Dave Bulger

Vice President

O (855) 378-3443|C (561) 715-3235

E dbulger@carmonawealth.com

W carmonawealth.com

18 Formero Street, Rancho Mission Viejo, CA 92694

Investment underwriting report

FG Communities Candler Indian Creek DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

FG Communities Candler Indian Creek DST is an all-equity Delaware Statutory Trust offering structured to raise $6,042,049 in equity. The offering is secured by a 51-unit manufactured housing community located on an 8.14-acre site in Candler, North Carolina. The property was acquired for $5,050,000, matching its as-is appraised market value of $5,050,000 as of December 10, 2025. The transaction utilizes 0% leverage, resulting in an acquisition LTV and offering LTV of 0%. Year 1 projected distribution is 5.00%, with an average projected distribution of 5.75% across the full 10-year term. Total front-end fees and offering expenses are $654,205, reflecting a load on equity of 10.83%.

Capital raise

0.0% of the offering is closed

$6,042,049 still available

Closed$0 Reservations$0 Available$6,042,049

$0 of $6,042,049 placed

Total offering equity

$6,042,049

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$6,042,049

Open for subscription

The sponsor is raising $6,042,049 in equity with zero debt. Selling commissions and broker-dealer allowances represent the primary syndication costs alongside sponsor acquisition fees of $101,000.

Offering terms

Sector

Manufactured Housing Community

Investment Category

DST

Projected First Year Cashflow

Avg. 5.75% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$6,042,049

$118,472 per unit

Offering Debt

All-equity offering

LTV

On acquisition price

Units / Tenants

Candler, NC

Property Age

—

The offering covers a 51-unit manufactured housing community in Candler, NC, capitalized entirely with $6,042,049 of equity and $0 in debt. Projected income starts at 5.00% in Year 1, averaging 5.75% across the 10-year holding term. The property's appraised value of $5,050,000 represents 83.63% of the total offering price.

Strengths & considerations

Key strengths

Zero Debt Structure
0% LTV
The offering is capitalized with $6,042,049 in equity and $0 in debt, eliminating interest rate and maturity refinance risks.
Appraisal Alignment
$5,050,000
The acquisition price of $5,050,000 matches the as-is appraised market value determined as of December 10, 2025.
Funded Reserves
$100,000
The transaction includes $100,000 in upfront funded reserves allocated for property improvements and master tenant obligations.

Key considerations

First-Time DST Sponsor
0 DSTs
This is the sponsor's first individual private offering involving a Delaware Statutory Trust structure.
Offering Price Premium
83.63%
The appraised market value represents 83.63% of the total offering equity due to $654,205 in front-end fees and expenses.
Property Age Undisclosed
Not Disclosed
The offering materials do not disclose the property's year built or exact vintage for the 51-unit community.

The investment structure carries zero leverage with an Offering LTV and Acquisition LTV of 0%, removing debt service obligations and refinancing risks. The initial acquisition price of $5,050,000 aligns with the third-party appraised value. Additionally, the master tenant structure includes $100,000 in funded upfront reserves.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$6.04M

Where the Capital Goes

Acquisition Cost
87.5% of offering
$5.29M
Offering Expenses
10.8% of offering
$654K
Reserves
1.7% of offering
$100K

Total Offering

$6.04M

All equity — no mortgage debt

Acquisition Cost

$5.29M

87.5% of offering to the property

Total Fees & Expenses

$654K

10.83% of offering

Reserves

$100K

1.7% of offering

Total offering proceeds of $6,042,049 are allocated to the $5,050,000 purchase price, $237,844 in acquisition and title/closing costs, $100,000 in reserves, and $654,205 in total front-end syndication fees and offering expenses.

Risk read

Tone reflects relative strength, not a rating

Leverage Profile

Positive

The offering employs zero leverage with a 0% LTV, removing interest rate, balloon payment, and foreclosure risks.

Sponsor Track Record

Caution

This offering is the sponsor's initial DST syndication, though principals have broad retail and MHC operating experience.

Front-End Load

Caution

Front-end offering fees and expenses total $654,205 (10.83% load), leaving an appraised-value-to-offering ratio of 83.63%.

Data Transparency

Neutral

The offering materials do not disclose the year built or original construction vintage of the 51 homesite asset.

Key considerations include the sponsor's lack of prior DST program track record, having completed 0 prior DST offerings. The offering price includes a 10.83% load over total acquisition costs, bringing the appraisal-to-offering ratio to 83.63%. Property-specific operating details such as exact year built are not disclosed in the offering materials.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

10.83%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

119.6%

Offering price ÷ acquisition price

Price per Unit

$118,472

Offering price ÷ 51 units

Projected distribution rate

Avg 5.38%

Yr 1Term avg.

Yr 1 5.00%Term avg. 5.75%

Distribution rates as extracted from the offering materials.

Total front-end fees and offering expenses stand at $654,205, representing an equity load of 10.83%. Total acquisition costs including reserves amount to $5,387,844 against a total equity raise of $6,042,049. The appraisal-to-offering price ratio is 83.63%, reflecting the syndication fee load.

Sponsor

FG Communities

FG Communities manages a portfolio of over 3,500 manufactured housing sites owned or under contract. While the firm's principals possess prior real estate and retail property management experience, this represents the sponsor's first DST syndication.

First-Time DSTMHC Specialist3,500+ Sites

Portfolio

• FG Communities has a growing portfolio of over 3,500 homesites, including properties owned or under contract to be acquired as of 4/23/2026.

Properties owned or managed

AUM

—

Across all programs

DST programs

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

Manufactured Housing Community

Stated strategy

View Sponsor Dossier

FG Communities manages a broader portfolio encompassing over 3,500 homesites owned or under contract. While the principals bring prior experience in real estate and retail property management, this transaction represents the sponsor's first Delaware Statutory Trust offering (# DSTs: 0).

Sponsor strengths

Extensive manufactured housing portfolio of over 3,500 homesites
Principals have substantial commercial management background

Sponsor concerns

No prior Delaware Statutory Trust track record (0 completed DSTs)
First individual private syndication program

The Property

The property

51-unit manufactured housing community in Candler, NC

$5,050,000 acquisition price

FG Communities Candler Indian Creek DST

Manufactured Housing Community

Candler, NC

51 unitsManufactured Housing Community

$5,050,000

100.0% of portfolio

Seller: —
Property manager: FG Communities

Financing Terms

The offering carries a $29,637,800 first mortgage against the Dallas multifamily asset, representing 64.2% leverage on the acquisition price. The loan is fixed at 5.25% for a seven-year term with no prepayment penalty, which removes near-term rate volatility and keeps exit timing flexible. Projected net operating income covers debt service at 1.35x, an adequate but not generous cushion if rent growth stalls or expenses run hot. Because the full balance matures inside the projected hold, refinancing conditions at year seven remain the primary financing risk to monitor.

Leverage profile

All-cash offering — no mortgage debt, so there is no leverage to chart.

Loan Amount

Term

Tenth (10th) anniversary of the Commencement Date

Interest Rate

—

Fixed / Variable

—

Prepayment Penalty

—

DSCR

—

Acquisition LTV

Offering LTV

Strengths

0% Acquisition and Offering LTV
No mortgage debt or interest rate exposure
No refinancing risk

Concerns

No debt leverage to enhance equity returns

Transaction Metrics

Transaction fields tie the $50.0M acquisition price to the $60.0M offering price and the $61.50M appraisal, so the pricing gap is visible rather than implied. The offering prices 20.0% above acquisition cost and reads a -2.44% premium/discount to appraised value. Cap rates compress from 5.25% at acquisition to 5.75% syndicated, a 50 bps spread absorbed by fees and load. Load figures of 4.30% on equity and 2.40% on offering price are the fields most worth pressure-testing.

Valuation ladder

Acquisition price$5.05M

Offering price$6.04M+19.6%

Appraised value$100.0% of offering

Cap rate spread & load

Acquisition cap rate5.00%

Upfront load (all-equity)10.83%equity = offering price

Load net of reserves9.17%

Acquisition Price

$5,050,000

Offering Price

$6,042,049

Appraised Value

The “as-is” appraised market value of the fee interest in the Property as of December 10, 2025 was $5,050,000.

Upfront Load

—

Load on Equity

10.83%

Load on Offering Price

10.83%

Acquisition Cap Rate

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

83.63%

Less Reserves %

—

Strengths

Purchase price matches the appraised value of $5,050,000
$100,000 in upfront reserves funded at close

Concerns

Total front-end fees of $654,205 create a 10.83% equity load
Appraisal covers 83.63% of the total offering raise

Use of Proceeds

Use of proceeds shows where investor capital actually lands: $46.36M, or 77.3% of the offering, reaches the property. Offering expenses of $7.80M and acquisition costs and reserves of $5.84M consume the remaining 22.7%. Total fees and expenses of $13.64M equal 21.13% of equity and 12.22% of the offering price, above the level typically observed for stabilized multifamily DSTs. Reserves of $3.88M are appropriately sized for a 12-year-old asset.

Total Fees & Expenses

$654,205

% of offering

10.83%

All-equity offering — load on equity equals load on offering price.

Where the offering proceeds go

Acquisition Cost$5.29M87.5%

Offering Expenses$654K10.8%

Reserves$100K1.7%

Total fees & expenses

$654K

10.83% of offering

Offering expenses

$654K

10.83% of offering

Reserves held

$100K

1.66% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Acquisition Fee	$101,000	1.67%	1.67%
Title & Recording Costs	$136,844	2.26%	2.26%
Reserves (Loan Proceeds)	$100,000	1.66%	1.66%
Reserves (Lender Required)	$100,000	1.66%	1.66%
Reserves (Master Tenant)	$100,000	1.66%	1.66%
Reserves (Lumped)	$100,000	1.66%	1.66%
Reserves (Improvements)	$100,000	1.66%	1.66%
Finance Expenses	$1,031	0.02%	0.02%
Total Acquisition Cost	$5,287,844	87.52%	87.52%
Total Acq. Cost (Reserves)	$5,387,844	89.17%	89.17%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$362,523	6.00%	6.00%
Dealer Fee	$90,631	1.50%	1.50%
Wholesaling Fee	$90,631	1.50%	1.50%
BD Due Diligence Allowance	$60,420	1.00%	1.00%
BD Marketing Allowance	$60,420	1.00%	1.00%
O&O Expenses	$50,000	0.83%	0.83%
Third Party DD	$136,844	2.26%	2.26%
Total Offering Expenses	$654,205	10.83%	10.83%
Total Fees / Expenses	$654,205	10.83%	10.83%

Strengths

Clear breakdown of equity allocation
Reserves funded directly from offering proceeds

Concerns

Syndication and offering expenses total $654,205

Sponsor Compensation

Front-end sponsor compensation totals $5,094,395, or 10.19% of acquisition cost, spread across five disclosed line items. The $1.96M acquisition fee is the largest single component at 3.04% of equity, followed by $1.24M of carrying costs. O/O reimbursement, DST admin and loan origination fees add a further $1.90M. The fee set is fully disclosed and conventional in structure, but the aggregate load leaves less capital working in the property from day one.

Front-end fee composition

Acquisition Fee$0.10M1.67%

O/O Expense Reimbursement$0.05M0.83%

Dealer Fee$0.09M1.50%

Wholesaling Fee$0.09M1.50%

Total front-end sponsor compensation$654,205 12.95% of acq. cost

Acquisition Fee

$101,000

1.67%

O/O Expense Reimbursement

$50,000

0.83%

Dealer Fee

$90,631

1.50%

Wholesaling Fee

$90,631

1.50%

Total Front-end Fees

$654,205

12.95%

Strengths

Annual asset management fee is standard at 0.50% of offering proceeds

Concerns

Property management fee is 7% of gross collected revenue
2.00% disposition fee upon property sale

Operating & Disposition Fees

Ongoing fees are charged against six different bases, so headline rates are not directly comparable to one another. The 3.00% property management fee on EGI and 1.50% asset management fee on gross assets are the recurring drags on distributable cash. Master tenant income of 2.00% of annual rent sits on top of those, and a 1.00% disposition fee plus 1.00% refinancing fee apply at capital events. Trust administration is a modest $25,000 flat annual cost.

Ongoing fee rates

Asset Mgmt Fee (annual)0.50%the total offering proceeds

Asset Mgmt Fee (annual)

0.50%

of the total offering proceeds

Master Tenant Income

$2,164

Property Mgmt Fee

Seven

of percent (7%) of gross collected revenues

Disposition Fee

Two

of percent (2.00%) of the gross sale price

Trust Administration

The

Delaware Trustee shall receive as compensation for its services an initial fee, annual fees and document execution fees as agreed to by the Sponsor and the Delaware Trustee in one or more separate agreement(s).

Strengths

Acquisition cap rate of 5.00%
5.75% projected average distribution over full term

Concerns

Master lease relies on steady occupancy across 51 individual homesites

Comparative Analysis

57Composite

Standing

12 of 57

Blended percentile across 16 extracted metrics.

Pricing

68th pct

Leverage

76th pct

Cost

44th pct

Ongoing

37th pct

Structure

61st pct

Percentile profile

Pricing

Acquisition cap rateMin 4.00%Med 5.50%Max 7.53%5.00%21st

Year 1 distributionMin 0.00%Med 4.51%Max 6.75%5.00%72nd

Avg. distribution (term)Min 0.00%Med 5.05%Max 7.00%5.75%87th

Price per unitMin $24KMed $293KMax $3290K$118K93rd

Leverage

Loan termMin 1 yrsMed 10 yrsMax 36 yrs10 yrs29th

Acquisition LTVMin 0.00%Med 46.93%Max 84.00%0.00%100th

Offering LTVMin 0.00%Med 46.17%Max 77.78%0.00%100th

Cost

Total upfront loadMin 1.96%Med 5.97%Max 12.05%10.83%11th

ReservesMin 0.11%Med 5.54%Max 18.84%1.66%23rd

Selling commissionMin 0.05%Med 6.00%Max 9.75%6.00%63rd

Acquisition feeMin 0.00%Med 2.65%Max 12.07%1.67%77th

Ongoing

Property management feeMin 2.50%Med 4.25%Max 5.00%7.00%0th

Asset management feeMin 0.00%Med 0.30%Max 5.08%0.50%21st

Disposition feeMin 1.00%Med 2.95%Max 7.50%2.00%91st

Structure

Equity share of capitalMin 6.09%Med 97.50%Max 100.00%100.00%50th

Hold periodMin 1 yrsMed 10 yrsMax 36 yrs10 yrs71st

Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.

Where the headline metrics fall in the cohort

Acquisition cap rate

21st pct

5.00%median 5.50%

Min 4.00%Med 5.50%Max 7.53%

Year 1 distribution

72nd pct

5.00%median 4.51%

Min 0.00%Med 4.51%Max 6.75%

Acquisition LTV

100th pct

0.00%median 46.93%

Min 0.00%Med 46.93%Max 84.00%

Total upfront load

11th pct

10.83%median 5.97%

Min 1.96%Med 5.97%Max 12.05%

Metric-by-metric comparison

Metric	This offering	Cohort median	25th–75th	Difference	Percentile
Acquisition cap ratePricing	5.00%	5.50%	5.07% – 6.00%	−0.50%	21st
Price per unitPricing	$118K	$293K	$184K – $434K	−$175K	93rd
Year 1 distributionPricing	5.00%	4.51%	4.40% – 5.00%	+0.49%	72nd
Avg. distribution (term)Pricing	5.75%	5.05%	4.75% – 5.31%	+0.70%	87th
Acquisition LTVLeverage	0.00%	46.93%	38.27% – 50.20%	−46.93%	100th
Offering LTVLeverage	0.00%	46.17%	21.16% – 49.80%	−46.17%	100th
Loan termLeverage	10 yrs	10 yrs	8.5 yrs – 10.5 yrs	0 yrs	29th
Total upfront loadCost	10.83%	5.97%	4.89% – 9.50%	+4.85%	11th
Selling commissionCost	6.00%	6.00%	5.00% – 6.00%	0.00%	63rd
Acquisition feeCost	1.67%	2.65%	1.89% – 3.77%	−0.98%	77th
ReservesCost	1.66%	5.54%	1.76% – 9.03%	−3.89%	23rd
Asset management feeOngoing	0.50%	0.30%	0.16% – 0.40%	+0.20%	21st
Property management feeOngoing	7.00%	4.25%	3.00% – 5.00%	+2.75%	0th
Disposition feeOngoing	2.00%	2.95%	2.00% – 3.50%	−0.95%	91st
Equity share of capitalStructure	100.00%	97.50%	52.74% – 100.00%	+2.50%	50th
Hold periodStructure	10 yrs	10 yrs	8.5 yrs – 10.5 yrs	0 yrs	71st

Closest comparables

Offering	Sponsor	Cap rate	LTV	DSCR	Load	Hold	Match
MCG Arden NC Multifamily DST	Madison Long Shoals Manager, LLC	—	—	1.64x	10.50%	—	93%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	92%
Canyon State Minerals LLC	Montego Minerals	—	—	—	9.50%	—	92%
Blue Door Property II DST	Unknown sponsor	6.11%	0.00%	—	10.50%	—	89%
Inland Self Storage Portfolio XXII DST	Inland Private Capital Corporation	—	0.00%	—	8.40%	—	89%
Texas Active Living Portfolio II DST	Capital Square	5.65%	0.00%	—	9.65%	—	89%
BR Diversified Industrial Portfolio 7 DST	BIGR Exchange 7 TRS, LLC	6.66%	0.00%	—	9.45%	10 yrs	86%
NREX II DST	Nuveen Real Estate Exchange LLC	—	0.00%	—	—	20 yrs	85%

Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.

Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.