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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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

For the quarterly period ended September 30, 2002

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
incorporation or organization) |  | (I.R.S. Employer
Identification No.)
|400 South El Camino Real, Suite 1100
San Mateo, California     |  | 94402-1708                          
|                                                               |  |                                     
|(Address of principal
executive offices)                       |  | (Zip Code)                          

|                                                    
|----------------------------------------------------
|(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 [   ]

Total number of units outstanding as November 8, 2002: 93,032

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TABLE OF CONTENTS



|                              |                                                                                               |                                            |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | Consolidated Balance Sheets               
|                              |                                                                                               | Consolidated Statements of Operations     
|                              |                                                                                               | Consolidated Statement of Partners Equity
|                              |                                                                                               | Consolidated Statements of Cash Flows     
|                              |                                                                                               | Notes to Consolidated Financial Statements
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              | Item 3. Qualitative and Quantitative Information About Market Risk                           
|                              | Item 4. Controls and procedures                                                              
|Part II. OTHER INFORMATION   
|                              | Item 1. Legal Proceedings                                                                    
|                              | Item 2. Changes in 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 and Reports on Form 8-K                                                     
|SIGNATURES                   



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##### 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 unit amounts)
(Unaudited)

|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |         |        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | ----- | ------------- | ------ | ------------ | ----- | ------- | ------ | 
|                                                                                                                                                        |                                                                                                                                    |                                        |       | September 30, |        | December 31,
|                                                                                                                                                        |                                                                                                                                    |                                        |       | 2002          |        | 2001        
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |             
|Assets                                                                                                                                                  |                                                                                                                                    |                                        |       |               |        |              |       |        
|Investments in real estate:                                                                                                                             |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        | Rental properties, gross                                                                                                           |                                        | $     | 48,234        |        |              | $     | 46,972  |       
|                                                                                                                                                        | Accumulated depreciation                                                                                                           |                                        |       | (20,893       | )      |              |       | (19,773 | )     
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        | Rental properties, net                                                                                                             |                                        |       | 27,341        |        |              |       | 27,199  |       
|                                                                                                                                                        | Land held for development                                                                                                          |                                        |       | 3,140         |        |              |       | 2,596   |       
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        |                                                                                                                                    | Total real estate investments          |       |               | 30,481 |              |       |         | 29,795 | 
|Cash and cash equivalents                                                                                                                               |                                                                                                                                    |                                        | 7,969 |               |        |              | 8,424 |        
|Accounts receivable                                                                                                                                     |                                                                                                                                    |                                        | 1,150 |               |        |              | 1,166 |        
|Deferred financing costs and other fees, net of accumulated
amortization of $2,866 and $2,633 at September 30, 2002
and December 31, 2001, respectively |                                                                                                                                    |                                        | 927   |               |        |              | 831   |        
|Prepaid expenses and other assets                                                                                                                       |                                                                                                                                    |                                        | 858   |               |        |              | 781   |        
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        |                                                                                                                                    | Total assets                           |       | $             | 41,385 |              |       | $       | 40,997 | 
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|Liabilities and Partners Equity                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|Liabilities:                                                                                                                                            |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        | Note payable                                                                                                                       |                                        | $     | 8,786         |        |              | $     | 8,910   |       
|                                                                                                                                                        | Accounts payable and other liabilities                                                                                             |                                        |       | 898           |        |              |       | 279     |       
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        |                                                                                                                                    | Total liabilities                      |       |               | 9,684  |              |       |         | 9,189  | 
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|Commitments and contingent liabilities (Note 5)                                                                                                         |                                                                                                                                    |                                        |       |               |        |              |       |        
|Partners Equity:                                                                                                                                       |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        | General partners                                                                                                                   |                                        |       | (236          | )      |              |       | (248    | )     
|                                                                                                                                                        | Limited partners 93,122 and 93,861 limited partnership units
outstanding at September 30, 2002 and December 31, 2001,
respectively |                                        |       | 31,937        |        |              |       | 32,056  |       
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        |                                                                                                                                    | Total partners equity                 |       |               | 31,701 |              |       |         | 31,808 | 
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        
|                                                                                                                                                        |                                                                                                                                    | Total liabilities and partners equity |       | $             | 41,385 |              |       | $       | 40,997 | 
|                                                                                                                                                        |                                                                                                                                    |                                        |       |               |        |              |       |        

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

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP




Consolidated Statements of Operations
(in thousands, except per unit amounts and units outstanding)
(Unaudited)

|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |       |       | 
|------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | ------------------------------------------------ | ------ | ------------------ | ----- | ----------------- | ------ | ----- | ----- | ---- | ------ | ----- | ----- | - | ------ | ----- | ----- | 
|                                                                                                                                            |                                           |                                                  |        | Three months ended |       | Nine months ended
|                                                                                                                                            |                                           |                                                  |        | September 30,      |       | September 30,    
|                                                                                                                                            |                                           |                                                  |        |                    |       |                  
|                                                                                                                                            |                                           |                                                  |        | 2002               |       | 2001              |        | 2002  |       | 2001
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |     
|Revenues                                                                                                                                    |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            | Rental income                             |                                                  | $      | 1,847              |       |                   | $      | 1,836 |       |      | $      | 5,486 |       |   | $      | 5,422 |      
|                                                                                                                                            | Gain on sale of real estate               |                                                  |        |                   |       |                   |        | 2,663 |       |      |        |      |       |   |        | 2,663 |      
|                                                                                                                                            | Interest and other income                 |                                                  |        | 71                 |       |                   |        | 110   |       |      |        | 207   |       |   |        | 399   |      
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            |                                           | Total revenues                                   |        |                    | 1,918 |                   |        |       | 4,609 |      |        |       | 5,693 |   |        |       | 8,484 | 
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|Expenses                                                                                                                                    |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            | Operating                                 |                                                  |        | 906                |       |                   |        | 900   |       |      |        | 2,460 |       |   |        | 2,352 |      
|                                                                                                                                            | Interest expense                          |                                                  |        | 214                |       |                   |        | 303   |       |      |        | 645   |       |   |        | 913   |      
|                                                                                                                                            | Depreciation and amortization             |                                                  |        | 455                |       |                   |        | 416   |       |      |        | 1,331 |       |   |        | 1,271 |      
|                                                                                                                                            | Expenses associated with undeveloped land |                                                  |        | 99                 |       |                   |        | 103   |       |      |        | 297   |       |   |        | 272   |      
|                                                                                                                                            | General and administrative                |                                                  |        | 272                |       |                   |        | 223   |       |      |        | 837   |       |   |        | 917   |      
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            |                                           | Total expenses                                   |        |                    | 1,946 |                   |        |       | 1,945 |      |        |       | 5,570 |   |        |       | 5,725 | 
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            | Net income (loss)                         |                                                  | $      | (28                | )     |                   | $      | 2,664 |       |      | $      | 123   |       |   | $      | 2,759 |      
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|Net income (loss) per limited
partnership unit                                                                                              |                                           | $                                                | (0.26  | )                  |       | $                 | 26.87  |       |       | $    | 1.19   |       |       | $ | 27.77  |      
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|Distributions per limited partnership unit:                                                                                                 |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            | From net income                           |                                                  | $      |                   |       |                   | $      |      |       |      | $      |      |       |   | $      |      |      
|                                                                                                                                            | Representing return of capital            |                                                  |        |                   |       |                   |        |      |       |      |        |      |       |   |        |      |      
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|                                                                                                                                            |                                           | Total distributions per limited
partnership unit |        | $                  |      |                   |        | $     |      |      |        | $     |      |   |        | $     |      | 
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      
|Weighted average number of limited partnership units outstanding during each
period used to compute
net income per limited partnership unit |                                           |                                                  | 93,286 |                    |       |                   | 94,113 |       |       |      | 93,525 |       |       |   | 94,207 |      
|                                                                                                                                            |                                           |                                                  |        |                    |       |                   |        |       |       |      |        |       |       |   |        |      

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

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP




Consolidated Statement of Partners Equity
For the nine months ended September 30, 2002
(in thousands)
(Unaudited)

|                                        |  |          |      |          |  |       |        |   |  |   |        |  
|--------------------------------------- |  | -------- | ---- | -------- |  | ----- | ------ | - |  | - | ------ | -
|                                        |  | General  |      | Limited  |  |       |        |  
|                                        |  | Partners |      | Partners |  | Total
|                                        |  |          |      |          |  |      
|Balance at December 31, 2001            |  | $        | (248 | )        |  | $     | 32,056 |   |  | $ | 31,808 |  
|Retirement of limited partnership units |  |          |     |          |  |       | (230   | ) |  |   | (230   | )
|Net income                              |  |          | 12   |          |  |       | 111    |   |  |   | 123    |  
|                                        |  |          |      |          |  |       |        |   |  |   |        |  
|Balance at September 30, 2002           |  | $        | (236 | )        |  | $     | 31,937 |   |  | $ | 31,701 |  
|                                        |  |          |      |          |  |       |        |   |  |   |        |  

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

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |        |     |        |       |  
|---------------------------------------------------- | --------------------------------------------------------------------------------- | ---------------------- | ------------------------------------------------------- | ---------------------------------------------------- | --- | ----------------- | ------ | ------ | --- | ------ | ----- | -
|                                                     |                                                                                   |                        |                                                         |                                                      |     | Nine months ended
|                                                     |                                                                                   |                        |                                                         |                                                      |     | September 30,    
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                  
|                                                     |                                                                                   |                        |                                                         |                                                      |     | 2002              |        | 2001  
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|Cash flows from operating activities:                |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     | Net income                                                                        |                        | $                                                       | 123                                                  |     |                   | $      | 2,759  |    
|                                                     | Adjustments to reconcile net income to net cash provided by operating
activities: |                        |                                                         |                                                      |     |                   |        |        |    
|                                                     |                                                                                   |                        | Gain on sales of real estate                            |                                                      |     |                  |        |        |     | (2,663 | )    
|                                                     |                                                                                   |                        | Depreciation and amortization                           |                                                      |     | 1,331             |        |        |     | 1,271  |      
|                                                     |                                                                                   |                        | Amortization of loan fees, included in interest expense |                                                      |     | 22                |        |        |     | 30     |      
|                                                     |                                                                                   |                        | Changes in certain assets and liabilities:              |                                                      |     |                   |        |        |     |        |      
|                                                     |                                                                                   |                        |                                                         | Accounts receivable                                  |     |                   | 16     |        |     |        | (109  | )
|                                                     |                                                                                   |                        |                                                         | Deferred financing costs and other fees              |     |                   | (329   | )      |     |        | (233  | )
|                                                     |                                                                                   |                        |                                                         | Prepaid expenses and other assets                    |     |                   | (77    | )      |     |        | (203  | )
|                                                     |                                                                                   |                        |                                                         | Accounts payable and other liabilities               |     |                   | 325    |        |     |        | 25    |  
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     |                                                                                   |                        |                                                         | Net cash provided by operating activities            |     |                   | 1,411  |        |     |        | 877   |  
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|Cash flows from investing activities:                |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     | Net proceeds from sales of real estate                                            |                        |                                                         |                                                     |     |                   |        | 4,316  |    
|                                                     | Additions to real estate investments                                              |                        |                                                         | (1,512                                               | )   |                   |        | (1,516 | )  
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     |                                                                                   |                        |                                                         | Net cash (used for) provided by investing activities |     |                   | (1,512 | )      |     |        | 2,800 |  
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|Cash flows from financing activities:                |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     | Notes payable principal payments                                                  |                        |                                                         | (124                                                 | )   |                   |        | (177   | )  
|                                                     | Retirement of limited partnership units                                           |                        |                                                         | (230                                                 | )   |                   |        | (126   | )  
|                                                     | Distributions to General Partner                                                  |                        |                                                         |                                                     |     |                   |        | (145   | )  
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     |                                                                                   |                        |                                                         | Net cash used for financing activities               |     |                   | (354   | )      |     |        | (448  | )
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|Net (decrease) increase in cash and cash equivalents |                                                                                   |                        | (455                                                    | )                                                    |     |                   | 3,229  |       
|Cash and cash equivalents at beginning of period     |                                                                                   |                        | 8,424                                                   |                                                      |     |                   | 10,395 |       
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|Cash and cash equivalents at end of period           |                                                                                   | $                      | 7,969                                                   |                                                      |     | $                 | 13,624 |       
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|Supplemental disclosure of cash flow information:    |                                                                                   |                        |                                                         |                                                      |     |                   |        |       
|                                                     |                                                                                   | Cash paid for interest |                                                         | $                                                    | 624 |                   |        | $      | 883 |       
|                                                     |                                                                                   |                        |                                                         |                                                      |     |                   |        |       

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

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 2002
(Unaudited)

Note 1. THE PARTNERSHIP

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
disposing of real property. The General Partners of the Partnership are Daniel
L. Stephenson and Rancon Financial Corporation (RFC), hereinafter
collectively referred to as the Sponsor or the General Partner. RFC is wholly
owned by Daniel L. Stephenson. The Partnership reached final funding in
February 1989.

In November 2000, the Partnership offered to redeem the units of limited
partnership interest (the Units) in the Partnership held by investors who own
no more than four Units in total under any single registered title (the Small
Investments) at a purchase price of $284 per Unit. In 2001, a total of 590
Units were redeemed. During the nine months ended September 30, 2002, a total
of 739 Units were repurchased. As of September 30, 2002, there were 93,122
Units outstanding.

In the opinion of RFC, the General Partner and Glenborough Realty Trust
Incorporated (Glenborough), the Partnerships asset and property manager, 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, 2002
and December 31, 2001, and the related consolidated statements of operations
and cash flows for the nine months ended September 30, 2002 and 2001.

Allocation of Net Income and Net Loss

Allocations of net income and net losses are made pursuant to the terms of the
Partnership Agreement. Generally, net income and net losses from operations
are allocated 90% to the limited partners and 10% to the General Partners;
however, if the limited partners and the General Partners 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 Partners in
excess of the positive balance until the balances of the limited partners and
General Partners 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 Partners 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 required 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
Partners into the ratio of 4 to 1; and (iv) the balance, if any, 80% to the
limited partners and 20% to the General Partners. In no event shall the
General Partners 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 Partners. 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.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 2002
(Unaudited)

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.

General Partner and Management Agreement

Effective January 1, 1995, Glenborough Corporation (GC) entered into an
agreement with the Partnership and other related Partnerships (collectively,
the Rancon Partnerships) to perform or contract on the Partnerships behalf for
financial, accounting, data processing, marketing, legal, investor relations,
asset and development management and consulting services for a period of ten
years or until the liquidation of the Partnership, whichever comes first.
Effective January 1, 1998, the agreement was amended to eliminate GCs
responsibilities for providing investor relation services. Preferred
Partnership Services, Inc., a California corporation unaffiliated with the
Partnership, contracted to assume the investor relation services. In October
2000, GC merged into Glenborough.

The Partnership will pay Glenborough for its services as follows: (i) a
specified asset administration fee ($483,000 and $487,000 as of September 30,
2002 and 2001, respectively); (ii) sales fees of 2% for improved properties and
4% for land; (iii) a refinancing fee of 1% and (iv) a management fee of 5% of
gross rental receipts. As part of this agreement, Glenborough will perform
certain duties for the General Partner of the Rancon Partnerships. RFC agreed
to cooperate with Glenborough, should Glenborough attempt to obtain a majority
vote of the limited partners to substitute itself as the Sponsor for the Rancon
Partnerships. Glenborough is not an affiliate of RFC or the Partnership.

Note 2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis
of accounting in accordance with accounting principles generally accepted in
the United States. They include the accounts of certain wholly owned
subsidiaries. All significant intercompany transactions and balances have been
eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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.

New Accounting Pronouncements

In June 2001, the FASB approved for issuance SFAS No. 143, Accounting for
Asset Retirement Obligations. SFAS No. 143 requires that the fair value of a
liability for an asset retirement obligation be recognized in the period in
which it is incurred and that the associated asset retirement costs be
capitalized as part of the carrying value of the related long-lived asset. SFAS
No. 143 will be effective January 1, 2003 for the Partnership. Management does
not expect this standard to have a material impact on the Partnerships
consolidated financial position or results of operations.

In August 2001, the FASB approved for issuance SFAS No. 144, Accounting for
the Impairment or Disposal of Long-Lived Assets. SFAS No. 144 broadens the
presentation of discontinued operations to include more

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 2002
(Unaudited)

transactions and
eliminates the need to accrue for future operating losses. Additionally, SFAS
No. 144 prohibits the retroactive classification of assets as held for sale and
requires revisions to the depreciable lives of long-lived assets to be
abandoned. SFAS No. 144 was effective January 1, 2002 for the Partnership. This
new standard does not currently have a material impact on the Partnerships
consolidated financial position and results of operations, but may in future
periods.

In May 2002, the FASB approved for issuance SFAS No. 145, Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections. SFAS 145 requires gains and losses from extinguishment of debt
to be classified as an extraordinary item only if the criteria in APB No. 30
has been met. Further, lease modifications with economic effects similar to
sale-leaseback transactions must be accounted for in the same manner as
sale-leaseback transactions. While the technical corrections to existing
pronouncements are not substantive in nature, in some instances they may change
accounting practice. SFAS No. 145 will be effective January 1, 2003 for the
Partnership. Management is currently assessing the impact of this new standard
on the Partnerships consolidated financial position and results of operations.

In June 2002, the FASB approved for issuance SFAS No. 146, Accounting for
Costs Associated with Exit or Disposal Activities. SFAS 146 addresses
accounting and reporting for costs associated with exit and disposal activities
and supercedes Emerging Issues Task Force Issue No. 94-3 (EITF 94-3),
Liability Recognition for Certain Employee Termination Benefits and Other
Costs to Exit an Activity (including Certain Costs Incurred in a
Restructuring). SFAS 146 requires that a liability for a cost associated with
an exit or disposal activity be recognized when the liability is incurred, as
defined by the Statement. Under EITF 94-3, an exit cost was recognized at the
date an entity committed to an exit plan. Additionally, SFAS 146 provides that
exit and disposal costs should be measured at fair value and that the
associated liability will be adjusted for changes in estimated cash flows. The
provisions of SFAS 146 are effective for exit and disposal activities that are
initiated after December 31, 2002.

Consolidation

In May 1996, the Partnership formed Rancon Realty Fund 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 Rancon
Realty Fund 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. All
intercompany balances and transactions have been eliminated in consolidation.

Rental Properties

Rental properties, including the related land, are stated at cost unless events
or circumstances indicate that cost 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 multiplied by annualized
rental 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.

Depreciation is provided using the straight line method over five to forty
years of the useful lives of the respective assets.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 2002
(Unaudited)

Land Held for Development

Land held for development is 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; (ii) is computed
using estimated sales price, based upon market values for comparable
properties, and (iii) 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.

Interest and property taxes related to property constructed by the Partnership
are capitalized during the period of construction.

Cash and Cash Equivalents

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

Fair Value of Financial Instruments

For certain financial instruments, including cash and cash equivalents,
accounts receivable, accounts payable and other liabilities, recorded amounts
approximate fair value due to the relatively short maturity period. Based on
interest rates available to the Partnership for debt with comparable
maturities, the carrying value of the Partnerships notes payable approximates
fair value.

Deferred Financing Costs and Other Fees

Deferred loan fees are amortized on a straight-line basis over the life of the
related loan and deferred lease commissions are amortized over the initial
fixed term of the related lease agreement.

Revenues

The Partnership recognizes rental revenue on a straight-line basis at amounts
that it believes it will collect on a tenant by tenant basis. The estimation
process may result in higher or lower levels from period to period as the
Partnerships collection experience and the credit quality of the Partnerships
tenants changes. 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, or if other
tenants pay rent whom the Partnership previously estimated would not.

The Partnerships portfolio of leases turns over continuously, with the number
and value of expiring leases varying from year to year. The Partnerships
ability to re-lease the space to existing or new tenants at rates equal to or
greater than those realized historically is impacted by, among other things,
the economic conditions of the market in which a property is located, the
availability of competing space, and the level of improvements which may be
required at the property. No assurance can be given that the rental rates that
the Partnership will obtain in the future will be equal to or greater than
those obtained under existing contractual commitments.

Reimbursements from tenants for real estate taxes and other recoverable
operating expenses are recognized as revenue in the period the applicable
expenses are incurred. Differences between estimated and actual amounts are
recognized in the subsequent year.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 2002
(Unaudited)

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.

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 for financial reporting purposes will differ
from the Partnership income tax return because of different accounting methods
used for certain items, including depreciation expense, capitalization of
development period interest, income recognition and provisions for impairment
of investments in real estate.

Concentration risk

No single tenant or affiliated group of tenants occupied more than 10 percent
of total rentable square feet or represented more than 10 percent of rental
income for the nine months ended September 30, 2002, and 2001,
respectively.

Reference to 2001 audited consolidated financial statements

These unaudited consolidated financial statements should be read in conjunction
with the notes to audited consolidated financial statements included in the
December 31, 2001 audited consolidated financial statements on Form 10-K.

Note 3. INVESTMENTS IN REAL ESTATE

Rental properties consisted of the following at September 30, 2002 and December
31, 2001 (in thousands):

|                                 |  |      |         |      |  |   |         |  
|-------------------------------- |  | ---- | ------- | ---- |  | - | ------- | -
|                                 |  | 2002 |         | 2001
|                                 |  |      |         |     
|Land                             |  | $    | 5,197   |      |  | $ | 5,197   |  
|Buildings                        |  |      | 27,047  |      |  |   | 27,053  |  
|Leasehold and other improvements |  |      | 15,990  |      |  |   | 14,722  |  
|                                 |  |      |         |      |  |   |         |  
|                                 |  |      | 48,234  |      |  |   | 46,972  |  
|Less: accumulated depreciation   |  |      | (20,893 | )    |  |   | (19,773 | )
|                                 |  |      |         |      |  |   |         |  
|Total rental properties, net     |  | $    | 27,341  |      |  | $ | 27,199  |  
|                                 |  |      |         |      |  |   |         |  

At September 30, 2002, the Partnerships rental properties included five office
and three retail projects, aggregating approximately 448,000 rentable square
feet, at the Tri-City Corporate Centre in San Bernardino, California.

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RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 2002
(Unaudited)

Land held for development consisted of the following at September 30, 2002 and
December 31, 2001 (in thousands):

|                                                          |  |      |        |      |  |   |       | 
|--------------------------------------------------------- |  | ---- | ------ | ---- |  | - | ----- | 
|                                                          |  | 2002 |        | 2001
|                                                          |  |      |        |     
|14 acres at Tri-City Corporate Centre, San Bernardino, CA |  |      | $3,140 |      |  | $ | 2,596 | 
|                                                          |  |      |        |      |  |   |       | 

Note 4. NOTE PAYABLE

The following note payable was outstanding as of September 30, 2002 and
December 31, 2001 (in thousands):

|                                                                                                                                                                                                                                                                      |  |      |       |      |  |   |       | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ----- | ---- |  | - | ----- | 
|                                                                                                                                                                                                                                                                      |  | 2002 |       | 2001
|                                                                                                                                                                                                                                                                      |  |      |       |     
|Note payable, secured by first deed of trust on Lakeside
Tower, One Parkside and Two Carnegie Plaza. The loan, which
matures August 1, 2006, is a 10-year, 9.39% fixed rate loan
with a 25-year amortization requiring monthly principal and
interest payments of $83 |  | $    | 8,786 |      |  | $ | 8,910 | 
|                                                                                                                                                                                                                                                                      |  |      |       |      |  |   |       | 

Note 5. 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
results of operations and cash flows.

General Uninsured Losses  The Partnership carries comprehensive liability,
fire, flood, extended coverage and rental loss insurance with policy
specifications, limits and deductibles customarily carried for similar
properties. There are, however, certain types of extraordinary losses, which
may be either uninsurable, or not economically insurable. Further, certain of
the properties are located in areas that are subject to earthquake activity.
Should a property sustain damage as a result of an earthquake, the Partnership
may incur losses due to insurance deductibles, co-payments on insured losses or
uninsured losses. Should an uninsured loss occur, the Partnership could lose
its investment in, and anticipated profits and cash flows from, a property.

Other Matters  The Partnership is contingently liable for subordinated real
estate commissions payable to the General Partner in the amount of $102,000 at
September 30, 2002 for sales that occurred 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 six percent per annum on their adjusted
invested capital. Since the circumstances under which these commissions would
be payable are limited, the liability has not been recognized in the
accompanying consolidated financial statements; however, the amount will be
recorded when and if it becomes payable.

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

New Accounting Pronouncements

During 2001, the Financial Accounting Standards Board (FASB) approved for
issuance a number of new accounting standards. Management does not expect
these new accounting standards to have a material impact on the Partnerships
consolidated financial position or results of operations, although they may in
future periods. These new accounting standards are discussed in more detail in
the notes to the accompanying consolidated financial statements.

LIQUIDITY AND CAPITAL RESOURCES

The following discussion should be read in conjunction with the Partnerships
December 31, 2001 audited consolidated financial statements and the notes
thereto.

As of September 30, 2002, the Partnership had cash of $7,969,000. The remainder
of the Partnerships assets consist primarily of its net investments in real
estate, totaling approximately $30,481,000 which includes $27,341,000 in rental
properties and $3,140,000 of land held for development within the Tri-City
area.

The Partnerships primary liability is a note payable of approximately
$8,786,000 at September 30, 2002, which consists of a secured fixed rate loan
encumbering three properties with an aggregate net book value of approximately
$15,047,000 and with a maturity date of August 1, 2006. This note requires
monthly principal and interest payments of $83,000 and bears a fixed interest
rate of 9.39%.

Operationally, the Partnerships primary source of funds consists of cash
provided by its rental activities. Other sources of funds may include
permanent financing, property sales, interest income on certificates of deposit
and other deposits of funds invested temporarily. Cash generated from property
sales is generally added to the Partnerships cash reserves, pending use in
development of other properties or distribution to the partners.

Management believes that the Partnerships cash balance at September 30, 2002,
together with cash from operations, sales and financings will be sufficient to
finance the Partnerships and the properties continued operations and
development plans on a short-term basis and for the reasonably foreseeable
future. There can be no assurance that the Partnerships results of operations
will not fluctuate in the future and at times affect its ability to meet its
operating requirements.

The Partnership knows of no demands, commitments, events or uncertainties,
which might affect its capital resources in any material respect. In addition,
the Partnership is not subject to any covenants pursuant to its secured debt
that would constrain its ability to obtain additional capital.

Operating Activities

For the nine months ended September 30, 2002, the Partnerships cash provided
by operating activities totaled $1,411,000.

The $16,000 decrease in accounts receivable at September 30, 2002, compared to
December 31, 2001, was primarily due to the collection of tenant rents
receivable.

The $329,000 increase in deferred financing costs and other fees at September
30, 2002, compared to December 31, 2001, was primarily due to lease commissions
paid for new and renewal leases.

The $77,000 increase in prepaid expenses and other assets at September 30,
2002, compared to December 31, 2001, was primarily due to an increase in
mortgage impound reserve accounts.

The $325,000 increase in accounts payable and other liabilities at September
30, 2002, compared to December 31, 2001, was primarily due to an increase in
accrued property taxes.

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Investing Activities

During the nine months ended September 30, 2002, the Partnerships cash used
for investing activities totaled $1,512,000, which consisted of $744,000 for
lobby renovations and building improvements, and $518,000 for tenant
improvements at One Carnegie Plaza, Two Carnegie Plaza, Palm Court Retail # 3
and Lakeside Tower, and $250,000 for development of land at Harriman Plaza and
Two Parkside.

Financing Activities

During the nine months ended September 30, 2002, the Partnerships cash used
for financing activities totaled $354,000, which consisted of $124,000 in
principal payments on the note payable discussed above, and $230,000 paid to
redeem 739 limited partnership units (Units).

RESULTS OF OPERATIONS

Revenues

Rental income increased slightly for the three and nine months ended September
30, 2002, compared to the three and nine months ended September 30, 2001,
respectively, primarily due to the increases in occupancy at One Carnegie Plaza
and Two Carnegie Plaza, offset by the sale of the Santa Fe property, as well as
the decrease in occupancy at Carnegie Business Center II.

Occupancy rates at the Partnerships Tri-City properties as of September 30,
2002 and 2001 were as follows:

|                                 |  |               |     |      |  |  |     |  
|-------------------------------- |  | ------------- | --- | ---- |  |  | --- | -
|                                 |  | September 30,
|                                 |  |              
|                                 |  | 2002          |     | 2001
|                                 |  |               |     |     
|One Carnegie Plaza               |  |               | 89  | %    |  |  | 74  | %
|Two Carnegie Plaza               |  |               | 96  | %    |  |  | 87  | %
|Carnegie Business Center II      |  |               | 76  | %    |  |  | 89  | %
|Lakeside Tower                   |  |               | 97  | %    |  |  | 98  | %
|One Parkside                     |  |               | 100 | %    |  |  | 100 | %
|Ballys Health Club              |  |               | 100 | %    |  |  | 100 | %
|Outback Steakhouse               |  |               | 100 | %    |  |  | 100 | %
|Palm Court Retail #3             |  |               | 100 | %    |  |  | 100 | %
|                                 |  |               |     |      |  |  |     |  
|Total weighted average occupancy |  |               | 95  | %    |  |  | 84  | %
|                                 |  |               |     |      |  |  |     |  

As of September 30, 2002, tenants at Tri-City Corporate Centre occupying
substantial portions of leased rental space included: (i) Chicago Title with a
lease through February 2004; (ii) New York Life Insurance with a lease through
May 2004; (iii) Paychex with a lease through July 2004; (iv) Computer
Associates with a lease through November 2005; (v) Lewis, Damato & Brisbois et
al with a lease through November 2005; and (vi) Holiday Spa Health Club with a
lease through December 2010. These six tenants, in the aggregate, occupy
approximately 139,000 square feet of the 448,000 total rentable square feet at
Tri-City and account for approximately 32% of the rental income generated at
Tri-City for the Partnership.

The 15% increase in occupancy from September 30, 2001 to September 30, 2002 at
One Carnegie Plaza was due to expansion of three existing tenants into 16,000
square feet of vacant space.

The 9% increase in occupancy from September 30, 2001 to September 30, 2002 at
Two Carnegie Business Plaza was due to leasing 6,200 square feet of previously
vacant space to several new tenants.

The 13% decrease in occupancy from September 30, 2001 to September 30, 2002 at
Carnegie Business Center II was due to a 7,900 square foot tenant vacating due
to the purchase of their own building, offset by an increase due to leasing of
1,600 square feet of vacant space to a new tenant.

In August 2001, the Santa Fe property was purchased by BNSF, the sole tenant at
the property, for a price of $4,820,000. The sale generated a gain of
approximately $2,663,000 and net proceeds of approximately $4,316,000 which
were added to the Partnerships cash reserves.

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Interest and other income decreased $39,000 and $192,000 for the three and nine
months ended September 30, 2002, compared to the three and nine months ended
September 30, 2001, respectively, primarily due to a lower invested cash
balance which resulted from the November 2001 payoff of a $4 million note
payable secured by One Carnegie Plaza, and the distributions to Limited
Partners in November 2001, and decreases in interest rates.

Expenses

Operating expenses increased $108,000, or 5%, for the nine months ended
September 30, 2002, compared to the nine months ended September 30, 2001,
primarily due to an increase in utility costs, and increases in occupancy at
One Carnegie and Two Carnegie, partially offset by the sale of the Santa Fe
property, and decrease in occupancy at Carnegie Business Center II.

Interest expense decreased $89,000, or 29%, and $268,000, or 29%, for the three
and nine months ended September 30, 2002, compared to the three and nine months
ended September 30, 2001, respectively, due to the payoff of a $4 million loan
in November 2001 as discussed above.

Depreciation and amortization increased $39,000, or 9%, and $60,000, or 5%, for
the three and nine months ended September 30, 2002, compared to the three and
nine months ended September 30, 2001, respectively, primarily due to additions
to real estate.

Expenses associated with undeveloped land increased $25,000, or 9%, for the
nine months ended September 30, 2002, compared to the nine months ended
September 30, 2001, primarily due to an increase in security patrol and parking
lot sweeping expenses.

General and administrative expenses increased $49,000, or 22%, for the three
months ended September 30, 2002, compared to the three months ended September
30, 2001, primarily due to the reclassification of legal expenses related to
litigation of the Santa Fe sale to loss on sale in the 3rd quarter of 2001.
General and administrative expenses decreased $80,000, or 9%, for the nine
months ended September 30, 2002, compared to the nine months ended September
30, 2001, primarily due to a decrease in investor relation service expenses
related to the redemption of partnership units.

CRITICAL ACCOUNTING POLICIES

Revenue recognized on a straight-line basis

The Partnership recognizes rental revenue on a straight-line basis at amounts
that it believes it will collect on a tenant by tenant basis. The estimation
process may result in higher or lower levels from period to period as the
Partnerships collection experience and the credit quality of the Partnerships
tenants changes. 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, or if other
tenants remain whom the Partnership previously believed would not.

Carrying value of rental properties and land held for development

The Partnerships rental properties, including the related land, are stated at
depreciated cost unless events or circumstances indicate that depreciated cost
cannot be recovered, in which case, the carrying value of the property is
reduced to its estimated fair value. Estimated fair value is based upon (i)
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
multiplied by annualized rental 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.

Land held for development is 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; (ii) is computed
using estimated sales price, based upon market values for comparable
properties; and (iii) considers the cost to complete and the estimated fair
value of the completed project. The

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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.

The actual value of the Partnerships portfolio of properties and land held for
development could be significantly higher or lower than their carrying amounts.




Item 3. Qualitative and Quantitative Information About Market Risk

Interest Rates

The Partnerships primary market risk exposure is to changes in interest rates
obtainable on its secured borrowings. The Partnership does not believe that
changes in market interest rates will have a material impact on the performance
or fair value of its portfolio.

For debt obligations, the table below presents principal cash flows and
interest rates by expected maturity dates.

|                        |  |                        |      |      |  |      |      |      |  |            |      |       |  |       |       |   |  |  |     |  |  |   |       |   |  |   |       | 
|----------------------- |  | ---------------------- | ---- | ---- |  | ---- | ---- | ---- |  | ---------- | ---- | ----- |  | ----- | ----- | - |  |  | --- |  |  | - | ----- | - |  | - | ----- | 
|                        |  | Expected Maturity Date |      |      |  |      |      |      |  |           
|                        |  |                        |      |      |  |      |      | Fair
|                        |  | 2003                   |      | 2004 |  | 2005 |      | 2006 |  | Thereafter |      | Total |  | Value
|                        |  |                        |      |      |  |      |      |      |  |            |      |       |  |      
|                        |  | (in thousands)         |      |      |  |      |      |      |  |           
|Secured Fixed Rate Debt |  | $                      | 180  |      |  | $    | 198  |      |  | $          | 218  |       |  |       | 8,190 |   |  |  | N/A |  |  | $ | 8,786 |   |  | $ | 8,786 | 
|Average interest rate   |  |                        | 9.39 | %    |  |      | 9.39 | %    |  |            | 9.39 | %     |  |       | 9.39  | % |  |  | N/A |  |  |   | 9.39  | % |  |   |       | 

The Partnership believes that the interest rates given in the table for fixed
rate borrowings approximate the rates the Partnership could currently obtain
for instruments of similar terms and maturities and that the fair values of
such instruments approximate carrying value at September 30, 2002.




Item 4. Controls and procedures

(a)  Evaluation of disclosure controls and procedures. The Partnerships chief
executive officer and chief financial officer, after evaluating the
effectiveness of the Partnerships disclosure controls and procedures (as
defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15-d-14(c))
as of a date (the Evaluation Date) within 90 days before the filing date of
this quarterly report, has concluded that as of the Evaluation Date, the
Partnerships disclosure controls and procedures were effective and designed to
ensure that material information relating to the Partnership and its
consolidated subsidiaries would be made known to him by others within those
entities.

(b)  Changes in internal controls. There were no significant changes in the
Partnerships internal controls or in other factors that could significantly
affect those controls subsequent to the Evaluation Date.

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|        |  |                                                                                                                      
|------- |  | ---------------------------------------------------------------------------------------------------------------------
|Part II |  | OTHER INFORMATION                                                                                                    
|Item 1. |  | Legal Proceedings                                                                                                    
|        |  | None.                                                                                                                
|Item 2. |  | Changes in Securities and Use of Proceeds                                                                            
|        |  | Not applicable.                                                                                                      
|Item 3. |  | Defaults Upon Senior Securities                                                                                      
|        |  | Not applicable.                                                                                                      
|Item 4. |  | Submission of Matters to a Vote of Security Holders                                                                  
|        |  | None.                                                                                                                
|Item 5. |  | Other Information                                                                                                    
|        |  | None.                                                                                                                
|Item 6. |  | Exhibits and Reports on Form 8-K                                                                                     
|        |  | (a) Exhibits:                                                                                                        
|        |  | None.                                                                                                                
|        |  | (b) Reports on Form 8-K (incorporated herein by reference):                                                          
|        |  | On July 25, 2002, the Partnership filed a report on Form 8-K
regarding changes in registrants certifying accountant.

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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 report to be signed
on its behalf by the undersigned, thereunto duly authorized.

|                       |  |                                                        |  |                                                                           
|---------------------- |  | ------------------------------------------------------ |  | --------------------------------------------------------------------------
|                       |  | RANCON REALTY FUND V,
a California limited partnership
|                       |  | By:                                                    |  | Rancon Financial Corporation
a California corporation,
its General Partner
|Date: November 8, 2002 |  | By:                                                    |  | /s/ DANIEL L. STEPHENSON                                                  
|                       |  |                                                        |  |                                                                           
|                       |  |                                                        |  | Daniel L. Stephenson, President                                           
|Date: November 8, 2002 |  | By:                                                    |  | /s/ DANIEL L. STEPHENSON                                                  
|                       |  |                                                        |  |                                                                           
|                       |  |                                                        |  | Daniel L. Stephenson, General Partner                                     

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I, DANIEL L. STEPHENSON, certify that:



|1. |  | I have reviewed this quarterly report on Form 10-Q of RANCON REALTY FUND
V;                                                                                                                                                                                                                                                   
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;                   
|  
|4. |  | I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and I have:                                                                                                                                                      



| | a) |  | designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to me by others within those
entities, particularly during the period in which this quarterly report
is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my
evaluation as of the Evaluation Date;                                                                                                                          



|5. |  | I have disclosed, based on my most recent evaluation, to the registrants
auditors and the audit committee of registrants board of directors (or
persons performing the equivalent function):
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to
record, process, summarize and report financial data and have
identified for the registrants auditors any material weaknesses in
internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants
internal controls; and                                                                                                                                        



|6. |  | I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of my most
recent evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: November 8, 2002

/s/ DANIEL L. STEPHENSON

Daniel L. Stephenson
President, and General Partner of
Rancon Financial Corporation

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