b'sharing in blended returns from all properties owned by the fund. In this model, fund management fees and profit splits at calculated at the fund level. Deal-by-Deal Fund Model In this model, fund management fees and profit splits are calculated at theassetlevel.Thismodeltypicallyrequiresclawbackprovisions requiring the fund manager to pay back a portion of its fees or profits if the funddoesntmeetitsoverallgoalsforinvestors,usuallyduetonon-performing or under-performing properties.Practicalities of Creating a FundStart Small and Scale Up Dontmakeyourfundbiggerthantheamountofmoneyyoucan reasonably raise and deploy within a specified investment period of 1 to 5 years.While you may be tempted to create a $50M fund, investors will ask how much you have raised in your fund before they make their investment decision. If you have only raised a fraction of the fund maximum, they may sit on the sidelines waiting for you to raise more money and acquire more properties. If you never achieve your maximum fund-raising goal, your fund may appear to be a failed fund. Its better to do a series of smaller funds with afinite,achievablemaximum,thanitistohavealargerfund,witha maximum raise that you fail to achieve.127'