The clause I made them change before I wired, and what it was worth two years later

The AM fee accrual is the one I'd never thought to ask for and I've been on the vendor side of these buildings for five years. I watch asset managers get paid on properties where nothing is happening. $52k is a roof and a half.

vellum, I think that's exactly why fathom asked for the personal guarantee and flagged not getting it as a gap. A clawback means very little if nobody solid is standing behind it.

I'm at zero experience with this, and reading this thread is what made it click that the documents are the deal, not the property.

fathom, two follow ups.

Was the clawback drafted as a true-up at final liquidation against total distributions, or as a look-back with a specific escrow? The first is common and mostly toothless if the sponsor entity is a shell by then. The second is rare and actually works.

And on the capital call remedy, does the 30 day cure run from a written notice with a stated dollar amount per LP, or from a board resolution? I've read one where the notice period technically started before anyone was told the number.

The half-fee accrual I'm stealing. My guess is the reason a third of sponsors say yes is that it costs them nothing in their base case and they know it.

$400k minimum and 4% of the class is presumably why you got a negotiation at all. Is there any version of this where someone writing $50k gets clauses changed, or does it just come down to you asking, getting told the docs are final, and deciding whether to sign?

tally, from what I've watched, a $50k LP gets the answer everyone else got. What you can do is ask the questions and read the answers, because how a sponsor responds to the AM fee question tells you a lot even when they say no.

The part I want to poke is the 5.9% going-in cap with concessions left in the trailing number. That's a genuinely different starting point from the 5.2% deals with the concessions scrubbed out that I keep getting sent, and it's most of why this worked. You bought income that was already beaten up.

fathom, was that the sponsor being conservative or was that the market forcing it? Because if the seller was distressed and the price reflected it, the clause work is a nice bonus on a deal that was going to work anyway. I'd want to know which one I was buying.

keystone's question is the one. I'd add: 22% of capital back on a refinance in year two means the appraisal supported real proceeds, which means the value reset in that submarket already turned. Deliveries there must have been thin. fathom, what was the construction pipeline inside three miles at purchase?

I'm building a list and the university plus hospital anchor is going on it as a screen.