Exhibit 99.3
 Financial Statements




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Contents
 Report of Independent Certified Public Accountants
    
    
    1Financial StatementsStatements of Financial Condition as of December 31, 2007 and 2006
    
    
    2Statements of Operations for the years ended December 31, 2007, 2006 and 2005
    
    
    3Statements of Changes in Members Equity for the years ended December 31,
2007, 2006 and 2005
    
    
    4Statements of Cash Flows for the years ended December 31, 2007,
2006 and 2005
    
    
    5Notes to Financial Statements
    
    
    6




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1




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December 31,2007
    
    
    2006AssetsCash and cash equivalents
    
    $
    3,485,686
    
    
    $
    22,513,223Inventory:Deposits
    
    
    2,083,734
    
    
    
    6,544,655Homesites and land under development
    
    
    164,047,818
    
    
    
    105,967,662Residences completed and under construction
    
    
    27,064,129
    
    
    
    134,042,208193,195,681
    
    
    
    246,554,525Property and equipment, net
    
    
    2,198,370
    
    
    
    1,206,214Other assets
    
    
    78,675
    
    
    
    1,640,394Total assets
    
    $
    198,958,412
    
    
    $
    271,914,356Liabilities and members equityLiabilities:Accounts payable
    
    $
    22,454,271
    
    
    $
    9,677,386Accrued liabilities
    
    
    8,062,804
    
    
    
    11,667,159Customer deposits
    
    
    713,250
    
    
    
    5,060,493Advances from developer, net
    
    
    38,922,657
    
    
    
    18,450,191Bank borrowings
    
    
    79,260,288
    
    
    
    160,285,052Note payable to developer
    
    
    6,095,375
    
    
    
    995,375Total liabilities
    
    
    155,508,645
    
    
    
    206,135,656Members equity
    
    
    43,449,767
    
    
    
    65,778,700Total liabilities and members equity
    
    $
    198,958,412
    
    
    $
    271,914,356
 See accompanying notes.
 2




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Year Ended December 31,2007
    
    
    2006
    
    
    2005Home sales revenues
    
    $
    230,069,363
    
    
    $
    511,125,538
    
    
    $
    330,928,814Cost of home sales
    
    
    214,311,724
    
    
    
    385,907,448
    
    
    
    260,342,160Gross profit
    
    
    15,757,639
    
    
    
    125,218,090
    
    
    
    70,586,654Selling, general, and administrative expenses
    
    
    25,683,779
    
    
    
    32,724,239
    
    
    
    17,715,197Depreciation expense
    
    
    1,131,749
    
    
    
    1,413,363
    
    
    
    1,044,075(Loss) income from operations
    
    
    (11,057,889
    )
    
    
    91,080,488
    
    
    
    51,827,382Other (income) expense:Other income
    
    
    (301,797
    )
    
    
    (501,212
    )
    
    
    (93,905
    )Management fee expense
    
    
    11,591,041
    
    
    
    29,646,090
    
    
    
    19,948,798Net (loss) income
    
    $
    (22,347,133
    )
    
    $
    61,935,610
    
    
    $
    31,972,489
 See accompanying notes.
 3




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TOUSA
    
    
    Suntous
    
    
    TotalMembers equity at December 31, 2004
    
    $
    27,773,003
    
    
    $
    3,129,633
    
    
    $
    30,902,636Contributions
    
    
    8,068,779
    
    
    
    1,888,960
    
    
    
    9,957,739Distributions
    
    
    (5,673,533
    )
    
    
    
    
    
    
    (5,673,533
    )Net income
    
    
    27,176,616
    
    
    
    4,795,873
    
    
    
    31,972,489Members equity at December 31, 2005
    
    
    57,344,865
    
    
    
    9,814,466
    
    
    
    67,159,331Contributions
    
    
    
    
    
    
    290,881
    
    
    
    290,881Distributions
    
    
    (53,380,491
    )
    
    
    (10,226,631
    )
    
    
    (63,607,122
    )Net income
    
    
    52,645,269
    
    
    
    9,290,341
    
    
    
    61,935,610Members equity at December 31, 2006
    
    
    56,609,643
    
    
    
    9,169,057
    
    
    
    65,778,700Contributions
    
    
    
    
    
    
    18,200
    
    
    
    18,200Net loss
    
    
    (18,995,063
    )
    
    
    (3,352,070
    )
    
    
    (22,347,133
    )Members equity at December 31, 2007
    
    $
    37,614,580
    
    
    $
    5,835,187
    
    
    $
    43,449,767
 See accompanying notes.
 4




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Year Ended December 31,2007
    
    
    2006
    
    
    2005Operating activitiesNet (loss) income
    
    $
    (22,347,133
    )
    
    $
    61,935,610
    
    
    $
    31,972,489Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:Depreciation expense
    
    
    1,131,749
    
    
    
    1,413,363
    
    
    
    1,044,075Loss on impairment of inventory and abandonments
    
    
    14,545,316
    
    
    
    6,537,972
    
    
    
    Changes in operating assets and liabilities:Inventory
    
    
    38,813,529
    
    
    
    22,475,549
    
    
    
    (168,427,449
    )Other assets
    
    
    1,561,719
    
    
    
    2,791,772
    
    
    
    2,219,447Accounts payable
    
    
    12,776,885
    
    
    
    947,538
    
    
    
    8,722,339Accrued liabilities
    
    
    (3,604,355
    )
    
    
    1,737,798
    
    
    
    9,437,773Customer deposits
    
    
    (4,347,243
    )
    
    
    (8,715,857
    )
    
    
    11,071,150Net cash provided by (used in) operating activities
    
    
    38,530,467
    
    
    
    89,123,745
    
    
    
    (103,960,176
    )Investing activityAdditions to model furnishings and fixtures, net
    
    
    (2,123,905
    )
    
    
    (564,504
    )
    
    
    (1,820,866
    )Net cash used in investing activity
    
    
    (2,123,905
    )
    
    
    (564,504
    )
    
    
    (1,820,866
    )Financing activitiesNet (repayments to) proceeds from bank borrowings
    
    
    (81,024,765
    )
    
    
    (23,882,993
    )
    
    
    102,335,224Net proceeds from (repayments to) note payable
from developer
    
    
    5,100,000
    
    
    
    (11,337,695
    )
    
    
    12,333,070Advances from (repayments to) developer, net
    
    
    20,472,466
    
    
    
    17,423,246
    
    
    
    (186,257
    )Contributions
    
    
    18,200
    
    
    
    290,881
    
    
    
    9,957,739Distributions
    
    
    
    
    
    
    (63,607,122
    )
    
    
    (5,673,533
    )Net cash (used in) provided by financing activities
    
    
    (55,434,099
    )
    
    
    (81,113,683
    )
    
    
    118,766,243Net (decrease) increase in cash and cash equivalents
    
    
    (19,027,537
    )
    
    
    7,445,558
    
    
    
    12,985,201Cash and cash equivalents at beginning of year
    
    
    22,513,223
    
    
    
    15,067,665
    
    
    
    2,082,464Cash and cash equivalents at end of year
    
    $
    3,485,686
    
    
    $
    22,513,223
    
    
    $
    15,067,665
 See accompanying notes.
 5




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1. Organization and Nature of Business
      6




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2. Summary of Significant Accounting Policies
 Basis of Presentation
     Cash and Cash Equivalents
  Inventory
  7




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2. Summary of Significant Accounting Policies (continued)
 Accounting for the
Impairment or Disposal of Long-Lived Assets
 Property and Equipment
   Revenue Recognition
  8




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2. Summary of Significant Accounting Policies (continued)
 Warranty Costs
  Advertising Costs
  Fair Value of Financial Instruments
 Disclosures about Fair Value of Financial Instruments
 Concentration of Credit Risk
  Recent Accounting Pronouncements
 The Fair Value Option for Financial Assets and
Financial Liabilities
 9




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2. Summary of Significant Accounting Policies (continued)
 Fair Value
Measurements Accounting for Leases
 3. Inventory
  December 31,2007
    
    
    2006
    
    
    2005Interest capitalized, beginning of year
    
    $
    14,789,609
    
    
    $
    12,078,631
    
    
    $
    212,933Interest incurred
    
    
    11,374,573
    
    
    
    17,502,034
    
    
    
    27,106,849Less interest included in cost of sales
    
    
    9,953,661
    
    
    
    14,791,056
    
    
    
    15,241,151Interest capitalized, end of year
    
    $
    16,210,521
    
    
    $
    14,789,609
    
    
    $
    12,078,631
    10




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4. Accrued Liabilities
  December 31,2007
    
    
    2006Taxes, including Arizona privilege tax
and real estate
    
    $
    900,103
    
    
    $
    2,591,011Warranty costs
    
    
    468,120
    
    
    
    1,859,435Completion reserves
    
    
    1,367,330
    
    
    
    3,408,881Accrued expenses
    
    
    5,327,251
    
    
    
    3,807,832$
    8,062,804
    
    
    $
    11,667,159
 5. Bank Borrowings
   11




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5. Bank Borrowings (continued)
     12




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6. Income Tax Matters
  7. Related Party Transactions
 Structuring Fee
  Operating Management Fee
  13




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7. Related Party Transactions (continued)
 Construction Management Services Fee
  Finance Member Fee
  Advances From/Repayments to Developer
  14




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7. Related Party Transactions (continued)
 Notes Payable to Developer
   15