Gross equity proceeds of $11,310,634 are combined with $10,117,000 of loan proceeds to fund the $18,000,000 purchase price, $1,349,510 in offering expenses and fees, $339,319 in financing costs, and $709,733 in total reserves.
Total Fees & Expenses
$1,349,510
% of offering
6.00%
All-equity offering — load on equity equals load on offering price. · $1,778,732 including reserves (15.73% of offering)
Where the offering proceeds go
Acquisition Cost$20.08M177.5%
Offering Expenses$1.35M11.9%
Reserves$710K6.3%
Total fees & expenses
$1.35M
6.00% of offering
Offering expenses
$1.35M
11.93% of offering
Reserves held
$710K
6.27% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $405,000 | 3.58% | 3.58% |
| Reserves (Lender Required) | $104,363 | 0.92% | 0.92% |
| Reserves (Master Tenant) | $58,810 | 0.52% | 0.52% |
| Reserves (Improvements) | $546,560 | 4.83% | 4.83% |
| Finance Expenses | $339,319 | 3.00% | 3.00% |
| Total Acquisition Cost | $20,078,124 | 177.52% | 177.52% |
| Total Acq. Cost (Reserves) | $20,078,124 | 177.52% | 177.52% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $678,638 | 6.00% | 6.00% |
| Dealer Fee | $395,872 | 3.50% | 3.50% |
| Wholesaling Fee | $395,872 | 3.50% | 3.50% |
| O&O Expenses | $275,000 | 2.43% | 2.43% |
| Total Offering Expenses | $1,349,510 | 11.93% | 11.93% |
| Total Fees / Expenses | $1,349,510 | 11.93% | 11.93% |
| Total Upfront Fees (Reserves) | $1,778,732 | 15.73% | 15.73% |
Strengths
- Total funded reserves of $709,733 including $546,560 for improvements
- $104,363 in lender-required reserves established at closing
Concerns
- Total upfront fees and offering expenses equal $1,349,510
- Total upfront fees including reserves reach $1,778,732