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DeMok Capital LLC

Sponsored by DeMok Capital MGR LLC·

Real Estate Debt (Senior Debt Instruments / Third Party Notes secured by non-owner-occupied real property)· Debt· LLC · 3 classes· ● High· PPM v1· Updated 13d ago
1 data note▶
Unusual structure
Run the numbers
Composite
60.8
Waterfalls score
Pref Returnⓘ
8%
simple
LP Take (Base)ⓘ
88.6%
at 1.75× exit
GP Commitⓘ
0.0%
0% (undisclosed)
Min Investment
$50K
ticket size
Offering Size
$24M
target raise

Analyst unlocks the benchmark overlay — median and vs-bucket delta on each KPI above.

Cascade · Distributions

Where each dollar goes

$875K
LP $775K · Fees $75K · GP $25K
Gross proceeds at exit
$875K
FFees to Manager
$75,000 · 8.6% of gross
taken before the waterfall→ GP $75K
T1Return of Capital
$500,000 · 57.1% of gross
uncapped — takes what remains→ LP $500K
T2Preferred Return (8%)
$200,000 · 22.9% of gross
uncapped — takes what remains→ LP $200K
T4Residual Split (75% / 25%)
$100,000 · 11.4% of gross
uncapped — takes what remains→ LP $75K · → GP $25K
Where it lands · of gross proceeds
LP $775K (88.6%)Fees $75K (8.6%)GP $25K (2.9%)
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 3 classes

How DeMok Capital LLC divides the cap table

The cascade above models the blended LP view. Click a class below to view per-class economics.

PPM Review

7/12 key terms · 5 flags

What this PPM costs, protects, and pays — every claim links to its source page. Missing items read “not stated,” never “no.”

Load at close
~5.0%
of equity, upfront
Recurring drag
~2.00%
per year, pre-split
LP share of next $
~80¢
at 1.75× base case
Key-term findability
7/12
located in the PPM
Needs attention
flagNo GP clawback
flagFees taken above the waterfallp.30
flagNo minimum raise — escrow can break on the first dollarp.67
flagAffiliate purchases may count toward the minimum — can defeat the escrowp.67
flagDistributions may include a return of capital / offering proceedsp.13
+ 2 more▶
cautionGP commitment not stated
cautionThe sponsor may waive or lower the minimum raisep.67
Offering & eligibilityReg D 506(c) · accredited only▶
Eligibility
Accredited investors only506(c) permits general solicitation but requires the sponsor to verify your accredited status.
Structure
Reg D 506(c)Sold direct — no broker-dealer commissionUnregistered adviser
p.5“The Company has filed a Form D with the Securities and Exchange Commission, in which the Company elected to proceed under Rule 506(c) to allow the Company to engage in general solicitation.”
Where your dollar goes~5.0% load · GP commit n/s▶
Load at close
~5.0% of your equity is consumed by upfront fees at closing (estimate).
  • Loan Origination Fee: 5.0%p.30“the borrower pays a Loan Origination Fee equal to one percent (1.0%) to five percent (5.0%) of the loan amount ... The Loan Origination Fee shall be paid directly to the Company.”
Recurring drag
~2.00% of your equity per year, before any profit split — comparable to an expense ratio.
LP share of next $
~80¢ of each additional dollar reaches the LP at the 1.75× base case.1.3×3.0×
Not stated
GP commitment
Protections & red flags4audited · 2 off-market▶
Audited financials
Audit committed — no firm named
Independent controls
— Auditor— Administrator— CustodianSee providers →
Off-market (2)
  • No GP clawbackA clawback is the market norm
  • Fees taken above the waterfallLP-friendly deals subordinate fees to the prefp.30“The Manager shall be entitled to an ongoing annual asset management fee paid monthly which shall be calculated as two percent (2.0%) of the assets under management.”
  • GP commitment not statedGPs typically disclose their co-investment
Minimum raise
No minimum offering — proceeds available to the sponsor immediately
$24M maximumAffiliate purchases may count toward the minimum — this can defeat the escrow.The sponsor may waive or lower the minimum.p.67“No Escrow Account. The Manager has a corporate bank account for the Company at one or more federally insured depository institutions. All subscription amounts will be immediately deposited into such account upon receipt from prospective investors. ... The banks or brokerage companies utilized by the Company will not act as an escrow agent with respect to prospective investors' subscription funds. ... Affiliates of the Manager may purchase Membership Interests in the Company, and the purchase of such Membership Interests will be included in satisfying the minimum offering requirements. ... THE COMPANY RESERVES THE RIGHT TO DECREASE OR INCREASE THE AGGREGATE MINIMUM OR MAXIMUM OFFERING AMOUNT SOUGHT”
Cash flow & horizon1monthly distributions · hold n/s▶
Distribution policy
Targets distributions — MonthlyBegins A Member's preferred return shall begin to accrue on the first (1st) day of the month following the date the Member's initial capital contribution is accepted by the Company; cumulative preferred return does not begin until the Investor/Member(s) funds are deployed by the Company on a Target AssetTargeted, at manager's discretionDistributions are a target at the manager’s discretion — not a guarantee.May include a return of capital / offering proceeds — see quote.p.13“The Manager shall cause the Company to distribute one hundred percent (100%) of Net Available Proceeds from Operations, not less than quarterly and the Manager aims to make monthly distributions (if Net Available Proceeds from Operations are available) to the Members and Manager as follows: First, to all preferred return distribution electing Class A Members pro rata until all unpaid preferred returns from current or previous periods are satisfied;”
Capital stack
Secured — first lien
Collateral: Investors purchase LLC membership interests (equity in the fund), not notes. However, the fund's underlying Target Assets (Senior Debt Instruments and Third Party Notes) are all collateralized: Senior Debt Instruments are secured by first-position deeds of trust or mortgages on non-owner-occupied real property; Third Party Notes are secured by deeds of trust or mortgages (first or second lien) on non-owner-occupied real estate. The PPM states "ALL Target Assets will have their associated loans secured by some collateral."Sponsor guaranty — At the fund-loan level (borrowers to the Company), the Company requires all key principals (individuals owning more than 20% of the borrowing entity) to execute a personal payment guaranty on Senior Debt Instruments (with an exception for self-directed IRA borrowers). For Third Party Notes, payment and performance must be personally guaranteed by principals of the borrowing entity, except as prohibited by law. No sponsor/manager personal guaranty is provided to the investors/members themselves.p.10“"Senior Debt Instruments. These are loans made by the Company to real estate investors by way of a promissory note secured by a first position deed of trust or mortgage on non-owner-occupied real property assets... ALL Target Assets will have their associated loans secured by some collateral."”
Not stated
Hold / fund life
Governanceno LP removal▶
Removal & amendments
No LP right to remove the manager
Amendment rights vary by provision
Reporting
Within 180 days after fiscal year-end, the Company sends each Member a balance sheet, statements of income and expense, members' equity and changes in financial position, and a cash flow statement, plus other reports the Manager deems relevant; unaudited quarterly financial statements; and tax information (Member's K-1) as necessary for federal and state returns. (The Executive Summary states annual reports within 90 days, differing from the 180-day figure in the Reports to Members section.)
Source
p.64“Removal of the Manager. The Manager may not be removed by a vote of the Members.”
Document quality7/12 findable · 97 pp▶
Key-term findability
7 of 12 key questions answered.
  • ✓Preferred return
  • ✓Profit split / promote
  • ✓Distribution waterfall
  • ✓Fee schedule
  • —GP commitment
  • ✓Audited financials
  • ✓Distribution policy
  • —Lock-up / liquidity
  • —Fund life / hold
  • —Leverage cap
  • ✓Minimum investment
  • —Conflicts / related-party
Structural complexity
LP classes: 3Cash pools: 3Max tier depth: 6Conditional branches: 0
More moving parts, not necessarily worse — takes longer to understand.
Document heft
97 pages

Fee-load figures are modeled estimates from extracted terms, not a guarantee. Peer context is shown to Analyst-tier members.

Deal diligence4 findings · worst medium

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.

Waterfall structure

Structural checks run against DeMok Capital LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

No clawback provision — promote paid is not trued-up to the LP at wind-down

Low

The fund pays the GP carried interest but has no clawback. If interim distributions over-pay promote relative to lifetime results, the LP cannot recover the difference. Common in real-estate funds, but worth confirming against the distribution timing.

80% confidence

Diligence gaps

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

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 key-person provision?

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: 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.

79%
Coverage
15 answered1 partial3 gaps19 questions
Economics
  • What is the preferred return (hurdle) rate offered to LPs?Preferred return of 8%.Answered
  • What is the LP/GP carried-interest split above the preferred return?75% LP / 25% GP residual split.Answered
  • Is there a GP catch-up, and at what rate?No GP catch-up.Answered
  • Does the fund have a GP clawback provision?No clawback provision disclosed.Answered
  • What is the GP's capital commitment (skin in the game)?Gap
Structure
  • What distribution-waterfall structure does the fund use?Waterfall type: European (pref then 75/25 split).Answered
  • What is the fund's investment strategy / asset class?Debt · Real Estate Debt (Senior Debt Instruments / Third Party Notes secured by non-owner-occupied real property)Answered
  • What is the fund's vintage year?Vintage 2025.Answered
  • What is the target offering size?Target offering of $24,000,000.Answered
  • What is the minimum LP investment?Minimum investment of $50,000.Answered
  • Are investor subscriptions protected by a minimum-offering escrow?No minimum offering — proceeds are available to the sponsor immediately.Answered
  • Is the securities-offering exemption and investor-eligibility standard disclosed?Offering exemption disclosed (accredited).Answered
Fees & Expenses
  • Is the fund's fee schedule disclosed (management fee, etc.)?5 fee line item(s) extracted from the offering documents.Answered
Governance
  • Does the fund engage an independent auditor?Audited financial statements committed (auditor firm not yet named).Answered
  • Does the fund use a third-party fund administrator?Gap
  • Do investors have the right to remove the manager / general partner?The PPM states investors have NO right to remove the manager.Answered
  • Are material amendments to the operating agreement subject to investor consent?Amendment rights vary by provision (some manager-discretionary).Partial
  • Is there a key-person provision?Gap
Distributions
  • Is the fund's distribution policy disclosed?Distribution policy stated (monthly).Answered
Generate IC memo →

Fee scheduletaken before LP distributions

Modeled load 15.0% of equity over a 5-yr base case
Fee
Trigger
Basis
Rate
Fund Management Fee
Ongoing annual, paid monthly
Assets Under Management
2.00%
Loan Origination Fee
At closing of Senior Debt Instrument
Loan amount (1%-5% range)
5.00%
Loan Administration Fee
At closing of Senior Debt Instrument
Flat fee per loan
0.00%
Default Processing Fee
On Senior Debt Instrument in default
$500 flat fee per defaulted loan
0.00%
Organization Expense Reimbursement
As incurred
Actual expenses (~$50,000 anticipated)
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
OK
No placement agent engaged
No placement agent engaged. Direct placement by Manager — no placement fees eat your invested capital.

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