Roots Real Estate Investment Community I, LLC

Cascade · Distributions

Where each dollar goes

$875K

LP $584K · Fees $291K · GP $0

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

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.

Waterfall structure

Structural checks run against Roots Real Estate Investment Community I, LLC's extracted waterfall. Each is a deterministic test — the numbers shown are proven from the PPM, not estimated.

Disposition Fee (3%) is taken above the waterfall

Medium

A 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.

“We may pay the Manager a one-time 3% disposition fee, per disposition, which will be calculated on the final disposition value when a property is sold, utilized in a 1031 exchange, or otherwise disposed of by the Manager on behalf of the Company, which will be paid at or shortly after closing on the property.”

PPM p.1585% confidence

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 — $769,2578

Medium

Garbled/malformed dollar figure for a declared distribution: '$769,2578' is not a well-formed number (extra digit / misplaced comma).

“declared by the Manager on July 9, 2025 of $769,2578 to our Members in the amount of $1.50 per Unit for unitholders of”

PPM p.7690% confidence

Unfilled placeholder text — [_____], 2028

Medium

Unfilled template blank in the substantive offering-term language: the offering end date reads '[_____], 2028' (appears on the cover summary and again in the body).

“expect to offer the Units in this offering until the earlier of [_____], 2028, which is three years from the initial qualification”

PPM p.592% confidence

Document-quality defect — Dissolution list numbering (1), (2), (4)

Low

Broken/skipped list numbering in the dissolution triggers: the enumerated list jumps from (2) directly to (4), omitting item (3).

“We will dissolve upon: (1) the election of our Manager to dissolve us with approval of holder of at least a majority of the Units; (2) the entry of a decree of judicial dissolution of the Company; or (4) at any time that we no longer have any Members”

PPM p.8790% confidence

Numeric inconsistency — NAV announcement date (October 30 vs October 31, 2025)

Low

The same NAV-announcement deadline (for the NAV calculated as of September 30, 2025) is stated as 'prior to October 31, 2025' in the Summary but 'prior to October 30, 2025' in the Determination of Offering Price section.

“For example, prior to October 31, 2025, the Manager will announce the NAV per Unit calculated as of the close of business on September 30, 2025 || For example, prior to October 30, 2025, the Manager will announce the NAV per Unit calculated as of the close of business on September 30, 2025”

PPM p.585% confidence

Spelling / typo — Yield Maintenece

Info

Misspelling 'Maintenece' (for 'Maintenance') used repeatedly in the loan-schedule prepayment column, inconsistent with the correctly spelled 'Maintenance' rows in the same table.

“Maintenece 5,4,3,2,1”

PPM p.7180% 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 distribution-waterfall structure does the fund use?

Medium

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.

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 answered0 partial8 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?Gap
What is the fund's investment strategy / asset class?UnknownAnswered
What is the fund's vintage year?Vintage 2022.Answered
What is the target offering size?Target offering of $75,000,000.Answered
What is the minimum LP investment?Minimum investment of $100.Answered

Fees & Expenses

Is the fund's fee schedule disclosed (management fee, etc.)?8 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 16.00%

Fee

Trigger

Basis

Rate

Acquisition Fee

Property acquisition

3% of the initial purchase price of each property, paid at or shortly after initial closing

3.00%

Asset Management Fee

Monthly revenue collection

10% of all revenue generated by the Company each month, paid monthly

10.00%

Leasing Fee

New lease or lease renewal

$500 for every new lease entered into with a Resident; $250 for every lease renewal

0.00%

Maintenance and Repair Reserve

Monthly, per property

Fixed dollar amount per month per property, set at time of acquisition based on condition and anticipated needs; average $180/month per property. Covers all repairs and maintenance; Manager pays any costs above this fee.

0.00%

Disposition Fee

Property disposition or 1031 exchange

3% of the final disposition value when a property is sold, utilized in a 1031 exchange, or otherwise disposed of

3.00%

Organization and Offering Expense Reimbursement

Ongoing during offering period

Reimbursement of actual third-party organization and offering costs; estimated no more than $2,250,000 over the term of the offering

0.00%

Capital Improvements and Normal Wear and Tear Conversion Costs

Property renovation, capital improvement, or lease turnover

Actual cost of capital improvements and property refresh/renovation costs; work may be performed by Manager at market rates or subcontracted at market rates for a profit. Capital improvements averaged $3,800/property; turnover costs averaged $2,922/property.

0.00%

Operating Expense Reimbursement

Ongoing operations

Reimbursement of out-of-pocket expenses including license fees, auditing fees, SEC reporting fees, insurance costs, tax return preparation fees, taxes, filing fees, administration fees, and third-party costs. Excludes Manager/Sponsor overhead, employee costs, utilities, and technology costs.

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

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LP-favorability score · 5 weighted dimensions

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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ⓘunscored—

GP Timing Riskⓘ8

Pref Qualityⓘ10

Fee Dragⓘ0

Alignmentⓘ15

LP take × exit multiple

at 5y hold · 67% at 1.75×

LP take Fee drag· sim at $500k equity

Exit	LP IRR	LP MoC	LP Take	Fees
1.00×	-15.1%	0.44×	44.0%	56.0%
1.50×	-1.5%	0.93×	61.7%	38.3%
1.75×	3.1%	1.17×	66.7%	33.3%
2.00×	7.1%	1.41×	70.5%	29.5%
2.50×	13.6%	1.90×	75.8%	24.2%
3.00×	18.9%	2.38×	79.3%	20.7%

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