RealyInvest NNN, LLC

Key economics

Preferred return

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Hurdle rate

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LP / GP split

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GP catch-up

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GP clawback

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GP commitment

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Diligence findings (22 · 7 high/critical)

• high
  DDQ gap: Does the fund engage an independent auditor?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.
• high
  DDQ gap: Does the fund have a GP clawback provision?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.
• high
  DDQ gap: What is the LP/GP carried-interest split above the preferred return?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.
• high
  DDQ gap: What is the preferred return (hurdle) rate offered to LPs?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.
• high
  Document-quality defect — REIT election year 'December 31, 2015'REIT election described as commencing with a short taxable year ending December 31, 2015 — impossible for an entity formed March 17, 2020, and contradicts the December 31, 2021 election year stated elsewhere.
• high
  Numeric inconsistency — Offering-price derivation: $1,570,851 / 78,543 SharesThe $20.00 per-share derivation uses a property purchase price of 1,570,851 and 78,543 Shares, contradicting the $1,971,200 purchase price and 98,560 Total Maximum Shares used throughout the rest of the circular.
• high
  Numeric inconsistency — REIT election year 2015 vs 2021Same REIT election year stated two different ways: 'taxable year ending December 31, 2015' (tax section) versus 'taxable year ending December 31, 2021' on the cover/summary.
• medium
  DDQ gap: Does the fund use a third-party fund administrator?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.
• medium
  DDQ gap: Is there a GP catch-up, and at what rate?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.
• medium
  DDQ gap: What is the GP's capital commitment (skin in the game)?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.
• medium
  Document-quality defect — 'our 2015 taxable year'Tax-treatment discussion again references electing REIT status 'beginning with our 2015 taxable year', impossible for a March 2020 entity and inconsistent with the December 31, 2021 election year.
• medium
  Document-quality defect — Property location 'La Porte, IN' + stray 'Starbucks Corporation]'Cover description places the NNN-1 Property in La Porte, IN with a stray closing bracket after 'Starbucks Corporation', contradicting the Marietta, Ohio location used throughout — apparent leftover from a different deal template.
• medium
  Numeric inconsistency — Credit Facility $1,973,200 vs $1,971,200Forecasted balance sheet shows a Credit Facility / total liabilities of $1,973,200, but footnote (5) and the purchase price state the Credit Facility is $1,971,200.
• low
  Document-quality defect — Lease expiration 'November 31, 2030'Lease/agreement expiration date is stated as November 31, 2030 — an impossible date, as November has only 30 days.
• low
  Numeric inconsistency — Formation date 'December 2019' vs 'March 17, 2020'The Company's formation is stated as 'December 2019' in the management discussion, but as 'March 17, 2020' on the cover, in the summary, and in the audited financial statements.
• info
  Spelling / typo — 'ACCOOUNTING'Misspelling of 'ACCOUNTING' as 'ACCOOUNTING' in the financial-statement note heading.
• info
  Spelling / typo — 'businesss'Misspelling of 'business' as 'businesss' (triple s) in a REIT tax risk factor.
• info
  Spelling / typo — 'dailyu Closings'Misspelling of 'daily' as 'dailyu' in the offering-period mechanics describing how Closings are conducted.
• info
  Spelling / typo — 'FACTA'The defined term 'FATCA' is misspelled 'FACTA' within the same FATCA withholding paragraph that elsewhere spells it correctly.
• info
  Spelling / typo — 'in whole or in party''in whole or in part' mis-rendered as 'in whole or in party' in the Credit Facility prepayment bullet.
• info
  Spelling / typo — 'lessess''lessees' misspelled as 'lessess' (twice) in the risk-factor text on tenant/guarantor financials.
• info
  Spelling / typo — 'mad ein'Broken word — 'made in' rendered as 'mad ein' in the compulsory-redemption provision.

DDQ readiness — 38% covered

5 answered · 1 partial · 7 gaps of 13 standard questions.