##### Table of Contents

---

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)



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

For the quarterly period ended September 30, 2006

OR



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

Commission file number: 0-16467

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)



|                                |  |                    
|------------------------------- |  | -------------------
|California                      |  | 33-0098488         
|(State or other jurisdiction of |  | (I.R.S. Employer   
|incorporation or organization)  |  | Identification No.)



|                                     |  |           
|------------------------------------ |  | ----------
|400 South El Camino Real, Suite 1100 |  |           
|San Mateo, California                |  | 94402-1708
|(Address of principal                |  | (Zip Code)
|executive offices)                   |  |           

(650) 343-9300

(Registrants telephone number, including area code)

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.    Yes  x    No ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ̈Accelerated Filer ̈Non-accelerated filer  x

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



---



---

##### Table of Contents

INDEX

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP



|           |  |                                                                                                       |  |         
|---------- |  | ----------------------------------------------------------------------------------------------------- |  | --------
|           |  |                                                                                                       |  | Page No.
|           |  |                                                                                                      
|           |  | EXPLANATORY NOTE                                                                                      |  | 3       
|           |  |                                                                                                      
|PART I     |  | FINANCIAL INFORMATION                                                                                 |  |         
|           |  |                                                                                                      
|Item 1.    |  | Consolidated Financial Statements of Rancon Realty Fund V (Unaudited):                                |  |         
|           |  |                                                                                                      
|           |  | Consolidated Balance Sheets at September 30, 2006 and December 31, 2005                               |  | 4       
|           |  |                                                                                                      
|           |  | Consolidated Statements of Operations for the three and nine months ended September 30, 2006 and 2005 |  | 5       
|           |  |                                                                                                      
|           |  | Consolidated Statement of Partners Equity for the nine months ended September 30, 2006               |  | 6       
|           |  |                                                                                                      
|           |  | Consolidated Statements of Cash Flows for the nine months ended September 30, 2006 and 2005           |  | 7-8     
|           |  |                                                                                                      
|           |  | Notes to Consolidated Financial Statements                                                            |  | 9-15    
|           |  |                                                                                                      
|PART II    |  | OTHER INFORMATION                                                                                     |  |         
|           |  |                                                                                                      
|Item 6.    |  | Exhibits                                                                                              |  | 16      
|           | 
|SIGNATURES |  | 17                                                                                                   



2



---

##### Table of Contents

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-Q/A (this Amendment) is being filed
to amend our Quarterly Report on Form 10-Q for the period ended September 30, 2006, as filed with the Securities and Exchange Commission (the SEC) on November 17, 2006 (the Original Filing) to correct
a typographical error with respect to the net loss per limited partnership unit (Unit). This typographical error was identified by Rancon Realty Fund V, a California Limited Partnership (the Partnership) during
the preparation of its Quarterly Report on Form 10-Q for the period ended September 30, 2007.

For the nine months ended
September 30, 2006, the Partnership reported net income of $15,000. As reported in the Consolidated Statement of Partners Equity, under the terms of the Partnership agreement, the Partnership reported a net loss for the limited partners
of $7,000. Based on the number of Units outstanding, the net loss per Unit was ($0.08). The amount of net loss per Unit for the nine months ended September 30, 2006 in the Consolidated Statements of Operations was inadvertently reported as net
income of $0.08 per Unit, instead of net loss of ($0.08) per Unit.

This Amendment contains Item 1 of Part 1, as amended. In
connection with the filing of this Amendment and pursuant to the rules of the SEC, we are also including with this Amendment certain currently dated certifications under Item 6 of Part II. Other than correcting the typographical error in the
reported amount of net income (loss) per Unit in the Consolidated Statements of Operations, there is no change to the Notes to the Consolidated Financial Statements or Managements Discussion and Analysis from the version filed in the Original
Filing. Furthermore, no other reference was made to net income (loss) per Unit for the nine months ended September 30, 2006 in the Original Filing.

Except as described above, no other changes have been made to the Original Filing. The Original Filing continues to speak as of the date of the Original Filing, and we have not updated disclosures therein to reflect
any events which have occurred at a date subsequent to the filing of the Original Filing.



3



---

##### Table of Contents

PART I. FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Consolidated Balance Sheets

(in thousands,
except units outstanding)

(Unaudited)



|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|---------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                                                                   |  | September 30,2006 |         |   | December 31,2005 |  
|Assets                                                                                                                             |  |                   |         |   |                  |   |         |  
|Investments in real estate:                                                                                                        |  |                   |         |   |                  |   |         |  
|Rental properties                                                                                                                  |  | $                 | 75,489  |   |                  | $ | 57,538  |  
|Accumulated depreciation                                                                                                           |  |                   | (16,797 | ) |                  |   | (14,693 | )
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Rental properties, net                                                                                                             |  |                   | 58,692  |   |                  |   | 42,845  |  
|Construction in progress                                                                                                           |  |                   | 451     |   |                  |   | 15,437  |  
|Land held for development                                                                                                          |  |                   | 1,127   |   |                  |   | 899     |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Total investments in real estate                                                                                                   |  |                   | 60,270  |   |                  |   | 59,181  |  
|Cash and cash equivalents                                                                                                          |  |                   | 4,417   |   |                  |   | 3,437   |  
|Short-term investments                                                                                                             |  |                   | 10,000  |   |                  |   |        |  
|Accounts receivable                                                                                                                |  |                   | 939     |   |                  |   | 704     |  
|Deferred costs, net of accumulated amortization of $1,054 and $1,061 at September 30, 2006 and December 31, 2005,
respectively     |  |                   | 3,148   |   |                  |   | 2,666   |  
|Prepaid expenses and other assets                                                                                                  |  |                   | 2,539   |   |                  |   | 666     |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Total assets                                                                                                                       |  | $                 | 81,313  |   |                  | $ | 66,654  |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Liabilities and Partners equity                                                                                                   |  |                   |         |   |                  |   |         |  
|Liabilities:                                                                                                                       |  |                   |         |   |                  |   |         |  
|Notes payable and line of credit                                                                                                   |  | $                 | 56,367  |   |                  | $ | 37,824  |  
|Accounts payable and other liabilities                                                                                             |  |                   | 824     |   |                  |   | 759     |  
|Improvement and construction costs payable                                                                                         |  |                   | 139     |   |                  |   | 2,545   |  
|Prepaid rent                                                                                                                       |  |                   | 161     |   |                  |   | 212     |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Total liabilities                                                                                                                  |  |                   | 57,491  |   |                  |   | 41,340  |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Commitments and contingencies (Notes 3 and 7)                                                                                      |  |                   |         |   |                  |   |         |  
|Partners equity (deficit):                                                                                                        |  |                   |         |   |                  |   |         |  
|General Partner                                                                                                                    |  |                   | (702    | ) |                  |   | (610    | )
|Limited partners 83,911 and 85,206 limited partnership units outstanding at September 30, 2006 and December 31, 2005, respectively |  |                   | 24,524  |   |                  |   | 25,924  |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Total partners equity                                                                                                             |  |                   | 23,822  |   |                  |   | 25,314  |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  
|Total liabilities and partners equity                                                                                             |  | $                 | 81,313  |   |                  | $ | 66,654  |  
|                                                                                                                                   |  |                   |         |   |                  |   |         |  

The accompanying notes are an integral part of these consolidated financial statements.



4



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Consolidated Statements of Operations

(in
thousands, except per unit amounts and units outstanding)

(Unaudited)



|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|--------------------------------------------------------------------------------------------- |  | ------------------------------- | ------ | - | ------------------------------ | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                                                                                              |  | Three months endedSeptember 30, |        |   | Nine months endedSeptember 30, |  
|                                                                                              |  | 2006                            |        |   | 2005                           |   |        | 2006 |  |   | 2005   |  
|Operating Revenue                                                                             |  | $                               | 3,384  |   |                                | $ | 2,648  |      |  | $ | 9,820  |   |  | $ | 7,695  |  
|Operating Expenses                                                                            |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Property operating                                                                            |  |                                 | 1,669  |   |                                |   | 1,299  |      |  |   | 4,020  |   |  |   | 3,254  |  
|Depreciation and amortization                                                                 |  |                                 | 1,175  |   |                                |   | 769    |      |  |   | 3,155  |   |  |   | 2,155  |  
|Expenses associated with undeveloped land                                                     |  |                                 | 23     |   |                                |   | 38     |      |  |   | 55     |   |  |   | 136    |  
|General and administrative                                                                    |  |                                 | 214    |   |                                |   | 262    |      |  |   | 746    |   |  |   | 730    |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Total operating expenses                                                                      |  |                                 | 3,081  |   |                                |   | 2,368  |      |  |   | 7,976  |   |  |   | 6,275  |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Operating income                                                                              |  |                                 | 303    |   |                                |   | 280    |      |  |   | 1,844  |   |  |   | 1,420  |  
|Interest and other income                                                                     |  |                                 | 149    |   |                                |   | 20     |      |  |   | 272    |   |  |   | 66     |  
|Interest expense                                                                              |  |                                 | (802   | ) |                                |   | (285   | )    |  |   | (1,874 | ) |  |   | (857   | )
|Loss on early extinguishment of debt                                                          |  |                                 |       |   |                                |   |       |      |  |   | (227   | ) |  |   |       |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|(Loss) income from continuing operations                                                      |  |                                 | (350   | ) |                                |   | 15     |      |  |   | 15     |   |  |   | 629    |  
|Income from discontinued operations (including gain on sale of real estate of $1,202 in 2005) |  |                                 |       |   |                                |   |       |      |  |   |       |   |  |   | 1,219  |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Net (loss) income                                                                             |  | $                               | (350   | ) |                                | $ | 15     |      |  | $ | 15     |   |  | $ | 1,848  |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Basic and diluted net (loss) income per limited partnership unit                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Continuing operations                                                                         |  | $                               | (3.75  | ) |                                | $ | 0.16   |      |  | $ | (0.08  | ) |  | $ | 6.71   |  
|Discontinued operations                                                                       |  |                                 |       |   |                                |   |       |      |  |   |       |   |  |   | 13.17  |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|                                                                                              |  | $                               | (3.75  | ) |                                | $ | 0.16   |      |  | $ | (0.08  | ) |  | $ | 19.88  |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  
|Weighted average number of limited partnership units outstanding during each period           |  |                                 | 83,912 |   |                                |   | 86,130 |      |  |   | 84,232 |   |  |   | 86,664 |  
|                                                                                              |  |                                 |        |   |                                |   |        |      |  |   |        |   |  |   |        |  

The accompanying notes are an integral part of these consolidated financial statements.



5



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Consolidated Statement of Partners Equity

For the nine months ended September 30, 2006

(in thousands)

(Unaudited)



|                                                    |  |                 |      |   |                 |   |        |       |  |   |        |  
|--------------------------------------------------- |  | --------------- | ---- | - | --------------- | - | ------ | ----- |  | - | ------ | -
|                                                    |  | General Partner |      |   | LimitedPartners |   |        | Total | 
|Balance (deficit) at December 31, 2005              |  | $               | (610 | ) |                 | $ | 25,924 |       |  | $ | 25,314 |  
|Redemption of limited partnership units             |  |                 |     |   |                 |   | (364   | )     |  |   | (364   | )
|Net income (loss)                                   |  |                 | 22   |   |                 |   | (7     | )     |  |   | 15     |  
|Distributions ($12.21 per limited partnership unit) |  |                 | (114 | ) |                 |   | (1,029 | )     |  |   | (1,143 | )
|                                                    |  |                 |      |   |                 |   |        |       |  |   |        |  
|Balance (deficit) at September 30, 2006             |  | $               | (702 | ) |                 | $ | 24,524 |       |  | $ | 23,822 |  
|                                                    |  |                 |      |   |                 |   |        |       |  |   |        |  

The accompanying notes are an integral part of these consolidated financial statements.



6



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Consolidated Statements of Cash Flows

(in
thousands)

(Unaudited)



|                                                                                            |  |                                |         |   |      |   |         |  
|------------------------------------------------------------------------------------------- |  | ------------------------------ | ------- | - | ---- | - | ------- | -
|                                                                                            |  | Nine months endedSeptember 30, |        
|                                                                                            |  | 2006                           |         |   | 2005 |  
|Cash flows from operating activities:                                                       |  |                                |         |   |      |   |         |  
|Net income                                                                                  |  | $                              | 15      |   |      | $ | 1,848   |  
|Adjustments to reconcile net income to net cash provided by operating activities:           |  |                                |         |   |      |   |         |  
|Gain on sale of real estate                                                                 |  |                                |        |   |      |   | (1,202  | )
|Loss on early extinguishment of debt                                                        |  |                                | 227     |   |      |   |        |  
|Depreciation and amortization (including discontinued operations)                           |  |                                | 3,155   |   |      |   | 2,158   |  
|Amortization of loan fees, included in interest expense (including discontinued operations) |  |                                | 73      |   |      |   | 115     |  
|Changes in certain assets and liabilities:                                                  |  |                                |         |   |      |   |         |  
|Accounts receivable                                                                         |  |                                | (313    | ) |      |   | (161    | )
|Deferred costs                                                                              |  |                                | (747    | ) |      |   | (639    | )
|Prepaid expenses and other assets                                                           |  |                                | (1,873  | ) |      |   | (394    | )
|Accounts payable and other liabilities                                                      |  |                                | 366     |   |      |   | 79      |  
|Prepaid rent                                                                                |  |                                | (51     | ) |      |   | (1      | )
|                                                                                            |  |                                |         |   |      |   |         |  
|Net cash provided by operating activities                                                   |  |                                | 852     |   |      |   | 1,803   |  
|                                                                                            |  |                                |         |   |      |   |         |  
|Cash flows from investing activities:                                                       |  |                                |         |   |      |   |         |  
|Purchase of short-term investments                                                          |  |                                | (10,000 | ) |      |   |        |  
|Net proceeds from sale of real estate                                                       |  |                                |        |   |      |   | 2,032   |  
|Additions to real estate investments                                                        |  |                                | (5,777  | ) |      |   | (12,144 | )
|Payments received from tenant improvement note receivable                                   |  |                                | 78      |   |      |   | 71      |  
|                                                                                            |  |                                |         |   |      |   |         |  
|Net cash used for investing activities                                                      |  |                                | (15,699 | ) |      |   | (10,041 | )
|                                                                                            |  |                                |         |   |      |   |         |  
|Cash flows from financing activities:                                                       |  |                                |         |   |      |   |         |  
|Proceeds from note payable                                                                  |  |                                | 30,000  |   |      |   | 6,028   |  
|Draws on construction note payable                                                          |  |                                | 2,338   |   |      |   |        |  
|Draws on lines of credit                                                                    |  |                                |        |   |      |   | 4,315   |  
|Payoff of construction note payable                                                         |  |                                | (9,362  | ) |      |   |        |  
|Payoff of line of credit                                                                    |  |                                | (4,000  | ) |      |   |        |  
|Principal payments on note payable                                                          |  |                                | (433    | ) |      |   | (165    | )
|Loan fee                                                                                    |  |                                | (458    | ) |      |   | (328    | )
|Redemption of limited partnership units                                                     |  |                                | (915    | ) |      |   | (678    | )
|Distribution to limited partners                                                            |  |                                | (1,029  | ) |      |   | (901    | )
|Distribution to General Partner                                                             |  |                                | (314    | ) |      |   |        |  
|                                                                                            |  |                                |         |   |      |   |         |  
|Net cash provided by financing activities                                                   |  |                                | 15,827  |   |      |   | 8,271   |  
|                                                                                            |  |                                |         |   |      |   |         |  
|Net increase in cash and cash equivalents                                                   |  |                                | 980     |   |      |   | 33      |  
|Cash and cash equivalents at beginning of period                                            |  |                                | 3,437   |   |      |   | 967     |  
|                                                                                            |  |                                |         |   |      |   |         |  
|Cash and cash equivalents at end of period                                                  |  | $                              | 4,417   |   |      | $ | 1,000   |  
|                                                                                            |  |                                |         |   |      |   |         |  

The accompanying notes are an integral part of these consolidated financial statements.



7



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)



|                                                                                                                                 |  |                                 |       |      |   |       |  
|-------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------- | ----- | ---- | - | ----- | -
|                                                                                                                                 |  | Nine months ended September 30, |      
|                                                                                                                                 |  | 2006                            |       | 2005 |  
|Supplemental disclosure of cash flow information:                                                                                |  |                                 |       |      |   |       |  
|Cash paid for interest (net of capitalized interest of $330 and $445 at September 30, 2006 and September 30, 2005, respectively) |  | $                               | 1,801 |      | $ | 770   |  
|                                                                                                                                 |  |                                 |       |      |   |       |  
|Premium paid on redemption of limited partnership units                                                                          |  | $                               | 450   |      | $ |      |  
|                                                                                                                                 |  |                                 |       |      |   |       |  
|Supplemental disclosure of non-cash financing activities:                                                                        |  |                                 |       |      |   |       |  
|Completed real estate investment transferred out of construction in Progress to rental property                                  |  | $                               |      |      | $ | 7,303 |  
|                                                                                                                                 |  |                                 |       |      |   |       |  
|Redemption of limited partnership units                                                                                          |  | $                               |      |      | $ | 55    |  
|Redemption payable                                                                                                               |  |                                 |      |      |   | (55   | )
|                                                                                                                                 |  |                                 |       |      |   |       |  
|                                                                                                                                 |  | $                               |      |      | $ |      |  
|                                                                                                                                 |  |                                 |       |      |   |       |  
|Supplemental disclosure of non-cash investing activities:                                                                        |  |                                 |       |      |   |       |  
|Write-off of fully depreciated rental property assets                                                                            |  | $                               | 658   |      | $ | 900   |  
|                                                                                                                                 |  |                                 |       |      |   |       |  
|Write-off of fully amortized deferred costs                                                                                      |  | $                               | 297   |      | $ | 299   |  
|                                                                                                                                 |  |                                 |       |      |   |       |  

The accompanying notes are an integral part of these consolidated financial statements.



8



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



|Note | 1. ORGANIZATION
|---- | ---------------

Rancon Realty Fund V, a California Limited
Partnership, (the Partnership), was organized in accordance with the provisions of the California Revised Limited Partnership Act for the purpose of acquiring, developing, operating and selling real property. The Partnership was
organized in 1985 and reached final funding in 1989. The general partners of the Partnership are Daniel L. Stephenson and Rancon Financial Corporation (RFC), hereinafter collectively referred to as the General Partner. RFC is
wholly owned by Daniel L. Stephenson. The Partnership has no employees.

During the three months ended September 30, 2006, a total of 1,295 units of
limited partnership interest (Units) were redeemed at an average price of $629. As of September 30, 2006, there were 83,911 Units outstanding.

The partnership commenced on May 8, 1985 and shall continue until December 31, 2015, unless previously terminated in accordance with the provisions of the Partnership Agreement.

Allocation of Net Income and Net Loss

Allocations of net
income and net loss are made pursuant to the terms of the Partnership Agreement. Generally, net income and net loss from operations are allocated 90% to the limited partners and 10% to the General Partner; however, if the limited partners and the
General Partner have, as a result of an allocation of net loss, a deficit balance in their capital accounts, net loss shall not be allocated to the limited partners and General Partner in excess of the positive balance until the balances of the
limited partners and General Partners capital accounts are reduced to zero. Capital accounts shall be determined after taking into account the other allocations and distributions for the fiscal year.

Net income other than net income from operations shall be allocated as follows: (i) first, to the partners who have a deficit balance in their capital account,
provided that, in no event shall the General Partner be allocated more than 5% of the net income other than net income from operations until the earlier of sale or disposition of substantially all of the assets or the distribution of cash (other
than cash from operations) equal to the Unitholders original invested capital; (ii) second, to the limited partners in proportion to and to the extent of the amounts to increase their capital accounts to an amount equal to the sum of the
adjusted invested capital of their units plus an additional cumulative non-compounded 12% return per annum (plus additional amounts depending on the date Units were purchased); (iii) third, to the partners in the minimum amount required to
first equalize their capital accounts in proportion to the number of units owned, and then, to bring the sum of the balances of the capital accounts of the limited partners and the General Partner into the ratio of 4 to 1; and (iv) the balance,
if any, 80% to the limited partners and 20% to the General Partner. In no event shall the General Partner be allocated less than 1% of the net income other than net income from operations for any period.

Net losses other than net losses from operations are allocated 99% to the limited partners and 1% to the General Partner. Such net losses will be allocated among limited
partners as necessary to equalize their capital accounts in proportion to their Units, and thereafter will be allocated in proportion to their Units.

The
terms of the Partnership agreement call for the General Partner to restore any deficit that may exist in its capital account after allocation of gains and losses from the sale of the final property owned by the Partnership, but prior to any
liquidating distributions being made to the partners.

Distribution of Cash

The Partnership shall make annual or more frequent distributions of substantially all cash available to be distributed to partners as determined by the General Partner, subject to the following: (i) distributions
may be restricted or suspended for limited periods when the General Partner determines in its absolute discretion that it is in the best interest of the Partnership; and (ii) all distributions are subject to the payment of partnership expenses
and maintenance of reasonable reserves for debt service, alterations, improvements, maintenance, replacement of furniture and fixtures, working capital and contingent liabilities.

All excess cash from operations shall be distributed 90% to the limited partners and 10% to the General Partner.

All cash
from sales or refinancing and any other cash determined by the General Partner to be available for distribution other than cash from operations shall be distributed in the following order of priority: (i) first, 1% to the General Partner and
99% to the limited partners in proportion to the outstanding positive amounts of Adjusted Invested Capital (as defined in the Partnership Agreement) for each of their Units until Adjusted Invested Capital (as defined in the Partnership Agreement)
for each Unit is reduced to zero; (ii) second, 1% to the General Partner and 99% to the limited partners until each of the limited partners has received an amount which, including cash from operations previously distributed to the limited
partners, equals a 12% annual cumulative non-compounded return on the Adjusted Invested Capital (as defined in the Partnership Agreement) of their Units plus such limited partners Limited Incremental Preferential Return (as defined in the
Partnership Agreement), if any, with respect to each such Unit, on the Adjusted Investment Capital (as defined in the Partnership Agreement) of such Units for the



9



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



twelve month period following the date upon which such Unit was purchased from the Partnership and following the admission of such limited partner;
(iii) third, 99% to the General Partner and 1% to the limited partners, until the General Partner has received an amount equal to 20% of all distributions of cash from sales or refinancing; and (iv) the balance, 80% to the limited
partners, pro rata in proportion to the number of Units held by each, and 20% to the General Partner.

Risks and Uncertainties

The Partnerships ability to (i) achieve positive cash flow from operations, (ii) meet its debt obligations, (iii) provide distributions either from
operations or the ultimate disposition of the Partnerships properties or (iv) continue as a going concern may be impacted by changes in interest rates, property values, local and regional economic conditions, or the entry of other
competitors into the market. The accompanying consolidated financial statements do not provide for adjustments with regard to these uncertainties. See Item 1A Risk Factors in our annual report on Form 10-K for the year ended
December 31, 2005 and in this quarterly report on Form 10-Q for the quarter ended September 30, 2006 for a discussion of the risks that may effect the Partnerships results of operations and ability to meet financial obligations.



|Note | 2. SIGNIFICANT ACCOUNTING POLICIES
|---- | ----------------------------------

Basis of presentation

The accompanying consolidated financial statements present the consolidated financial position of the Partnership and its wholly-owned subsidiaries
as of September 30, 2006 and December 31, 2005, and the consolidated Statements of Operations of the Partnership and its wholly-owned subsidiaries for the three and nine months ended September 30, 2006 and 2005, and the consolidated
Statements of cash flows of the Partnership and its wholly-owned subsidiaries for the nine months ended September 30, 2006 and 2005. All significant intercompany transactions and balances have been eliminated in consolidation.

In the opinion of the General Partner, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal accruals)
necessary to present fairly the consolidated financial position of the Partnership as of September 30, 2006 and December 31, 2005, the related consolidated statements of operations for the three and nine months ended September 30,
2006 and 2005, partners equity for the nine months ended September 30, 2006 and cash flows for the nine months ended September 30, 2006 and 2005. These consolidated financial statements should be read in conjunction with the
Partnerships Annual Report on Form 10-K for the year ended December 31, 2005.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.

Consolidation

In May 1996, the Partnership formed RRF V
Tri-City Limited Partnership, a Delaware limited partnership (RRF V Tri-City). The limited partner of RRF V Tri-City is the Partnership and the general partner is RRF V, Inc. (RRF V, Inc.), a corporation wholly-owned by the
Partnership. Since the Partnership owns 100% of RRF V, Inc. and indirectly owns 100% of RRF V Tri-City, the financial statements of RRF V, Inc. and RRF V Tri-City have been consolidated with those of the Partnership. In November 2005, the
Partnership formed Rancon Realty Fund V Subsidiary LLC, a Delaware limited liability company (RRF V SUB) which is wholly owned by the Partnership. Since RRF V SUB is wholly owned by the Partnership, the financial statements of RRF V SUB
have been consolidated with those of the Partnership. In April 2006, the Partnership formed Rancon Realty Fund V Subsidiary Two LLC, a Delaware limited liability company (RRF V SUB2) which is wholly owned by the Partnership. Since RRF V
SUB2 is wholly owned by the Partnership, the financial statements of RRF V SUB2 have been consolidated with those of the Partnership. All intercompany balances and transactions have been eliminated in consolidation.

Rental Properties

Rental properties, including the related
land, are stated at depreciated cost unless events or circumstances indicate that such amounts cannot be recovered, in which case, the carrying value of the property is reduced to its estimated fair value. Estimated fair value: (i) is based
upon the Partnerships plans for the continued operations of each property; and (ii) is computed using estimated sales price, as determined by prevailing market values for comparable properties and/or the use of capitalization rates
applied to annualized net operating income based upon the age, construction and use of the building. The fulfillment of the Partnerships plans related to each of its properties is dependent upon, among other things, the presence of economic
conditions which will enable the Partnership to continue to hold and operate the properties prior to their eventual sale. Due to uncertainties inherent in the valuation process and in the economy, it is reasonably possible that the actual results of
operating and disposing of the Partnerships properties could be materially different than current expectations. Rental properties are reviewed for impairment whenever there is a triggering event and at least annually.



10



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



Depreciation is provided using the straight-line method over the useful lives of the respective assets. The useful
lives are as follows:



|                          |  |                                                   
|------------------------- |  | --------------------------------------------------
|Building and improvements |  | 5 to 40 years                                     
|Tenant improvements       |  | Lesser of the initial term of the related lease or
|                          |  | the estimated useful life of the asset            
|Furniture and equipment   |  | 5 to 7 years                                      

Construction In Progress and Land Held for Development

Construction in progress and land held for development are stated at cost, unless events or circumstances indicate that cost cannot be recovered, in which case the
carrying value is reduced to estimated fair value. Estimated fair value: (i) is based on the Partnerships plans for the development of each property; and (ii) considers the cost to complete and the estimated fair value of the
completed project. The fulfillment of the Partnerships plans related to each of its properties is dependent upon, among other things, the presence of economic conditions which will enable the Partnership to either hold the properties for
eventual sale or obtain financing to further develop the properties. Construction in progress and land held for development are reviewed for impairment whenever there is a triggering event and at least annually.

The pre-development costs for a new project include survey fees and consulting fees. Interest, property taxes and insurance related to the new project are capitalized
during periods that activities which are necessary to get the project ready for its intended use are in progress. The capitalization ends when the construction is substantially completed and the project is ready for its intended use.

Cash and Cash Equivalents

The Partnership considers
certificates of deposit and money market funds with original maturities of less than ninety days when purchased to be cash equivalents.

Short-term
Investments

The Partnership considers certificates of deposit with original maturities of more than three months and less than one year when
purchased to be short-term investments. The short-term investments are held to maturity and recorded at cost on the consolidated balance sheets. Interest income is recognized when earned.

Fair Value of Financial Instruments

For certain financial
instruments, including cash and cash equivalents, short-term investments, accounts receivable, line of credit payable, accounts payable and other liabilities and construction costs payable, recorded amounts approximate fair value due to the
relatively short maturity period.

Deferred Costs

Deferred loan fees are capitalized and amortized on a straight-line basis, which approximates the effective interest method, over the life of the related loan and deferred lease commissions are capitalized and amortized on a straight-line
basis over the initial fixed term of the related lease agreements.

Revenues

The Partnership recognizes rental revenue on a straight-line basis over the term of the leases. Actual amounts collected could be lower or higher than the amounts recognized on a straight-line basis if specific
tenants are unable to pay rent that the Partnership has previously recognized as revenue. The reimbursements from tenants for real estate taxes are recognized as revenue in the period the expenses are incurred. Other recoverable operating expenses
are recognized as revenue on an estimated basis and the differences between estimated and actual amounts are recognized as revenue in the subsequent year when the amounts are collected.

Sales of Real Estate

The Partnership recognizes sales of real estate when a contract is in place, a closing
has taken place, the buyers investment is adequate to demonstrate a commitment to pay for the property and the Partnership does not have a substantial continuing involvement in the property. Each property is considered a separately
identifiable component of the Partnership and is reported in discontinued operations when the operations and cash flows of the Property have been (or will be) eliminated from the ongoing operations of the Partnership as a result of the disposal
transaction and the Property will not have any significant continuing involvement in the operations of the Partnership after the disposal transaction.



11



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



Net Income (Loss) Per Limited Partnership Unit

Net income (loss) per limited partnership unit is calculated using the weighted average number of limited partnership units outstanding during the period and the limited
partners allocable share of the net income (loss).

Income Taxes

No provision for income taxes is included in the accompanying consolidated financial statements, as the Partnerships results of operations are allocated to the partners for inclusion in their respective income
tax returns. Net income (loss) and partners equity (deficit) for financial reporting purposes will differ from the Partnerships income tax return because of different accounting methods used for certain items, including depreciation
expense, capitalization of development period interest and property taxes, income recognition and provisions for impairment of investments in real estate.

Concentration risk

Two tenants (Northrop Grumman Corporation and Arrowhead Central Credit Union) represented a combined 25% and one
tenant (Arrowhead Central Credit Union) represented 13% of rental income for the nine months ended September 30, 2006 and 2005, respectively.

Recently issued Accounting Literature

In September 2006, the Securities and Exchange Commission issued Staff Accounting Bulletin
No. 108 (SAB 108), which becomes effective beginning on January 1, 2007. SAB 108 provides guidance on the consideration of the effects of prior period misstatements in quantifying current year misstatements for the purpose of a
materiality assessment. SAB 108 provides for the quantification of the impact of correcting all misstatements, including both the carryover and reversing effects of prior year misstatements, on the current year financial statements. If a
misstatement is material to the current year financial statements, the prior year financial statements should also be corrected, even though such revision was, and continues to be, immaterial to the prior year financial statements. Correcting prior
year financial statements for immaterial errors would not require previously filed reports to be amended. Such correction should be made in the current period filings.

We will initially apply the provisions of SAB 108 using the cumulative effect transition method in connection with the preparation of our annual financial statements for the year ending December 31, 2006. When we
initially apply the provisions of SAB 108, we expect to record an increase in straight line rent receivable of $18,806, an increase in tenant improvements of $1 million, and increase in accumulated depreciation of $716,668, a reduction in tenant
note receivable of $423,690 and a reduction in partners equity (deficit) of approximately $121,552 as of January 1, 2006. The accompanying financial statements do not reflect these adjustments.

Out-of-period adjustment

During the quarter ended
September 30, 2006, the Partnership recorded an out-of-period charge for depreciation and amortization expense related to tenant and building improvements placed in service in prior interim periods of 2006 of approximately $51,000. The amount
of the charge relating to the quarter ended March 31, 2006 and June 30, 2006 was $21,317 and $29,683, respectively. The Partnership has concluded that these amounts are not material to the respective prior interim periods and the
cumulative amount recorded is not material to the results of operations for the three months ended.



|Note | 3. INVESTMENTS IN REAL ESTATE
|---- | -----------------------------

Rental properties consisted of
the following at September 30, 2006 and December 31, 2005 (in thousands):



|                                 |  |      |         |   |      |   |         |  
|-------------------------------- |  | ---- | ------- | - | ---- | - | ------- | -
|                                 |  | 2006 |         |   | 2005 |  
|Land                             |  | $    | 6,944   |   |      | $ | 6,293   |  
|Land improvements                |  |      | 1,536   |   |      |   | 1,536   |  
|Buildings                        |  |      | 52,073  |   |      |   | 40,424  |  
|Building and tenant improvements |  |      | 14,936  |   |      |   | 9,285   |  
|                                 |  |      |         |   |      |   |         |  
|                                 |  |      | 75,489  |   |      |   | 57,538  |  
|Less: accumulated depreciation   |  |      | (16,797 | ) |      |   | (14,693 | )
|                                 |  |      |         |   |      |   |         |  
|Total rental properties, net     |  | $    | 58,692  |   |      | $ | 42,845  |  
|                                 |  |      |         |   |      |   |         |  

In January 2005, the Partnership entered into a contract with a construction company for $10,337,000 to build the
core and shell of a three-story office building on a five-acre land parcel known as Brier Corporate Center with a total of approximately 104,000 square feet. The Partnership also entered into a contract with the construction company for $4,708,000
to construct tenant and



12



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



building improvements at this new building. In the first quarter of 2006, the core and shell of the building and the tenant and building improvements for an
office space of approximately 87,000 square feet were completed. In February 2006, the total costs were reclassed from construction in progress to land, building, building improvements and tenant improvements.

During the nine months ended September 30, 2006, fully depreciated building and tenant improvements of $658,000 were removed from the balances of such accounts.

In February 2005, the Partnership entered into a contract to sell the property leased to Chuck E. Cheese for a price of $2,157,800. The sale closed in
March 2005 and generated net proceeds of approximately $2,032,000 and a gain on sale of approximately $1,202,000. The proceeds were added to the Partnerships cash reserves.

In accordance with SFAS 144 Accounting for the Impairment or Disposal of Long Lived Assets, net income and gain or loss on sales of real estate for properties sold or classified as held for sale are
reflected in the consolidated statements of operations as Income from discontinued operations for all periods presented.

Below is a summary of
the results of operations of the property leased to Chuck E. Cheese through its disposition date (dollars in thousands):



|                                          |  |                                         |      
|----------------------------------------- |  | --------------------------------------- | -----
|                                          |  | Nine months ended September 30, 2005(1)
|Operating revenue                         |  | $                                       | 50   
|                                          |  |                                         |      
|Operating Expenses                        |  |                                         |      
|Property operating                        |  |                                         | 30   
|Depreciation and amortization             |  |                                         | 3    
|                                          |  |                                         |      
|Total operating expenses                  |  |                                         | 33   
|                                          |  |                                         |      
|Income before gain on sale of real estate |  |                                         | 17   
|Gain on sale of real estate               |  |                                         | 1,202
|                                          |  |                                         |      
|Income from discontinued operations       |  | $                                       | 1,219
|                                          |  |                                         |      

|(1) | Reflects 2005 operations through date of sale.
|--- | ----------------------------------------------



|Note | 4. CONSTRUCTION IN PROGRESS AND LAND HELD FOR DEVELOPMENT
|---- | ---------------------------------------------------------

Construction in progress consisted of the following at September 30, 2006 and December 31, 2005 (in thousands):



|                                                                                                                                                |  |                   |     |                  |   |       
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | --- | ---------------- | - | ------
|                                                                                                                                                |  | September 30,2006 |     | December 31,2005
|Tri-City (approximately 0.5 and 5.5 acres of land with a cost basis of $166 and $817 at September 30, 2006 and December 31, 2005,
respectively) |  | $                 | 451 |                  | $ | 15,437
|                                                                                                                                                |  |                   |     |                  |   |       

The construction costs of Brier Corporate Center were reclassed to land, building and tenant improvements when the
property was completed and the first tenant moved in during the first quarter of 2006 (See Note 3 for discussion).

Land held for development consisted
of the following at September 30, 2006 and December 31, 2005 (in thousands):



|                                                                                                      |  |                   |       |                  |   |    
|----------------------------------------------------------------------------------------------------- |  | ----------------- | ----- | ---------------- | - | ---
|                                                                                                      |  | September 30,2006 |       | December 31,2005
|Tri-City (approximately 4 acres of land as of September 30, 2006 and December 31, 2005, respectively) |  | $                 | 1,127 |                  | $ | 899
|                                                                                                      |  |                   |       |                  |   |    

The increase in cost was primarily due to the expenses related to the pre-design activities.



13



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



|Note | 5. NOTES PAYABLE AND LINE OF CREDIT
|---- | -----------------------------------

Notes payable and line of
credit as of September 30, 2006 and December 31, 2005, were as follows (in thousands):



|                                                                                                                                                                                                                                                                                                                                      |  |                   |        |                  |   |       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------ | ---------------- | - | ------
|                                                                                                                                                                                                                                                                                                                                      |  | September 30,2006 |        | December 31,2005
|Note payable #1 collateralized by first deeds of trust on seven properties (discussed below). The note has a fixed interest rate of 5.46%, a
maturity date of January 1, 2016 and a 10-year term with a 30-year amortization requiring monthly payments of principal and interest totaling $151.                                      |  | $                 | 26,529 |                  | $ | 26,800
|Note payable #2 collateralized by first deeds of trust on four properties (discussed below). The note has a fixed interest rate of 5.61%, a
maturity date of May 1, 2016 and a 10-year term with a 30-year amortization requiring monthly payments of principal and interest totaling $173.                                           |  |                   | 29,838 |                  |   |     
|Construction note payable collateralized by Brier Corporate Center. The note had a variable interest rate of 30-day LIBOR plus 2% (6.37% as of
December 31, 2005), monthly interest-only payments and a maturity date of April 27, 2007. This note was paid off in April 2006.                                                        |  |                   |      |                  |   | 7,024 
|Line of credit collateralized by first deed of trust on Two Parkside. The line of credit had a total availability of $7.425 million, a
variable interest rate of Prime Rate (7.25% as of December 31, 2005), monthly interest-only payments, and a maturity date of April 15, 2007. This line of credit was paid off in April 2006. |  |                   |      |                  |   | 4,000 
|                                                                                                                                                                                                                                                                                                                                      |  |                   |        |                  |   |       
|Total                                                                                                                                                                                                                                                                                                                                 |  | $                 | 56,367 |                  | $ | 37,824
|                                                                                                                                                                                                                                                                                                                                      |  |                   |        |                  |   |       

Note payable #1 is collateralized by Ballys Health Club, Carnegie Business Center II, Lakeside Tower,
Outback Steakhouse, Pat & Oscars, Palm Court Retail #3 and One Carnegie Plaza with an aggregate net carrying value of approximately $17,281,000 and $17,924,000 at September 30, 2006 and December 31, 2005, respectively. Note
payable #2 is collateralized by Brier Corporate Center, One Parkside, Two Parkside and Two Carnergie Plaza with an aggregate net carrying value of approximately $30,952,000 at September 30, 2006. Both notes provide a one-time loan assumption
and a release provision for an individual asset.

In April 2006, the Partnership obtained a loan (note payable #2) in the amount of $30,000,000. The
proceeds from note payable #2 were used to pay off the construction loan for Brier Corporate Center and the line of credit collateralized by Two Parkside. The net loan proceeds from the new loan in the amount of approximately $16,180,000 were added
to the Partnerships cash reserve. The loss on early extinguishment in connection with the pay off of the construction note payable for Brier Corporate Center and the line of credit was approximately $227,000.

The annual maturities of the Partnerships notes payable as of September 30, 2006, are as follows (in thousands):



|           |  |   |       
|---------- |  | - | ------
|2006       |  | $ | 193   
|2007       |  |   | 795   
|2008       |  |   | 840   
|2009       |  |   | 888   
|2010       |  |   | 938   
|Thereafter |  |   | 52,713
|           |  |   |       
|Total      |  | $ | 56,367
|           |  |   |       



|Note | 6. RELATED PARTY TRANSACTIONS
|---- | -----------------------------

In July 2004, the Partnership
extended its management relationship with Glenborough Properties L.P. (Glenborough) through December 31, 2006. In May 2006, the Partnership further extended the Property Management and Services Agreement with Glenborough through
December 31, 2008. All other terms and conditions remained unchanged. The Partnership engaged Glenborough to perform services for the following fees: (i) a property management fee of 3% of gross rental revenue which was included in the
property operating in the statements of operations ($243,000 and $224,000 for the nine months ended September 30, 2006, and 2005, respectively); (ii) a construction services fee which was included in the rental properties in the balance
sheets ($35,000 and $51,000 for the nine months ended September 30, 2006, and 2005, respectively); (iii) a specified asset and Partnership management fee of $300,000 per year (with reimbursements of certain expenses and consulting service
fees) which was included in



14



---

##### Table of Contents

RANCON REALTY FUND V,

A CALIFORNIA LIMITED PARTNERSHIP

Notes to Consolidated Financial Statements

(Unaudited)



general and administrative in the statements of operations ($225,000 and $223,000 for the nine months ended September 30, 2006 and 2005, respectively);
(iv) a leasing services fee which was included in the deferred costs in the balance sheets ($403,000 and $177,000 for the nine months ended September 30, 2006 and 2005, respectively); (v) a sales fee of 2% for improved properties
which was included in the gain on sale of real estate in the consolidated statements of operations ($0 and $43,000 for the nine months ended September 30, 2006 and 2005, respectively) and 4% for unimproved properties ($0 and $0 for the nine
months ended September 30, 2006 and 2005, respectively); (vi) a financing services fee of 1% of gross loan amount ($300,000 and $134,000 for the nine months ended September 30, 2006 and 2005, respectively); and (vii) a
development fee equal to 5% of the hard costs of the development project which was included in the construction in progress and / or rental properties in the balance sheets, excluding the cost of the land, and the development fee and the general
contractors fee shall not exceed 11.5%, in the aggregate, of the hard costs of the development project ($230,000 and $473,000 for the nine months ended September 30, 2006 and 2005, respectively). The fees for the above services (excluding
property management fees) totaled $1,193,000 and $1,101,000 for the nine months ended September 30, 2006 and 2005, respectively.

As of
September 30, 2006, Glenborough held 6,044 or 7.2% of the units of limited partnership interest purchased from unaffiliated third parties.

On
September 30, 2006, the Partnership incurred expenses of approximately $48,000 on behalf of Rancon Realty Fund IV (Fund IV), a separate partnership sponsored by the General Partner of the Partnership. The amount was received in
October 2006.



|Note | 7. COMMITMENTS AND CONTINGENT LIABILITIES
|---- | -----------------------------------------

Environmental
Matters

The Partnership follows a policy of monitoring its properties for the presence of hazardous or toxic substances. The Partnership is not
aware of any environmental liability with respect to the properties that would have a material adverse effect on the Partnerships business, assets or results of operations. There can be no assurance that such a material environmental liability
does not exist. The existence of any such material environmental liability could have an adverse effect on the Partnerships consolidated results of operations and cash flows.

General Uninsured Losses

The Partnership carries property and liability insurance with respect to the
properties. This coverage has policy specification and insured limits customarily carried for similar properties. However, certain types of losses (such as from earthquakes and floods) may be either uninsurable or not economically insurable. Should
the properties sustain damage as a result of an earthquake or flood, the Partnership may incur losses due to insurance deductibles, co-payments on insured losses or uninsured losses. Additionally, the Partnership has elected to obtain insurance
coverage for certified acts of terrorism as defined in the Terrorism Risk Insurance Act of 2004; however, our policies of insurance may not provide coverage for other acts of terrorism. Any losses from such other acts of terrorism might
be uninsured. Should an uninsured loss occur, the Partnership could lose some or all of its capital investment, cash flow and anticipated profits related to the properties.

Other Matters

The Partnership is contingently liable for subordinated real estate commissions payable to the
General Partner in the aggregate amount of $102,000 at September 30, 2006, for sales that were completed in previous years. The subordinated real estate commissions are payable only after the limited partners have received distributions equal
to their original invested capital plus a cumulative non-compounded return of 12% per annum on their adjusted invested capital. Since the circumstances under which these commissions would be payable are not currently met, the liability has not
been recognized in the accompanying consolidated financial statements. However, the amount will be recorded when and if it becomes payable.



15



---

##### Table of Contents

PART II. OTHER INFORMATION



|Item 6. | Exhibits
|------- | --------



|   |  |                                                                                                                                  
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------
|31 |  | Rule 13a-14 Certification of Daniel L. Stephenson, Chief Executive Officer and Chief Financial Officer of General Partnership.   
|   | 
|32 |  | Section 1350 Certification of Daniel L. Stephenson, Chief Executive Officer and Chief Financial Officer of General Partnership. *

---

|* | This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as required by Section 906, is not to be deemed filed with the SEC or
subject to the rules and regulations promulgated by the SEC under the Securities Exchange Act of 1934, as amended, or to the liabilities of Section 18 of said Act.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



16



---

##### Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, the
Partnership has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized.



RANCON REALTY FUND V, a California limited
partnershipBy:

Rancon Financial Corporationa California corporation,its General Partner




|      |  |                   |  |  |  |     |  |                                       |  |                                
|----- |  | ----------------- |  |  |  | --- |  | ------------------------------------- |  | -------------------------------
|Date: |  | November 14, 2007 |  |  |  |     |  | By:                                   |  | /s/ Daniel L. Stephenson       
|      |  |                   |  |  |  |     |  |                                       |  | Daniel L. Stephenson, President
|      |  |                   |  | 
|Date: |  | November 14, 2007 |  |  |  | By: |  | /s/ Daniel L. Stephenson             
|      |  |                   |  |  |  |     |  | Daniel L. Stephenson, General Partner



17



---

##### Table of Contents

EXHIBIT INDEX



|   |  |                                                                                                                                  
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------
|31 |  | Rule 13a-14 Certification of Daniel L. Stephenson, Chief Executive Officer and Chief Financial Officer of General Partnership.   
|   | 
|32 |  | Section 1350 Certification of Daniel L. Stephenson, Chief Executive Officer and Chief Financial Officer of General Partnership. *

---

|* | This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as required by Section 906, is not to be deemed filed with the SEC or
subject to the rules and regulations promulgated by the SEC under the Securities Exchange Act of 1934, as amended, or to the liabilities of Section 18 of said Act.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------