b'can be re-invested in new properties that meet the funds investment criteria. Sold properties can be exchanged by the fund for larger properties using IRS 1031Exchangerules.TheInvestmentPeriodistypically1-4years. Duringthistime,additionalmembers(investors)maybeaddedand additionalpropertiesmaybeacquired.Thefundmanagerobtains acquisition financing for individual properties as they are acquired. The principle from any properties that may be sold during this time can be reinvested in new properties, or properties can be 1031 exchanged by the Fund for other properties; however, profits must be distributed to avoid phantom income for the members. During the harvest period, if applicable, properties are optimized to maximize income and decrease expenses (increasing net operating income, andthus,marketvalue).Theassetmanagerandinvestorssplitprofits generated by rental income.During the liquidation period, proceeds from sales of properties are used to pay back the proportionate portion of investor funds used to acquire each asset, plus their share of profits from the sale of each asset, until all properties are sold and all funds disbursed.It is important for you to understand that profit generated from any sale of a fund asset that is not deferred (via a 1031 Exchange) must be distributed to investors in the year it is generated, as investors will have to pay tax on the gain whether you give them a distribution or not.Blind Pool Fund Capital Raising Models There are two primary capital raising models for blind pool funds:125'