- ----------- -------------- -----------
Income before provision for income taxes $677 677 $7,945 7,945
Nondeductible expenses 0 0 6 6
State Tax deduction:
Prior fiscal year tax 0 (800) 0 (800)
Taxable income differential-partnerships 6,276 6,254 1,811 1,811
----------- ----------- ----------- -----------
Taxable income 6,953 6,131 9,762 8,962
----------- ----------- ----------- -----------
Tax rate (California $800 minimum) 9.3% 15% 8.84% 15%
----------- ----------- ----------- -----------
Income tax thereon $800 $920 $863 $1,344
Change in deferred income tax benefit 0 0 0 (16)
----------- ----------- ----------- -----------
Income Tax expense $800 $920 $863 $1,328
=========== =========== =========== ===========
Above tax liability 800 920 863 1,344
Estimated tax payments 800 210 800 1,025
----------- ----------- ----------- -----------
Income tax liability $0 $710 $63 $319
=========== =========== =========== ===========
Total liability $710 $382
=========== ===========
<FN>
California income taxes were determined at the greater of 9.3% of taxable
income or the minimum tax ($800) and Federal income taxes were determined at the
applicable Federal rate (15%).
Deferred income taxes are based on timing differences in deductions for
California income taxes which are deductible in the year after they apply (i.e.
- - fiscal year 1996 taxes are deductible in 1997). At December 31, 1996 there
were deferred income tax benefits of $120 relating to the $800 California
Franchise Tax deductible in the following year. At December 31, 1997, the
corresponding amount was $136.
</FN>