Roots Real Estate Exchange I, 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 (16 · 4 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.
• 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 distribution-waterfall structure does the fund use?The offering documents don't answer a standard institutional DDQ question (Structure). 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
  Disposition Fee (3%) is taken above the waterfallA performance- or transaction-linked fee paid above the waterfall reaches the GP before the LP's distribution priorities run, eroding the pool the pref + return-of-capital draw from. Routine asset-management fees above the line are normal; a disposition/promote-flavored fee there is a leak worth pricing.
• medium
  Unfilled placeholder text — [__________], 2028Same offering-termination date left as an unfilled placeholder a second time in the body.
• medium
  Unfilled placeholder text — [_____], 2028Offering-termination date shipped as an unfilled placeholder in the summary body text.
• low
  Broken cross-reference — Termination and Dissolution clause (1)-(2)-(4)Enumerated dissolution-triggers list skips item (3), jumping from (2) directly to (4).
• low
  Document-quality defect — Atlanta, GA 3344Property address shows a truncated four-digit ZIP code (Atlanta ZIPs are five digits, 303xx).
• low
  Numeric inconsistency — Current Market Value: $450,00Property Current Market Value figure is truncated to '$450,00' (missing a digit) where the parallel Roots purchase price is the full '$300,000'.
• low
  Unfilled placeholder text — File No. [___]SEC file number left as an unfilled template token on the cover page.
• info
  Spelling / typo — the Company unable to raiseBroken sentence missing the verb 'is' ('If the Company [is] unable to raise substantial funds').

DDQ readiness — 38% covered

5 answered · 0 partial · 8 gaps of 13 standard questions.