All Distributions tier 2 over-allocates: shares sum to 200%, not 100%
Critical“Any remaining Available Cash from Operations as to Class B Members shall be distributed fifty percent (50%) to the Class B Members as a class”
PPM p.1195% confidence
Cascade · Distributions
Where each dollar goes
$875K
LP $461K · Fees $177K · GP $237K
Standard scenario · $500K equity · 5y hold · 1.75× exitRun your own cascade →
Class structure · 3 classes· viewing as Class A
How MHPI III, LLC divides the cap table
The cascade above is filtered to Class A. Reset to blended view.
Class B
LP/PreferredMin · $250K“Class B Members will receive a 'Special Preferred Return'... an amount equal to a return of ten percent (10%) on the Class B Members'... Unreturned Capital Contributions”— PPM p. 7
Class C
LP/PreferredMin · $50K“Class C Members will receive a 'Preferred Return'... an amount equal to a return of eight percent (8%) on the Class C Members'... Unreturned Capital Contributions”— PPM p. 8
Class A● active
Manager“The principals of the Managers, along with Academy Fund, LP... and Providential Holdings, LLC... will hold one hundred percent (100%) of the Company's Class A Interests.”— PPM p. 8
Deal diligence6 findings · worst critical
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 MHPI III, LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.
All Distributions tier 4 over-allocates: shares sum to 200%, not 100%
Critical“Available Cash from Refinancing shall be distributed to those Members whose Unreturned Capital Contributions exceed zero”
PPM p.1195% confidence
All Distributions tier 5 over-allocates: shares sum to 200%, not 100%
Critical“as to Class B Members shall be distributed twenty-five percent (25%) to the Class B Members as a class”
PPM p.1295% confidence
Diligence gaps
Questions a standard diligence questionnaire would ask that the PPM leaves unanswered.
DDQ gap: Does the fund engage an independent auditor?
HighThe 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 use a third-party fund administrator?
MediumThe 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)?
MediumThe 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.
77%
Coverage
10 answered0 partial3 gaps13 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?50% LP / 50% 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: Class-based with per-class promote (50/50 for Class B, 40/60 for Class C on operations; 25/75 and 20/80 on refi/sale).Answered
- What is the fund's investment strategy / asset class?Equity · Mobile Home ParksAnswered
- What is the fund's vintage year?Vintage 2014.Answered
- What is the target offering size?Target offering of $10,000,000.Answered
- What is the minimum LP investment?Minimum investment of $50,000.Answered
Fees & Expenses
- Is the fund's fee schedule disclosed (management fee, etc.)?3 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
Fee scheduletaken before LP distributions
Total load 19.33%Fee
Trigger
Basis
Rate
Administrative Fee (Acquisition Fee)
At closing of each property acquisition
Purchase Price
5.33%
Placement/Broker Commission
On subscription
Subscription Proceeds
8.00%
Service providers3 gaps
Legal Counsel
Not disclosed
No independent counsel named for investors. Common in small syndications where Manager and Fund share counsel — reduces independence. Verify during diligence.
Auditor
Not disclosed
Audit intent not stated in PPM. Ask the sponsor: will the fund be audited, by whom, and on what frequency?
Fund Administrator
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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