Length of Offering: one year
If $500,000 is not raised within the first year, then all proceeds raised to that point will be promptly returned to subscribers of Preferred Membership Interests pro-rata, with interest, if any. Otherwise, the Fund is for five years.
Length of Fund: We expect to begin redeeming units in year three (3) with the hope to redeem all of the Members’ Units by the end of year five (5). We plan to accomplish this by selling or refinancing all Properties by year five to be able to return all Capital Contributions and unpaid Preferred Distributions.
|Phase of Operation||Basis for Fee||Amount of Fee, per YEAR||Amount of Fee, OTHER|
|Legal and accounting||Professional costs in connection with this offering.||Estimated to be between $10,000 - $35,000|
|Working capital||The cost of running the company, such as, but not limited to: web site maintenance and due diligence costs incurred in locating suitable acquisitions for the company.||Estimated to be between $4,000 - $25,000|
|Acquisition costs||The fees charged to acquire a property, such as, but not limited to: market appraisals, title, recording, broker, accounting and legal fees.||Estimated to be between 3%-8% of the Purchase Price.|
|Asset Management Fee||The fees charged to manage its properties.||Estimated to be approximately 3% of the money invested in a particular deal, not based on fund balance.|
|Preferred Return||The Preferred Return is a yearly return distributed to investors based on their amount invested.||The range is between 3%-7%, depending on the amount invested.|
|Investors/Company Management Distribution||After the sale of a property, and after all debt and Preferred Returns paid, the remaining profit is distributed.||60% investors