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EX-32 - AEI Income & Growth Fund 27 LLCex32-27.txt
EX-31.2 - AEI Income & Growth Fund 27 LLCex31-227.txt
EX-31.1 - AEI Income & Growth Fund 27 LLCex31-127.txt

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

                            FORM 10-K

 Annual Report Pursuant to Section 13 or 15(d) of The Securities
                      Exchange Act of 1934

          For the Fiscal Year Ended:  December 31, 2009

               Commission file number:  000-53691

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:
     Title of each class    Name of each exchange on which registered
             None                          None

Securities registered pursuant to Section 12(g) of the Act:
                   Limited Liability Company Units
                        (Title of class)

Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act.  Yes [ ] No [X]

Indicate by check mark if the registrant is not required to  file
reports pursuant to Section 13 or Section 15(d) of the Exchange
Act.  Yes [ ] No [X]

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

Indicate  by  check  mark  whether the registrant  has  submitted
electronically  and posted on its corporate  Web  site,  if  any,
every  Interactive Data File required to be submitted and  posted
pursuant  to Rule 405 of Regulation S-T (232.405 of this chapter)
during  the preceding 12 months (or for such shorter period  that
the  registrant was required to submit and post such files).
Yes [ ]  No [ ]

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.   [X]

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

  Large accelerated filer [ ]        Accelerated filer [ ]
  Non-accelerated filer  [ ]         Smaller reporting company  [X]

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

As  of  June  30,  2009, there were 866,344.7  Units  of  limited
membership interest outstanding and owned by nonaffiliates of the
registrant,  which  Units had an aggregate  market  value  (based
solely  on  the price at which they were sold since there  is  no
ready market for such Units) of $8,663,447.

               DOCUMENTS INCORPORATED BY REFERENCE
 The registrant has not incorporated any documents by reference
                        into this report.


                             PART I

ITEM 1.   BUSINESS.

        AEI  Income  & Growth Fund 27 LLC (the "Company"  or  the
"Registrant") is a limited liability company which was  organized
pursuant  to  the laws of the State of Delaware  on  January  26,
2007.   The  registrant is comprised of AEI Fund Management  XXI,
Inc.  ("AFM"),  as the Managing Member, Robert  P.  Johnson,  the
President  and  sole  director of AFM, as  the  Special  Managing
Member,  and  purchasers of LLC Units as  Limited  Members.   The
Company offered for sale up to $100,000,000 of limited membership
interests  (the  "Units") (10,000,000  Units  at  $10  per  Unit)
pursuant to a registration statement effective November 19, 2007.
The  Company  commenced operations on June 5, 2008  when  minimum
subscriptions  of 150,000 LLC Units ($1,500,000)  were  accepted.
The  offering  terminated November 18,  2009  when  the  extended
offering period expired.  The Company received subscriptions  for
1,164,036.5  LLC  Units.   Under  the  terms  of  the   Operating
Agreement,  the Limited Members and Managing Members  contributed
funds of $11,640,365 and $1,000, respectively.

        The  Company was organized to acquire existing and  newly
constructed  commercial properties, to lease such  properties  to
tenants  under  net  leases,  to  hold  such  properties  and  to
eventually  sell such properties.  As of December 31,  2009,  the
Company   had   purchased  four  properties,  including   partial
interests  in  three  properties at a total cost  of  $6,242,852.
Included  in  this amount was $62,611 of acquisition  costs  that
were  expensed as incurred as the result of the adoption  of  new
guidance  on business combinations that became effective  January
1,  2009.  The properties are commercial, single tenant buildings
leased  under  net leases.  The Company is continuing  to  review
various  properties for acquisition until available  subscription
proceeds are fully committed.

        Although  the  registration statement indicates  that  no
properties will be acquired using debt financing, debt  was  used
to  acquire  the Starbucks store solely to finance  its  purchase
prior   to  the  admission  of  Limited  Members.  The  remaining
properties were acquired on a debt-free basis.  The Company  will
not  finance properties in the future to obtain proceeds for  new
property  acquisitions.  If it is required to do so, the  Company
may incur short-term indebtedness to finance day-to-day cash flow
requirements (including cash flow necessary to repurchase Units).
The Company may borrow to finance the refurbishing of a property.

        The  Company will hold its properties until the  Managing
Members  determine  that  the sale or other  disposition  of  the
properties  is  advantageous in view of the Company's  investment
objectives.  In deciding whether to sell properties, the Managing
Members will consider factors such as potential appreciation, net
cash flow and income tax considerations.  The Company expects  to
sell some or all of its properties prior to its final liquidation
and  to  reinvest  the  proceeds from such  sales  in  additional
properties.  The Company reserves the right, at the discretion of
the Managing Members, to either distribute proceeds from the sale
of  properties  to  the Members or to reinvest such  proceeds  in
additional  properties,  provided that  sufficient  proceeds  are
distributed  to  the  Limited Members to pay  federal  and  state
income  taxes related to any taxable gain recognized as a  result
of  the sale.  Subject to the approval of Limited Members holding
a  majority of the outstanding Units, it is the intention of  the
Managing Members to commence liquidation through the sale of  the
Company's remaining properties approximately ten years after  all
the available subscription proceeds are utilized for the purchase
of  properties.  If the Limited Members do not vote to  liquidate
at that time, the normal operations of the Company will continue.


ITEM 1.   BUSINESS.  (Continued)

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Company's  leases.  The properties are leased to various  tenants
under  net  leases,  which are classified  as  operating  leases.
Under  a  net  lease, the tenant is responsible for  real  estate
taxes, insurance, maintenance, repairs and operating expenses for
the  property.   For some leases, the Company is responsible  for
repairs  to the structural components of the building,  the  roof
and  the  parking lot.  At the time the properties were acquired,
the  remaining primary lease terms varied from 10  to  15  years.
The  leases  provide  the  tenants with  four  five-year  renewal
options  subject to the same terms and conditions as the  primary
term. The leases provide for base annual rental payments, payable
in  monthly installments, and contain rent clauses which  entitle
the  Company to receive additional rent in future years based  on
stated rent increases.

Major Tenants

        During 2009, three tenants each contributed more than ten
percent of the Company's total rental revenue.  The major tenants
in  aggregate  contributed 90% of total rental revenue  in  2009.
Because  the  Company  has  not  completed  its  acquisition   of
properties,  it is not possible to determine which  tenants  will
contribute more than ten percent of the Company's rental  revenue
in  2010  and  future years.  In the event that  certain  tenants
contribute  more  than ten percent of rental  revenue  in  future
years, any failure of these major tenants could materially affect
the Company's net income and cash distributions.

Competition

        The  Company  is  a minor factor in the  commercial  real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than the Company.  At the time the Company  elects  to
dispose  of its properties, it will be in competition with  other
persons and entities to find buyers for its properties.

Employees

        The Company has no direct employees.  Management services
are  performed for the Company by AEI Fund Management,  Inc.,  an
affiliate of AFM.

ITEM 1A.  RISK FACTORS.

       Not required for a smaller reporting company.

ITEM 1B.  UNRESOLVED STAFF COMMENTS.

       Not required for a smaller reporting company.

ITEM 2.   PROPERTIES.

Investment Objectives

         The  Company's  investment  objectives  are  to  acquire
existing  or  newly-developed commercial properties that  provide
(i)  regular  rental income; (ii) growth in lease income  through
rent   escalation  provisions;  (iii)  capital   growth   through
appreciation  in the value of properties; (iv) reduced  occupancy
risks as a result of long-term leases with creditworthy corporate
tenants;  and (v) passive income that may be offset  by  eligible
passive  losses  from other investments for  tax  purposes.   The
Company does not have a policy, and there is no limitation, as to
the  amount or percentage of assets that may be invested  in  any
one  property.   However,  to the extent possible,  the  Managing
Members  attempt  to  diversify the  type  and  location  of  the
properties.

Description of Properties

        The  Company's properties are commercial,  single  tenant
buildings  leased to various tenants under net leases, which  are
classified   as  operating  leases.   Although  the  registration
statement  indicates that no properties will  be  acquired  using
debt  financing,  debt was used to acquire  the  Starbucks  store
solely  to finance its purchase prior to the admission of Limited
Members.  The remaining properties were acquired on  a  debt-free
basis.  The Company holds an undivided fee simple interest in the
properties.

        The  Company's  properties are  subject  to  the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term  lease, there is little competition until  the  Company
decides to sell the property.  At this time, the Company will  be
competing  with other real estate owners, on both a national  and
local level, in attempting to find buyers for the properties.  In
the  event  of  a tenant default, the Company would be  competing
with  other  real estate owners, who have property vacancies,  to
attract  a  new  tenant  to  lease the property.   The  Company's
tenants  operate in industries that are very competitive and  can
be  affected  by  factors such as changes in  regional  or  local
economies, seasonality and changes in consumer preference.

        The  following table is a summary of the properties  that
the Company acquired and owned as of December 31, 2009.

                                                      Annual    Annual
                Purchase  Property                    Lease     Rent Per
Property          Date      Cost        Tenant        Payment   Sq. Ft.

Starbucks Store                        Starbucks
 Shreveport, LA   2/5/08  $1,369,132  Corporation     $ 93,000   $50.99

Best Buy Store
 Lake Geneva, WI                        Best Buy
 (33%)           10/6/08  $2,052,214  Stores, L.P.    $144,325   $14.40

Staples Store                           Staples the
 Vernon Hills, IL                     Office Superstore
 (30%)           5/22/09  $1,591,987(1)  East, Inc.   $132,135   $23.00

Tractor Supply Company Store
 Rapid City, SD                        Tractor Supply
 (37%)            8/6/09  $1,166,908      Company     $ 83,250   $11.78


(1) Does not include acquisition costs that were expensed.


ITEM 2.   PROPERTIES.  (Continued)

        The  properties  listed above with  a  partial  ownership
percentage  are  owned  with  affiliates  of  the  Company.   The
remaining interests in the Best Buy store are owned by AEI Income
&  Growth  Fund XXII Limited Partnership and AEI Income &  Growth
Fund  24  LLC.   The remaining interest in the Staples  store  is
owned   by  AEI  Net  Lease  Income  &  Growth  Fund  XX  Limited
Partnership.   The  remaining  interest  in  the  Tractor  Supply
Company  store is owned by AEI Income & Growth Fund  XXI  Limited
Partnership.

        The  Company accounts for properties owned as tenants-in-
common  with  affiliated entities and/or unrelated third  parties
using  the  proportionate consolidation method.  Each  tenant-in-
common  owns  a  separate, undivided interest in the  properties.
Any tenant-in-common that holds more than a 50% interest does not
control decisions over the other tenant-in-common interests.  The
financial statements reflect only this Company's percentage share
of  the  properties'  land, building and equipment,  liabilities,
revenues and expenses.

        At  the  time the properties were acquired, the remaining
primary  lease  terms  varied from 10 to 15  years.   The  leases
provide  the tenants with four five-year renewal options  subject
to the same terms and conditions as the primary term.

       Pursuant to the lease agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The Managing Members believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Company's operations.

       For tax purposes, the Company's properties are depreciated
under the Modified Accelerated Cost Recovery System (MACRS).  The
largest depreciable component of a property is the building which
is  depreciated, using the straight-line method, over  39  years.
The  remaining depreciable components of a property are  personal
property  and land improvements which are depreciated,  using  an
accelerated method, over 5 and 15 years, respectively.  Since the
Company  has  tax-exempt Members, the Company is subject  to  the
rules  of  Section 168(h)(6) of the Internal Revenue  Code  which
requires  a  percentage of the properties' depreciable components
to  be  depreciated  over  longer lives using  the  straight-line
method.  In general, the federal tax basis of the properties  for
tax  depreciation purposes will be the same as the basis for book
depreciation purposes.

        At  December 31, 2009, all properties listed  above  were
100% occupied.

ITEM 3.   LEGAL PROCEEDINGS.

       None.

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

       None.


                             PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
        HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

        (a)  As  of December 31, 2009, there were 307 holders  of
record of the registrant's LLC Units.  There is no other class of
security  outstanding or authorized.  The registrant's Units  are
not  a  traded security in any market.  During the period covered
by  this  report, the Company did not sell any equity  securities
that are not registered under the Securities Act of 1933.

        Cash distributions of $12,792 and $3,547 were made to the
Managing  Members  and $413,593 and $114,681  were  made  to  the
Limited   Members   for   2009  and  2008,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash  Flow,  as  defined,  and a partial  return  of  contributed
capital.   These  distributions  should  not  be  compared   with
dividends paid on capital stock by corporations.

        (b) The registration statement for the offering (No. 333-
144961)  was  declared  effective  on  November  19,  2007.   The
offering  commenced on November 19, 2007 and terminated  November
18,  2009,  when  the  extended  offering  period  expired.   AEI
Securities,  Inc. ("ASI") is the dealer manager of the  offering.
The  registration  statement covers 10,000,000 Units  of  limited
liability  company interest at an aggregate price of up  to  $100
million.   The Company sold 1,164,036.5 Units for gross  offering
proceeds of $11,640,365.

        From gross offering proceeds, the Company paid $1,119,618
in  selling  commissions  to ASI, an affiliate  of  the  Managing
Members.   Of  this  amount, $730,728 was re-allowed  by  ASI  to
participating  broker-dealers not affiliated  with  the  Managing
Members.   The  gross offering proceeds were further  reduced  by
underwriting  discounts  of $17,032 and  other  organization  and
syndication costs of $582,018 of which $344,658 was paid  to  AEI
Fund Management, Inc., an affiliate of the Managing Members,  for
costs  incurred  in providing services related  to  managing  the
offering  and  organization  of the Company.   From  subscription
proceeds,  the  Company  incurred commissions,  organization  and
syndication costs totaling $1,718,668.

        From  the  net  offering proceeds, the  Company  expended
$6,242,852 to acquire real estate of which $6,009,207 represented
cash  paid  to  unaffiliated  sellers  of  real  estate,  $90,138
represented  an  acquisition  administration  fee  paid  to   the
Managing  Member and $143,507 represented cash paid to  reimburse
AEI  Fund  Management,  Inc.  for  costs  incurred  in  providing
services  and  direct  expenses related  to  the  acquisition  of
properties on behalf of the Company.

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


ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
        HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

        Units tendered to the Company during January and July are
redeemed on April 1st and October 1st, respectively, of each year
subject  to the following limitations.  The Company will  not  be
obligated  to  purchase in any year more than  2%  of  the  total
number  of  Units outstanding on January 1 of such year.   In  no
event shall the Company be obligated to purchase Units if, in the
sole  discretion  of  the Managing Member,  such  purchase  would
impair the capital or operation of the Company.  During the  last
three months of 2009, the Company did not purchase any Units.

Other Information

        The Company is required, pursuant to FINRA Rule 2810,  to
disclose  in each annual report distributed to Limited Members  a
per  Unit  estimated value, the method by which it was  developed
and  the  date  of the data used to develop the estimated  value.
During  the  Company's  offering and  for  the  18  months  after
completion  of the offering (through May 2011), the  value  of  a
Unit  will  be deemed to be $10.00.  This deemed value  is  based
solely  on  the offering price, without regard to the assets  and
liabilities of the Company, the cash flow of the Company, or  any
other  valuation factors. However, please note that there  is  no
public  trading market for the Units nor is one ever expected  to
develop and there can be no assurance that Limited Members  could
receive  $10  per Unit if such a market did exist and  they  sold
their Units or that they will be able to receive such amount  for
their  Units  in  the future.  In addition, the Company  has  not
performed an evaluation of the Company properties and, therefore,
this  valuation  is  not  based upon the  value  of  the  Company
properties,  nor  does  it represent the amount  Limited  Members
would  receive  if  the  Company properties  were  sold  and  the
proceeds  distributed to the Limited Members in a liquidation  of
the  Company, which amount would most likely be less than $10 per
Unit  as  a  result of the fact that, at the time the Company  is
purchasing  its  properties, the amount of  funds  available  for
investment  in  properties is approximately  15%  less  than  the
offering proceeds due to the payment of organization and offering
expenses,  including selling commissions, as  described  in  more
detail in the Company's Prospectus.

ITEM 6.   SELECTED FINANCIAL DATA.

       Not required for a smaller reporting company.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS.

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

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

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

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

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

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

Application of Critical Accounting Policies

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

       Prior to January 1, 2009, the Company purchased properties
and  recorded them in the financial statements at cost (including
capitalized acquisition expenses).  For acquisitions completed on
or  after January 1, 2009, acquisition-related transaction  costs
will  be expensed as incurred as a result of the Company adopting
new  guidance on business combinations that expands the scope  of
acquisition accounting. The Company tests long-lived  assets  for
recoverability  when events or changes in circumstances  indicate
that  the  carrying value may not be recoverable.  For properties
the  Company will hold and operate, management determines whether
impairment  has occurred by comparing the property's probability-
weighted  future undiscounted cash flows to its current  carrying
value.   For  properties  held  for sale,  management  determines
whether  impairment  has  occurred by  comparing  the  property's
estimated  fair  value less cost to sell to its current  carrying
value.   If  the  carrying value is greater than  the  realizable
value,  an  impairment loss is recorded to  reduce  the  carrying
value  of the property to its realizable value.  Changes in these
assumptions  or  analysis  may  cause  material  changes  in  the
carrying value of the properties.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

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

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

Results of Operations

        For  the  year  ended  December  31,  2009,  the  Company
recognized rental income of $351,525, representing twelve  months
rent  from two properties acquired during 2008 and rent from  two
properties acquired during the period.  At December 31, 2009, the
scheduled annual rent for the properties was $452,710.   For  the
year  ended  December  31,  2008, the Company  recognized  rental
income   of  $118,322,  representing  rent  from  two  properties
acquired during the period.

        For  the  years  ended December 31, 2009  and  2008,  the
Company  incurred  LLC  administration expenses  from  affiliated
parties   of   $89,435   and   $33,990,   respectively.     These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and communicating with the Limited Members.   During
the  same  periods,  the Company incurred LLC administration  and
property  management expenses from unrelated parties  of  $14,053
and   $4,834,  respectively.   These  expenses  represent  direct
payments  to  third  parties for legal and  filing  fees,  direct
administrative costs, outside audit costs, taxes,  insurance  and
other   property   costs.   As  the  Company  raised   additional
subscription  proceeds and purchased additional  properties,  the
administration and property management expenses increased.

       For the year ended December 31, 2009, the Company incurred
property  acquisition  expenses of  $62,611.   These  costs  were
expensed  as  incurred  as the result  of  the  adoption  of  new
guidance  on business combinations that became effective  January
1, 2009.

        For  the  years  ended December 31, 2009  and  2008,  the
Company   recognized  interest  income  of  $42,167  and  $9,663,
respectively.  In 2009, interest income increased  as  result  of
$23,603 of interest received on construction advances in 2009 and
the  Company had more subscription proceeds temporarily  invested
in a money market account.

        For  the  year ended December 31, 2008, interest  expense
related  to  the  Note  on  the Starbucks  store  in  Shreveport,
Louisiana was $22,528.  The Note called for interest at the prime
rate  minus 0.25% with the interest due on the first day of  each
month.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

         Management  believes  inflation  has  not  significantly
affected  income  from  operations.   Leases  may  contain   rent
increases, based on the increase in the Consumer Price Index over
a  specified period, which will result in an increase  in  rental
income over the term of the leases.  Inflation also may cause the
real  estate  to  appreciate in value.   However,  inflation  and
changing  prices  may  have an adverse impact  on  the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

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

        The  Company  generated $236,243 of cash from  operations
during  the year ended December 31, 2009, representing net income
of  $71,081, a non-cash expense of $156,512 for depreciation  and
$8,650  in  net timing differences in the collection of  payments
from  the  tenants  and  the payment of  expenses.   During  this
period,   cash  from  operations  was  reduced  by   $62,611   of
acquisition  expenses  related to the purchase  of  real  estate.
Pursuant   to  new  accounting  guidance,  these  expenses   were
reflected as operating cash outflows.  However, pursuant  to  the
Company's  Operating Agreement, acquisition expenses  are  funded
with  subscription  proceeds.  The Company generated  $87,583  of
cash  from  operations during the year ended December  31,  2008,
representing net income of $10,906, a non-cash expense of $55,727
for  depreciation  and $20,950 in net timing differences  in  the
collection  of  payments  from the tenants  and  the  payment  of
expenses.

        The  major  components of the Company's  cash  flow  from
investing activities are investments in real estate and  proceeds
from the sale of real estate.  During the year ended December 31,
2009,   the  Company  expended  $2,362,478  to  invest  in   real
properties.   On  May  22,  2009, the  Company  purchased  a  30%
interest  in  a  Staples  store in  Vernon  Hills,  Illinois  for
$1,591,987. In addition, during the period, the Company  expended
$770,491  for  the construction of the Tractor  Supply  store  in
Rapid City, South Dakota.

        During  the  year  ended December 31, 2008,  the  Company
expended  $3,817,763 to invest in real properties  (inclusive  of
acquisition   expenses).   On  February  5,  2008,  the   Company
purchased   a  Starbucks  store  in  Shreveport,  Louisiana   for
$1,369,132.   On  October 6, 2008, the Company  purchased  a  33%
interest  in  a  Best  Buy store in Lake  Geneva,  Wisconsin  for
$2,052,214.   On November 21, 2008, the Company purchased  a  37%
interest  in  a  parcel of land in Rapid City, South  Dakota  for
$353,565, including acquisition expenses.  Simultaneous with  the
purchase  of  the  land, the Company entered into  a  Development
Financing  Agreement under which the Company advanced  funds  for
the  construction of a Tractor Supply Company store on the  site.
Through  December 31, 2008, the Company had advanced $42,852  for
the construction of the building.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

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

       During the offering of Units, the Company's primary source
of  cash  flow  was  from  the sale of LLC  Units.   The  Company
commenced  the  offering of LLC Units to  the  public  through  a
registration  statement that became effective November  19,  2007
and continued until November 18, 2009, when the extended offering
period  expired.  The Company raised a total of $11,640,365  from
the  sale of 1,164,036.5 Units.  From subscription proceeds,  the
Company  incurred  organization  and  syndication  costs   (which
constitute a reduction of capital) of $1,718,668.

        After  completion of the acquisition phase, the Company's
primary  use  of  cash  flow  will be  distribution  payments  to
Members.     The   Company   declares   its   regular   quarterly
distributions  before  the  end of  each  quarter  and  pays  the
distribution  in  the first week after the end of  each  quarter.
For  the  years  ended December 31, 2009 and  2008,  the  Company
declared  distributions  of $426,385 and $118,228,  respectively,
which  were allocated 97% to the Limited Members and  3%  to  the
Managing Members.

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

        The  Operating Agreement requires that all proceeds  from
the  sale  of Units, subject to a reasonable reserve for  ongoing
operations, be invested or committed to investment in  properties
by  the  later  of  two years after the date of the  registration
statement or twelve months after the offering terminates.  As  of
December   31,  2009,  the  Company  had  no  formal  contractual
commitments to expend capital.

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


ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

The Economy and Market Conditions

       The impact of conditions in the current economy, including
the  turmoil  in the credit markets, has adversely affected  many
real   estate  companies.   However,  the  absence  of   mortgage
financing  on  the Company's properties eliminates the  risks  of
foreclosure and debt-refinancing that can negatively  impact  the
value  and  distributions  of leveraged  real  estate  companies.
Nevertheless, a prolonged economic downturn may adversely  affect
the operations of the Company's tenants and their cash flows.  If
a  tenant were to default on its lease obligations, the Company's
income  would decrease, its distributions would likely be reduced
and the value of its properties might decline.

        The Company's plan was to periodically sell properties to
generate  capital gains that would be included in  the  Company's
regular quarterly distributions and to make special distributions
on  occasion.   Beginning in the fourth quarter of 2008,  general
economic conditions caused the volume of property sales  to  slow
dramatically for all real estate sellers.  In 2008 and 2009,  the
Company  did  not  complete any property sales.   Until  property
sales  occur, quarterly distributions going forward will  reflect
the  distribution of net core rental income and capital reserves,
if  any.   Distribution rates in 2010 are expected to be variable
and  less than historical distribution rates until such  time  as
economic conditions allow the Company to begin selling properties
at acceptable prices and generating gains for distribution.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not required for a smaller reporting company.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

       See accompanying index to financial statements.





                 AEI INCOME & GROWTH FUND 27 LLC

                  INDEX TO FINANCIAL STATEMENTS






Report of Independent Registered Public Accounting Firm

Balance Sheet as of December 31, 2009 and 2008

Statements for the Years Ended December 31, 2009 and 2008:

     Income

     Cash Flows

     Changes in Members' Equity (Deficit)

Notes to Financial Statements




     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Members:
AEI Income & Growth Fund 27 LLC
St. Paul, Minnesota



     We have audited the accompanying balance sheet of AEI Income
& Growth Fund 27 LLC (a Delaware limited liability company) as of
December 31, 2009 and 2008 and the related statements of  income,
cash  flows  and  changes in members' equity for the  years  then
ended.   The  Company's  management  is  responsible  for   these
financial  statements.   Our  responsibility  is  to  express  an
opinion on these financial statements based on our audits.

      We conducted our audits in accordance with the standards of
the  Public  Company Accounting Oversight Board (United  States).
Those  standards require that we plan and perform  the  audit  to
obtain   reasonable   assurance  about  whether   the   financial
statements are free of material misstatement.  The company is not
required to have, nor were we engaged to perform, an audit of its
internal  control over financial reporting.  Our  audit  included
consideration of internal control over financial reporting  as  a
basis for designing audit procedures that are appropriate in  the
circumstances, but not for the purpose of expressing  an  opinion
on  the  effectiveness  of the company's  internal  control  over
financial  reporting.  Accordingly, we express no  such  opinion.
An  audit  also  includes examining, on a  test  basis,  evidence
supporting   the  amounts  and  disclosures  in   the   financial
statements,   assessing  the  accounting  principles   used   and
significant  estimates made by management, as well as  evaluating
the  overall  financial statement presentation.  We believe  that
our audits provide a reasonable basis for our opinion.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of  AEI  Income & Growth Fund 27 LLC as of December 31, 2009  and
2008,  and  the results of its operations and its cash flows  for
the  years  then ended, in conformity with accounting  principles
generally accepted in the United States of America.




                            /s/Boulay, Heutmaker, Zibell & Co. P.L.L.P.
                                   Certified Public Accountants

Minneapolis, Minnesota
March 29, 2010


AEI INCOME & GROWTH FUND 27 LLC BALANCE SHEET DECEMBER 31 ASSETS 2009 2008 CURRENT ASSETS: Cash $ 3,656,527 $ 1,059,127 Receivables 0 2,955 ----------- ----------- Total Current Assets 3,656,527 1,062,082 ----------- ----------- INVESTMENTS IN REAL ESTATE: Land 1,279,635 904,146 Buildings and Equipment 4,900,606 2,870,765 Construction in Progress 0 42,852 Accumulated Depreciation (212,239) (55,727) ----------- ----------- Net Investments in Real Estate 5,968,002 3,762,036 ----------- ----------- Total Assets $ 9,624,529 $ 4,824,118 =========== =========== LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES: Payable to AEI Fund Management, Inc. $ 29,600 $ 23,905 Distributions Payable 134,820 70,507 ----------- ----------- Total Current Liabilities 164,420 94,412 ----------- ----------- MEMBERS' EQUITY (DEFICIT): Managing Members (25,073) (14,413) Limited Members, $10 per Unit; 10,000,000 Units authorized; 1,164,037 and 567,726 Units issued and outstanding in 2009 and 2008, respectively 9,485,182 4,744,119 ----------- ----------- Total Members' Equity 9,460,109 4,729,706 ----------- ----------- Total Liabilities and Members' Equity $ 9,624,529 $ 4,824,118 =========== =========== The accompanying Notes to Financial Statements are an integral part of this statement.
AEI INCOME & GROWTH FUND 27 LLC STATEMENT OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31 2009 2008 RENTAL INCOME $ 351,525 $ 118,322 EXPENSES: LLC Administration - Affiliates 89,435 33,990 LLC Administration and Property Management - Unrelated Parties 14,053 4,834 Property Acquisition 62,611 0 Depreciation 156,512 55,727 ----------- ----------- Total Expenses 322,611 94,551 ----------- ----------- OPERATING INCOME 28,914 23,771 OTHER INCOME (EXPENSE): Interest Income 42,167 9,663 Interest Expense 0 (22,528) ----------- ----------- NET INCOME $ 71,081 $ 10,906 =========== =========== NET INCOME (LOSS) ALLOCATED: Managing Members $ 2,132 $ (11,904) Limited Members 68,949 22,810 ----------- ----------- $ 71,081 $ 10,906 =========== =========== NET INCOME PER LLC UNIT $ .08 $ .07 =========== =========== Weighted Average Units Outstanding - Basic and Diluted 827,187 330,872 =========== =========== The accompanying Notes to Financial Statements are an integral part of this statement.
AEI INCOME & GROWTH FUND 27 LLC STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 71,081 $ 10,906 Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: Depreciation 156,512 55,727 (Increase) Decrease in Receivables 2,955 (2,955) Increase in Payable to AEI Fund Management, Inc. 5,695 23,905 ----------- ----------- Total Adjustments 165,162 76,677 ----------- ----------- Net Cash Provided By Operating Activities 236,243 87,583 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Investments in Real Estate (2,362,478) (3,817,763) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Note Payable 0 1,301,000 Payment on Note Payable 0 (1,301,000) Capital Contributions from Limited Members 5,963,109 5,677,256 Organization and Syndication Costs (877,402) (841,266) Distributions Paid to Members (362,072) (47,721) ----------- ----------- Net Cash Provided By Financing Activities 4,723,635 4,788,269 ----------- ----------- NET INCREASE IN CASH 2,597,400 1,058,089 CASH, beginning of period 1,059,127 1,038 ----------- ----------- CASH, end of period $ 3,656,527 $ 1,059,127 =========== =========== SUPPLEMENTAL CASH FLOW INFORMATION: Cash Paid for Interest $ 0 $ 22,528 =========== =========== The accompanying Notes to Financial Statements are an integral part of this statement.
AEI INCOME & GROWTH FUND 27 LLC STATEMENT OF CHANGES IN MEMBERS' EQUITY (DEFICIT) FOR THE YEARS ENDED DECEMBER 31 Limited Member Managing Limited Units Members Members Total Outstanding BALANCE, December 31, 2007 $ 1,038 $ 0 $ 1,038 0 Capital Contributions 0 5,677,256 5,677,256 567,725.6 Organization and Syndication Costs 0 (841,266) (841,266) Distributions Declared (3,547) (114,681) (118,228) Net Income (Loss) (11,904) 22,810 10,906 -------- ----------- ----------- ----------- BALANCE, December 31, 2008 (14,413) 4,744,119 4,729,706 567,725.6 Capital Contributions 0 5,963,109 5,963,109 596,310.9 Organization and Syndication Costs 0 (877,402) (877,402) Distributions Declared (12,792) (413,593) (426,385) Net Income 2,132 68,949 71,081 -------- ----------- ----------- ----------- BALANCE, December 31, 2009 $(25,073) $ 9,485,182 $ 9,460,109 1,164,036.5 ======== =========== =========== =========== The accompanying Notes to Financial Statements are an integral part of this statement.
AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (1) Organization - AEI Income & Growth Fund 27 LLC ("Company"), a Limited Liability Company, was formed on January 26, 2007 to acquire and lease commercial properties to operating tenants. The Company's operations are managed by AEI Fund Management XXI, Inc. ("AFM"), the Managing Member. Robert P. Johnson, the President and sole director of AFM, serves as the Special Managing Member. AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder. AEI Fund Management, Inc. ("AEI"), an affiliate of AFM, performs the administrative and operating functions for the Company. The terms of the offering called for a subscription price of $10 per LLC Unit, payable on acceptance of the offer. The Company commenced operations on June 5, 2008 when minimum subscriptions of 150,000 LLC Units ($1,500,000) were accepted. The offering terminated November 18, 2009, when the extended offering period expired. The Company received subscriptions for 1,164,036.5 Units. Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $11,640,365 and $1,000, respectively. The Company shall continue until liquidated under the provisions of Article XII of the Operating Agreement. During operations, any Net Cash Flow, as defined, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members. Distributions to Limited Members will be made pro rata by Units. Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 6.5% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Members and 10% to the Managing Members. Distributions to the Limited Members will be made pro rata by Units. For tax purposes, the items of income, gain, loss and deduction of the Company will be allocated among the Members in a manner that will give economic effect to the distributions made by the Company. (2) Summary of Significant Accounting Policies - Financial Statement Presentation The accounts of the Company are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (2) Summary of Significant Accounting Policies - (Continued) Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant items, subject to such estimates and assumptions, include the carrying value of investments in real estate and real estate held for sale. The Company regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales. A change in those market events and conditions could have a material effect on the carrying amount of its real estate. Cash Concentrations of Credit Risk The Company's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits. Receivables Credit terms are extended to tenants in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral. Receivables are recorded at their estimated net realizable value. The Company follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Company is of the belief that such accounts will be collectible in all material respects and thus an allowance is not necessary. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company's credit terms. Receivables considered uncollectible are written off. Income Taxes The income or loss of the Company for federal income tax reporting purposes is includable in the income tax returns of the Members. In general, no recognition has been given to income taxes in the accompanying financial statements. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (2) Summary of Significant Accounting Policies - (Continued) The tax return and the amount of distributable Company income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Company income or loss, the taxable income of the members would be adjusted accordingly. Revenue Recognition The Company's real estate is leased under net leases, classified as operating leases. The leases provide for base annual rental payments payable in monthly installments. The Company recognizes rental revenue according to the terms of the individual leases. For leases that contain stated rental increases, the increases are recognized in the year in which they are effective. Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases. Investments in Real Estate The Company purchases properties and records them at cost. The Company compares the carrying amount of its properties to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the property, the Company recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property. Prior to January 1, 2009, the Company capitalized as Investments in Real Estate certain costs incurred in the review and acquisition of the properties. The costs were allocated to the land, buildings and equipment. For acquisitions completed on or after January 1, 2009, acquisition-related transaction costs will be expensed as incurred as a result of the Company adopting new guidance on business combinations that expands the scope of acquisition accounting. The buildings and equipment of the Company are depreciated using the straight-line method for financial reporting purposes based on estimated useful lives of 25 years and 5 years, respectively. Upon complete disposal of a property or classification of a property as Real Estate Held for Sale, the Company includes the operating results and sale of the property in discontinued operations. In addition, the Company reclassifies the prior periods' operating results of the property to discontinued operations. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (2) Summary of Significant Accounting Policies - (Continued) The Company accounts for properties owned as tenants-in- common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Company's percentage share of the properties' land, building and equipment, liabilities, revenues and expenses. The Company's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located. These laws could require the Company to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found. For each property, an environmental assessment is completed prior to acquisition. In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant's business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage. Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated. There were no environmental issues noted or liabilities recorded at December 31, 2009 and 2008. Fair Value Measurements The Company adopted new guidance for measuring financial assets and liabilities at fair value on a recurring basis on January 1, 2008 and for certain nonfinancial assets and liabilities measured on a nonrecurring basis on January 1, 2009. The Company has no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis that would require disclosure under this new guidance. Recently Adopted Pronouncements In December 2007, the Financial Accounting Standards Board issued updated guidance, which applies to all transactions or events in which an entity obtains control of one or more businesses. This guidance (i) establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed, (ii) requires expensing of most transaction costs, and (iii) requires the acquirer to disclose to investors and other users all of the information needed to evaluate and understand the nature and financial effect of the business combination. These provisions were adopted by the Company on January 1, 2009. The primary impact of adopting this guidance on the Company's financial statements was the requirement to expense transaction costs relating to its acquisition activities in 2009. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (2) Summary of Significant Accounting Policies - (Continued) Recently Issued Accounting Pronouncements Management has reviewed recently issued, but not yet effective, accounting pronouncements and does not expect the implementation of these pronouncements to have a significant effect on the Company's financial statements. (3) Related Party Transactions - The Company owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed: Best Buy store (33% - AEI Income & Growth Fund XXII Limited Partnership and AEI Income & Growth Fund 24 LLC); Staples store (30% - AEI Net Lease Income & Growth Fund XX Limited Partnership); and Tractor Supply Company store (37% - AEI Income & Growth Fund XXI Limited Partnership). AEI, AFM and AEI Securities, Inc. ("ASI") received the following compensation and reimbursements for costs and expenses from the Company for the years ended December 31: 2009 2008 a.AEI is reimbursed for costs incurred in providing services related to managing the Company's operations and properties, maintaining the Company's books, and communicating with the Limited Partners. $ 89,435 $ 33,990 ======== ======== b.AEI is reimbursed for all direct expenses it paid on the Company's behalf to third parties related to Company administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes insurance and other property costs. $ 14,053 $ 4,834 ======== ======== c.AFM received an acquisition administration fee equal to 1.5% of the purchase price of acquisitions completed using initial offering proceeds. $ 40,755 $ 49,383 ======== ======== d.AEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of properties on behalf of the Company. $ 48,645 $ 94,862 ======== ======== AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (3) Related Party Transactions - (Continued) 2009 2008 e.ASI was the underwriter of the Company's offering. ASI is a wholly owned subsidiary of AEI Capital Corporation and a member of the Financial Industry Regulatory Authority (FINRA). ASI received, as underwriting commissions, 10% of proceeds for sale of certain subscription Units (a majority of this amount was re-allowed to other participating broker-dealers). These costs were treated as a reduction of members' capital. $ 579,247 $ 557,403 ======== ======== f.AEI is reimbursed for costs incurred in providing services related to managing the offering and organization of the Company. $ 197,409 $ 147,249 ======== ======== g.AEI is reimbursed for all direct expenses it paid on the Company's behalf to third parties related to the offering and organization of the Company. These expenses included printing costs, legal and filing fees, direct administrative costs, underwriting costs and due diligence fees. $ 100,746 $ 136,614 ======== ======== The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b, d, f and g. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business. (4) Investments in Real Estate - The Company leases its properties to various tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Company is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 15 years. The leases provide the tenants with four five-year renewal options subject to the same terms and conditions as the primary term. The Company's properties are commercial, single-tenant buildings. The Starbucks store was constructed in 2007 and acquired in 2008. The Best Buy store was constructed and acquired in 2008. The Staples store was constructed in 2008 and acquired in 2009. The land for the Tractor Supply Company store was acquired in 2008 and construction of the store was completed in 2009. There have been no costs capitalized as improvements subsequent to the acquisitions. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (4) Investments in Real Estate - (Continued) The cost of the properties and related accumulated depreciation at December 31, 2009 are as follows: Buildings and Accumulated Property Land Equipment Total Depreciation Starbucks, Shreveport, LA $ 210,473 $1,158,659 $1,369,132 $ 86,899 Best Buy, Lake Geneva, WI 340,108 1,712,106 2,052,214 82,752 Staples, Vernon Hills, IL 378,000 1,213,987 1,591,987 30,350 Tractor Supply, Rapid City, SD 351,054 815,854 1,166,908 12,238 --------- ---------- ---------- -------- $1,279,635 $4,900,606 $6,180,241 $212,239 ========= ========== ========== ======== On February 5, 2008, the Company purchased a Starbucks store in Shreveport, Louisiana for $1,369,132 from an unrelated third party. The property is leased to Starbucks Corporation under a lease agreement with a remaining primary term of 10 years and initial annual rent of $93,000. On October 6, 2008, the Company purchased a 33% interest in a Best Buy store in Lake Geneva, Wisconsin for $2,052,214. The property is leased to Best Buy Stores, L.P. under a Lease Agreement with a remaining primary term of 10.3 years and initial annual rent of $144,325 for the interest purchased. On November 21, 2008, the Company purchased a 37% interest in a parcel of land in Rapid City, South Dakota for $338,446. The Company obtained title to the land in the form of an undivided fee simple interest in the 37% interest purchased. Simultaneous with the purchase of the land, the Company entered into a Development Financing Agreement under which the Company advanced funds to Brad and Dad, LLC for the construction of a Tractor Supply Company store on the site. The Company's share of the total acquisition costs, including the cost of the land, was $1,166,908. The property is leased to Tractor Supply Company under a Lease Agreement with a primary term of 15 years and initial annual rent of $83,250 for the interest purchased. Pursuant to the Lease, the tenant commenced paying rent on August 6, 2009, the day the store opened for business. Pursuant to the Development Financing Agreement, for the period from November 21, 2008 to August 5, 2009, Brad and Dad, LLC paid the Company interest at a rate of 6.9% on the purchase price of the land and the amounts advanced for construction of the building. Pursuant to the Lease, any improvements to the land during the term of the Lease become the property of the Company. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (4) Investments in Real Estate - (Continued) On May 22, 2009, the Company purchased a 30% interest in a Staples store in Vernon Hills, Illinois for $1,591,987. The Company incurred $62,611 of acquisition expenses related to the purchase. These costs were expensed as incurred as the Company adopted new guidance on business combinations that became effective January 1, 2009. The property is leased to Staples the Office Superstore East, Inc. under a Lease Agreement with a remaining primary term of 9.4 years and initial annual rent of $132,135 for the interest purchased. For properties owned as of December 31, 2009, the minimum future rent payments required by the leases are as follows: 2010 $ 452,710 2011 452,710 2012 452,710 2013 460,460 2014 467,960 Thereafter 2,306,965 --------- $4,593,515 ========= There were no contingent rents recognized in 2009 and 2008. (5) Note Payable - In order to facilitate the purchase of its first property, the Company entered into a Line of Credit Agreement with Fidelity Bank, Edina, Minnesota, for $1,301,000. The Note was due on August 1, 2008 and called for interest at the prime rate minus 0.25% with the interest due on the first day of each month. The Note was secured by all of the Company's assets and was guaranteed by the Special Managing Member and AEI Capital Corporation, the parent company of the Managing Member. For the year ended December 31, 2008, interest expense related to the Note was $22,528. On June 5, 2008, the Company used the majority of the net proceeds released from escrow to pay the outstanding principal and interest due on the Note. Although the registration statement indicates that no properties will be acquired using debt financing, debt was used to acquire this property solely to finance its purchase prior to the admission of Limited Members. No property will be acquired using debt financing after the initial admission of Limited Members. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (6) Major Tenants - The following schedule presents rent revenue from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Company's total rent revenue for the years ended December 31: Tenants Industry 2009 2008 Best Buy Stores, L.P. Retail $ 144,325 $ 34,141 Starbucks Corporation Retail 93,000 84,181 Staples the Office Superstore East, Inc. Retail 80,631 N/A --------- --------- Aggregate rent revenue of major tenants $ 317,956 $ 118,322 ======== ======== Aggregate rent revenue of major tenants as a percentage of total rent revenue 90% 100% ======== ======== (7) Members' Capital - For the years ended December 31, 2009 and 2008, the Company declared distributions of $426,385 and $118,228, respectively. The Limited Members received distributions of $413,593 and $114,681 and the Managing Members received distributions of $12,792 and $3,547 for the years, respectively. The Limited Members' distributions represent $0.50 and $0.35 per LLC Unit outstanding using 827,187 and 330,872 weighted average Units in 2009 and 2008, respectively. The distributions represent $0.08 and $0.07 per Unit of Net Income and $0.42 and $0.28 per Unit of return of contributed capital in 2009 and 2008, respectively. Beginning in May 2010, the Company may acquire Units from Limited Members who have tendered their Units to the Company. Such Units may be acquired at a discount. The Company will not be obligated to purchase in any year more than 2% of the total number of Units outstanding on January 1 of such year. In no event shall the Company be obligated to purchase Units if, in the sole discretion of the Managing Member, such purchase would impair the capital or operation of the Company. AEI INCOME & GROWTH FUND 27 LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008 (8) Income Taxes - The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31: 2009 2008 Net Income for Financial Reporting Purposes $ 71,081 $ 10,906 Depreciation for Tax Purposes Under Depreciation for Financial Reporting Purposes 29,102 11,216 Acquisition Costs Expensed for Financial Reporting Purposes, Capitalized for Tax Purposes 62,611 0 -------- -------- Taxable Income to Members $162,794 $ 22,122 ======== ======== The following is a reconciliation of Members' Equity for financial reporting purposes to Members' Equity reported for federal income tax purposes for the years ended December 31: 2009 2008 Members'Equity for Financial Reporting Purposes $ 9,460,109 $4,729,706 Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes 102,929 11,216 Syndication Costs Treated as Reduction of Capital for Financial Reporting Purposes 1,701,637 838,833 ---------- --------- Members' Equity for Tax Reporting Purposes $11,264,675 $5,579,755 ========== ========= ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None. ITEM 9AT.CONTROLS AND PROCEDURES. (a) Disclosure Controls and Procedures. Under the supervision and with the participation of management, including its President and Chief Financial Officer, the Managing Member of the Company evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")). Based upon that evaluation, the President and Chief Financial Officer of the Managing Member concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to management, including the President and Chief Financial Officer of the Managing Member, in a manner that allows timely decisions regarding required disclosure. (b) Internal Control Over Financial Reporting. (i) Management's Report on Internal Control Over Financial Reporting. The Managing Member, through its management, is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a- 15(f) under the Exchange Act, and for performing an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2009. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management of the Managing Member; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. Management of the Managing Member performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2009 based upon criteria in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on our assessment, management of the Managing Member determined that our internal control over financial reporting was effective as of December 31, 2009 based on the criteria in Internal Control-Integrated Framework issued by the COSO. ITEM 9AT.CONTROLS AND PROCEDURES. (Continued) This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual report. (ii) Changes in Internal Control Over Financial Reporting. During the most recent period covered by this report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION. None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. The registrant is a limited liability company and has no officers, directors, or direct employees. The Managing Members manage and control the Company's affairs and have general responsibility and the ultimate authority in all matters affecting the Company's business. The Managing Members are AEI Fund Management XXI, Inc. (AFM), the Managing Member, and Robert P. Johnson, Chief Executive Officer, President and sole director of AFM, the Special Managing Member. AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder. AFM has only one senior financial executive, its Chief Financial Officer. The Chief Financial Officer reports directly to Mr. Johnson and is accountable for his actions to Mr. Johnson. Although Mr. Johnson and AFM require that all of their personnel, including the Chief Financial Officer, engage in honest and ethical conduct, ensure full, fair, accurate, timely, and understandable disclosure, comply with all applicable governmental laws, rules and regulations, and report to Mr. Johnson any deviation from these principles, because the organization is composed of only approximately 35 individuals, because the management of a company by an entity that has different interests in distributions and income than investors involves numerous conflicts of interest that must be resolved on a daily basis, and because the ultimate decision maker in all instances is Mr. Johnson, AFM has not adopted a formal code of conduct. Instead, the materials pursuant to which investors purchase Units disclose these conflicts of interest in detail and Mr. Johnson, as the CEO and sole director of AFM, resolves conflicts to the best of his ability, consistent with his fiduciary obligations to AFM and the fiduciary obligations of AFM to the Company. The director and officers of AFM are as follows: ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. (Continued) Robert P. Johnson, age 65, is Chief Executive Officer, President and sole director and has held these positions since the formation of AFM in August 1994, and has been elected to continue in these positions until December 2010. From 1970 to the present, he has been employed exclusively in the investment industry, specializing in limited partnership investments. In that capacity, he has been involved in the development, analysis, marketing and management of public and private investment programs investing in net lease properties as well as public and private investment programs investing in energy development. Since 1971, Mr. Johnson has been the president, a director and a registered principal of AEI Securities, Inc., which is registered with the SEC as a securities broker-dealer, is a member of the Financial Industry Regulatory Authority (FINRA) and is a member of the Security Investors Protection Corporation (SIPC). Mr. Johnson has been president, a director and the principal shareholder of AEI Fund Management, Inc., a real estate management company founded by him, since 1978. Mr. Johnson is currently a general partner or principal of the general partner in ten limited partnerships and a managing member in five LLCs. Patrick W. Keene, age 50, is Chief Financial Officer, Treasurer and Secretary and has held these positions since January 22, 2003 and has been elected to continue in these positions until December 2010. Mr. Keene has been employed by AEI Fund Management, Inc. and affiliated entities since 1986. Prior to being elected to the positions above, he was Controller of the various entities. From 1982 to 1986, Mr. Keene was with KPMG Peat Marwick Certified Public Accountants, first as an auditor and later as a tax manager. Mr. Keene is responsible for all accounting functions of AFM and the registrant. Since Mr. Johnson serves as the Special Managing Member of the Company, as well as the sole director of AFM, all of the duties that might be assigned to an audit committee are assigned to Mr. Johnson. Mr. Johnson is not an audit committee financial expert, as defined. As an officer and majority owner, through a parent company, of AFM, and as the Special Managing Member, Mr. Johnson is not a "disinterested director" and may be subject to a number of conflicts of interests in his capacity as sole director of AFM. Before the independent auditors are engaged, Mr. Johnson, as the sole director of AFM, approves all audit-related fees, and all permissible nonaudit fees, for services of our auditors. Section 16(a) Beneficial Ownership Reporting Compliance Under federal securities laws, the directors and officers of the Managing Member of the Company, and any beneficial owner of more than 10% of a class of equity securities of the Company, are required to report their ownership of the Company's equity securities and any changes in such ownership to the Securities and Exchange Commission (the "Commission"). Specific due dates for these reports have been established by the Commission, and the Company is required to disclose in this Annual Report on 10-K any delinquent filing of such reports and any failure to file such reports during the fiscal year ended December 31, 2009. Based upon information provided by officers and directors of the Managing Member, all officers, directors and 10% owners filed all reports on a timely basis in the 2009 fiscal year. ITEM 11. EXECUTIVE COMPENSATION. The Managing Member and affiliates are reimbursed at cost for all services performed on behalf of the registrant and for all third party expenses paid on behalf of the registrant. The cost for services performed on behalf of the registrant will be actual time spent performing such services plus an overhead burden. These services include organizing the registrant and arranging for the offer and sale of Units, reviewing properties for acquisition and rendering administrative, property management and property sales services. The amount and nature of such payments are detailed in Item 13 of this annual report on Form 10- K. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. The following table sets forth information pertaining to the ownership of the Units by each person known by the Company to beneficially own 5% or more of the Units, by each Managing Member, and by each officer or director of the Managing Member as of February 28, 2010: Name and Address Number of Percent of Beneficial Owner Units Held of Class AEI Fund Management XXI, Inc. 0 0% Robert P. Johnson 0 0% Patrick W. Keene 0 0% Address for all: 1300 Wells Fargo Place 30 East 7th Street, St. Paul, Minnesota 55101 The Managing Members know of no holders of more than 5% of the outstanding Units. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. The registrant, AFM and its affiliates have common management and utilize the same facilities. As a result, certain administrative expenses are allocated among these related entities. All of such activities and any other transactions involving the affiliates of the Managing Member of the registrant are governed by, and are conducted in conformity with, the limitations set forth in the Operating Agreement of the registrant. Reference is made to Note 3 of the Financial Statements, as presented, and is incorporated herein by reference, for details of related party transactions for the years ended December 31, 2009 and 2008. Neither the registrant, nor the Managing Member of the registrant, has a board of directors consisting of any members who are "independent." The sole director of the Managing Member, Robert P. Johnson, is also the Special Managing Member of the registrant, and is the Chief Executive Officer, and indirectly the principal owner, of the Managing Member. Accordingly, there is no disinterested board, or other functioning body, that reviews related party transactions, or the transactions between the registrant and the Managing Members, except as performed in connection with the audit of its financial statements. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. (Continued) The limitations included in the Operating Agreement require that the cumulative reimbursements to the Managing Members and their affiliates for certain expenses will not exceed an amount equal to the sum of (i) 20% of capital contributions, (ii) 1% of gross revenues, plus an initial leasing fee of 3% of gross revenues for the first five years of the original term of each lease, (iii) 3% of Net Proceeds of Sale, and (iv) 10% of Net Cash Flow less the Net Cash Flow actually distributed to the Managing Members. The cumulative reimbursements subject to this limitation are reimbursements for (i) organization and offering expenses, including commissions, (ii) acquisition expenses paid with proceeds from the initial offering of Units, (iii) services provided in the sales effort of properties, and (iv) expenses of controlling persons and overhead expenses directly attributable to the forgoing services or attributable to administrative services. As of December 31, 2009, these cumulative reimbursements to the Managing Members and their affiliates did not exceed the limitation amount. The following table sets forth the forms of compensation, distributions and cost reimbursements paid by the registrant to the Managing Members or their Affiliates in connection with the operation of the Fund and its properties for the period from inception through December 31, 2009. Person or Entity Amount Incurred From Receiving Form and Method Inception (January 26, 2007) Compensation of Compensation To December 31, 2009 AEI Securities, Inc. Selling Commissions equal to 10% of $1,136,650 proceeds, excluding proceeds from distribution reinvestments, most of which were reallowed to Participating Dealers. Managing Members Reimbursement at Cost for other $ 582,018 and Affiliates Organization and Offering Costs. Managing Members Acquisition Administration Fees equal $ 90,138 to 1.5% of the purchase price of acquisitions completed using initial offering proceeds. Managing Members Reimbursement at Cost for all $ 143,507 and Affiliates Acquisition Expenses. Managing Members Reimbursement at Cost for providing $ 123,425 Affiliates administrative services to the Fund, including all expenses related to management of the Fund's properties and all other transfer agency, reporting, partner relations and other administrative functions. Managing Members Reimbursement at Cost for providing $ 0 and Affiliates services related to the disposition of the Fund's properties. Managing Members 3% of Net Cash Flow in any fiscal year.$ 16,339 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. (Continued) Person or Entity Amount Incurred From Receiving Form and Method Inception (January 26, 2007) Compensation of Compensation To December 31, 2009 Managing Members 1% of distributions of Net Proceeds $ 0 of Sale until Limited Members have received an amount equal to (a) their Adjusted Capital Contributions, plus (b) an amount equal to 6.5% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously distributed. 10% of distributions of Net Proceeds of Sale thereafter. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. The following is a summary of the fees billed to the Company by Boulay, Heutmaker, Zibell & Co. P.L.L.P. for professional services rendered for the years ended December 31, 2009 and 2008: Fee Category 2009 2008 Audit Fees $ 16,628 $ 13,291 Audit-Related Fees 0 0 Tax Fees 0 0 All Other Fees 0 0 --------- -------- Total Fees $ 16,628 $ 13,291 ========= ======== Audit Fees - Consists of fees billed for professional services rendered for the audit of the Company's annual financial statements and review of the interim financial statements included in quarterly reports, and services that are normally provided by Boulay, Heutmaker, Zibell & Co. P.L.L.P. in connection with statutory and regulatory filings or engagements. Audit-Related Fees - Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." These services include consultations concerning financial accounting and reporting standards. Tax Fees - Consists of fees billed for professional services for federal and state tax compliance, tax advice and tax planning. All Other Fees - Consists of fees for products and services other than the services reported above. Policy for Preapproval of Audit and Permissible Non-Audit Services of Independent Auditors Before the Independent Auditors are engaged by the Company to render audit or non-audit services, the engagement is approved by Mr. Johnson acting as the Company's audit committee. PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES. (a) (1) A list of the financial statements contained herein is set forth on page 12. (a) (2) Schedules are omitted because of the absence of conditions under which they are required or because the required information is presented in the financial statements or related notes. (a) (3) The Exhibits filed in response to Item 601 of Regulation S-K are listed below. 3.1 Certificate of Limited Liability Company (incorporated by reference to Exhibit 3.1 of the registrant's Registration Statement on Form SB-2 filed on July 30, 2007 [File No. 333- 144961]). 3.2 Operating Agreement to the Prospectus (incorporated by reference to Exhibit A of the registrant's Registration Statement on Form SB-2 filed on October 23, 2007 [File No. 333-144961]). 10.1 Form of Impoundment Agreement with Fidelity Bank (incorporated by reference to Exhibit 10 of the registrant's Registration Statement on Form SB-2 filed on July 30, 2007 [File No. 333-144961]). 10.2 Assignment of Purchase Agreement between the Company and AEI Fund Management, Inc. relating to the Property at 319 Bert Kouns Industrial Loop, Shreveport, Louisiana (incorporated by reference to Exhibit 10.1 of Form 8-K filed February 12, 2008). 10.3 Assignment and Assumption of Lease dated February 4, 2008 between the Company and Colgate Bert Kouns, L.L.C. relating to the Property at 319 Bert Kouns Industrial Loop, Shreveport, Louisiana (incorporated by reference to Exhibit 10.2 of Form 8-K filed February 12, 2008). 10.4 Assignment and Assumption of Purchase and Sale Agreement dated September 24, 2008 between the Company, AEI Income & Growth Fund XXII Limited Partnership, AEI Income & Growth Fund 24 LLC and AEI Fund Management, Inc. relating to the Property at 700 North Edwards Boulevard, Lake Geneva, Wisconsin (incorporated by reference to Exhibit 10.1 of Form 8-K filed October 10, 2008). 10.5 Assignment and Assumption of Lease dated October 6, 2008 between the Company, AEI Income & Growth Fund XXII Limited Partnership, AEI Income & Growth Fund 24 LLC and Ryan Companies US, Inc. relating to the Property at 700 North Edwards Boulevard, Lake Geneva, Wisconsin (incorporated by reference to Exhibit 10.2 of Form 8-K filed October 10, 2008). 10.6 Assignment and Assumption of Purchase and Sale Agreement dated May 6, 2009 between the Company, AEI Net Lease Income & Growth Fund XX Limited Partnership and AEI Fund Management, Inc. relating to the Property at 1600 North Milwaukee Avenue, Vernon Hills, Illinois (incorporated by reference to Exhibit 10.1 of Form 8-K filed May 29, 2009). 10.7 Assignment and Assumption of Lease dated May 22, 2009 between the Company, AEI Net Lease Income & Growth Fund XX Limited Partnership and Bradford Landing South LLC relating to the Property at 1600 North Milwaukee Avenue, Vernon Hills, Illinois (incorporated by reference to Exhibit 10.2 of Form 8-K filed May 29, 2009). 10.8 Assignment and Assumption of Lease dated November 21, 2008 between the Company, AEI Income & Growth Fund XXI Limited Partnership and Brad and Dad LLC relating to the Property at 3430 East Mall Drive, Rapid City, South Dakota (incorporated by reference to Exhibit 10.1 of Form 10-Q filed November 12, 2009). ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES. (Continued) 31.1 Certification of Chief Executive Officer of Managing Member pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer of Managing Member pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002. 32 Certification of Chief Executive Officer and Chief Financial Officer of Managing Member pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AEI INCOME & GROWTH FUND 27 Limited Liability Company By: AEI Fund Management XXI, Inc. Its Managing Member March 29, 2010 By:/s/ ROBERT P JOHNSON Robert P. Johnson, President and Director (Principal Executive Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Name Title Date /s/ROBERT P JOHNSON President (Principal Executive Officer) March 29, 2010 Robert P. Johnson and Sole Director of Managing Member /s/PATRICK W KEENE Chief Financial Officer and Treasurer March 29, 2010 Patrick W. Keene (Principal Accounting Officer