Asked for the first close's actual numbers before joining the second, and it changed my answer

The simplest version of this never occurred to me, which is that a fund with assets already has a report card and a fund without one doesn't. Going to steal that.

Question though. If Fund A had come back with numbers from a prior fund instead of this one, would you have counted it the same?

The expense ratio at 38% against 34% projected is the number I'd want to understand better. Insurance renewals aren't a one-time surprise, they reset every year, so is 38% the new normal or was that a bad year? @kestrel did they tell you what they're budgeting for next year?

This is the post I needed. I've been at the analyzing stage for so long that I'd convinced myself I had to be able to underwrite a facility before I could evaluate a fund. Asking for actual against projected is something I can do this week.

Actual against projected is one of the more informative documents you can request, and the way it's presented matters as much as the numbers.

A few things to ask for alongside it. First, the comparison at the asset level, not blended. A blended report can hide one asset badly missing while another outperforms, which is what happened in the figures you were shown. Second, the same-store series if any asset has been owned more than twelve months, meaning revenue and NOI for a consistent set of properties across comparable periods. That strips out the effect of buying more facilities. Third, the discount and concession rate, because occupancy can be bought. An occupancy figure holding up while street rates and existing-customer rates fall is a different story than occupancy holding at flat rates.

On the expense ratio question in this thread, insurance is a recurring line that resets at each renewal, so a single-year jump can persist. Ask what the current-year budget assumes for insurance per square foot and what last year came in at. Also ask about property tax reassessment, since a purchase often triggers a new assessment and the timing of that varies by state and county, which means the first full year of taxes can look nothing like the trailing figures from the seller.

On minimums, sponsors do sometimes accept smaller amounts, particularly at a later close. Whether they can and on what terms depends on the offering's structure and the applicable securities exemption, so the sponsor and their counsel are the ones to answer that, and anything you agree should be in the subscription documents rather than an email.

The thing you did that I'd underline is asking without apologizing for asking. Sponsors deal with people who want reassurance all day. Somebody who wants a spreadsheet is a relief.

Five years running my own thing and I'll say the other half of what happened here. You learned something about the operator, not the assets. Whoever sent that sheet with the paragraph explaining the miss, unprompted, is telling you how the bad quarters are going to get communicated later. That's most of what you're buying at $30k.