Benchmark Real Estate Investment Fund, LLC

Cascade · Distributions

Where each dollar goes

$875K

LP $689K · Fees $85K · GP $0

Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →

Class structure · 2 classes· viewing as Class A Membership Interests

How Benchmark Real Estate Investment Fund, LLC divides the cap table

The cascade above is filtered to Class A Membership Interests. Reset to blended view.

Class A Membership Interests● active
membership interest
Capital · 85.0%Min · $1K
“A total of fifty million (50,000,000) Class A Membership Interests are offered through this Offering. The Minimum Investment Amount is One Thousand Dollars ($1,000.00)… All distributions of Distributable Cash, if any, shall be distributed as follows: (i) eighty-five percent (85.00%) to the Class A Interests issued and outstanding, pro rata”— PPM p. 41
Class B Membership Interests
membership interest
Capital · 15.0%
“JosephArden Enterprises, LLC, an Affiliate owned by the Principals, owns the Class B Membership Units, representing 100% of all Class B Membership Units, which constitutes a 15% ownership interest of the Company. JosephArden Enterprises, LLC was granted these Class B Membership Units in 2024 for $1,000.00.”— PPM p. 20

Deal diligence14 findings · worst high

Automated checks across the fund's extracted PPM. Every finding is shown with the evidence it's based on — proven numbers or a verbatim quote and page.

Document quality

Drafting defects found in the PPM prose — numeric inconsistencies, broken cross-references, unfilled placeholders, and defined-term problems. Each is shown with the offending quote and its page.

Numeric inconsistency — BCM II formation year

Medium

BCM II (the Manager) is stated to have been formed on 'January 6, 2022' in the Investor Suitability section but 'formed in 2021' in two places in the Description of Business section — a one-year factual conflict about the manager entity.

“Manager, BCM II, was formed under the laws of the State of Michigan on January 6, 2022. | BCM II was formed in 2021 by the Principals of BCM. | BCM II was formed in 2021 as a manager-managed limited liability company by the Principals of BCM.”

PPM p.797% confidence

Document-quality defect — Mailing address zip code

Low

The mailing address zip code is stated as '49514' on the cover page and in the Security Ownership table but as '46514' in the Company Information body text — one of the two is erroneous.

“MAILING ADDRESS : PO Box 141396 Grand Rapids, MI 49514 | address of PO Box 141396 Grand Rapids, MI, 46514, Phone: 616-735-9800.”

PPM p.295% confidence

Spelling / typo — BMC II

Low

The acronym 'BCM II' (Benchmark Capital Management II) is misspelled as 'BMC II' — a letter-transposition typo — in the opening sentence of the 'BCM II (Fund Manager) Business' section.

“BMC II will act as the Manager of the Company. BCM II is a manager-managed limited liability company.”

PPM p.2499% confidence

Spelling / typo — counites

Info

The word 'counties' is misspelled as 'counites' in the Glossary definition of 'West Michigan'.

“21. West Michigan means the predominantly following counites: Kent, Newaygo, Montcalm, Ottawa, Ionia, Barry, Kalamazoo, Muskegon, and Allegan counties.”

PPM p.1099% confidence

Spelling / typo — Fannie Mae of Freddie Mac

Info

Substantive text reads 'Fannie Mae of Freddie Mac qualifications' — the conjunction 'of' should be 'or', creating a grammatically broken and potentially confusing sentence in the business description.

“did not meet Fannie Mae of Freddie Mac qualifications, landlords, property renovators, and Mortgagors purchasing Properties that did not qualify for traditional types of loans.”

PPM p.2698% confidence

Spelling / typo — perspective Mortgagor

Info

The word 'perspective' is used twice in place of 'prospective' when describing potential borrowers — a malapropism that also appears in the LTV guidelines section.

“a perspective Mortgagor, processes, underwrites, and approves the application and lends funds directly to said Mortgagor.”

PPM p.1097% confidence

Spelling / typo — received receive

Info

Doubled verb in broker-dealer compensation paragraph: 'has received receive a one-time due diligence fee' — the word 'receive' appears to be a drafting remnant left after revision.

“Broker Dealer has received receive a one-time due diligence fee of $2,500.00 for out of pocket expenses, due and payable upon execution of agreement between ICON and the Company.”

PPM p.2299% confidence

Diligence gaps

Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.

DDQ gap: Does the fund engage an independent auditor?

High

The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Does the fund have a GP clawback provision?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

High

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Does the fund use a third-party fund administrator?

Medium

The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: Is there a GP catch-up, and at what rate?

Medium

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ gap: What is the GP's capital commitment (skin in the game)?

Medium

The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.

90% confidence

DDQ readiness

How much of a standard institutional due-diligence questionnaire this fund's offering documents answer out of the box. Gaps are questions an allocator will ask directly.

38%

Coverage

5 answered1 partial7 gaps13 questions

Economics

What is the preferred return (hurdle) rate offered to LPs?Gap
What is the LP/GP carried-interest split above the preferred return?Gap
Is there a GP catch-up, and at what rate?Gap
Does the fund have a GP clawback provision?Gap
What is the GP's capital commitment (skin in the game)?Gap

Structure

What distribution-waterfall structure does the fund use?1 distribution tier(s) extracted; structure type not classified.Partial
What is the fund's investment strategy / asset class?UnknownAnswered
What is the fund's vintage year?Vintage 2015.Answered
What is the target offering size?Target offering of $1,000,000.Answered
What is the minimum LP investment?Minimum investment of $1,000.Answered

Fees & Expenses

Is the fund's fee schedule disclosed (management fee, etc.)?9 fee line item(s) extracted from the offering documents.Answered

Governance

Does the fund engage an independent auditor?Gap
Does the fund use a third-party fund administrator?Gap

Generate IC memo →

Fee scheduletaken before LP distributions

Total load 22.00%

Fee

Trigger

Basis

Rate

Asset Management Fee

Monthly, beginning at fund commencement

1.00% of Gross Assets Under Management per annum (monthly), increasing up to 0.25% per year after second fiscal year, capped at 2.00% of Gross AUM

1.00%

Construction Management Fee

Upon completion of each construction project

8.00% of budgeted construction and improvements costs per project, or market rate (whichever is greater)

8.00%

Property Management Fee

Monthly, on rental income

6.00% of monthly gross rent for managed real estate, or market rate if greater

6.00%

Organizational Fee

Minimum Offering Amount raised and funds released from escrow

Flat fee of $100,000 to BCM upon raising Minimum Offering Amount and release from escrow

0.00%

Loan Servicing Fee

Monthly, on outstanding note principal

Up to 1.00% per annum (1/12 per month) of outstanding principal balance of Notes held by the Company

1.00%

Selling Commission (Broker-Dealer Fee)

Upon each capital raise transaction

6.00% of gross proceeds raised in the Offering; plus one-time due diligence fee of $2,500 and consulting fee of $7,500

6.00%

Cost Sharing Reimbursement

Monthly at Manager's discretion

Reasonable monthly amount at the sole discretion of the Manager for utilization of BCM office, personnel, and equipment

0.00%

Real Estate Commissions

Upon purchase or sale of Company property

Reasonable real estate commissions on purchase or sale of property; amount at market rate

0.00%

Formation Cost Reimbursement

Upon raising Minimum Offering Amount and release of funds from escrow

Flat reimbursement of $388,212.00 for pre-offering legal, marketing, and accounting expenses advanced by WMPCF

0.00%

Service providers3 gaps

Provider network →

Legal Counsel

Gap

Not disclosed

No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.

Auditor

Gap

Not disclosed

Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?

Fund Administrator

Gap

Not disclosed

No third-party fund administrator referenced. Manager likely handles admin internally — common for <$10M raises but reduces independence.

Placement Agent

No placement agent engaged

No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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Waterfalls Composite Score

40.3.

LP-favorability score · 5 weighted dimensions

Benchmark · Real Estate Equity

Diversified Real Estate

See where this fund sits across 189 indexed diversified real estate funds — median pref, hurdle, splits, GP commit.

Compare to bucket →

Score breakdown5 dimensions

Absolute LP Takeⓘ85

GP Timing Riskⓘ8

Pref Qualityⓘ8

Fee Dragⓘ15

Alignmentⓘ10

LP take × exit multiple

at 5y hold · 90% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	-3.7%	0.83×	83.0%	17.0%
1.50×	5.9%	1.33×	88.7%	11.3%
1.75×	9.6%	1.58×	90.3%	9.7%
2.00×	12.8%	1.83×	91.5%	8.5%
2.50×	18.4%	2.33×	93.2%	6.8%
3.00×	23.1%	2.83×	94.3%	5.7%

Jump to an exit

1.0× downside 1.5× base 2.0× upside 3.0× home run

Benchmark Real Estate Investment Fund, LLC

Class A Membership Interests● active

Class B Membership Interests

Document quality

Numeric inconsistency — BCM II formation year

Document-quality defect — Mailing address zip code

Spelling / typo — BMC II

Spelling / typo — counites

Spelling / typo — Fannie Mae of Freddie Mac

Spelling / typo — perspective Mortgagor

Spelling / typo — received receive

Diligence gaps

DDQ gap: Does the fund engage an independent auditor?

DDQ gap: Does the fund have a GP clawback provision?

DDQ gap: What is the LP/GP carried-interest split above the preferred return?

DDQ gap: What is the preferred return (hurdle) rate offered to LPs?

DDQ gap: Does the fund use a third-party fund administrator?

DDQ gap: Is there a GP catch-up, and at what rate?

DDQ gap: What is the GP's capital commitment (skin in the game)?

DDQ readiness

Fee scheduletaken before LP distributions

Community threads0 active

Reviews