UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                            FORM 10-Q

        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

       For the quarterly period ended:  September 30, 2008

               Commission File Number:  333-144961


                   AEI INCOME & GROWTH FUND 27 LLC
     (Exact name of registrant as specified in its charter)


     State of Delaware                     20-8657207
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)        Identification No.)


    30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
             (Address of principal executive offices)

                          (651) 227-7333
                 (Registrant's telephone number)

                        Not  Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)

Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.          [X] Yes       No

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated filer, an accelerated filer, a non-accelerated filer,
or  a  smaller reporting company.  See the definitions of  "large
accelerated  filer," "accelerated filer" and  "smaller  reporting
company" in Rule 12b-2 of the Exchange Act.

   Large accelerated filer          Accelerated filer

   Non-accelerated filer            Smaller reporting company  [X]

Indicate by check mark whether the registrant is a shell  company
(as  defined  in  Rule 12b-2 of the Exchange  Act).   Yes  [X] No



                 AEI INCOME & GROWTH FUND 27 LLC

                              INDEX


Part I - Financial Information

 Item 1. Financial Statements:

         Balance Sheet as of September 30, 2008 and December  31, 2007
         Statements for the Periods ended September 30, 2008  and
         for the Periods from Inception (January 26, 2007)  to
         September 30, 2007:

           Operations

           Cash Flows

           Changes in Members' Equity (Deficit)

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis of Financial Condition
          and Results of Operations

 Item 3. Quantitative and Qualitative Disclosures About Market Risk

 Item 4T.Controls and Procedures

Part II - Other Information

 Item 1. Legal Proceedings

 Item 1A.Risk Factors

 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 Item 3. Defaults Upon Senior Securities

 Item 4. Submission of Matters to a Vote of Security Holders

 Item 5. Other Information

 Item 6. Exhibits

         Signatures

<PAGE>
                 AEI INCOME & GROWTH FUND 27 LLC
                          BALANCE SHEET
            SEPTEMBER 30, 2008 AND DECEMBER 31, 2007

                             ASSETS

                                                    2008          2007

CURRENT ASSETS:
  Cash and Cash Equivalents                     $ 2,211,272   $     1,038

INVESTMENTS IN REAL ESTATE:
  Land                                              209,889             0
  Buildings and Equipment                         1,155,442             0
  Accumulated Depreciation                          (28,886)            0
                                                 -----------   -----------
      Net Investments in Real Estate              1,336,445             0
                                                 -----------   -----------
          Total Assets                          $ 3,547,717   $     1,038
                                                 ===========   ===========

                         LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    68,124   $         0
  Distributions Payable                              40,193             0
  Unearned Rent                                       7,750             0
                                                 -----------   -----------
      Total Current Liabilities                     116,067             0
                                                 -----------   -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members                                  (12,742)        1,038
  Limited Members, $10 per Unit;
    10,000,000 Units authorized;
    408,997 Units issued and outstanding in 2008  3,444,392             0
                                                 -----------   -----------
      Total Members' Equity                       3,431,650         1,038
                                                 -----------   -----------
        Total Liabilities and Members' Equity   $ 3,547,717   $     1,038
                                                 ===========   ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 27 LLC
                     STATEMENT OF OPERATIONS
               FOR THE PERIODS ENDED SEPTEMBER 30


                                Three Months Ended       Nine Months Ended
                              9/30/08       9/30/07    9/30/08      9/30/07

RENTAL INCOME                 $ 23,250    $      0    $ 60,931     $      0

EXPENSES:
   LLC Administration -
     Affiliates                  8,223           0      14,478            0
   LLC Administration and
     Property Management -
     Unrelated Parties             545           0       3,771            0
   Depreciation                 11,554           0      28,886            0
                               --------    --------    --------     --------
        Total Expenses          20,322           0      47,135            0
                               --------    --------    --------     --------

OPERATING INCOME                 2,928           0      13,796            0

OTHER INCOME (EXPENSE):
   Interest Income               4,533          13       4,826           27
   Interest   Expense                0           0     (22,528)           0
                               --------    --------    --------     --------
NET INCOME (LOSS)             $  7,461    $     13    $ (3,906)    $     27
                               ========    ========    ========     ========

NET INCOME (LOSS) ALLOCATED:
   Managing Members           $    224    $     13    $(12,348)    $     27
   Limited Members               7,237           0       8,442            0
                               --------    --------    --------     --------
                              $  7,461    $     13    $ (3,906)    $     27
                               ========    ========    ========     ========

NET INCOME(LOSS)PER LLC UNIT  $    .03    $      0    $    .04     $      0
                               ========    ========    ========     ========

Weighted Average Units
  Outstanding                  259,915           0     237,064            0
                               ========    ========    ========     ========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 27 LLC
                     STATEMENT OF CASH FLOWS
    FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND FOR THE
 PERIOD FROM INCEPTION (JANUARY 26, 2007) TO SEPTEMBER 30, 2007

                                                     2008            2007
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income (Loss)                            $    (3,906)     $        27

   Adjustments To Reconcile Net Income (Loss)
   To Net Cash Provided By Operating Activities:
     Depreciation                                    28,886                0
     Increase in Payable to
        AEI Fund Management, Inc.                    34,430                0
     Increase in Unearned Rent                        7,750                0
                                                 -----------      -----------
        Total Adjustments                            71,066                0
                                                 -----------      -----------
         Net Cash Provided By
           Operating  Activities                     67,160               27
                                                 -----------      -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Investments in Real Estate                 (1,365,331)               0
                                                 -----------      -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from Note Payable                     1,301,000                0
   Payment on Note Payable                       (1,301,000)               0
   Capital Contributions from Managing Members            0            1,000
   Capital Contributions from Limited Members     4,089,966                0
   Organization and Syndication Costs              (574,033)               0
   Increase in Distributions Payable                 40,193                0
   Distributions to Members                         (47,721)               0
                                                 -----------      -----------
      Net Cash Provided By Financing Activities   3,508,405            1,000
                                                 -----------      -----------
NET INCREASE IN CASH
   AND CASH EQUIVALENTS                           2,210,234            1,027

CASH AND CASH EQUIVALENTS, beginning of period        1,038                0
                                                 -----------      -----------
CASH AND CASH EQUIVALENTS, end of period        $ 2,211,272      $     1,027
                                                 ===========      ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash Paid for Interest                        $    22,528      $         0
                                                 ===========      ===========
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
   Syndication Costs Payable to AEI
     Fund Management                            $    33,694      $         0
                                                 ===========      ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 27 LLC
        STATEMENT OF CHANGES IN MEMBERS' EQUITY (DEFICIT)
    FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND FOR THE
 PERIOD FROM INCEPTION (JANUARY 26, 2007) TO SEPTEMBER 30, 2007


                                                                   Limited
                                                                    Member
                             Managing     Limited                   Units
                             Members      Members      Total     Outstanding


BALANCE, January 26, 2007   $      0   $        0  $        0            0

  Capital Contributions        1,000            0       1,000            0

  Net Income                      27            0          27
                             --------   ----------  ----------   ----------
BALANCE, September 30, 2007 $  1,027   $        0  $    1,027            0
                             ========   ==========  ==========   ==========


BALANCE, December 31, 2007  $  1,038   $        0  $    1,038            0

  Capital Contributions            0    4,089,966   4,089,966    408,996.6

  Organization and
    Syndication Costs              0     (607,727)   (607,727)

  Distributions               (1,432)     (46,289)    (47,721)

  Net Income (Loss)          (12,348)       8,442      (3,906)
                             --------   ----------  ----------   ----------
BALANCE, September 30, 2008 $(12,742)  $3,444,392  $3,431,650    408,996.6
                             ========   ==========  ==========   ==========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 27 LLC
                  NOTES TO FINANCIAL STATEMENTS
                       SEPTEMBER 30, 2008

(1)  The  condensed  statements included herein have been  prepared
     by  the  registrant, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to   such  rules  and  regulations,  although  the  registrant
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     registrant's latest annual report on Form 10-KSB.

(2)  Organization -

     AEI  Income  &  Growth  Fund 27 LLC ("Company"),  a  Limited
     Liability Company, was formed on January 26, 2007 to acquire
     and  lease commercial properties to operating tenants.   The
     Company's operations are managed by AEI Fund Management XXI,
     Inc.  ("AFM"), the Managing Member.  Robert P. Johnson,  the
     President  and sole director of AFM, serves as  the  Special
     Managing  Member.  AFM is a wholly owned subsidiary  of  AEI
     Capital  Corporation of which Mr. Johnson  is  the  majority
     shareholder.    AEI  Fund  Management,  Inc.   ("AEI"),   an
     affiliate  of AFM, performs the administrative and operating
     functions for the Company.

     The  terms of the offering call for a subscription price  of
     $10 per LLC Unit, payable on acceptance of the offer.  Under
     the  terms of the Operating Agreement, 10,000,000 LLC  Units
     are  available for subscription which, if fully  subscribed,
     will  result  in  contributed Limited  Members'  capital  of
     $100,000,000.  The Company commenced operations on  June  5,
     2008   when  minimum  subscriptions  of  150,000  LLC  Units
     ($1,500,000)   were  accepted.   At  September   30,   2008,
     408,996.6 Units ($4,089,966) were subscribed and accepted by
     the  Company.  The Managing Members have contributed capital
     of $1,000.

     During operations, any Net Cash Flow, as defined, which  the
     Managing Members determine to distribute will be distributed
     97%  to  the Limited Members and 3% to the Managing Members.
     Distributions to Limited Members will be made  pro  rata  by
     Units.

                 AEI INCOME & GROWTH FUND 27 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the Managing Members determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner: (i) first,  99%  to  the
     Limited  Members  and 1% to the Managing Members  until  the
     Limited  Members  receive  an amount  equal  to:  (a)  their
     Adjusted  Capital Contribution plus (b) an amount  equal  to
     6.5%  of  their  Adjusted  Capital Contribution  per  annum,
     cumulative  but not compounded, to the extent not previously
     distributed  from Net Cash Flow; (ii) any remaining  balance
     will  be distributed 90% to the Limited Members and  10%  to
     the  Managing Members.  Distributions to the Limited Members
     will be made pro rata by Units.

     For  tax  purposes,  the  items of income,  gain,  loss  and
     deduction of the Company will be allocated among the Members
     in   a  manner  that  will  give  economic  effect  to   the
     distributions made by the Company.

(3)  Investments in Real Estate -

     The  Company leases its properties to various tenants  under
     net  leases,  classified as operating leases.  Under  a  net
     lease,  the  tenant  is responsible for real  estate  taxes,
     insurance,  maintenance, repairs and operating expenses  for
     the  property.  For some leases, the Company is  responsible
     for repairs to the structural components of the building and
     roof.

     On February 5, 2008, the Company purchased a Starbucks store
     in  Shreveport, Louisiana for $1,365,331 from  an  unrelated
     third party. The property is leased to Starbucks Corporation
     under a lease agreement with a remaining primary term of  10
     years and initial annual rent of $93,000.

     Subsequent  to September 30, 2008, the Company  purchased  a
     33%  interest in a Best Buy store in Lake Geneva,  Wisconsin
     for  approximately $1,991,000.  The property  is  leased  to
     Best  Buy  Stores,  L.P.  under a  Lease  Agreement  with  a
     remaining primary term of 10.3 years and initial annual rent
     of  $144,325  for  the  interest purchased.   The  remaining
     interests  in  the property were purchased by AEI  Income  &
     Growth Fund XXII Limited Partnership and AEI Income & Growth
     Fund 24 LLC, affiliates of the Company.

     Subsequent  to  September 30, 2008,  the  Company  issued  a
     commitment to purchase a 37% interest in a parcel of land in
     Rapid   City,  South  Dakota  for  approximately   $351,500.
     Simultaneous with the purchase of the land, the Company will
     enter into a Development Financing Agreement under which the
     Company  will  advance funds to Brad and Dad,  LLC  for  the
     construction of a Tractor Supply Company store on the  site.
     The purchase price, including the cost of the land, will  be
     approximately  $1,125,000.  The remaining  interest  in  the
     property  will be purchased by AEI Income & Growth Fund  XXI
     Limited Partnership, an affiliate of the Company.


                 AEI INCOME & GROWTH FUND 27 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     The  property  is leased to Tractor Supply Company  under  a
     Lease  Agreement with a primary term of 15 years and initial
     annual  rent  of  $83,250  for the  interest  that  will  be
     purchased.  Pursuant to the Lease, the tenant will  commence
     paying  rent on the day the store opens for business,  which
     is  expected to be in May 2009.  Pursuant to the development
     agreement, for the period from the day the land is purchased
     to  the day that the tenant commences paying rent, Brad  and
     Dad, LLC will pay the Company interest at a rate of 6.9%  on
     the  purchase price of the land and the amounts advanced for
     construction  of the building.  Pursuant to the  Lease,  any
     improvements to the land during the term of the Lease become
     the property of the Company.

(4)  Payable to AEI Fund Management, Inc. -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating  functions for the Company.  The  payable  to  AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.

(5)  Note Payable -

     In  order  to facilitate the purchase of its first property,
     the  Company  entered into a Line of Credit  Agreement  with
     Fidelity  Bank, Edina, Minnesota, for $1,301,000.  The  Note
     was  due  on August 1, 2008 and called for interest  at  the
     prime  rate minus 0.25% with the interest due on  the  first
     day  of  each  month. The Note was secured  by  all  of  the
     Company's assets and was guaranteed by the Special  Managing
     Member  and  AEI Capital Corporation, the parent company  of
     the  Managing  Member.  For the nine months ended  September
     30, 2008, interest expense related to the Note was $22,528.

     On  June  5, 2008, the Company used the majority of the  net
     proceeds   released  from  escrow  to  pay  the  outstanding
     principal  and  interest  due on  the  Note.   Although  the
     registration statement indicates that no properties will  be
     acquired using debt financing, debt was used to acquire this
     property  solely  to  finance  its  purchase  prior  to  the
     admission  of Limited Members. No property will be  acquired
     using  debt financing after the initial admission of Limited
     Members.

 (6) Recently Issued Accounting Pronouncements -

     In  December 2007, the Financial Accounting Standards  Board
     issued  Statement  of  Financial  Accounting  Standards  No.
     141(R)  ("SFAS 141(R)"), Business Combinations.  SFAS 141(R)
     requires,  among other things, the expensing of acquisition-
     related transaction costs.  Management anticipates that SFAS
     141(R) will be effective for property acquisitions completed
     on  or after January 1, 2009.  Management is evaluating  the
     effect  that  the adoption of SFAS 141(R) will have  on  the
     Company's results of operations, financial position, and the
     related disclosures.


                 AEI INCOME & GROWTH FUND 27 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(6)  Recently Issued Accounting Pronouncements - (Continued)

     In  September 2006, the Financial Accounting Standards Board
     issued  Statement of Financial Accounting Standards No.  157
     ("SFAS  157"),  Fair Value Measurements.  SFAS  157  defines
     fair  value,  establishes  a framework  for  measuring  fair
     value,   and   expands   disclosures   about   fair    value
     measurements.  The statement is effective for (1)  financial
     assets  and  liabilities in financial statements issued  for
     fiscal  years beginning after November 15, 2007, and interim
     periods  within  those  fiscal years and  (2)  certain  non-
     financial  assets  and  liabilities in financial  statements
     issued  for fiscal years beginning after November 15,  2008,
     and interim periods within those fiscal years.  When testing
     for  recoverability of properties under SFAS 144, Accounting
     for   Impairment  or  Disposal  of  Long-Lived  Assets,  the
     provisions  of  this statement are used when comparing  fair
     value  to  carrying  value.  Management  is  evaluating  the
     effect  that  the  adoption of SFAS 157  will  have  on  the
     Company's results of operations, financial position, and the
     related disclosures.

ITEM  2. MANAGEMENT'S  DISCUSSION  AND  ANALYSIS   OF   FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS.

        This  section contains "forward looking statements" which
represent management's expectations or beliefs concerning  future
events, including statements regarding anticipated application of
cash, expected returns from rental income, growth in revenue, the
sufficiency  of  cash  to  meet  operating  expenses,  rates   of
distribution,  and  other  matters.   These,  and  other  forward
looking  statements,  should be evaluated in  the  context  of  a
number  of  factors  that  may  affect  the  Company's  financial
condition and results of operations, including the following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Company owns and the cash  from
    rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    effects of these consequences for Members;

    resolution  by  the Managing Members of  conflicts  with
    which they may be confronted;

    the   success  of  the  Managing  Members  of   locating
    properties with favorable risk return characteristics;
    the effect of tenant defaults; and

    the  condition of the industries in which the tenants of
    properties owned by the Company operate.

The Application of Critical Accounting Policies

        The  preparation  of  the Company's financial  statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses to the Company as opposed to other funds they manage.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        The Company purchases properties and records them in  the
financial  statements at cost (including capitalized  acquisition
expenses).    The  Company  anticipates  that  for   acquisitions
completed  on  or  after  January  1,  2009,  acquisition-related
transaction costs will be expensed as incurred as a result of the
adoption  of  Statement  of  Financial Accounting  Standards  No.
141(R),  Business  Combinations.  The  Company  tests  long-lived
assets for recoverability when events or changes in circumstances
indicate  that  the carrying value may not be  recoverable.   For
properties   the  Company  will  hold  and  operate,   management
determines  whether  impairment has  occurred  by  comparing  the
property's   probability-weighted  cash  flows  to  its   current
carrying   value.   For  properties  held  for  sale,  management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.   Changes
in  these  assumptions or analysis may cause material changes  in
the carrying value of the properties.

        AEI  Fund Management, Inc. allocates expenses to each  of
the  funds  they manage primarily on the basis of the  number  of
hours  devoted  by their employees to each fund's affairs.   They
also  allocate  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds they manage.  The Company reimburses these  expenses
subject  to  detailed  limitations  contained  in  the  Operating
Agreement.

        Management  of the Company has discussed the  development
and   selection  of  the  above  accounting  estimates  and   the
management  discussion  and analysis disclosures  regarding  them
with the managing member of the Company.

Results of Operations

        The Company did not engage in any operations or incur any
expenses  during the period from inception through  December  31,
2007  and  its  only income was interest earned on  the  Managing
Members' capital contribution.

        For the nine months ended September 30, 2008, the Company
recognized rental income of $60,931, representing rent  from  one
property acquired during the period.  At September 30, 2008,  the
scheduled annual rent for this property was $93,000.

        For the nine months ended September 30, 2008, the Company
incurred  LLC administration expenses from affiliated parties  of
$14,478.   These administration expenses include costs associated
with  the management of the properties, processing distributions,
reporting requirements and correspondence to the Limited Members.
During  the  same period, the Company incurred LLC administration
and  property  management  expenses  from  unrelated  parties  of
$3,771.   These  expenses  represent  direct  payments  to  third
parties  for legal and filing fees, direct administrative  costs,
outside audit costs, taxes, insurance and other property costs.

       For the nine months ended September 30, 2008 and 2007, the
Company   recognized   interest  income  of   $4,826   and   $27,
respectively.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        For  the  nine months ended September 30, 2008,  interest
expense related to the Note on the Starbucks store in Shreveport,
Louisiana was $22,528.  The Note called for interest at the prime
rate  minus 0.25% with the interest due on the first day of  each
month.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle the Company to receive additional rent  in  future
years if gross receipts for the property exceed certain specified
amounts.   Increases  in sales volumes of  the  tenants,  due  to
inflation  and  real sales growth, may result in an  increase  in
rental  income over the term of the leases.  Inflation  also  may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

        The  Company's primary sources of cash are proceeds  from
the  sale  of Units, interest income, rental income and  proceeds
from  the  sale  of  property.  Its  primary  uses  of  cash  are
investment  in real properties, payment of expenses  involved  in
the sale of Units, the management of properties, the organization
and   administration  of  the  Company,  and   the   payment   of
distributions.

        The  Company  generated $67,160 of cash  from  operations
during  the  nine  months ended September 30, 2008,  representing
$42,180  in net timing differences in the collection of  payments
from  the  tenants and the payment of expenses,  and  a  non-cash
expense of $28,886 for depreciation, which were partially  offset
by a net loss of $3,906.

        The  major  components of the Company's  cash  flow  from
investing activities are investments in real estate and  proceeds
from  the sale of real estate.  On February 5, 2008, the  Company
purchased   a  Starbucks  store  in  Shreveport,  Louisiana   for
$1,365,331 from an unrelated third party.

       In order to facilitate the purchase of its first property,
the Company entered into a Line of Credit Agreement with Fidelity
Bank,  Edina,  Minnesota, for $1,301,000. The  Note  was  due  on
August  1,  2008, and was secured by all of the Company's  assets
and was guaranteed by the Special Managing Member and AEI Capital
Corporation, the parent company of the Managing Member.  On  June
5,  2008, the Company paid the outstanding principal and  accrued
interest  due  on the Note.  Although the registration  statement
indicates  that  no  properties  will  be  acquired  using   debt
financing,  debt  was  used to acquire this  property  solely  to
finance  its purchase prior to the admission of Limited  Members.
No  property  will  be  acquired using debt financing  after  the
initial admission of Limited Members.

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       During the offering of Units, the Company's primary source
of  cash  flow  is  from  the sale of  LLC  Units.   The  Company
commenced  its  offering of LLC Units to  the  public  through  a
registration  statement that became effective November  19,  2007
and  will continue until November 18, 2009, unless all 10,000,000
LLC  Units  are  sold  before then.  The  registration  statement
indicated  that  the  Company would not be capitalized,  and  all
subscription funds would be held in escrow, until the Company had
received  subscriptions  for  150,000  units  ($1,500,000).   The
Company obtained subscriptions for the 150,000 Units required for
release  of  escrow  proceeds and on June 5,  2008,  the  Company
accepted subscriptions for 168,513.6 Units for aggregate proceeds
of $1,685,136.  Through September 30, 2008, the Company raised  a
total  of  $4,089,966  from the sale of  408,996.6  Units.   From
subscription  proceeds,  the Company  incurred  organization  and
syndication  costs (which constitute a reduction of  capital)  of
$607,727.

        After  completion of the acquisition phase, the Company's
primary  use  of  cash  flow  will be  distribution  payments  to
Members.     The   Company   declares   its   regular   quarterly
distributions  before  the  end of  each  quarter  and  pays  the
distribution  in  the first week after the end of  each  quarter.
For  the  nine  months  ended September  30,  2008,  the  Company
declared  distributions of $47,721, which were allocated  97%  to
the Limited Members and 3% to the Managing Members.

        Beginning in May 2010, the Company may acquire Units from
Limited  Members  who have tendered their Units to  the  Company.
Such  Units may be acquired at a discount.  The Company will  not
be  obligated to purchase in any year more than 2% of  the  total
number  of  Units outstanding on January 1 of such year.   In  no
event shall the Company be obligated to purchase Units if, in the
sole  discretion  of  the Managing Member,  such  purchase  would
impair the capital or operation of the Company.

        The  Operating Agreement requires that all proceeds  from
the  sale  of Units, subject to a reasonable reserve for  ongoing
operations, be invested or committed to investment in  properties
by  the  later  of  two years after the date of the  registration
statement  or  twelve months after the offering  terminates.   At
September  30,  2008, we had entered into one formal  contractual
commitment  to expend capital and we entered into one  additional
commitment after this date.

        Subsequent to September 30, 2008, the Company purchased a
33%  interest  in a Best Buy store in Lake Geneva, Wisconsin  for
approximately $1,991,000.  Subsequent to September 30, 2008,  the
Company  issued  a  commitment to purchase a 37%  interest  in  a
parcel  of  land  in  Rapid City, South Dakota for  approximately
$351,500.   Simultaneous  with the  purchase  of  the  land,  the
Company  will enter into a Development Financing Agreement  under
which the Company will advance funds to Brad and Dad, LLC for the
construction of a Tractor Supply Company store on the site.   The
purchase  price,  including  the  cost  of  the  land,  will   be
approximately $1,125,000.

        Until capital is invested in properties, the Company will
remain   extremely   liquid.   After   completion   of   property
acquisitions, the Company will attempt to maintain a cash reserve
of  only  approximately  .5% of subscription  proceeds.   Because
properties  are purchased for cash and leased under  net  leases,
this is considered adequate to satisfy most contingencies.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not applicable.

ITEM 4T. CONTROLS AND PROCEDURES.

       (a)  Disclosure Controls and Procedures.

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the Managing Member of the Company evaluated the effectiveness of
the   design  and  operation  of  our  disclosure  controls   and
procedures  (as  defined in Rule 13a-15(e) under  the  Securities
Exchange  Act  of  1934 (the "Exchange Act")).  Based  upon  that
evaluation,  the  President and Chief Financial  Officer  of  the
Managing  Member  concluded that, as of the  end  of  the  period
covered  by  this report, our disclosure controls and  procedures
were  effective  in  ensuring  that information  required  to  be
disclosed  by us in the reports that we file or submit under  the
Exchange  Act  is  recorded, processed, summarized  and  reported
within  the time periods specified in applicable rules and  forms
and  that  such  information is accumulated and  communicated  to
management,  including the President and Chief Financial  Officer
of  the Managing Member, in a manner that allows timely decisions
regarding required disclosure.

       (b)  Changes in Internal Control Over Financial Reporting.

        During  the  most recent period covered by  this  report,
there  has  been no change in our internal control over financial
reporting  (as defined in Rule 13a-15(f) under the Exchange  Act)
that  has  materially  affected,  or  is  reasonably  likely   to
materially affect, our internal control over financial reporting.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS.

        There are no material pending legal proceedings to  which
the  Company  is  a party or of which the Company's  property  is
subject.

ITEM 1A. RISK FACTORS.

       Not applicable.

ITEM  2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

       (a) None.

        (b) The registration statement for the offering (No. 333-
144961)  was  declared  effective  on  November  19,  2007.   The
offering  commenced  on November 19, 2007 and  is  ongoing.   AEI
Securities,  Inc.  (ASI) is the dealer manager of  the  offering.
The  registration  statement covers 10,000,000 Units  of  limited
liability  company interest at an aggregate price of up  to  $100
million.   Through  September  30, 2008,  the  Company  had  sold
408,996.6 Units for gross offering proceeds of $4,089,966.


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM  2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

       From gross offering proceeds, the Company paid $401,143 in
selling commissions to ASI, an affiliate of the Managing Members.
Of  this  amount, $262,869 was re-allowed by ASI to participating
broker-dealers  not  affiliated with the Managing  Members.   The
gross  offering  proceeds  were further reduced  by  underwriting
discounts of $2,086 and other organization and syndication  costs
of  $204,498  of which $105,748 was paid to AEI Fund  Management,
Inc., an affiliate of the Managing Members, for costs incurred in
connection with managing the Company's offering and organization.
From  inception  to  September 30,  2008,  the  Company  incurred
commissions,   organization   and  syndication   costs   totaling
$607,727.

        From  the  net  offering proceeds, the  Company  expended
$1,365,331 to acquire real estate of which $1,301,000 represented
cash  paid  to  unaffiliated  sellers  of  real  estate,  $19,515
represented  an  acquisition  administration  fee  paid  to   the
Managing  Member and $44,816 represented cash paid  to  reimburse
AEI  Fund Management, Inc. for costs and direct expenses incurred
by it in acquiring properties on behalf of the Company.

        (c) Beginning in May 2010, pursuant to Section 7.7 of the
Operating Agreement, each Limited Member has the right to present
Units  to  the Company for purchase by submitting notice  to  the
Managing  Member during January or July of each year.   From  May
2010  through November 2011, the purchase price of the  Units  is
equal  to  90% of the net asset value per Unit, as of  the  first
business  day  of January or July of each year, as determined  by
the  Managing  Member in accordance with the  provisions  of  the
Operating Agreement.  After November 2011, the purchase price  is
equal to 95% of the net asset value per Unit.  The purchase price
is  equal to 100% of the net asset value per Unit in the case  of
Units  of  a  deceased investor, who purchased the Units  in  the
initial  offering  and who is a natural person,  including  Units
held  by  an investor that is an IRA or other qualified plan  for
which  the deceased person was the primary beneficiary, or  Units
held  by  an  investor  that is a grantor  trust  for  which  the
deceased person was the grantor.

        Units tendered to the Company during January and July are
redeemed on April 1st and October 1st, respectively, of each year
subject  to the following limitations.  The Company will  not  be
obligated  to  purchase in any year more than  2%  of  the  total
number  of  Units outstanding on January 1 of such year.   In  no
event shall the Company be obligated to purchase Units if, in the
sole  discretion  of  the Managing Member,  such  purchase  would
impair  the  capital  or operation of the  Company.   During  the
period  covered by this report, the Company did not purchase  any
Units.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES.

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

      None

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 5.OTHER INFORMATION.

      None.

ITEM 6.EXHIBITS.

    10.1   Assignment  and  Assumption  of  Purchase   and   Sale
    Agreement  dated September 24, 2008 between the Company,  AEI
    Income  & Growth Fund XXII Limited Partnership, AEI Income  &
    Growth Fund 24 LLC and AEI Fund Management, Inc. relating  to
    the  Property  at 700 North Edwards Boulevard,  Lake  Geneva,
    Wisconsin (incorporated by reference to Exhibit 10.1 of  Form
    8-K filed October 10, 2008).

    10.2  Assignment  and Assumption of Lease  dated  October  6,
    2008  between  the  Company, AEI Income &  Growth  Fund  XXII
    Limited  Partnership, AEI Income & Growth  Fund  24  LLC  and
    Ryan  Companies  US,  Inc. relating to the  Property  at  700
    North    Edwards    Boulevard,   Lake    Geneva,    Wisconsin
    (incorporated by reference to Exhibit 10.2 of Form 8-K  filed
    October 10, 2008).

    31.1  Certification  of Chief Executive Officer  of  Managing
    Member  pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification  of Chief Financial Officer  of  Managing
    Member  pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    32    Certification  of  Chief Executive  Officer  and  Chief
    Financial Officer of Managing Member pursuant to Section  906
    of the Sarbanes-Oxley Act of 2002.


                           SIGNATURES

        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, the registrant has duly caused this report  to  be
signed   on   its  behalf  by  the  undersigned  thereunto   duly
authorized.

Dated:  November 11, 2008     AEI Income & Growth Fund 27 LLC
                              By:  AEI Fund Management XXI, Inc.
                              Its: Managing Member



                              By: ROBERT P JOHNSON
                                  ROBERT P JOHNSON
                                  President
                                  (Principal Executive Officer)



                              By: PATRICK W KEENE
                                  PATRICK W KEENE
                                  Chief Financial Officer
                                  (Principal Accounting Officer)