Gross offering proceeds of $37,899,297 fund the $23,000,000 property purchase, $1,894,930 in offering fees, $1,157,000 in finance expenses, and reserves including $562,600 for improvements and $211,638 in lender-required reserves.
Total Fees & Expenses
$1,894,930
% of equity
10.00%
% of offering
5.00%
$1,562,742 including reserves (4.12% of offering)
Where the offering proceeds go
Acquisition Cost$36.00M95.0%
Offering Expenses$1.89M5.0%
Reserves$1.15M3.0%
Total fees & expenses
$1.89M
5.00% of offering
Offering expenses
$1.89M
5.00% of offering
Reserves held
$1.15M
3.02% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $967,500 | 5.11% | 2.55% |
| Reserves (Lender Required) | $211,638 | 1.12% | 0.56% |
| Reserves (Lumped) | $371,824 | 1.96% | 0.98% |
| Reserves (Improvements) | $562,600 | 2.97% | 1.48% |
| Finance Expenses | $1,157,000 | 6.11% | 3.05% |
| Total Acquisition Cost | $36,004,367 | 190.00% | 95.00% |
| Total Acq. Cost (Reserves) | $36,004,367 | 190.00% | 95.00% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,273,958 | 12.00% | 6.00% |
| Dealer Fee | $189,493 | 1.00% | 0.50% |
| Wholesaling Fee | $189,493 | 1.00% | 0.50% |
| BD Due Diligence Allowance | $189,493 | 1.00% | 0.50% |
| O&O Expenses | $189,493 | 1.00% | 0.50% |
| Third Party DD | $189,493 | 1.00% | 0.50% |
| Total Offering Expenses | $1,894,930 | 10.00% | 5.00% |
| Total Fees / Expenses | $1,894,930 | 10.00% | 5.00% |
| Total Upfront Fees (Reserves) | $1,562,742 | 8.25% | 4.12% |
Strengths
- $562,600 allocated specifically to capital improvement reserves
- $211,638 held in lender-required reserves
Concerns
- Front-end offering fees and expenses consume $1,894,930 of proceeds
- Financing expenses total $1,157,000