This investment structure is non-negotiable as it is preset by their investment committee and it is the only terms under which they can work with someone. Their terms are:

1. Our program provides up to 95% of the equity in the deal. The sponsor brings the other 5% in cash or like kind asset or at times they will land the 5% on case by case basis.
2. The program requires ultimate control as anyone would who investing 90% into a deal. But once they agree on the budget presented by the sponsor, they will not interfere in execution.
3. 2% of the invested equity will be paid as a management fee every year and goes 100% to the sponsor
4. 20% carry gets split 50/50 - half going to the sponsor
5. 8%+ cash flow to investors on the investment as preferred with a catch up of 20% to joint venture – [sponsor and Encore].
6. Focus is U.S. cash flowing value-add real estate
7. The institutional partner will Fund escrow and Due Diligence money before closing
8. Money to be funded in a week, if needed, once approved by the investment committee.
9. 5-year exit preferred but no absolute sunset