As filed with the Securities and Exchange Commission
on April 28, 1999
Registration No. 333-13113
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
POST-EFFECTIVE AMENDMENT NO 7
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 or other jurisdiction (Primary Standard (I.R.S. Employer
of incorporation or Industrial Identification No.)
organization) Classification Code Number)
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. 5 dated April 26, 1999
to the Prospectus Dated December 4, 1996
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 (the Prospectus.) This Supplement No. 5 replaces in their
entirety Supplements Number 1, Number 2, Number 3, and Number 4. You should no
longer refer to or rely on the information contained in Supplements Number 1, 2,
3 and 4.
Because this is a supplement it only updates the operations and activities
of the Partnership to date. Important additional information regarding the
business of the Partnership and the risks involved in investing in the
Partnership are contained in the Prospectus. You should carefully read the
Prospectus along with this Supplement.
1. Summary of Partnership Activities. The Partnership is engaged in
business as a mortgage lender. The Partnership makes loans to individuals and
business entities secured by residential, investment or commercial property. In
order to ensure repayment of the loans, the loans are secured by first and
second, and in some limited cases, third deeds of trust on the property. For
ease of reference, the loans we make are referred to as Mortgage Investments.
For a more detailed discussion of deeds of trust and other factors affecting the
loans made by the Partnership, you should carefully review the Section of the
Prospectus entitled CERTAIN LEGAL Initial Offering. In February, 1993, the
Partnership initially offered $15,000,000 of limited partnership units. For ease
of reference, we shall refer to limited partnership units as Units. All Units in
the initial Offering were sold and the Offering was terminated in October, 1996.
The Partnership received total proceeds from the sale of Units in an amount
equal to $14,932,017. In order to sell the Units, the Partnership incurred
approximately $12,500 in organizational costs that included certain costs and
expenses of organizing and forming the Partnership. We also incurred $569,865 in
syndication costs which include certain legal, accounting and broker-dealer
fees. Overall, total organization and syndication costs were less than
anticipated.
Current Offering. In September, 1996, we elected to continue offering Units
in the Partnership in order to increase the Partnerships Mortgage Investment
Portfolio. By increasing the Partnerships Mortgage Portfolio, we could increase
diversity and add additional safety to the portfolio. In December the
Partnersship began selling Units in its second offering of $30,000,000 of
Units.This offering is still ongoing. All proceeds from the sale of Units are
paid directly to the Partnership. As a result, no escrow was established.
Status of Current Offering. As of December 31, 1998, the Partnership had
sold $10,658,118 of Units. This brings the total proceeds received from the
initial Offering and the current Offering to $25,590,135, as of December 31,
1998. As set forth below in the section of this
Supplement entitled (Description of Open Loans for the Partnership as of
December 31, 1998 the Partnership had outstanding Mortgage Investments with a
total principal balance of $31,905,958. As of December 31, 1998, the Partnership
had, in connection with its second Offering of $30,000,000 of Units, incurred no
organizational costs and $418,896 in syndication costs.
No Adverse Business Development. As of the date of this Supplement, there
have been no adverse business developments or conditions in the Partnership, or
any prior limited partnerships in which the General Partners are involved, that
would be material to a prospective investor. 2. Financial Statements.
Financial Statements of Partnership. 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, 1998.
Financial Status of Corporate General Partner. The financial statements of
Gymno Corporation, the corporate General Partner, have been updated to December
31, 1998, and, 1997, are included as Attachment IV.
3. Plan of Distribution. As described more fully in the Prospectus, on
pages 73 through 75, the sales commissions that are paid to Participating Broker
Dealers are not paid directly by the Partnership out of the offering proceeds.
Instead, the Partnership lends to Redwood Mortgage Corp., an affiliate of the
General Partners, funds from the offering proceeds equal to the amount of sales
commission owed to the Participating Broker Dealers. For example, if an investor
elects to invest $10,000 and elects to reinvest his earnings, the Partnership
will pay a nine percent (9%) or $900 sales commission to the Participating
Broker Dealer. Instead of paying $900 to the Participating Broker Dealer, the
Partnership will lend $900 to Redwood Mortgage Corp. in the form of a formation
loan. Redwood Mortgage pays the Participating Broker Dealer its sales commission
and then repays the Partnership the amount of the loan, in the case of our
example, $900. That loan, called the Formation Loan, is non-interest bearing,
unsecured and is paid back to the Partnership from Redwood Mortgage Corp. over
time. For a more detailed discussion of the structure of the Formation Loan, you
should review carefully the sections of the Prospectus entitled "RISKS -
Formation Loan" and "PLAN OF DISTRIBUTION - Formation Loan" For a detailed
discussion of Redwood Mortgage Corp. and its activities, you should review
carefully the section of the Prospectus entitled, MANAGEMENT.
Initial Formation Loan. The initial Formation Loan (the First Formation
Loan) made in connection with the initial Offering of $15,000,000, is to be
repaid over ten (10) years.Installments of principal, without interest, are paid
once a year. These installments commenced on December 31 of the year the
offering terminated. The initial Offering terminated in September 1996, so
repayments of the Formation Loan began in December 1996. The total amount of the
First Formation Loan was $1,074,840. As of December 31, 1998, $230,126 had been
repaid to the Partnership.
Current Formation Loan. The current Formation Loan (the Current Formation
Loan) which is being made in connection with the current offering of Units is
to be repaid differently than the Initial Formation Loan. It will be repaid in
annual installments of one-tenth of the principal balance as of December 31 of
each year. Such payment shall be due and payable by December 31 of the following
year.
No sales commissions for the current Offering were paid in 1996,
therefore, no payment was made in 1997. The first payment of $43,223 was made
December 31, 1998. This amount equals one-tenth (1/10) of the amount loaned to
Redwood Mortgage Corp. from the Partnership to pay sales commissions in 1997.
Upon completion of the Offering, the balance of the Current 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, 1998, the Partnership, in connection with the
Current Formation Loan, had loaned $839,413 to Redwood Mortgage Corp. from the
Offering proceeds to pay sales commissions to Participating Broker Dealers.
Sales by Registered Investment Advisors. In addition to purchasing Units
through Participating Broker Dealers, we may accept unsolicited orders for Units
directly from you if you utilize the services of a registered investment
advisor. A registered investment advisor is an investment professional retained
by you to advise you regarding your investment strategy regarding all of your
assets, not just your investment with us. Registered investment advisors are
paid by you based upon the total amount of your assets being managed by the
registered investment advisor.
If you utilize the services of a registered investment advisor in acquiring
Units, Redwood Mortgage Corp. 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 Corp. to the account of the Investor who placed the
unsolicited order.
Election of Investors to Pay Client Fees. If you acquire Units directly
from the Partnership through the services of a registered investment advisor,
you will have the election, to authorize us to pay your registered investment
advisor an estimated quarterly amount of no more than 2% annually of your
Capital Account that would otherwise be paid to you as Periodic Cash
Distributions or compounded as Earnings. For ease of reference, we have referred
to these fees as Client Fees. If you elect to compound Earnings, then the
amount of the Earnings reinvested by you 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 if youelect
to pay Client Fees through us. The authorization to pay Client Fees is solely at
your election and is not a requirement of investment with us.
Client Fees are not Sale Commissions. All Client Fees paid will be paid
from those amounts that would otherwise be paid to you or compounded in your
capital account. The payment of all Client Fees is noncumulative and subject to
the availability of sufficient Earnings in your Capital Account. In no event
will any such Client Fees be paid by us as sales commissions or other
compensation. We are merely agreeing to pay to the registered investment
advisor, as an administrative convenience to you, a portion of those amounts
that would otherwise be paid to you. 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.
Representations and Warranties of Registered Investment Advisors. All
registered investment advisors will represent and warrant to the Partnership
that, among other things, that the investment in the Units is suitable for you,
that he has informed you 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. Compensation of General Partners. For the period from inception,
inclusive of the Initial and Current Offerings to December 31, 1998, the General
Partners and their Affiliates have received the following compensation. For a
detailed explanation of all compensation that my be payable to us or our
affiliates, please carefully review the section of the Prospectus entitled
"COMPENSATION OF THE GENERAL PARTNERS AND AFFILIATES").
a. Fees Paid by the Partnership to the General Partners and Allifiates
- --------------- ------------------------------------------------ -------------
Entity Receiving Description of Compensation
Total paid
to Date
Compensation
- --------------------------------------------------------------------------------
Redwood Mortgage Servicing Fee for
Mortgage Servicing Mortgage Investments $760,740
Corp.
- --------------------------------------------------------------------------------
General Partners Asset Management Fee for managing assets $91,355
- --------------------------------------------------------------------------------
General Partners 1% interest in profits, losses and
distributions of cash available for $60,114
distribution
- --------------------------------------------------------------------------------
b. Fees Paid by Borrowers on Mortgage Investments to Affiliates of the
General Partners.
- --------------------------------------------------------------------------------
Entity Receiving Description of Compensation
Total Paid
to Date
Compensation
- --------------------------------------------------------------------------------
Redwood Mortgage Brokerage Commission for services
Mortgage in connection with review,
Corp. selection, evaluation. $2,488,165
- --------------------------------------------------------------------------------
Redwood Processing and Escrow Fees for services
Mortgage in connection with notary,
Corp. document preparation,
credit investigation and escrow fees. $59,057
- --------------------------------------------------------------------------------
5. Description of Open Mortgage Investments For The Partnership As Of
December 31, 1998. As of December 31, 1998, the Partnership had outstanding
fifty five(55*) Mortgage Investments with a principal outstanding balance
totalling $31,905,958. The original amount of the outstanding Mortgage
Investments was $37,783,257. The following table includes all Mortgage
Investments made by the Partnership in connection with both the Initial and
Current Offerings. The following chart summarizes the original principal amounts
and characteristics of Mortgage Investments made by the Partnership up through
December 31, 1998.
a. Loans Secured By Single Family Residences (1- 4 Units)
Existing Existing Amount of Appraised Value
1st Mort. at 2nd Mort. At Partnership of Property at Loan to
County Funding Funding Mortgage Funding Value Ratio
Investment at at Funding
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%
a. Loans Secured By Single Family Residences (1- 4 Units)
Amount of
Existing Existing Partnership Appraised Value
1st Mort. at 2nd Mort. At Mortgage of Property at Loan to
County Funding Funding Investment at Funding Value Ratio
Funding at Funding
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
Single Family Residences (county) (continued)
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 1,860,000 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%
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%
San Francisco 1 0 0 352,000 * 440,000 80.00%
Marin 3 1,300,000 326,346 894,000 * 2,867,000 87.91%
San Francisco 3 1,702,800 420,000 950,700 * 4,205,000 73.09%
Stanislaus 1 0 0 2,500,000 * 4,004,263 62.43%
San Francisco 1 0 0 910,000 * 1,300,000 70.00%
San Franscico 2 1,320,000 0 1,155,000 * 3,300,000 75.00%
San Francisco 2 277,208 0 210,000 * 675,000 72.18%
San Francisco 2 910,000 0 953,000 * 2,800,000 66.54%
San Mateo 1 0 0 2,600,000 * 3,946,429 65.88%
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
b. Loans Secured By Multifamily Residences (5 plus Units)
Amount of
Existing Existing Partnership Appraised Value
1st Mort. at 2nd Mort. At Mortgage of Property at Loan to
County Funding Funding Investment at Funding Value Ratio
Funding at Funding
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
Multiple Units (county)
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
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%
Marin 1 0 0 390,000 * 519,726 75.04%
San Francisco 1 0 0 1,137,500 * 2,170,000 62.79%
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
c. Loans Secured by Commercial Property
Amount of
Existing Existing Partnership Appraised Value
1st Mort. at 2nd Mort. At Mortgage of Property at Loan to
County Funding Funding Investment at Funding Value Ratio
Funding at Funding
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
Commercial Properties (county)
- --------------------- --------------- -------------- ------------------- --- ----------------- --------------
Alameda 2 $ 343,536 $ $ 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 0 500,000 980,000 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%
c. Loans Secured by Commercial Property (continued)
Amount of
Existing Existing Partnership Appraised Value
1st Mort. at 2nd Mort. At Mortgage of Property at Loan to
County Funding Funding Investment at Funding Value Ratio
Funding at Funding
- ------------------- ----------------- -------------- ------------------- --- ----------------- --------------
Commercial Properties (county) (continued)
- --------------------- --------------- -------------- ------------------- --- ----------------- --------------
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%
Stanislaus 1 0 0 350,000 * 700,000 50.00%
Santa Cruz 1 0 0 684,000 1,367,000 50.04%
Contra Costa 2 1,124,681 0 300,000 * 1,870,000 76.19%
Santa Clara 1 0 0 2,000,000 8,650,000 23.12%
Stanislaus 1 0 0 1,072,000 * 1,949,344 54.99%
San Francisco 2 3,143,154 0 1,515,000 * 8,214,108 56.71%
Santa Clara 1 0 0 1,800,000 * 2,610,000 68.97%
Stanislaus 1 0 0 650,000 * 984,286 66.04%
<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.
4 The term loan-to-value ratio means to total amount of debt secured by the
property expressed as a percentage of the total value of the property.
Generally, the loan to value ratio will not exceed 80% of the appraised
value for residential properties, 70% of the appraised value for commercial
property and 50% of appraised value for unimproved land.
* Indicates 55 Mortgage Investments still outstanding as of December 31, 1998.
</FN>
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
On December 31, 1998, 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 $10,658,118 for the second
offering, an aggregate of $25,590,135 as of December 31, 1998. Of this amount,
none 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, 1998, the Partnerships Mortgage Investments outstanding
totalled $31,905,958. 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, to $25,304,989 in 1997, and to $31,905,958 to December 31, 1998, was the
additional capital admitted to the Partnership through sale of Limited
Partnership Units and reinvestment of Limited Partners earnings. Additional
Partners Capital contributions have totalled $4,508,824, $3,834,799,
$3,863,536, $5,565,372 and $5,100,458 and the reinvestment of earnings by
Limited Partners who have elected to reinvest earnings have totalled $239,956,
$524,988, $800,218, $1,119,465, and $1,440,687 for the years ended December 31,
1994, December 31, 1995, December 31, 1996, December 31, 1997 and December 31,
1998, 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, 1997,
and 1998 to $480,110, $1,031,029, $1,718,208, $2,613,008 and $3,376,293
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, 1998, 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 mortgage investments will be originated at
these lower interest rates which could 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 1999 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%).
In 1995, the Partnership established a line of credit with a commercial
bank secured by its Mortgage Investments and since its inception, has increased
the limit from $3,000,000 to $8,000,000. For the years ended December 31, 1996,
1997 and December 31, 1998, interest on Note Payable-Bank was $188,638 ,
$340,633 and $513,566 respectively. For 1997 and the twelve months ended
December 31, 1998, the increase in interest on notes payable-Bank has been
attributed to a higher overall credit facility utilization. As of December 31,
1998, the Partnership has borrowed $5,947,000 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, 1998, the balance remained at $5,947,000 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 one years.
Mortgage servicing fees increased from $155,912 to $189,692, and to $295,052 for
the years ended December 31, 1996, 1997 and 1998. The mortgage servicing fees
increased primarily due to increase in the outstanding Mortgage Investment
portfolio. Asset Management fees increased from $17,053 to $24,966, and to
$31,651 for the years ended December 31, 1996, 1997 and 1998, respectively. The
Asset Management fee increase was due primarily to the increased Partners
capital which the General Partners are managing. All other Partnership expenses
fluctuated within a narrow range commonly expected to occur, except for interest
on note payable - bank which is discussed earlier in the Management Discussion
and Analysis of Financial Condition and Results of Operations. 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. . Excess cash flow will
be invested in new Mortgage Investment opportunities when available, used to
reduce the Partnership credit line or in other Partnership business.
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
1996, 1997 and 1998, the Partnership made provisions for doubtful accounts of
$55,383, $139,804 and $162,969 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, 1998,
of $414,073 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.
California continues to be in an advantageous stage of its commercial
building cycle. Markets are balanced, meaning that there is neither a critical
shortage of space (signaled by rapidly rising rents and a flourish of rehabs and
alterations), nor is there an oversupply (falling rents and occupancy, financial
difficulties among owners and non-performing loans at lenders).
Homebuilding increased again last year as 126,000 housing permits were
issued, the most issued in any years since 1990. Even so, homebuilding is
proceeding at a rate that does not seem to satisfy current and projected demand.
The median price of an existing home sold last year rose 8 percent, a very large
gain in comparison to the meager 2 percent or so of the general rate of
inflation. The volume of homes sold was up a huge 13 percent.
The December 1998 issue of Western Economic Developments, published by the
Federal Reserve Bank of San Francisco, said the following about the California
economy:
The pace of economic growth in California was solid in recent months,
despite continued contraction in some major industries. Total payroll employment
rose 3.2 percent on an annual basis in October and November. This is above the
average growth rate for the first eleven months of 1998, but it is below the 3.8
percent pace from last year. Faced by declining export demand and rising import
competition, durable goods manufacturers cut employment in November.
Manufacturers of computers and electronic components have been particularly hard
hit this year, and aerospace employment has contracted. However, the pace of job
creation has remained strong in sectors other than manufacturing, and this has
helped to lower the state unemployment rate to 5.7 percent in November.
Californias state and local governments have created new jobs at about a
2.5 percent annual pace this year, a pickup from prior years that is due in part
to improved fiscal capacity. About 21,000 of the 29,000 jobs created this year
were for educators at local schools.
To the Partnership, the above evaluation of the California economy means an
increase in property values, job growth, personal income growth, etc., which all
translates into more loan activity, which of course, is healthy for the
Partnerships 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, 1996, December 31, 1997 and December
31, 1998, the Partnership made distributions of earnings to Limited Partners
after allocation of syndication costs of $418,380, $495,480 and $614,383
respectively. Distribution of Earnings to Limited Partners after allocation of
syndication costs for the years ended December 31, 1996, December 31, 1997 and
December 31, 1998, to Limited Partners capital accounts and not withdrawn was
$800,218, $1,119,465 and $1,440,687 respectively. As of December 31, 1996,
December 31, 1997 and December 31, 1998, Limited Partners electing to withdraw
earnings represented 34%, 30% 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
for most of the investors has yet to expire, as of December 31, 1998, many
Limited Partners may not as yet avail themselves of this provision for
liquidation. Earnings and capital liquidations including early withdrawals since
inception, 1993 through December 31, 1998 were:
1993 1994 1995 1996 1997 1998
------- --------- -------- --------- ---------- ----------
Earnings Liquidation $46,855 $165,814 $303,477 $418,380 $495,480 $614,383
Capital Liquidation 0 0 $5,640 $146,755 $132,619 $257,344
------- --------- -------- --------- ---------- ----------
Total $46,855 $165,814 $309,117 $565,135 $628,099 $871,727
======= ======== ========== ========= ========= ==========
Additionally, Limited Partners may withdraw over a period of one year
subject to certain limitations and penalties. For the years ended December 31,
1996, December 31, 1997, and December 31, 1998, $146,755, $132,619 and $244,213
respectively were liquidated subject to the 10% penalty for early withdrawal.
This represents only 1.00%, 0.63% and 0.90% of the Limited Partners ending
capital for the years ending December 31, 1996, 1997, and 1998 respectively.
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,
1996, December 31, 1997 and December 31, 1998, respectively and is expected by
the General Partners to commonly occur at these levels. The Year 2000 will be a
challenge for the entire world, with respect to the conversion of existing
computerized operations. The Partnership is completing an assessment of Year
2000 hardware and software issues. This assessment is not yet fully complete.
The Partnership relies on Redwood Mortgage Corp., an affiliate of the
Partnership, and third parties to provide loan and investor services and other
computerized functions, effected by Year 2000 computerized operations. Major
services provided to the Partnership by these companies are loan servicing,
accounting and investor services. The vendors that supply the software for loan
servicing have already confirmed compliance with Year 2000 issues. Installation
of accounting software that is Year 2000 compliant will begin after the
1998-year ends. The investor servicing software Year 2000 compliance is still
under assessment. Existing investor servicing software maintenance agreements
provide for conversion to Year 2000 compliance to be provided by the vendor.
Additionally, the Partnership has contacted several vendors that provide
investor services as a possible alternative to continuing to provide investors
services in house. It would appear that these service providers would be more
expensive than the current in house systems but they do provide a back-up
alternative in the event of our own failure to fully convert. Hardware utilized
by Redwood Mortgage Corp., is currently being tested to insure that
modifications necessary to be made prior to Year 2000 can be accomplished. At
this juncture, existing hardware appears to be substantially compliant with Year
2000 issues.
The costs of updating the various software systems will be borne by the
various companies that supply the Partnership with services. Therefore, no
significant capital outlays are anticipated and the Partnership expects only
incidental costs of conversion for Year 2000 issues.
The Partnership is in the business of making Mortgage Investments secured
by real estate. The most important factor in making the Mortgage Investments is
the value of the real estate security. Year 2000 issues have some potential to
effect industries and businesses located in the marketplaces in which the
Partnership places its Mortgage Investments. This would only have an affect on
the Partnership if Year 2000 issues cause a significant downturn in the northern
California economy. In fact, Silicon Valley is located in our marketplace. There
may be significant increased demand for Silicon Valley type services and goods
as companies make ready for the Year 2000 conversion.
Although not fully developed, if all or any accounting, loan servicing and
investor services conversions should fail, the size and scope of the
Partnerships activities are such that they could be handled at an equal or
higher cost on a manual basis or outsourced to other servicers existing in the
industry, while correcting systems problems and are likely to be temporarily in
nature. While this would entail some initial set up costs, these costs would
likely not be so significant as to have a material effect upon the Partnership.
Shifting portions of daily operations to manual or outsourced systems may result
in time delays. Time delays in providing accurate and pertinent information
could negatively affect customer relations and lead to the potential loss of new
loans and Limited Partner investments.
The foregoing analysis of Year 2000 issues includes forward-looking
statements and predictions about possible or future events, results of
operations and financial condition. As such, this analysis may prove to be
inaccurate because of the assumptions made by the General Partner or the actual
development of future events. No assurance can be given that any of these
forward-looking statements and predictions will ultimately prove to be correct
or even substantially correct.
Various other risks and uncertainties could also affect the Year 2000
analysis causing the effect on the Partnership to be more severe than discussed
above. The General Partners Year 2000 compliance testing cannot guarantee that
all computer systems will function without error beyond the Year 2000. Risks
also exist with respect to Year 2000 compliance by external parties who may have
no relationship to the Partnership or the General Partners, but who have a
significant relationship with one or more third parties, and may have a system
failure that adversely affects the Partnerships ability to conduct business.
While the General Partners are attempting to identify such external parties, no
assurance can be given that it will be able to do so. Furthermore, third parties
with direct relationships with the Partnership, whose systems have been
identified as likely to be Year 2000 compliant, may suffer a breakdown due to
unforeseen circumstances. It is also possible that the information collected by
the General Partners for these third parties regarding their compliance with
Year 2000 issues may be incorrect. Finally, it should be noted that the
foregoing discussion of Year 2000 issues assumes that to the extent the General
Partners systems fail, whether because of unforeseen complications or because of
third parties failure, switching to manual operations will allow the
Partnership to continue to conduct its business. While the General Partner
believes this assumption to be reasonable, if it is incorrect, the Partnerships
results of operations would likely be adversely affected.
6. Experts. The Financial Statements of the Partnership as of December 31,
1998, and of the Corporate General Partner, Gymno Corporation, as of December
31, 1998, 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, 1998, are audited. (see
section of the Prospectus entitled Managements Discussion and Analysis of
Financial Condition and Results of Operation).
7. 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, 1998, 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,
1998, and are attached to this Supplement No. 3 as Attachment II.
8. 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 70% 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 12/31/98, 70.20% 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.
Californias economy slowed in the second half of 1998, but its growth was
still impressive. Payroll employment rose 3.2 percent in 1998 which was a very
strong gain. That growth translates into a rise in real Gross State Product of
nearly 5 percent, or about one percentage point faster than the nation as a
whole, since U.S. Real GDP rose 3.9 percent last year.
ATTACHMENT I
to
SUPPLEMENT NO. 5 DATED APRIL 26, 1999
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,
1998 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, 1998.
TABLE III - OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
Table III summarizes the annual operating results through December 31, 1998
for partnerships which closed their offering during the
ten (10) years ending December 31, 1998.
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, 1998.
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, 1998)
(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, 1998)
(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, 1998)
(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) $1,837,032
Processing Fees (1) 51,881
Other (1) 7,683
Dollar Amount of Cash Generated from Operations Before Deducting from
Payments to General Partners and Affiliates: 12,015,999
Amount Paid to General Partners and Affiliates from Operations:
Partnership Management Fees 69,387
Earnings Distribution 70,295
Mortgage Servicing Fee 511,493
Late Charges 0
Reimbursement of Expenses, at Cost 219,603
Prepayment Fee 0
(1) These sums were paid by borrowers of Partnership funds, and were not
expenses of the Partnership.
TABLE II
COMPENSATION TO GENERAL PARTNERS AND AFFILIATES
(AS OF DECEMBER 31, 1998)
(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) $1,506,779
Processing Fees (1) 60,622
Other (1) 8,256
Dollar Amount of Cash Generated from Operations Before Deducting
Payments to General Partners and Affiliates: 14,155,253
Amount Paid to General Partners and Affiliates from Operations:
Partnership Management Fees 80,936
Earnings Fee 83,374
Mortgage Servicing Fee 670,082
Reimbursement of Expenses, at Cost 270,006
(1) These sums were paid by borrowers of Partnership funds, and were not
expenses of the Partnerships.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon year's average capital balances.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1998)
(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 73,280 487,310 462,681
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
NOTES:
(1) Based upon year's average capital balances.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VII
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1998
--------------
Gross Revenues $1,657,728
Less: General Partners' Mgmt Fee 16,141
Mortgage Servicing Fee 128,493
Administrative Expenses 72,602
Provision for Uncollected Accts 423,054
Amortization of Organization and Syndication Costs 0
Offering Period Interest Expense to Limited Partners 0
Interest Expense 170,867
--------------
Net Income (GAAP Basis) dist. to Limited Partners $846,571
--------------
Sources of Funds - Net Income $846,571
Reduction in Assets 1,227,571
Increase in Liabilities 0
Early Withdrawal Penalties Applied to Synd. Costs 0
Increase in Applicant's Deposit 0
Increase in Partners' Capital -collection on Formation
Loan 87,888
--------------
Cash generated from Operations $2,162,030
Use of Funds-Increase in Assets 0
Reduction in Liabilities 356,024
Decrease in Applicant's Deposit 0
Offering Period Interest Expense to Limited Partners 0
Investment Income Pd to LP's 464,824
Return of Capital to LP's 1,400,475
--------------
Net Increase (Decrease) in Cash $(59,293)
Cash at the beginning of the year 520,837
Cash at the end of the year 461,544
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $66.95
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $64.98
Cash Distribution to Investors for $1,000 Invested
Income (1) $36.09
Capital (1) $108.74
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $95.60
Federal Income Tax Results for $1,000 Invested for a
Limited Partner Receiving Monthly Earnings
Distributions $93.29
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years average capital balances
(2) The offering terminated in September, 1989.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
(2) The offering terminated in September, 1989.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years average capital balances
(2) The offering terminated in September, 1989.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI VI
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997 1998
------------- ------------ --------------
Revenues $1,167,859 $1,036,596 $871,861
Less: General Partners' Mgmt Fee 0 0 6,640
Mortgage Servicing Fee 44,565 39,918 70,630
Administrative Expenses 64,273 65,813 58,862
Provision for Uncollected Accts 312,684 268,101 180,054
Amortization of Organization and Syndication Costs 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Interest Expense 158,175 133,577 43,170
-------------- ------------ --------------
Net Income (GAAP Basis) dist. to Limited Partners $588,162 $529,187 $512,505
-------------- ------------ --------------
Sources of Funds - Net Income $588,162 $529,187 $512,505
Reduction in Assets 1,278,214 1,763,235 1,159,329
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 - Collection of 0 62,328 59,521
Formation Loan
-------------- ------------ --------------
Cash generated from Operations $1,866,376 $2,354,750 $1,731,355
Use of Funds-Increase in Assets 0 0 0
Reduction in Liabilities 491,978 649,124 466,778
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 294,678 257,670 235,837
Return of Capital to LP's 1,183,099 1,297,410 1,060,108
-------------- ------------ --------------
Net Increase (Decrease) in Cash $(103,379) $150,546 $(31,368)
Cash at the beginning of the year 283,976 180,597 331,143
Cash at the end of the year 80,597 331,143 299,775
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $53.50 $52.88 $56.32
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $52.23 $51.64 $54.91
Cash Distribution to Investors for $1,000 Invested
Income (1) $25.83 $24.79 $25.01
Capital (1) $103.72 $124.81 $112.40
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $50.71 $30.48 $75.41
Federal Income Tax Results for $1,000 Invested for a
Limited Partner Receiving Monthly Earnings
Distributions $49.72 $29.89 $73.53
NOTES:
(1) Based upon years initial capital balances
(2) The offering terminated in September, 1989.
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1998)
(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
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $49 $47 $45
Cash Distribution to Investors for $1,000 Invested
Income (1) $23 $21 $20
Capital (1) $130 $147 $191
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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI V
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1998
--------------
Gross Revenues $494,109
Less: General Partners' Mgmt Fee 0
Mortgage Servicing Fee 0
Administrative Expenses 25,844
Provision for Uncollected Accts 303,397
Amortization of Organization and Syndication Costs 0
Offering Period Interest Expense to Limited Partners 0
Interest Expense 7,454
--------------
Net Income (GAAP Basis) dist. to Limited Partners $157,414
--------------
Sources of Funds - Net Income 157,414
Reduction in Assets 337,030
Increase in Liabilities 0
Early Withdrawal Penalties Applied to Synd. Costs 0
Increase in Applicant's Deposit 0
Increase in Partners' Capital 0
--------------
Cash generated from Operations $494,444
Use of Funds-Increase in Assets 0
Reduction in Liabilities 11,807
Decrease in Applicant's Deposit 0
Offering Period Interest Expense to Limited Partners 0
Investment Income Pd to LP's 77,341
Return of Capital to LP's 376,931
--------------
Net Increase (Decrease) in Cash $28,365
Cash at the beginning of the year 108,094
Cash at the end of the year 136,459
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $47
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $46
Cash Distribution to Investors for $1,000 Invested
Income (1) $22
Capital (1) $108
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $92
Federal Income Tax Results for $1,000 Invested for a
Limited Partner Receiving Monthly Earnings
Distributions $90
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI IV
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1997 1998
----------------- -------------
Gross Revenues $947,233 $913,462
Less: General Partners' Mgmt Fee 9,803 9,303
Mortgage Servicing Fee 53,475 69,550
Administrative Expenses 47,083 42,769
Provision for Uncollected Accts 237,122 200,712
Amortization of Organization and Syndication Costs 0 0
Offering Period Interest Expense to Limited Partners 0 0
Interest Expense 127,795 114,274
----------------- -------------
Net Income (GAAP Basis) dist. to Limited Partners $471,955 $476,854
----------------- -------------
Sources of Funds - Net Income $471,955 $476,854
Reduction in Assets 0 378,202
Increase in Liabilities 297,222 15,717
Early Withdrawal Penalties Applied to Synd. Costs 0 0
Increase in Applicant's Deposit 0 0
Increase in Partners' Capital 0 0
------------- -------------
Cash generated from Operations $769,177 $870,773
Use of Funds-Increase in Assets 48,154 0
Reduction in Liabilities 0 0
Decrease in Applicant's Deposit 0 0
Offering Period Interest Expense to Limited Partners 0 0
Investment Income Pd to LP's 208,313 221,641
Return of Capital to LP's 647,257 667,647
------------- -------------
Net Increase (Decrease) in Cash $(134,547) $(18,515)
Cash at the beginning of the year 389,726 255,179
Cash at the end of the year 255,179 236,664
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $61 $65
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $60 $63
Cash Distribution to Investors for $1,000 Invested
Income (1) $26 $29
Capital (1) $81 $88
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $85 $79
Federal Income Tax Results for $1,000 Invested for a
Limited Partner Receiving Monthly Earnings
Distributions $83 $76
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI III
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997 1998
-------------- ------------- ---------------
Gross Revenues $166,395 $168,046 $183,854
Less: General Partners' Mgmt Fee 2,191 2,229 2,222
Mortgage Servicing Fee 14,696 7,791 13,433
Administrative Expenses 14,270 13,950 14,983
Provision for Uncollected Accts 8,279 20,790 29,519
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 $126,959 $123,286 $123,697
-------------- ------------- ----------------
Sources of Funds - Net Income $126,959 $123,286 $123,697
Decrease in Assets 134,161 56,244 0
Increase in Liabilities 2,458 0 5,310
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 70,000 4,812 4,812
-------------- ------------- ---------------
Cash generated from Operations $333,578 $184,342 $133,819
Use of Funds-Increase in Assets 0 0 165,523
Decrease in Liabilities 0 6,724 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 79,413 79,219 78,559
Return of Capital to LP's 30,874 46,854 48,389
-------------- ------------- ---------------
Net Increase (Decrease) in Cash $223,291 $51,545 $(158,652)
Cash at the beginning of the year 10,792 234,083 285,628
Cash at the end of the year 234,083 285,628 126,976
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $72 $70 $71
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $70 $68 $69
Cash Distribution to Investors for $1,000 Invested
Income (1) $47 $45 $45
Capital (1) $18 $27 $28
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $57 $80 $65
Federal Income Tax Results for $1,000 Invested for a
Limited Partner Receiving Monthly Earnings
Distributions $56 $78 $65
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI II
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997 1998
----------------- ------------- ---------------
Gross Revenues $100,382 $88,149 $76,313
Less: General Partners' Mgmt Fee 3,061 2,841 2,606
Mortgage Servicing Fee 18,314 4,577 4,441
Administrative Expenses 10,597 9,811 9,401
Provision for Uncollected Accts 20,670 17,950 6,171
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 $47,740 $52,970 $53,694
----------------- ------------- ---------------
Sources of Funds - Net Income $47,740 $52,970 $53,694
Decrease in Assets 168,233 0 58,220
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 $215,973 $52,970 $111,914
Use of Funds-Increase in Assets 0 15,540 0
Decrease in Liabilities 6,572 14,830 2,958
Decrease in Applicant's Deposit 0 0 0
Offering Period Interest Expense to Limited Partners 0 0 0
Investment Income Pd to LP's 21,264 23,690 32,004
Return of Capital to LP's 89,158 97,517 107,897
----------------- ------------- ---------------
Net Increase (Decrease) in Cash $98,979 $(98,607) $(30,945)
Cash at the beginning of the year 57,851 156,830 58,223
Cash at the end of the year 156,830 58,223 27,278
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $53 $63 $70
Income & Distribution Data for
$1,000 Invested for a Limited Partner Receiving
Monthly Earning Distribution (GAAP Basis) $51 $62 $68
Cash Distribution to Investors for $1,000 Invested
Income (1) $23 $27 $40
Capital (1) $95 $111 $134
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $49 $75 $31
Federal Income Tax Results for $1,000 Invested for a
Limited Partner Receiving Monthly Earnings
Distributions $48 $73 $30
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1998
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1998)
(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
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
RMI
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997 1998
----------------- ------------- ---------------
Gross Revenues $135,273 $130,974 $120,561
Less: General Partners' Mgmt Fee 10,686 3,431 3,266
Mortgage Servicing Fee 24,133 7,499 7,744
Administrative Expenses 12,170 12,038 11,378
Provision for Uncollected Accts 8,845 20,435 7,456
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 $79,439 $87,571 $90,717
----------------- ------------- ---------------
Sources of Funds - Net Income $79,439 $87,571 $90,717
Decrease in Assets 208,623 0 35,187
Increase in Liabilities 23,127 0 0
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
----------------- ------------- ---------------
Cash generated from Operations $311,189 $87,571 $125,904
Use of Funds-Increase in Assets 0 140,251 0
Decrease in Liabilities 0 24,992 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 25,439 29,816 25,859
Return of Capital to LP's 101,605 130,035 101,698
----------------- ------------- ---------------
Net Increase (Decrease) in Cash $184,145 $(237,523) $(1,653)
Cash at the beginning of the year 69,796 253,941 16,418
Cash at the end of the year 253,941 16,418 14,765
Income & Distribution Data for $1,000 Invested for
a Compounding Limited Partner (GAAP Basis) $56 $65 $71
Cash Distribution to Investors for $1,000 Invested
Income (1) $18 $21 $20
Capital (1) $71 $93 $77
Federal Income Tax Results for $1,000 Invested
Capital for a Compounding Ltd. Partner $31 $68 $67
NOTES:
(1) Based upon years initial capital balances
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1998)
(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 $59 $47 $32
Portfolio)
Ordinary Income from Operations CMI II (New
Portfolio of
CMI $130 $123 $110
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1998)
(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 $37 $28 $19
Portfolio)
Ordinary Income from Operations CMI II (New
Portfolio of
CMI $102 $101 $96
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1998)
(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 $7 $105 $75
Portfolio)
Ordinary Income from Operations CMI II (New
Portfolio of
CMI $100 $101 $75
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1998)
(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 $23 $53 $93
Portfolio)
Ordinary Income from Operations CMI II (New
Portfolio of
CMI $23 $53 $93
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
CMI (CONSOLIDATED)
(AS OF DECEMBER 31, 1998)
(NOT COVERED BY REPORT OF INDEPENDENT PUBLIC ACCOUNTANT)
1996 1997 1998
----------------- ------------- ---------------
Gross Revenues $193,218 $180,117 $171,863
Less: General Partners' Mgmt Fee 13,117 12,229 11,244
Mortgage Servicing Fee 18,050 14,935 15,048
Administrative Expenses 14,341 14,182 13,269
Provision for Uncollected Accts 49,281 32,877 20,736
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 $98,429 $105,894 $111,566
----------------- ------------- ---------------
Sources of Funds - Net Income $98,429 $105,894 $111,566
Decrease in Assets 143,063 204,288 15,743
Increase in Liabilities 3,900 0 11,503
Increase in Applicant's Deposit 0 0 0
Increase in Partners' Capital 0 0 0
----------------- ------------- ---------------
Cash generated from Operations $245,392 $310,182 138,812
Use of Funds-Increase in Assets 0 0 0
Decrease in Liabilities 0 3,738 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 28,260 33,904 31,596
Return of Capital to LP's 189,391 206,685 176,327
----------------- ------------- ---------------
Net Increase (Decrease) in Cash $27,741 $65,855 $(69,111)
Cash at the beginning of the year 57,185 84,926 150,781
Cash at the end of the year 84,926 150,781 81,670
Income & Distribution Data for $1,000 Invested Net
Income
CMI (Original Portfolio) (GAAP Basis) $57 $66 $76
Net Income CMI II (New Portfolio of CMI) (GAAP Basis) $57 $66 $76
Cash Distribution to Investors for $1,000 Invested:
CMI
(Original Portfolio)
Income (1) $21 $20 $19
Capital (1) $149 $169 $120
CMI II (New Portfolio of CMI)
Income (1) $12 $21 $21
Capital (1) $74 $93 $111
Federal Income Tax Results for $1,000 Invested Capital
Ordinary Income from Operations CMI (Original $84 $76 $93
Portfolio)
Ordinary Income from Operations CMI II (New $84 $76 $93
Portfolio of
CMI)
NOTES:
(1) Based upon years initial capital balances
(2) CMI II (New Portfolio of CMI I) commenced operation on January 1, 1984
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VIII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
==================== ============= ================ ====================== =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== =================== -----------------
Santa Clara 05/31/95 02/09/96 278,207.20 17,936.60 296,143.80
San Mateo 10/08/93 02/15/96 130,000.00 29,280.87 159,280.87
Santa Clara 12/29/94 03/13/96 250,000.00 17,701.60 267,701.60
San Mateo 02/21/96 05/20/96 58,500.00 1,932.93 60,432.93
San Mateo 11/15/94 05/30/96 213,717.85 18,344.35 232,062.20
San Mateo 09/15/95 06/06/96 3,277,600.49 355,868.81 3,633,469.30
Marin 05/05/94 06/14/96 300,000.00 65,081.60 365,081.60
Alameda 12/05/95 07/24/96 49,753.82 2,853.90 52,607.72
Alameda 11/29/94 08/05/96 60,000.00 10,253.51 70,253.51
Monterey 02/14/95 08/30/96 239,507.90 34,227.09 273,734.99
Marin 05/11/95 11/06/96 50,000.00 8,446.53 58,446.53
San Mateo 03/22/94 11/15/96 100,000.00 25,983.46 125,983.46
Alameda 08/05/94 11/22/96 410,000.00 88,249.87 498,249.87
San Mateo 04/30/96 12/11/96 453,720.67 25,915.39 479,636.06
San Francisco 03/27/96 03/18/97 125,000.00 14,059.97 139,059.97
San Francisco 04/15/93 03/19/97 70,125.00 22,935.84 93,060.84
San Mateo 03/09/95 03/27/97 80,000.00 18,925.90 98,952.90
San Mateo 04/11/96 04/21/97 325,000.00 32,826.90 357,826.90
Sonoma 03/04/94 04/25/97 93,400.00 27,746.86 121,146.86
Tuolomne 03/26/93 05/14/97 100,000.00 43,838.58 143,838.58
Santa Clara 06/30/95 06/06/97 44,000.00 9,251.29 53,251.29
Marin 10/17/95 06/09/97 770,000.00 105,256.69 875,256.69
San Mateo 08/09/96 06/24/97 65,000.00 6,511.02 71,511.02
Stanislaus 08/04/95 09/08/97 50,000.00 10,746.68 60,746.68
San Francisco 09/12/95 10/01/97 250,000.00 57,678.67 307,678.67
San Mateo 08/30/96 10/06/97 445,000.00 44,544.27 489,544.27
San Mateo 12/29/95 04/23/98 225,000.00 63,849.70 288,849.70
Marin 05/09/97 05/20/98 120,000.00 13,410.94 133,410.94
Marin 05/31/96 05/20/98 906,413.85 153,528.25 1,059,941.10
El Dorado 06/24/93 06/19/98 130,000.00 84,489.35 214,489.35
San Francisco 04/15/97 11/02/98 420,000.00 37,426.99 457,426.99
Marin 10/31/97 11/03/98 1,274,321.61 136,974.54 1,411,296.15
San Francisco 09/26/97 11/06/98 323,003.04 32,691.04 355,694.08
Mendocino 06/25/96 11/30/98 125,000.00 36,479.46 161,479.46
- -------------------- ------------- ---------------- ---------------------- ------------------- -----------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VIII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
MULTIPLE 5+ UNITS (county) CONTINUED
==================== ============= ================ ====================== =================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== =================== -----------------
San Francisco 07/20/94 01/19/96 175,000.00 12,148.49 187,148.49
Contra Costa 01/06/94 01/19/96 1,073,720.93 147,243.75 1,220,964.68
Alameda 03/17/95 05/31/96 13,000.00 1,721.25 14,721.25
San Francisco 02/05/96 12/27/96 883,750.00 50,570.34 934,320.34
San Francisco 07/17/96 02/26/98 1,014,320.42 147,731.84 1,162,052.26
San Mateo 12/29/95 03/12/98 425,000.00 114,078.49 539,078.49
Alameda 03/13/97 05/01/98 1,800,000.00 220,374.98 2,020,374.98
San Mateo 09/10/97 08/21/98 945,000.00 103,241.26 1,048,241.26
- -------------------- ------------- ---------------- ---------------------- ------------------- -----------------
COMMERCIAL (county)
==================== ============= ================= ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================= ======================= ================== ------------------
San Francisco 03/10/93 02/15/96 114,000.00 39,249.06 153,249.06
Santa Clara 01/26/96 03/21/96 1,125,000.00 18,882.96 1,143,882.96
San Francisco 03/19/93 06/28/96 116,500.00 36,543.05 153,043.05
Santa Clara 12/30/94 06/30/96 95,000.00 15,257.72 110,257.72
San Mateo 07/25/94 09/26/96 700,000.00 184,662.96 884,662.96
Santa Clara 10/31/94 10/01/96 500,000.00 100,224.84 600,224.84
San Luis Obispo 03/14/96 05/23/97 300,000.00 45,007.71 345,007.71
San Mateo 05/26/94 05/30/97 280,000.00 86,457.95 366,457.95
San Francisco 10/28/96 07/17/97 975,000.00 82,881.25 1,057,881.25
San Francisco 01/15/97 07/17/97 745,474.49 32,064.27 777,538.76
San Francisco 04/30/97 07/17/97 50,000.00 1,300.00 51,300.00
San Francisco 04/20/95 09/18/97 400,000.00 55,785.90 455,785.90
San Mateo 08/28/95 10/14/97 750,000.00 210,514.55 960,514.55
Santa Clara 03/27/96 10/24/97 800,000.00 151,285.28 951,285.28
Santa Barbara 05/10/94 10/31/97 425,000.00 167,181.54 592,181.54
San Mateo 06/30/95 12/05/97 130,000.00 45,729.11 175,729.11
Santa Clara 09/29/95 12/18/97 1,050,000.00 278,130.56 1,328,130.56
Alameda 09/13/95 01/23/98 60,000.00 18,775.03 78,775.03
Solano 09/30/97 06/05/98 480,000.00 42,640.01 522,640.01
Alameda 04/25/97 07/24/98 2,100,000.00 304,290.03 2,404,290.03
San Mateo 02/02/96 10/02/98 700,000.00 139,460.58 839,460.58
San Mateo 05/30/97 10/15/98 650,000.00 95,509.70 745,509.70
Santa Cruz 03/31/98 12/21/98 684,000.00 54,758.00 738,758.00
Santa Clara 06/11/98 12/28/98 2,000,000.00 132,000.00 2,132,000.00
- -------------------- ------------- ---------------- ----------------------- ------------------- -----------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $295,052 in such fees to Redwood Mortgage Corp. , the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
=================== ============== ================= ======================= =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================= ======================= =================== ------------------
Contra Costa 03/17/93 03/29/96 73,231.67 5,525.66 78,757.33
Mendocino 08/06/93 03/31/96 330,000.00 93,954.87 393,954.87
San Mateo 02/21/96 05/20/96 58,500.00 1,932.94 60,432.94
San Mateo 11/15/94 05/30/96 213,717.85 18,705.09 232,422.94
Marin 05/05/94 06/14/96 150,000.00 33,530.02 183,530.02
Santa Clara 10/29/92 07/23/96 209,500.00 83,174.41 292,674.41
Monterey 02/14/95 08/30/96 239,507.90 35,047.91 274,555.81
Sonoma 01/26/93 09/26/96 13,420.13 12,659.66 26,079.79
Sonoma 01/26/93 09/30/96 13,420.13 12,683.14 26,103.27
San Mateo 12/31/89 09/30/96 57,959.24 91,871.30 149,830.54
San Mateo 06/24/92 03/13/97 81,000.00 45,775.04 126,775.04
San Francisco 04/15/93 03/19/97 50,000.00 17,967.50 67,967.50
Alameda 08/16/91 04/11/97 66,000.00 41,506.43 107,506.43
San Mateo 10/10/96 04/14/97 29,944.39 1,234.15 31,178.54
San Francisco 07/15/96 05/09/97 320,000.00 20,144.66 340,144.66
Tuolomne 03/26/93 05/14/97 175,000.00 36,244.52 211,244.52
San Mateo 08/12/91 05/31/97 108,270.70 71,684.54 179,955.24
San Mateo 06/19/92 06/18/97 42,500.00 25,030.01 67,030.01
San Mateo 12/30/90 06/19/97 15,000.00 14,166.94 29,166.94
San Francisco 07/16/91 08/22/97 108,000.00 89,977.37 197,977.37
San Mateo 03/29/90 08/29/97 63,960.00 61,632.29 125,592.29
San Mateo 06/10/92 09/05/97 145,000.00 95,692.30 240,692.30
San Francisco 10/09/96 09/12/97 238,000.00 12,930.41 250,730.41
Marin 05/20/91 09/30/97 63,922.80 100,305.42 164,228.22
San Francisco 04/16/91 10/23/97 343,719.78 90,066.64 433,786.42
San Francisco 11/06/92 11/04/97 6,133.33 1,932.57 8,065.90
Alameda 12/24/91 12/31/97 37,984.50 17,405.28 68,376.95
San Mateo 11/19/90 06/16/98 91,000.00 94,499.63 185,499.63
El Dorado 06/24/93 06/19/98 300,000.00 197,627.33 497,627.33
Alameda 02/23/95 06/23/98 153,320.99 57,892.71 211,213.70
San Mateo 12/29/87 07/31/98 79,000.00 85,460.44 164,460.44
San Mateo 09/04/94 08/14/98 60,000.00 26,344.06 86,344.06
Santa Cruz 09/15/97 10/02/98 107,263.44 11,293.28 118,556.72
San Francisco 09/22/97 11/02/98 210,000.00 37,426.99 247,426.99
San Francisco 09/26/97 11/06/98 323,003.04 32,691.04 355,694.08
San Mateo 07/07/98 11/25/98 200,000.00 8,900.70 208,900.70
- ------------------- -------------- ---------------- ------------------------ ------------------- ------------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VII
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
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 1,226,744.19 194323.82 1421068.01
San Mateo 07/15/92 02/16/96 175,000.00 75675.23 250675.23
Alameda 03/17/95 05/31/96 28,166.67 3920.62 32087.29
San Francisco 02/05/96 12/27/96 883,750.00 50,570.34 934,320.34
San Francisco 07/17/96 02/26/98 1,014,320.42 147,731.84 1,162,052.26
Alameda 03/13/97 05/01/98 1,400,000.00 263,875.12 1,663,875.12
- ------------------- -------------- ---------------- ----------------------- ------------------- -----------------
COMMERCIAL (county)
=================== ============== ================ ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ======================= ================== ------------------
San Mateo 08/28/95 03/19/96 375,000.00 50,593.75 425,593.75
Santa Clara 01/26/96 03/21/96 1,125,000.00 18,882.96 1,143,882.96
San Francisco 03/19/93 06/28/96 129,800.00 46,251.69 176,051.69
Santa Clara 01/22/92 06/30/96 325,000.00 120,178.74 445,178.74
San Francisco 04/30/86 09/12/96 600,320.06 866,468.12 1,466,788.18
San Mateo 07/25/94 09/26/96 650,000.00 197,114.21 847,114.21
Santa Clara 09/28/90 09/30/96 202,577.92 219,868.67 422,446.59
Santa Clara 10/31/94 10/01/96 275,000.00 56,956.67 331,956.67
Alameda 12/13/91 01/31/97 52,760.73 67,026.76 119,787.49
Alameda 12/12/90 03/24/97 50,461.02 68,068.88 118,529.90
Santa Cruz 09/23/94 03/28/97 100,000.00 17,765.69 117,765.69
Alameda 11/05/90 03/31/97 236,177.62 106,668.62 342,846.24
San Francisco 01/15/97 04/01/97 442,500.00 4,022.19 446,522.19
Contra Costa 04/26/91 06/23/97 182,475.81 246,883.76 429,359.57
San Francisco 04/20/95 09/18/97 200,000.00 56,821.69 256,821.69
Contra Costa 03/19/91 09/30/97 227,957.56 -186,615.23 41,342.33
Santa Clara 03/27/96 10/24/97 400,000.00 54,360.37 454,360.37
Santa Barbara 05/10/94 10/31/97 125,000.00 50,276.97 175,276.97
Santa Clara 09/29/95 12/18/97 700,000.00 169,533.33 869,533.33
San Mateo 12/02/92 12/31/97 55,000.00 33,308.16 88,308.16
Solano 11/30/95 01/30/98 60,000.00 10,638.75 70,638.75
Contra Costa 09/29/92 05/04/98 350,000.00 258,375.49 608,375.49
Solano 09/30/97 06/05/98 480,000.00 42,640.01 522,640.01
Alameda 04/25/97 07/24/98 560,000.00 81,144.01 641,144.01
San Mateo 02/02/96 10/02/98 700,000.00 136,866.58 836,866.58
San Mateo 07/15/92 12/08/98 112,500.00 96,240.02 206,213.70
- ------------------- -------------- ---------------- ----------------------- ------------------ ------------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $$128,493 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VI
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
=================== ============== ================ ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ======================= ================== ------------------
San Mateo 10/08/93 02/15/96 57,425.00 13,219.04 70,644.04
Contra Costa 03/17/93 03/29/96 73,231.70 5,525.66 78,757.36
San Mateo 03/03/89 03/31/96 160,000.00 102,333.91 262,333.91
San Mateo 08/12/92 05/15/96 207,211.23 217,482.42 424,693.65
Marin 05/05/94 06/14/96 200,000.00 44,706.69 244,706.69
Santa Clara 10/29/92 07/23/96 209,500.00 83,174.41 292,674.41
Sonoma 01/26/93 09/26/96 25,811.78 24,007.81 49,819.59
Santa Cruz 08/20/91 09/31/96 120,000.00 62,342.34 182,342.34
Sonoma 01/26/93 09/30/96 25,666.55 24,889.91 50,556.46
San Mateo 07/01/88 10/06/96 22,500.00 21,468.10 43,968.10
San Mateo 06/29/89 10/11/96 69,396.16 113,467.71 182,863.87
San Mateo 10/10/96 04/14/97 37,055.61 1,527.25 38,582.86
Alameda 07/01/90 07/02/97 233,367.46 -127,393.18 105,974.28
Sacramento 03/13/92 10/31/97 55,307.12 -47,694.39 7,612.73
Alameda 01/24/92 12/19/97 87,300.00 32,875.31 120,175.31
Alameda 12/24/91 12/31/97 67,257.75 30,820.92 98,078.67
San Mateo 10/16/92 04/01/98 115,140.00 50,554.99 165,694.99
El Dorado 06/24/93 06/19/98 235,000.00 154,808.06 389,808.06
Alameda 02/23/95 06/23/98 153,320.99 52,892.71 206,213.70
- ------------------- -------------- ---------------- ----------------------- ------------------ ------------------
MULTIPLE 5+ UNITS (county)
=================== ============== ================ ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ======================= ================== ------------------
Contra Costa 01/06/94 01/19/96 516,279.07 90,368.97 606,648.04
San Mateo 07/15/92 02/16/96 100,000.00 43,242.94 143,242.94
San Mateo 08/12/92 05/15/96 175,000.00 42,482.37 217,482.37
Alameda 03/17/95 05/31/96 9,750.00 1,322.29 11,072.29
Sacramento 08/19/88 07/28/97 509,985.54 -214,554.68 295,430.86
Sacramento 07/24/97 02/02/98 10,000.00 368.58 10,368.58
Alameda 03/13/98 05/01/98 350,000.00 15,781.59 365,781.59
Alameda 06/01/92 05/13/98 275,000.00 21,359.18 296,359.18
Sacramento 06/29/90 07/17/98 96,559.83 97,106.39 193,666.22
- ------------------- -------------- ---------------- ----------------------- ------------------ ------------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS VI
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
COMMERCIAL (county)
=================== ============== ================ ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ======================= ================== ------------------
Alameda 08/03/90 01/30/96 200,000.00 142,969.07 342,969.07
Santa Clara 02/01/96 03/21/96 392,829.43 6,722.72 399,552.15
San Francisco 03/19/93 06/28/96 110,000.00 5,670.35 115,670.35
Santa Clara 09/10/92 06/30/96 100,000.00 45,702.20 145,702.20
Santa Clara 01/22/92 06/30/96 175,000.00 89,015.60 264,015.60
San Francisco 04/30/86 09/12/96 149,400.14 214,170.66 363,570.80
San Mateo 07/25/94 09/26/96 550,000.00 157,005.74 707,005.74
San Mateo 08/01/90 01/24/97 50,000.00 42,561.13 92,561.13
Alameda 12/12/90 03/24/97 210,034.69 283,065.26 493,099.95
Alameda 11/05/90 03/31/97 78,740.20 105,095.44 183,835.64
Sonoma 07/06/89 08/01/97 100,000.00 91,374.72 191,374.72
Contra Costa 03/19/91 09/30/97 227,755.59 -186,413.27 41,342.32
Santa Barbara 05/10/94 10/31/97 100,000.00 40,222.70 140,222.70
Santa Clara 09/29/95 12/18/97 550,000.00 83,866.67 633,866.67
Sonoma 05/26/93 07/09/98 292,500.00 624,396.12 916,896.12
Alameda 08/11/88 08/03/98 73,000.00 93,566.06 166,566.06
San Mateo 02/02/96 10/02/98 150,000.00 31,079.87 181,079.87
- ------------------- -------------- ---------------- ----------------------- ------------------ ------------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $70,630 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS V
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
=================== ============== ================ ======================= ================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ======================= ================== ------------------
San Mateo 09/28/89 09/03/96 54,000.00 41,863.50 95,863.50
Sonoma 01/26/93 09/26/96 24,030.31 21,893.70 45,924.01
Sonoma 01/26/93 09/30/96 24,030.32 22,625.93 46,656.25
Marin 01/23/87 12/13/96 60,000.00 57,433.82 117,433.82
San Francisco 04/15/93 03/19/97 93,500.00 23,305.54 116,805.54
San Francisco 12/09/94 06/10/97 14,000.00 3,110.57 17,110.57
San Francisco 04/16/91 10/23/97 342,442.77 91,841.37 434,284.14
Sacramento 03/12/92 10/31/97 27,664.73 -23,852.44 3,812.29
San Mateo 11/18/92 12/10/97 25,000.00 15165.60 40,165.60
Alameda 01/24/92 12/19/97 87,300.00 33,156.31 120,456.31
- ------------------- -------------- ---------------- ----------------------- ------------------ ------------------
MULTIPLE 5+ UNITS (county)
=================== ============== ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ====================== =================== ------------------
Contra Costa 01/06/94 01/19/96 187,116.28 7,299.89 194,416.17
Alameda 03/17/95 05/31/96 3,250.00 452.38 3,702.38
Sacramento 06/29/90 07/17/98 126,555.01 65,224.49 191,779.50
- ------------------- -------------- ---------------- ---------------------- ------------------- ------------------
COMMERCIAL (county)
=================== ============== ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ====================== =================== ------------------
San Francisco 03/19/93 06/28/96 90,000.00 5,786.25 95,670.35
Santa Clara 09/10/92 06/30/96 150,000.00 69,007.73 219,007.73
Santa Clara 01/22/92 06/30/96 100,000.00 40,642.26 140,642.26
San Francisco 04/30/86 09/12/96 304,280.17 224,718.72 528,998.89
San Mateo 07/25/94 09/26/96 300,000.00 92,108.08 392,108.08
San Mateo 08/01/90 01/24/97 50,000.00 42,804.93 92,804.93
Contra Costa 04/26/91 06/23/97 115,032.96 154,302.43 269,335.39
Contra Costa 11/16/93 07/03/97 235,000.00 56,654.84 291,651.84
Sonoma 07/06/89 08/01/97 100,000.00 91,651.43 191,651.43
Santa Clara 09/29/95 12/18/97 100,000.00 26,660.60 126,666.60
Contra Costa 09/29/92 05/04/98 100,000.00 128,786.98 228,786.98
San Mateo 07/15/92 12/08/98 112,500.00 96,554.54 209,054.54
- ------------------- -------------- ---------------- ---------------------- ------------------- ------------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $0.00 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS IV
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
=================== ============== ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ====================== =================== ------------------
- ------------------- ============== ================ ====================== =================== ------------------
San Mateo 09/28/89 09/03/96 54,000.00 41,577.53 95,577.53
Alameda 09/02/92 07/15/97 78,750.00 45,066.81 123,816.81
San Mateo 03/20/90 08/29/97 80,000.00 77,498.01 157,498.01
San Francisco 11/06/92 11/04/97 12,266.67 5,240.50 17,507.17
Santa Clara 04/26/94 11/05/97 87,500.00 31,938.26 119,438.26
Alameda 12/24/91 12/31/97 67,257.75 30,392.45 97,650.20
San Mateo 11/16/87 01/19/98 40,000.00 54,832.78 94,832.78
San Mateo 10/16/92 04/01/98 76,760.00 70,117.71 146,877.71
Alameda 07/07/86 05/19/98 27,850.00 46,154.10 74,004.10
San Mateo 05/21/91 07/02/98 120,000.00 123,436.63 243,436.63
- ------------------- -------------- ---------------- ---------------------- ------------------- ------------------
MULTIPLE 5+ UNITS (county)
=================== ============== ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ====================== =================== ------------------
Contra Costa 01/06/94 01/19/96 418,604.65 69,501.29 488,105.94
San Joaquin 07/11/95 03/19/96 275,000.00 10,172.36 285,172.36
Alameda 03/17/95 05/30/96 6,500.00 860.62 7,360.62
Sacramento 12/16/87 05/30/96 536,592.80 368,067.66 904,660.46
Santa Clara 09/28/90 09/30/96 204,900.08 220,007.50 424,907.58
Alameda 03/13/97 05/01/98 500,000.00 61,215.28 561,215.28
Alameda 06/01/92 05/13/98 275,000.00 373,615.12 373,615.12
Sacramento 06/29/90 07/17/98 187,778.06 136,018.43 323,796.49
Sacramento 07/03/95 12/24/98 200,000.00 29,398.68 -74,598.94
- ------------------- -------------- ---------------- ---------------------- ------------------- ------------------
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS IV
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
COMMERCIAL (county)
=================== ============== ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
=================== ============== ================ ====================== =================== ------------------
San Francisco 03/10/93 02/15/96 171,000.00 60,864.67 231,864.67
San Francisco 04/30/86 09/12/96 830,000.78 1,082,625.62 1,912,626.40
San Mateo 07/25/94 09/26/96 200,000.00 58,334.75 258,334.75
Lake 01/30/91 10/04/96 16,000.00 13,245.50 29,245.50
Alameda 12/12/90 03/24/97 201,671.45 271,459.89 473,131.34
San Luis Obispo 03/14/96 05/23/97 200,000.00 30,005.13 230,005.13
Contra Costa 04/26/91 06/23/97 114,952.65 154,302.43 269,255.08
San Mateo 12/31/90 12/05/97 260,000.00 205,321.34 465,321.34
Santa Clara 09/29/95 12/18/97 300,000.00 79,483.33 379,483.33
Contra Costa 09/29/92 05/04/98 100,000.00 65,297.83 165,297.83
Sonoma 05/26/93 07/09/98 292,500.00 361,093.01 653,593.01
San Mateo 12/02/97 08/19/98 90,000.00 7,588.88 97,588.88
San Mateo 02/02/96 10/02/98 275,000.00 69,864.78 344,864.78
San Mateo 05/30/97 10/15/98 250,000.00 36,734.50 286,734.50
- -------------------- ------------- ---------------- ---------------------- ------------------- ------------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $69,550 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS III
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
==================== ============= ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== =================== ------------------
Sonoma 01/26/93 09/24/96 8,523.84 7,989.07 16,512.91
Sonoma 01/26/93 09/24/96 8,523.84 8,256.88 16,780.72
Santa Cruz 08/20/91 09/31/96 80,253.55 10,031.41 90,284.96
Alameda 11/29/94 05/19/97 60,000.00 15,662.20 75,662.20
Alameda 11/03/94 07/10/97 73,000.00 19,586.80 92,586.80
Alameda 09/02/92 07/15/97 100,000.00 57,227.60 157,227.60
San Mateo 08/16/94 11/14/97 75,000.00 28,380.54 103,380.54
Ventura 12/05/96 03/03/98 65,000.00 10,539.20 75,539.20
San Mateo 02/01/98 12/31/98 30,000.00 3,111.01 33,111.01
- -------------------- ------------- ---------------- ---------------------- ------------------- ------------------
MULTIPLE 5+ UNITS (county)
- -------------------- ------------- ---------------- ---------------------- ------------------- ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
- -------------------- ============= ================ ====================== =================== ------------------
Alameda 06/01/92 05/13/98 60,000.00 4,660.18 64,660.18
- -------------------- ------------- ---------------- ---------------------- ------------------- ------------------
COMMERCIAL (county)
==================== ============= ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== =================== ------------------
Alameda 09/30/95 01/30/96 138,015.68 6,530.55 144,546.23
Santa Clara 09/10/92 06/30/96 75,000.00 33,772.22 108,772.22
San Francisco 04/30/86 09/12/96 164,999.74 214,521.09 379,520.83
San Francisco 08/24/94 06/30/97 87,500.00 27,241.69 114,741.69
San Mateo 03/31/98 08/19/98 60,000.00 3,289.28 63,289.28
San Mateo 10/18/96 11/18/98 100,000.00 25,160.00 125,160.00
- -------------------- ------------- ---------------- ---------------------- ------------------- ------------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $13,433 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS II
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
==================== ============= ================ ====================== =================== ------------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== =================== ------------------
Marin 01/23/87 12/13/96 50,500.01 6,277.71 56,777.72
Santa Clara 02/11/94 06/06/97 88,000.00 19,621.27 107,621.27
Sacramento 03/12/97 10/31/97 13,760.71 -12,627.29 1,133.42
Ventura 12/05/96 02/13/98 65,000.00 12,082.39 77,082.39
Ventura 12/05/96 02/13/98 65,000.00 13,599.29 78,599.29
San Mateo 02/16/94 02/25/98 50,000.00 10,376.65 60,376.65
- -------------------- ------------- ---------------- ---------------------- ------------------- ------------------
MULTIPLE 5+ UNITS (county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
Alameda 06/01/92 05/13/98 100,000.00 7,766.96 107,766.96
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
COMMERCIAL (county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
San Francisco 04/30/86 09/12/96 291,224.54 262,811.34 554,035.88
Alameda 01/12/94 12/02/96 30,000.00 7,553.14 37,553.14
Santa Barbara 05/10/94 10/31/97 50,000.00 19,780.28 69,780.28
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
Interest payment received are shown as gross of mortgage servicing fee.is
In 1998, the Partnership paid $4,441 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
REDWOOD MORTGAGE INVESTORS
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
Sonoma 01/26/93 09/24/96 5,475.51 5,155.95 10,631.46
Sonoma 01/26/93 09/30/96 5,488.04 5,343.29 10,831.33
Santa Clara 02/11/94 06/06/97 88,000.00 29,191.54 117,191.54
Marin 05/20/91 09/30/97 71,000.00 4,894.30 75,894.30
Sacramento 03/13/92 10/31/97 13,812.08 -11,914.86 1,897.22
Ventura 12/05/96 02/13/98 65,000.00 1,913.40 66,913.40
Ventura 12/05/96 02/13/98 65,000.00 13,110.67 78,110.67
Ventura 12/05/96 02/13/98 65,000.00 4,922.69 69,922.69
San Mateo 02/16/94 02/25/98 75,000.00 31,129.95 106,129.95
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
MULTIPLE 5+ UNITS (county)
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
Alameda 03/17/95 05/31/96 2,166.67 286.88 2,453.55
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
COMMERCIAL (county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
San Francisco 04/30/86 09/12/96 164,997.74 302,563.65 467,561.39
San Mateo 07/25/94 09/27/96 200,000.00 58,334.75 258,334.75
San Mateo 03/31/96 10/02/98 15,000.00 6,118.14 21,118.14
San Mateo 05/30/97 10/15/98 100,000.00 14,693.80 114,693.80
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $7,744 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
TABLE V
PAYMENT OF MORTGAGE INVESTMENTS
CORPORATE MORTGAGE INVESTORS I & II
FOR THE THREE YEARS ENDING
DECEMBER 31, 1998
SINGLE FAMILY 1-4 UNITS (county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
Alameda 01/31/95 01/25/96 80,000.00 8,863.88 88,863.88
San Mateo 01/31/96 04/29/96 175,000.00 5,226.02 180,226.02
San Mateo 03/06/90 08/29/96 19,000.00 14,725.47 33,725.47
San Mateo 09/29/95 09/05/96 70,000.00 8,176.88 78,176.88
Alameda 11/29/94 03/13/97 60,000.00 13,896.74 73,896.74
Amador 02/23/96 06/03/97 45,000.00 5,047.64 50,047.64
Santa Clara 04/26/94 11/05/97 87,500.00 31,938.26 119,438.26
San Mateo 02/28/97 12/29/97 35,000.00 3,097.18 38,097.18
San Francisco 07/28/95 05/31/98 145,000.00 24,789.91 169,789.91
Ventura 12/05/96 06/25/98 65,000.00 43,030.90 108,030.90
Alameda 09/29/88 10/26/98 74,600.00 45,224.47 119,824.47
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
MULTIPLE 5+ UNITS(county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
Contra Costa 01/06/94 01/19/96 239,534.88 26,161.33 265,696.21
Sacramento 12/15/87 05/30/96 102,000.00 -24,018.43 77,981.57
Alameda 03/17/95 05/31/96 2,166.67 286.88 2,453.55
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
COMMERCIAL (county)
==================== ============= ================ ====================== ==================== -----------------
PROPERTY FUNDED CLOSED ON MORTGAGE INVESTMENT INTEREST/ PROCEEDS
AMOUNT LATE/MISC TO DATE
==================== ============= ================ ====================== ==================== -----------------
San Francisco 03/19/93 06/28/96 35,000.00 36,011.72 71,011.72
San Francisco 04/30/86 09/12/96 180,025.14 20,073.65 200,098.79
Santa Clara 01/31/94 10/01/96 100,000.00 20,044.97 120,044.97
Contra Costa 06/21/88 04/07/97 54,600.00 28890.31 83490.31
San Francisco 08/24/94 06/30/97 87,500.00 27,241.68 114,741.68
Santa Barbara 05/10/94 10/31/97 100,000.00 39,560.36 139,560.36
San Mateo 12/02/97 08/19/98 150,000.00 9,358.83 159,358.83
San Mateo 02/02/96 10/02/98 175,000.00 51,682.83 226,682.83
- -------------------- ------------- ---------------- ---------------------- -------------------- -----------------
Interest payment received is shown as gross of mortgage servicing fee. In
1998, the Partnership paid $15,048 in such fees to Redwood Mortgage Corp., the
mortgage servicing agent.
ATTACHMENT II
to
SUPPLEMENT NO. 5 DATED APRIL 26, 1999
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, 1998. 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, 1998. This information updates the information provided on page 36 of the Prospectus.
Name of Number of Estimated Total Outstanding Mortgage Total Outstanding Mortgage
Partnership Mortgage Amount. of Investments Balances Investments Balances as of
Investments Mortgage Originated 01/01/96 to 12/31/98 (from inception)
Investments 12/31/98
- ---------------- -------------- ------------------- ------------------------ ----------------------------
CMI 14 $1,572,000.00 $907,733.23 $1,542,038.83
RMI 13 $821,235.93 $626,129.09 $1,191,988.35
RMI II 7 $438,430.77 $306,998.70 $658,660.55
RMI III 15 $1,247,548.72 $1,040,589.15 $1,548,004.70
RMI IV 23 $4,655,618.69 $3,094,798.23 $8,012,142.89
RMI V 9 $853,987.40 $683,615.08 $2,751,508.45
RMI VI 22 $4,640,548.72 $2,395,570.45 $7,969,735.31
RMI VII 43 $23,392,317.27 $10,264,165.29 $13,209,186.42
=============== =========== ==== ================== ==== ==================== ===== =====================
TOTAL 146 $37,621,687.50 $19,319,599.22 $36,883,265.50
=============== =========== ==== ================== ==== ==================== ===== =====================
ATTACHMENT II
to
SUPPLEMENT NO. 5 DATED APRIL 26 , 1999
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 $21,614,187.50
Second Trust Deeds 15,536,500.00
Third Trust Deeds 471,000.00
======================
Total $37,621,687.50
Location of Mortgage Investments by County
San Francisco $9,578,444.39
Santa Clara 6,179,680.00
Alameda 5,521,500.00
Stanislaus 5,109,000.00
San Mateo 4,165,525.61
Marin 1,685,000.00
Solano 1,430,000.00
Ventura 1,131,000.00
Sacramento 855,000.00
Monterey 700,000.00
Contra Costa 382,500.00
Riverside 300,000.00
San Luis Obispo 200,000.00
Santa Cruz 192,000.00
Sonoma 137,037.50
Placer 55,000.00
-------------------
Total $37,621,687.50
===================
Type of Property
Commercial $13,587,680.00
Owner Occupied Homes 2,286,051.89
Apartments 6,926,750.00
Non-Owner Homes 5,909,805.61
Raw Land 8,911,400.00
--------------------
Total $37,621,687.50
===================
ATTACHMENT III
to
SUPPLEMENT NO. 5 DATED APRIL 26 , 1999
FINANCIAL STATEMENTS
OF
REDWOOD MORTGAGE INVESTORS VIII
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
FINANCIAL STATEMENTS
DECEMBER 31, 1998 and 1997
(With Auditor's Report Thereon)
PARODI & CROPPER
CERTIFIED PUBLIC ACCOUNTANTS
3658 Mount Diablo Blvd., Suite #205
Lafayette CA 94549
(925) 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, 1998 and 1997 and the
statements of income, changes in partners capital and cash flows for the three
years ended December 31,1998. 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, 1998 and 1997, and the results of its operations and
cash flows for the three years ended December 31, 1998, 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
March 3, 1999
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
BALANCE SHEETS
DECEMBER 31, 1998 AND 1998
ASSETS
1998 1997
---------------- --------------
Cash $528,688 $663,159
---------------- --------------
Accounts receivable:
Mortgage Investments, secured by deeds of trust 31,905,958 25,304,989
---------------- --------------
Accrued Interest on Mortgage Investments 459,418 341,976
Advances on Mortgage Investments 211,145 205,804
Accounts receivables, unsecured 48,849 62,844
---------------- --------------
32,625,370 25,915,613
Less allowance for doubtful accounts 414,073 257,500
---------------- --------------
32,211,297 25,658,113
---------------- --------------
Real Estate owned, acquired through foreclosure,
held for sale 66,000 70,138
Investment in limited liability corporation, at cost which
approximates market 304,139 251,139
Organization costs, less accumulated amortization of $12,500
and $10,625, respectively 0 1,875
Due from related companies 0 2,999
Prepaid expense-deferred loan fee 11,835 10,151
---------------- --------------
$33,121,959 $26,657,574
================ ==============
See accompanying notes to financial statements
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
LIABILITIES AND PARTNERS CAPITAL
1998 1997
---------------- --------------
Liabilities:
Accounts payable and accrued expenses $2,500 $3,355
Note payable - bank line of credit 5,947,000 5,640,000
Deferred interest income 124,805 83,066
---------------- --------------
6,074,305 5,726,421
---------------- --------------
Partners Capital:
Limited partners capital, subject to redemption (note 4E):
Net of unallocated syndication costs of $353,875
and $431,994 for 1998 and 1997, respectively:and
formation loan receivable of $1,640,904 and
$1,386,693 for 1998 and 1997,respectively 27,025,331 20,914,721
General Partners Capital, net of unallocated syndication
costs of $3,574 and $4,364 for 1998 and 1997,
respectively 22,323 16,432
---------------- --------------
Total Partners Capital 27,047,654 20,931,153
---------------- --------------
Total Liabilities and Partners Capital $33,121,959 $26,657,574
================ ==============
See accompanying notes to financial statements.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF INCOME
FOR THE THREE YEARS ENDED DECEMBER 31, 1998
YEARS ENDED DECEMBER 31,
----------------------------------------
1998 1997 1996
------------- ------------- -------------
Revenues:
Interest on Mortgage Investments $3,376,293 $2,613,008 $1,718,208
Interest on bank deposits 8,946 9,487 4,083
Late charges 19,384 6,432 3,847
Miscellaneous 1,398 530 497
------------- ------------- -------------
3,406,021 2,629,457 1,726,635
------------- ------------- -------------
Expenses:
Mortgage servicing fees 295,052 189,692 155,912
Interest on note payable - bank 513,566 340,633 188,638
Amortization of loan origination fees 11,415 16,819 11,999
Provision for doubtful accounts and losses on
real estate acquired through foreclosure 162,969 139,804 55,383
Asset management fee - General Partner 31,651 24,966 17,053
Amortization of organization costs 1,875 2,500 2,500
Clerical costs through Redwood Mortgage 67,453 54,549 38,799
Professional services 27,462 36,717 17,687
Printing, supplies and postage 7,089 9,584 1,192
Other 8,907 5,673 3,947
------------ ------------- -------------
1,127,439 820,937 493,110
------------- ------------- -------------
Income before interest credited to partners in 2,278,582 1,808,520 1,233,525
applicant status
Interest credited to partners in applicant status 4,454 9,562 2,618
------------- ------------- -------------
Net Income $2,274,128 $1,798,958 $1,230,907
============= ============= =============
Net income: To General Partners(1%) $22,741 $17,990 $12,309
To Limited Partners (99%) 2,251,387 1,780,968 1,218,598
-------------
============= =============
Total - net income $2,274,128 $1,798,958 $1,230,907
============= ============= =============
Net income per $1,000 invested by Limited
Partners for entire period:
- -where income is reinvested and compounded $84 $84 $ 84
============= ============= =============
- -where partner receives income in monthly $81 $81 $ 81
distributions
============= ============= =============
See accompanying notes to financial statements.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
FOR THE THREE YEARS ENDED DECEMBER 31, 1998
PARTNERS CAPITAL
-----------------------------------------------------------------
LIMITED PARTNERS CAPITAL
----------------------------------------------------------------
Capital
Partners In Account Unallocated Formation
Applicant Limited Syndication Loan
Status Partners Costs Receivable Total
-------------- -------------- ----------------- ------------- --------------
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 2,618 0 0 0 0
in 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)
-------------- -------------- ------------- ------------- --------------
PARTNERS CAPITAL
-----------------------------------------------------------------
LIMITED PARTNERS CAPITAL
----------------------------------------------------------------
Capital Account
Partners In Limited Partners Unallocated Formation
Applicant Syndication Loan
Status Costs Receivable Total
-------------- ----------------- ----------------- -------------- --------------
Balances at December 31, 1996 310,937 16,181,189 (414,190) (1,073,706) 14,693,293
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 9,562 0 0 0 0
in 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
Contributions on Application 5,105,559 0 0 0 0
Formation Loan increases 0 0 0 (403,518) (403,518)
Formation Loan payments 0 0 0 133,580 133,580
Interest credited to partners in
applicant status 4,454 0 0 0 0
Upon admission to Partnership:
Interest withdrawn (1,553) 0 0 0 0
Transfers to Partners
capital (5,108,460) 5,103,359 0 0 5,103,359
Net Income 0 2,251,387 0 0 2,251,387
Syndication costs incurred 0 0 (126,453) 0 (126,453)
Allocation of syndication costs 0 (196,317) 196,317 0 0
Partners withdrawals 0 (847,661) 0 0 (847,661)
Early withdrawal penalties 0 (24,066) 8,255 15,727 (84)
-------------- -------------- ------------- -------------- --------------
Balances at December 31, 1998 ============== ============== ============= ============== ==============
$0 $29,020,110 $(353,875) $(1,640,904) $27,025,331
============== ============== ============= ============== ==============
See accompanying notes to financial statements
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
FOR THE THREE YEARS ENDED DECEMBER 31, 1998
PARTNERS CAPITAL
---------------------------------------------------------------------
GENERAL PARTNERS CAPITAL
---------------------------------------------------------------------
Capital Unallocated Total
Account Syndication Total Partners
General Costs Capital
Partners
---------------- -------------- ------------ --------------
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
---------------- -------------- ------------ --------------
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
FOR THE THREE YEARS ENDED DECEMBER 31, 1998
PARTNERS CAPITAL
---------------------------------------------------------------------
GENERAL PARTNERS CAPITAL
---------------------------------------------------------------------
Capital Unallocated Total
Account Syndication Total Partners
General Costs Capital
Partners
---------------- -------------- ------------ --------------
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
applicant status 0 0 0 0
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
Contributions on Application 0 0 0 0
Formation Loan increases 0 0 0 (403,518)
Formation Loan payments 0 0 0 133,580
Interest credited to partners in
applicant status 0 0 0 0
Upon admission to partnership:
Interest withdrawn 0 0 0 0
Transfers to Partners capital 5,101 0 5,101 5,108,460
Net Income 22,741 0 22,741 2,274,128
Syndication costs incurred 0 (1,277) (1,277) (127,730)
Allocation of syndication costs (1,983) 1,983 0 0
Partners withdrawals (20,758) 0 (20,758) (868,419)
Early withdrawal penalties 0 84 84 0
---------------- -------------- ------------ --------------
Balances at December 31, 1998 $25,897 $(3,574) $22,323 $27,047,654
================ ============== ============ ==============
See accompanying notes to financial statements
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE THREE YEARS ENDED DECEMBER 31, 1998
1998 1997 1996
-------------- --------------- --------------
Cash flows from operating activities:
Net income $2,274,128 $1,798,958 $1,230,907
Adjustments to reconcile net income to net
cash provided by operating activities
Amortization of organization costs 1,875 2,500 2,500
Provision for doubtful accounts. 156,573 139,804 78,651
Provision for losses (gains) on real
estate
held for sale 6,396 0 (23,268)
Increase (decrease) in accounts payable (855) (17,270) 16,615
(Increase) in accrued interest & advances (122,783) (342,571) (83,477)
(Increase) decrease in amount due from
related companies 2,999 (2,688) 2,738
(Increase) decrease in deferred loan fee (1,684) 10,569 (3,002)
Increase (decrease ) in deferred interest
-------------- --------------- --------------
income 41,739 (134,414) 217,480
-------------- --------------- --------------
Net cash provided by operating activities 2,358,388 1,454,888 1,439,144
-------------- --------------- --------------
Cash flows from investing activities:
Principal collected on Mortgage
Investments 14,262,838 10,279,337 9,019,190
Mortgage Investments made (20,863,807) (19,941,336) (13,148,944)
Disposition of real estate held for sale 0 0 299,154
Additions to real estate held for sale (2,258) (3,254) 0
Additions to Limited Liability Corporation (53,000) (60,000) 0
Accounts receivables, unsecured -
-------------- --------------- --------------
(disbursements) receipts 13,995 12,490 (4,018)
-------------- --------------- --------------
Net cash used in investing activities (6,642,232) (9,712,763) (3,834,618)
-------------- --------------- --------------
Cash flows from financing activities
Increase (decrease) in note payable-bank 307,000 4,140,000 (410,000)
Contributions by partner applicants 5,105,559 5,251,969 4,172,718
Interest credited to partners in applicant
status 4,454 9,562 2,618
Interest withdrawn by partners in applicant
status (1,553) (1,849) (863)
Partners withdrawals (868,419) (631,150) (564,159)
Syndication costs incurred (127,730) (190,421) (214,689)
Formation Loan increases (403,518) (420,510) (314,996)
Formation Loan collections 133,580 98,999 8,961
--------------- --------------
Net cash provided by financing activities 4,149,373 8,256,600 2,679,590
-------------- --------------- --------------
Net increase (decrease) in cash and cash
equivalents (134,471) (1,275) 284,116
Cash - beginning of period 663,159 664,434 380,318
-------------- --------------- --------------
Cash - end of period $528,688 $663,159 $664,434
============== =============== ==============
See accompanying notes to financial statements.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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 Mortgage Corp., an
affiliate of the General Partners. At December 31, 1998, the Partnership was in
the offering stage, wherein contributed capital totalled $25,590,135 in limited
partner contributions of an approved aggregate offering of $45,000,000, in units
of $100 each (255,902).
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
$839,413 at December 31, 1998, which was 7.9% of the limited partners
contributions of $10,658,118. 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 Corp., 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, 1998
The following summarizes Formation Loan transactions to December 31, 1998:
Initial Subsequent Total
Offering of Offering of
$15,000,000 $30,000,000
--------------- --------------- ---------------
Limited Partner contributions $14,932,017 $10,685,117 $25,590,134
=============== =============== ===============
Formation Loan made $1,074,840 839,413 1,914,253
Payments to date
(198,316) (43,223) (241,539)
Early withdrawal penalties applied
(31,810) 0 (31,810)
--------------- --------------- ---------------
Balance December 31, 1998
$844,714 $796,190 $1,640,904
=============== =============== ===============
Percent loaned of Partners contributions 7.2% 7.9% 7.5%
=============== =============== ===============
The Formation Loan, which is receivable from Redwood Mortgage Corp., an
affiliate of the General Partners, has been deducted from Limited Partners
Capital in the balance sheet. As amounts are collected from Redwood Mortgage
Corp., the deduction from capital will be reduced.
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, 1998, organization costs of $12,500 and syndication
costs of $988,761 had been incurred by the Partnership with the following
distribution:
Syndication Organization
Costs Costs Total
----------------- ------------- ---------------
Costs incurred $988,761 $12,500 $1,001,261
Early withdrawal penalties applied (17,790) 0 (17,790)
Allocated and amortized to date (613,522) (12,500) (626,022)
----------------- ------------- ---------------
December 31, 1998 balance $357,449 0 $357,449
================= ============= ===============
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, 1998, syndication costs attributable to the subsequent
offering ($30,000,000) totalled $418,896, (3.93% of contributions), 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.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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, 1998, 1997, and 1996, 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 59.50%. 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, 1998, there was one such
piece of property with costs totaling $77,396 less a reduction of $11,396 to
arrive at the net fair value of $66,000.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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, 1998, and 1997 was as follows:
December 31,
-------------------------
1998 1997
--------------- ------------
Impaired mortgage investments $0 $0
Unspecified mortgage investments 370,073 213,500
Amounts receivable, unsecured 44,000 44,000
--------------- ------------
$414,073 $257,500
=============== ============
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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 1998 and 1997, Mortgage Investment brokerage
commissions paid by the borrowers were $604,836 and $837,399, respecively.
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 $295,052, $189,692, and $155,912
were incurred for years 1998, 1997, and 1996 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 $31,651, $24,966, and $17,053 were
incurred for years 1998, 1997, and 1996, respectively.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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 Corp.) 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, 1998 a General Partner, GYMNO Corporation,
had contributed $25,588, 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, 1998, 1997, and 1996, interest
totalling $4,454, $9,562 and $2,618 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, 1998
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, 2000, of
up to $8,000,000 at .5% over prime secured by its Mortgage Investment portfolio.
The note payable balances were $5,947,000 and $5,640,000 at December 31, 1998
and 1997, respectively, and the interest rate was 8.25% at December 31, 1998,
(7.75% prime plus .50%).
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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,
---------------------------------
1998 1997
--------------- ---------------
Net Assets - Partners Capital per
financial statements $27,047,654 $20,931,153
Unamortized syndication costs 357,449 436,358
Allowance for doubtful accounts 414,073 257,500
Formation loans receivable 1,640,904 1,386,693
--------------- ---------------
Net assets tax basis $29,460,080 $23,011,704
In 1998 and 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.
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
$31,905,958. The fair value of these investments of $32,231,632 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, 1998
NOTE 10- ASSET CONCENTRATIONS AND CHARACTERISTICS
The Mortgage Investments are secured by recorded deeds of trust. At
December 31, 1998, there were 55 Mortgage Investments outstanding with the
following characteristics:
Number of Mortgage Investments outstanding 55
Total Mortgage Investments outstanding $31,905,958
Average Mortgage Investment outstanding $580,108
Average Mortgage Investment as percent of total 1.82%
Average Mortgage Investment as percent of Partners Capital 2.14%
Largest Mortgage Investment outstanding 2,600,000
Largest Mortgage Investment as percent of total 8.15%
Largest Mortgage Investment as percent of Partners Capital 9.61%
Number of counties where security is located (all California) 11
Largest percentage of Mortgage Investments in one county 32.65%
Average Mortgage Investment to appraised value of security
at time loan was consummated 59.50%
Number of Mortgage Investments in foreclosure status 0
Amount of Mortgage Investments in foreclosure 0
The following categories of mortgage investments are pertinent
at December 31, 1998 and 1997:
December 31,
-----------------------------------
1998 1997
---------------- ---------------
First Trust Deeds $22,349,185 $17,103,865
Second Trust Deeds 8,469,460 8,163,624
Third Trust Deeds 1,087,313 37,500
---------------- ---------------
Total mortgage investments 31,905,958 25,304,989
Prior liens due other lenders 26,411,096 24,224,566
Total debt $58,317,054 $49,529,555
================ ===============
Appraised property value at time of loan $98,011,150 $88,714,541
================ ===============
Total investments as a percent of appraisals 59.50% 55.83%
================ ===============
Investments by Type of Property
Owner occupied homes $6,450,199 $2,445,423
Non-Owner occupied homes 8,789,445 5,318,722
Apartments 3,256,602 5,982,649
Commercial 13,409,712 11,558,195
============== ===============
$31,905,958 $25,304,989
============== ===============
The interest rates on the mortgage investments range from 8.00% to 14.00%
at December 31, 1998.
REDWOOD MORTGAGE INVESTORS VIII
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
Scheduled maturity dates of mortgage investments as of December 31, 1998
are as follows:
Year Ending
December 31,
-------------------
1999 $11,815,481
2000 9,576,318
2001 5,540,542
2002 1,515,906
2003 1,336,291
Thereafter 2,121,420
$31,905,958
======================
The scheduled maturities for 1999 include approximately $265,376 in
Mortgage Investments which are past maturity at December 31, 1998. Interest
payment on only one of these loans was delinquent.
The cash balance at December 31, 1998 of $528,688 was in one bank with
interest bearing balances totalling $492,951. The balances exceeded FDIC
insurance limits (up to $100,000 per bank) by $428,688. This bank is the same
financial institution that has provided the Partnership with the $8,000,000
limit line of credit. At December 31, 1998, draw down against this facility was
$5,947,000. 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
(925) 284-3590
FAX (925) 284-3593
INDEPENDENT AUDITORS REPORT
BOARD OF DIRECTORS
GYMNO CORPORATION
We have audited the accompanying balance sheets of GYMNO Corporation as of
December 31, 1998, and 1997, and the related statements of income (loss),
stockholders equity and cash flows for the two years ended December 31, 1998 and
1997 . 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, 1998, and 1997, 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
March 11, 1999
GYMNO CORPORATION
BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
ASSETS
1998 1997
--------------- --------------
Cash and equivalents $427 $1,338
Deferred income tax benefits 143 136
--------------- --------------
Total current assets 570 1,474
--------------- --------------
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 12,248 12,448
Redwood Mortgage Investors VIII 25,589 20,488
--------------- --------------
60,110 55,209
--------------- --------------
$60,680 $56,683
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable - Stockholders $436 $436
Accrued income taxes 232 382
Loan from Redwood Mortgage at 8% interest 8,598 9,138
--------------- --------------
Total current liabilities 9,266 9,956
--------------- --------------
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 38,914 34,227
--------------- -------------
Total stockholders' equity 51,414 46,727
--------------- -------------
$60,680 $56,683
=============== =============
See accompanying notes to financial statements.
GYMNO CORPORATION
STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 1998 AND 1997
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1998 1997
--------------- --------------
REVENUE
Partnership earnings-as General Partner $14,458 $13,009
Reconveyance fees 4,391 5,175
Other partnership earnings 24 34
---------------- -------------
18,873 18,218
---------------- -------------
EXPENSES
Management services - Stockholders 6,443 5,818
Professional Services 3,750 3,569
Interest expense 656 608
Recording Fees 867 0
Other 37 278
---------------- -------------
11,753 10,273
Income before provision for income taxes 7,120 7,945
---------------- -------------
Provision for income taxes:
California 953 863
Federal 1,480 1,328
---------------- -------------
2,433 2,191
---------------- -------------
Net income (loss) $4,687 $5,754
================ =============
Per share (500 shares) $9.37 $11.51
================ =============
See accompanying notes to financial statements.
GYMNO CORPORATION
STATEMENTS OF STOCKHOLDERS EQUITY
YEAR ENDED DECEMBER 31, 1998 AND 1997
Common Stock Paid-In Retained
-----------------------
Shares Amount Surplus Earnings Total
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
Net income (loss) for the yeat ended
December 31, 1998 0 0 0 4,687 4,687
--------- --------- --------- ---------- ----------
Balances - December 31, 1998 500# $5,000 $7,500 $38,914 $51,414
========= ========= ========= ========== ==========
See accompanying notes to financial statements.
GYMNO CORPORATION
STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1998 AND 1997
YEAR ENDED YEAR ENDED
1998 1997
---------- ----------
Cash flows from operating activities:
Net income (Loss) $4,687 $5,754
Adjustments to reconcile net income to net cash
provided by operating activities:
(Increase) decrease in recoverable income taxes (7) (16)
Increase (decrease) in accounts payable and
accrued liabilities (150) (2,639)
----------- ---------
4,530 3,099
----------- ---------
Cash flows from investing activities:
(increase) decrease in:
Cash invested in partnerships (4,901) (5,047)
----------- ---------
Cash flows for financing activities:
Increase (decrease) in:
Loan from Redwood Mortgage (540) 1,620
----------- ---------
Net increase (decrease) in cash equivalents (911) (328)
Cash equivalents at beginning of year 1,338 1,666
----------- ---------
Cash equivalents at end of year
(consisting of cash in bank) $427 $1,338
=========== =========
See accompanying notes to financial statements.
GYMNO CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998AND 1997
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.
GYMNO CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1998 and 1997
NOTE 3 - INCOME TAXES The following reflects the income taxes for the
periods ending December 31, 1997 and 1998:
YEAR ENDED YEAR ENDED
DECEMBER 31, 1997 DECEMBER 31, 1998
CALIF FED CALIF FED
-------- -------- ------- --------
Income before provision for income
taxes $7,945 7,945 $7,120 $7,120
Nondeductible expenses 6 6 0 0
State Tax deduction:
Prior fiscal year tax 0 (800) 0 (863)
Taxable income differential-
partnerships 1,811 1,811 3,655 3,655
-------- ------- ------- --------
Taxable income 9,762 8,962 10,775 9,912
-------- ------- ------- --------
Tax rate (California $800 minimum) 8.84% 15% 8.84% 15%
-------- ------- ------- --------
Income tax thereon $863 $1,344 $953 $1,487
Change in deferred income tax benefit 0 (16) 0 (7)
-------- ------- -------- -------
Income Tax expense $863 $1,328 $953 $1,480
======== ======= ======== =======
Above tax liability 863 1,344 953 1,487
Estimated tax payments 800 1,025 864 1,344
-------- ------- -------- -------
Income tax liability $63 $319 $89 $143
======== ======= ======== =======
Total liability $382 $232
========= ========
California income taxes were determined at the greater of 8.84% 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 1998 taxes are deductible in 1999). At December 31, 1998 there
were deferred income tax benefits of $143 relating to the $933 California
Franchise Tax deductible in the following year.