Proceeds of $77,667,582 are applied to property acquisition ($69,927,500), capital reserves ($1,250,000 total, including $1,000,000 lender-required and $250,000 improvements), and total offering expenses ($7,740,082).
Total Fees & Expenses
$7,740,082
% of offering
9.00%
All-equity offering — load on equity equals load on offering price.
Where the offering proceeds go
Acquisition Cost$69.93M90.0%
Offering Expenses$7.74M10.0%
Reserves$2.50M3.2%
Total fees & expenses
$7.74M
9.00% of offering
Offering expenses
$7.74M
9.97% of offering
Reserves held
$2.50M
3.22% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $677,500 | 0.87% | 0.87% |
| Reserves (Lender Required) | $1,000,000 | 1.29% | 1.29% |
| Reserves (Lumped) | $1,250,000 | 1.61% | 1.61% |
| Reserves (Improvements) | $250,000 | 0.32% | 0.32% |
| Finance Expenses | $7,740,082 | 9.97% | 9.97% |
| Total Acquisition Cost | $69,927,500 | 90.03% | 90.03% |
| Total Acq. Cost (Reserves) | $69,927,500 | 90.03% | 90.03% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $4,660,055 | 6.00% | 6.00% |
| Dealer Fee | $1,553,352 | 2.00% | 2.00% |
| Wholesaling Fee | $1,553,352 | 2.00% | 2.00% |
| BD Due Diligence Allowance | $776,676 | 1.00% | 1.00% |
| BD Marketing Allowance | $776,676 | 1.00% | 1.00% |
| O&O Expenses | $750,000 | 0.97% | 0.97% |
| Total Offering Expenses | $7,740,082 | 9.97% | 9.97% |
Strengths
- $1,250,000 in total upfront reserves funded
- $250,000 dedicated to property improvements
Concerns
- Offering expenses total $7,740,082
- $1,553,352 dealer fee and $1,553,352 wholesaling fee