b'the property on behalf of the members (which include both passive investors and the asset management team). The asset manager oversees the on-site property manager during ownership of the property, and then eventually packages the property for refinance or sale. The asset manager provides statusandfinancialreportstomembersduringownership,andmakes periodicdistributionsofdistributablecashtoitselfandinvestors,asit becomes available.Additionally, the asset manager contributes the at-risk capital needed to get deals to the closing table. At risk capital includes pre-closing expenses forsuchthingsaspropertydeposits,inspections,lenderfees,securities attorney legal fees, third party reports, and travel expenses, etc. Pre-closing expenses are reimbursable from the capital raised from investors (providing you raise enough capital). The pre-closing expenses are considered at-risk until the deal closes, because if something goes wrong and a deal doesnt close, the pre-closing expenses will be lost. In this event, passive investor funds must be returned without deduction, so the asset manager suffers the loss. Thats why its considered at risk capital.What is the Benefit to Participants? Cash Distributions In exchange for their capital and non-capital contributions, the members (investors and management) will be entitled to their respective share of cash flow during the period the syndicate or fund owns a property, and from equity(cashremainingafterpayingoffdebtandclosingexpenses) 15'