Gross equity proceeds of $9,230,000 fund acquisition equity, reserves of $829,949, and offering expenses totaling $923,000.
Total Fees & Expenses
$923,000
% of equity
10.00%
% of offering
10.00%
$1,151,621 including reserves (2.77% of offering)
Where the offering proceeds go
Acquisition Cost$32.30M77.8%
Offering Expenses$923K2.2%
Reserves$830K2.0%
Unallocated / other uses$7.48M18.0%
Total fees & expenses
$923K
10.00% of offering
Offering expenses
$923K
2.22% of offering
Reserves held
$830K
2.00% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $1,114,350 | 12.07% | 2.68% |
| Title & Recording Costs | $242,250 | 2.62% | 0.58% |
| Reserves (Lender Required) | $79,949 | 0.87% | 0.19% |
| Reserves (Improvements) | $750,000 | 8.13% | 1.81% |
| Finance Expenses | $1,031 | 0.01% | 0.00% |
| Total Acquisition Cost | $32,300,000 | 349.95% | 77.78% |
| Total Acq. Cost (Reserves) | $32,300,000 | 349.95% | 77.78% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $553,800 | 6.00% | 1.33% |
| Dealer Fee | $46,150 | 0.50% | 0.11% |
| Wholesaling Fee | $92,300 | 1.00% | 0.22% |
| BD Due Diligence Allowance | $92,300 | 1.00% | 0.22% |
| BD Marketing Allowance | $92,300 | 1.00% | 0.22% |
| O&O Expenses | $138,450 | 1.50% | 0.33% |
| Third Party DD | $20,000 | 0.22% | 0.05% |
| Total Offering Expenses | $923,000 | 10.00% | 2.22% |
| Total Fees / Expenses | $923,000 | 10.00% | 2.22% |
| Total Upfront Fees (Reserves) | $1,151,621 | 12.48% | 2.77% |
Strengths
- Equity raise target clearly defined at $9,230,000
- Capital covers both lender and improvement reserve needs
Concerns
- Front-end offering expenses and fees total $923,000
- 10% front-end load on equity