Conflicts of Interest and Related Party Transactions	3 Months Ended
Mar. 31, 2013
Notes to Financial Statements
Conflicts of Interest and Related Party Transactions	NOTE 4. CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES In September 2012, the Partnership began rebuilding the facade of the Sierra Property’s building that was impacted by the Widening Project (as defined in “Note 5. Real Estate” below). During the quarter ended March 31, 2013, the Partnership paid approximately $50,078 to Pelican, LLC, an affiliate of the General Partner, for rebuilding the facade. The rebuilding project was completed during the fourth quarter of 2012, and the Partnership funded the cost of the rebuilding project with the compensation it had received from the Regional Transportation Commission (see “NOTE 5. REAL ESTATE”). Beginning in April 2007, affiliates of the General Partner began leasing office space at the Sierra Property and pay monthly rent of $2,408. The General Partner uses a portion of this office space and participates in such rent payments. In 2004, the Partnership began renovation efforts in an attempt to maximize the financial viability of the Sierra Property (the "Renovation"). As part of the Renovation, a portion of the shopping center previously occupied by an anchor tenant was demolished for the purpose of creating in its place a new driveway (and traffic signal) directly between the Sierra Property and a hotel casino property located next to the Sierra Property (the "Adjacent Property”). The Adjacent Property entered into a lease with the Partnership for a section of the Sierra Property (including the new driveway). The Adjacent Property has a minimum lease term of 15 years at an initial monthly rent of $25,000, subject to increases every 60 months based on the Consumer Price Index. Such an increase became effective on September 30, 2009, and the Adjacent Property now pays monthly rent of approximately $28,400. The Adjacent Property also uses part of the common area of the Sierra Property and pays its proportionate share of the common area expense of the Sierra Property. The Adjacent Property has the option to renew the lease for three five-year terms and, at the end of the extension periods, has the option to purchase the leased section of the Sierra Property at a price to be determined based on an MAI Appraisal. In addition to the driveway, the Adjacent Property also leases approximately 6,900 square feet of storage space at the Sierra Property and pays rent of approximately $3,450 per month for such storage space. Ben Farahi, the manager of the General Partner, was, until May 26, 2006, Co-Chairman of the Board, Chief Financial Officer, Secretary, and Treasurer of Monarch Casino & Resort, Inc. (“Monarch”), the owner of the Adjacent Property. He owned approximately 12.0% of Monarch’s outstanding common stock as of March 31, 2013. Accounting rules define transactions with related parties as transactions which are not arm’s-length in nature and, therefore, may not represent fair market value. Compensation of the General Partner The General Partner is the manager of the Sierra Property. The General Partner received $11,781 and $16,602 for the three months ended March 31, 2013 and 2012, respectively, for such management services; included in these amounts is three percent of the monthly interest earned on the Partnership’s cash in savings and money market accounts, which the Partnership began paying to the General Partner in 2006. Also, pursuant to the Partnership's Second Amended and Restated Agreement of Limited Partnership (the “Amended LP Agreement”), the General Partner is entitled to receive 2.5% of the Partnership's income, loss, capital and distributions, including, without limitation, the Partnership's cash flow from operations, disposition proceeds and net sale or refinancing proceeds. Accordingly, the General Partner was allocated net income of $5,760 for the three months ended March 31, 2013 and net income of $1,956 for the three months ended March 31, 2012. On April 9, 2013, the Partnership issued a cash distribution of $1.70 per unit on the outstanding limited partnership interests of the Partnership to limited partners of record at the close of business on March 28, 2013. The General Partner received $7,337 from this distribution in its capacity as the general partner. Also pursuant to the Amended LP Agreement, the General Partner shall receive mortgage placement fees for services rendered in connection with the Partnership’s mortgage loans. These fees may not exceed such compensation customarily charged in arm’s-length transactions by others rendering similar services as an ongoing public activity in the same geographical location for comparable mortgage loans. The General Partner is entitled to certain fees for compensation of other services rendered as well. The General Partner did not earn any mortgage placement or other fees during the three months ended March 31, 2013 or 2012.

Conflicts of Interest and Related Party Transactions

3 Months Ended

Mar. 31, 2013

Conflicts of Interest and Related Party Transactions

NOTE 4. CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

In September 2012, the Partnership began rebuilding the facade of the Sierra Property’s building that was impacted by the Widening Project (as defined in “Note 5. Real Estate” below). During the quarter ended March 31, 2013, the Partnership paid approximately $50,078 to Pelican, LLC, an affiliate of the General Partner, for rebuilding the facade. The rebuilding project was completed during the fourth quarter of 2012, and the Partnership funded the cost of the rebuilding project with the compensation it had received from the Regional Transportation Commission (see “NOTE 5. REAL ESTATE”).

Beginning in April 2007, affiliates of the General Partner began leasing office space at the Sierra Property and pay monthly rent of $2,408. The General Partner uses a portion of this office space and participates in such rent payments.

In 2004, the Partnership began renovation efforts in an attempt to maximize the financial viability of the Sierra Property (the "Renovation"). As part of the Renovation, a portion of the shopping center previously occupied by an anchor tenant was demolished for the purpose of creating in its place a new driveway (and traffic signal) directly between the Sierra Property and a

hotel casino property located next to the Sierra Property (the "Adjacent Property”). The Adjacent Property entered into a lease with the Partnership for a section of the Sierra Property (including the new driveway). The Adjacent Property has a minimum lease term of 15 years at an initial monthly rent of $25,000, subject to increases every 60 months based on the Consumer Price Index. Such an increase became effective on September 30, 2009, and the Adjacent Property now pays monthly rent of approximately $28,400. The Adjacent Property also uses part of the common area of the Sierra Property and pays its proportionate share of the common area expense of the Sierra Property. The Adjacent Property has the option to renew the lease for three five-year terms and, at the end of the extension periods, has the option to purchase the leased section of the Sierra Property at a price to be determined based on an MAI Appraisal.

In addition to the driveway, the Adjacent Property also leases approximately 6,900 square feet of storage space at the Sierra Property and pays rent of approximately $3,450 per month for such storage space.

Ben Farahi, the manager of the General Partner, was, until May 26, 2006, Co-Chairman of the Board, Chief Financial Officer, Secretary, and Treasurer of Monarch Casino & Resort, Inc. (“Monarch”), the owner of the Adjacent Property. He owned approximately 12.0% of Monarch’s outstanding common stock as of March 31, 2013.

Accounting rules define transactions with related parties as transactions which are not arm’s-length in nature and, therefore, may not represent fair market value.

Compensation of the General Partner

The General Partner is the manager of the Sierra Property. The General Partner received $11,781 and $16,602 for the three months ended March 31, 2013 and 2012, respectively, for such management services; included in these amounts is three percent of the monthly interest earned on the Partnership’s cash in savings and money market accounts, which the Partnership began paying to the General Partner in 2006. Also, pursuant to the Partnership's Second Amended and Restated Agreement of Limited Partnership (the “Amended LP Agreement”), the General Partner is entitled to receive 2.5% of the Partnership's income, loss, capital and distributions, including, without limitation, the Partnership's cash flow from operations, disposition proceeds and net sale or refinancing proceeds. Accordingly, the General Partner was allocated net income of $5,760 for the three months ended March 31, 2013 and net income of $1,956 for the three months ended March 31, 2012.

On April 9, 2013, the Partnership issued a cash distribution of $1.70 per unit on the outstanding limited partnership interests of the Partnership to limited partners of record at the close of business on March 28, 2013. The General Partner received $7,337 from this distribution in its capacity as the general partner.

Also pursuant to the Amended LP Agreement, the General Partner shall receive mortgage placement fees for services rendered in connection with the Partnership’s mortgage loans. These fees may not exceed such compensation customarily charged in arm’s-length transactions by others rendering similar services as an ongoing public activity in the same geographical location for comparable mortgage loans. The General Partner is entitled to certain fees for compensation of other services rendered as well. The General Partner did not earn any mortgage placement or other fees during the three months ended March 31, 2013 or 2012.

BIGGEST LITTLE INVESTMENTS LP 10-Q