We’re gonna take a deeper dive into a deal deconstructed on a syndication deal is a real deals, just slightly modified so that we can hide exactly what the property was for privacy reasons. Now, this will also talk about the fees that you can make and money making in there. It is a blast from the past, it was recorded about two years ago. And I thought it would be helpful to put out here today, I’m going to be doing that continuously now for for some of the videos that I have before, because they’re useful, there’s great content there. And I want to make that available and help y’all. If you liked this content, please feel free to subscribe, it would really help me out a lot. And you’ll also get notified when new videos come online. Here’s what we’re going to be doing today is we’re going to be going back through everything that we talked about last week. And just a quick high level overview. And then we’re going to go deeper into details such as, how do we underwrite that property? And then once we’ve closed that escrow, how do we make money on it and ultimately sell the property where our money comes from, and we’ll go from there. Alright. So here’s my screen. This is what we talked about yesterday, basically, we, and I’m going to do this very, very quick. So we, we looked at three different properties from a very high level, we looked at them through the lens of our founder investment theory, the underwriting and then survey the investors. We’re gonna go deeper into that underwriting in just a moment. And then ultimately, we came out and at the end of the day, we said, yes, the Wilson building is a property that we would like to syndicate. So we make that commitment, we put our 3% down. And then this begins this process of where are we We’re in escrow, we’ve got 90 days to close it, and we’ve got to race truck cars going at the same time. So we’ve got the, the race car of the transaction going, that we need to get this closed, and the race car, syndicating it, finding investors and making sure that everything is working there. On the syndicating side, we are we formed the entity, we make a choice as to which one of the SEC exceptions we do, we’ll put our PPM together operating agreement, subscription agreement, start marketing it, build that list, walk our investors, and ultimately, they latch on and give us the money and we close. Meanwhile, we’ve done our financing and our due diligence on that side to make sure we get the money on the loan, in order to get to close. And then we’ll go through the money part of that in just a minute. So let’s go ahead and switch over to my other screen. So let’s go ahead and switch over to the my screen, my Excel spreadsheet. So this is a underwriting template that I have. And this is I’m gonna give, I’m gonna be sending this out, there’s I’m gonna send it out to as a tab in a more templated form. So if there’s any comments you have about what you don’t like about it, you know, I’d actually be very interested to hear it. Because I want this to be especially useful. When I’ll type kind of talk as I’m going about the changes that are coming to this template. So that way, you kind of can see the direction that it’s going, that this should be out, I will send out this spreadsheet itself, I’ll send it out as part of the notes for this call. And then the template itself will be coming out in the next week or two because I kind of want to pretty it up and make it a little bit better than it is. All right. So let’s go ahead and let me make it a little bit bigger for people. So this is a underwriting spreadsheet. It starts with some assumptions, and I’ve got a lot of things in it. And not all of these things are filled out. Because this can be really thought of as sort of a back of the envelope calculation. And when I first get a property, these are the kinds of things that I’m thinking about doing. And I am doing some some perspectives and there’s even some other property information in this in terms of friends and things like that in just just to give you a quick rundown. So it makes assumptions about your income and expense. Your acquisition costs, financing. Ultimately, what the costs of insurance are how property taxes work, I will say we’re in California. So I’ve been using the property taxes really add, I’m using it at a little bit of a conservative number of 1.25%, which is how we work in California, other jurisdictions are different, I would just estimate what the property taxes are going to be. And then you can use this the exact same way by filling in that what the exit looks like. And here, we’re really looking at growth factors and vacancy factors, what lease commissions look like, what capex looks like, et cetera. Now, I, for this spreadsheet, I use this spreadsheet as a very, very quick way of underwriting a property. It’s not the only way I do it, I also use another program, which I will probably if there’s time, I’ll get to it. That is a lot more detailed. It’s property called our DCF. It’s similar to Argus, I think it’s a lot easier than Argus if you’ve heard of that. And it it basically lets you get into much more detail and much more creative solutions. But this is going to give you the basic idea of whether it’s an it’s even worth trying to syndicate this property or not. So we have an input screen. And basically what we’re doing is we’re out we’re, we’re spitting out three reports. So we’re going to be spitting out a syndicator summary, an investor summary, a property summary, and then a bunch of other things which are useful as attachments into your PPM I would not give these indicators summary that’s more internal to see if it’s worth doing. So the we’ve got different inputs here, I don’t use a lot of these be except the purchase price, down payments, things like that are useful, and then this other income we are going to use here. So the best place, I think to start with everything is what my mentor taught me. And what he taught me was that the everything is, is the comes from the lease. So the lease is the key of the deal. So let’s go ahead and put here is the just a quick rent roll that comes from the LM on this property. So this was an older property, I’ve updated the dates and everything. So you’ll notice that on the dates, and he basically is showing you everything that we need to know. So I take all of this data here, a my lease abstract, or and I start just applying it into my into my spreadsheet. So you’ll see I’ve basically done that here, I’ve put down the different types of tenants because I want to understand the tenant mix. Well, I put the size down. For base rent I’m used, I decided to go with the convention of dollars per square foot per year, because most of the people in accepting California use that convention. So we’re going to use that convention as well. But feel free to change this to whatever your purposes are. This is base rent per month. And then other income is for camps. Now I don’t have per unit cam charges here. So what I’ve done is I’ve actually applied that into the the NOI and we’ll get to that in a minute. But basically, I wanted to basically verify that I’ve got you know, the same number of square feet that are that’s being advertised, which is the 1499 I wanted to make sure see what my what my average rent was, what my average monthly rent was. And ultimately I could see what what those are as well. Now, I can also use this vacancy if I had a vacancy, you know, here, I could change my equation to basically create my my vacancy factor. So out of this, I’ve got a base rent that is then I’ve got my base rent. And this goes into our NOI and this is why this property is why this spreadsheet is not quite as flexible, as say a property that we would be syndicating, and if I would say it’s less strategic, let me put it that way. For example, I may see that, in this particular deal, I remember that there was something specific that was happening with the sandwich shop with when its lease was expiring that they were way under market rent for what they had, especially given the fact they put in a lot of T eyes and they put in a hood, this, this dollar amount was just low, so they were due for a substantial increase. And then there’s also some other sub market rents, I mean, $15, a square foot for that space is is not not appropriate for a print shop. So there was going to be a considerable amount of rent boosts, there was also going to be changes. And what we do with the cell tower, maybe or the Billboard, and we’ll talk about that in a little bit as once the property is going, but this is the going in just Is this worth that idea. And it’s always, this is always a game of bouncing back and forth between what is what you can do, how you can get the numbers to be the way that you want them to, without, you know, without lying, but ways of saying what are those levers that I need to pull in order to change the investment. So ultimately, we’re coming up with a pro forma of operating the investment. And we’ll do a much much deeper dive in a just in a recorded session on building out performance and underwriting as well. We’ll do a multifamily we’ll do retail, we’ll do a development piece. And maybe something else if somebody else has any, anything that they want us to do, about how to basically build out this pro forma and, and get the most out of it. So let’s go through the numbers real quick here to kind of understand what we’re doing. All we’ve done, because what we’re trying to do is get that back of the that that napkin bar napkin overview is we’re just taking the potential rental income of this place fully occupied for the rent roll, so it’s the same dollar amount, times 12. And then taking the other income that’s coming from here. So that’s coming from the cell tower and the billboard. And then we get at the end of the day, we get our gross retail, or rental income. Now, we always apply a vacancy cost and a credit cost. Now if you’re doing a very detailed underwriting, you’re it’s gonna be kind of baked in, but you to the extent of vacancy, but you’re, you’ll have maybe still some sort of number for credit loss. And so right here, we’re just using 10% to be conservative, maybe vacancy in the areas 5%. So you decided 10% was a reasonable number to do it. And don’t worry, again, if I’m going too fast, we’re gonna have a much much deeper dive on underwriting in general. So once you’ve subtracted out the vacancy and credit loss, we get the effective rental income. And then we add in that other income, other income is not included, because it is not part of the potential rental income. That’s, that’s affected by vacancy. So that’s why it’s separate down here. And then we get our gross operating income. So all we’ve done for that is calculate the growth of our, our rents in our rent roll. So we’ve just in this scenario, we’ve just said everybody’s on a 3% rental increase. And then same thing with the other with the billboard and the cell tower that these are on 3%. So those are right here. The Bat growth, and then other groups, what we’re doing is just seeing as if everybody stayed and if everybody had 3% rent increases, what does this look like? So then we come to our operating expenses. I again, this is in a particular order that I like I do have a we have one recording that’s in the Knowledge Library either now or it will be very, very shortly like in a day or two on on how to do this portion of it, how to go through the property details. sell property, taxes, insurance management, I have a ticular order I like to do these things and electric and gas water. Now, this is a triple net property. And so we’ve we’ve also included that number in the answer. So I included that number here under other rental income. So these are the cam charges that we got from the, from the OM that was provided to us that we were looking at. So basically, we take these at the end of the day, we’ve got $81,000, which is 24% margin, which is really quite healthy. And then we at the end of the day have a net operating income of 262 924. And now, I actually did massage these numbers down a little bit, not the operating expenses, I I massaged down the the operating incomes, from what they were in reality just to make it a little bit simpler. And so that’s where we’re at. So now we’ve got that operating income. And now we really need to figure out okay, so we’ve got all that now, what is how much money is actually coming in. So as a very quick refresher, we have, we always have two kinds of things we have everything that takes place above the line, and everything that takes place below the line. Everything that takes place above the line are these things that ultimately come to noi. And we say that they are above the line, because everybody is going to incur these costs, any reasonable real estate owner is going to incur this. Now things that are below the line are considered discretionary. And so things that are below the line are ultimately gets us our cash flow after taxes, which we’ll show. But for the most part, I don’t actually use cash flow after taxes as a syndicator. Because my investors may have different tax positions than than I do, or that I’m forecasting. I do put it here just as because it’s easy to calculate, and why not. But really, what I actually am concerned with is getting to this cash flow before taxes. So to get there, we take our net operating income, we subtract out our annual debt payment. And that is because, you know, debt service is not something that everybody has to do, I have owned properties with that I’ve owned properties. Without that. It is not a mandatory thing. So that’s why it is a below the line cost. Participation payments are pretty rare, we’ll leave that out. Lease commissions. Here, again, is an example about how this is a quick estimate. Because all we’re doing here is we’re saying, look, it’s going to be we’re going to take that vacancy factor of 10%. And we’re going to just apply the 6% leasing commission across there, it just setting a very normal level playing field on what it would be for just to get a quick calculation at the end of the day. Same thing with capex, we did it down here, I just put in $20 a square foot you may agree or disagree. It’s whatever you think it is, you can put in your own number there. Likewise, you can stage this out over different years, I’d like to just use a quick calculation on this to give me an idea. Funded reserves. We started this with a if you remember in the very in the yes in last week’s call with a $50,000 reserve account that we were funding. And it’s a good idea to keep adding to funded reserves just as a piggy bank, and that you can come up with whatever calculation you think makes sense here 1% of and a Y is pretty normal 2% is normal, I wouldn’t do substantially more unless until it gets up to unless you need it to get up to a certain dollar amount. 50,000 for this property is reasonable. And there’s different metrics you can do in order to get determined what you think is the best amount of your fund reserves. Your asset management fee is 1%. And 1% is a very normal amount for an asset management fee. So that’s why we Use that. And I also forgot to mention that this property management fee, I decided to mark it three and a half percent. And on this building, it was marked to two and a half percent, I wanted to mark it up a little bit, because two and a half percent is awfully low and the lease is actually would have supported even going up before. But there was no particular need to add that additional cost. So at the end of the day, when you subtract out all these things out of your net operating income, you get your cash flow before taxes. And then what I like to do is then take my cash flow before the the my cash flow before taxes per share. So this comes from the investor summary. And we looked at it just a different different presentation of this last week, it’s not substantially different. So let’s go through this and we’ll circle back to where everything plugs in. So ultimately, you’ve got a property, I like to start at acquisition, you’ve got a property that you’re buying, you know, you can buy it at 3.3. You’ve decided that a reserve account of $50,000 is appropriate for this property in order to do it, it’s there all triple net leases, it shouldn’t be too expensive, it’s a pretty high demand area. So you’re not expecting a huge amount in terms of T eyes or additional costs. 50,000 should be appropriate. Cost of startup is your costs that include your filing fees, your SEC fees, things like that. Your cost of financing, this is your points that you’re paying on as part of the deal. I like to leave this in here, even though it actually comes in at the loan cost, I think it actually helps explain it a little bit better. Because you actually do have significant costs just to in order to obtain that, and then it still gets baked in. So your cost of financing may include things like your cost to either for referral fees, if you’re using a broker dealer that will cover some of those costs, your costs of of like loan acquisition, your appraisals, things like that, that are going to be necessary in order to do that. Your acquisition fee is this In this scenario, this is just your brokerage fee. So this is $66,000. It’s just a 2% fee on one side, and I have not baked that into there could be an additional acquisition fee. So these are the numbers that you’re playing around with in order to get this internal rate of return ultimately, or this average rate of return kind of balancing out. Because as you move these numbers around, so as you move around your your total cost to fund it, you’ll see that that this self sell and four and 25 and 45 is not included. So it’s just money that you’re assuming is going to go into your pocket, which you could invest as an investor, if you will. But for this sheet, I didn’t do it that way. And so this cost of fund is this projected return. So you’re offering this this 1237 shares, I almost always encourage people to do the dollars per share at $1,000 a share. It’s an easy number to work with. As long if you’re doing a simple things like not a blind pool $1,000 that share works, you’re doing a blind pool, probably $100 a share. But most of you are going to not be doing blind pools appears. So the number of offered shares is 1237. And that’s just the number of shares that you’re putting out on the market that you’re looking for investors for because ultimately you’re looking to raise this 1237 That’s not the number of shares that you’re actually that are actually in the investment. So in this scenario, we’re doing roughly 10% We’re doing so we’re actually doing 11% More, this number could be as high as 20. But when I was calculating it with 20% it made the return for the investment for the syndicator terrific. It just mushed the internal rate of return down to a point where I didn’t think it was that great. And my feel was it just should have been a little bit better for this property. I wanted it somewhere around 15 1617 into this. So ultimately I was trying to drive there. This is your an estimate. Then annual distribution. And this is we have it both in total and cost per share. And that comes from that this cash flow before taxes. So this I like to say it’s at year one, because it increases each year, right, because cash flow before taxes hopefully is increasing every year with rent increases, which ultimately gives us a return that does not include disposition. So all we’re doing here is we’re taking the average of our cash flow before taxes. And then we are dividing that by the share by the amount of dollars that they put in, which is the cost per share. So that is, is six 6.29%. Your internal rate of return then is the Well, first we need to use to our disposition before we get to internal rate of return. And again, we’ll go through these in a lot more detail. But I don’t want to be boring people with with internal rate of return calculations, for the people who already have, have already got it, the people who don’t, that’s great, we can certainly go through it, we’ll go through it in great detail. And there’ll be in video, so don’t worry, we will cover everything you need to know. And if there’s something that’s not being covered, just ask. So our disposition sales price, where we just are calculating that based on we were buying this at an eight cap, based on how the property positions itself and what we know we are capable of doing, we know that we could get a we could get probably get this down to a seven and a half cap. If you look at it different ways. And we’ll also build this spreadsheet out. So you can like alternate between which scenario you’re going to use because this has a substantial impact on your on your bridge rate of return. But let’s say we can get it at a seven and a half cap with those regular rent increases, that basically brings it down to almost $4.1 million. So the sales price, obviously, there’s a cost to sell it this is that this is using a 6% cost of sale, which means nine sides broker fee that will be offered on both ends. There, we have to pay off the loan, which leaves us at the end of the day of proceeds of $1.944 million. There’s also this funded reserve account Oops, that’s not correct. So that needs to be fixed. So this, this is also a good example, as you go through where you will see that there is there’s something that’s not right. Because either you went through it and put things in that or and this is going to change your internal rate of return as well. So funded reserves is this $50,000 Plus, we’ve been making contributions. Here Okay, much more reasonable number and see that dropped our internal rate of return down to 13%. I’m glad that I made that mistake, because that highlights exactly part the process itself is you may have decided I want really I want to get 15% of this. And so I need to find a way in order to get that improved. So how can we do that? So there are a few levers in order to do that we need to either increase income, you know, or increase cash flow at the end of the day. Or we need to decrease the cost per share. And in this case, that probably means just less shares that are out there in the world. So how I would do that would be I would first look at my NOI and I would say okay, well how can I do that? Since since the current management fees are kind of a set cost. You know, that I’m getting we could reduce this to 2%. Say we reduced this to 3%. Now we’re not going to see a major difference, because it’s broken out amongst all the tenants and old similarly, we’ve got, you know, a $2,000 month drop, but let’s see the impact. So we got a 1% impact there, I would want to get at least a little bit more. And so I probably would do that by reducing the costs of my I would do it by, say, pumping back. My, well, I think the first thing I would look at is what would happen if I pump back in my part of my feet here. So let’s remember what I’m doing here I’m doing, I’m cutting my feet in half. And what I’m going to do is I’m going to put that into the property itself. In order to do that, and what that’s going to do is, it’s it’s going to reduce the costs that this is plus, add that to now I’m reducing that total cost. Now, it’s not going to reduce everything yet, because we need this will be now equal to. 1204 And then this, remember, I wanted that really just 10% higher to give me a rough ballpark, now probably brought my return down just a little bit. Let’s see what was our actual number, I can do it this way. increase, so I’m still at 14 and a half percent. All right, I probably can accept that. I would like 15, ideally, but I probably I know that I’ve got some things I’m gonna be doing with all of these tenants, that’s gonna bump that up. And so for a very quick summary, what I would do is I would first say, okay, that’s what it’s going to be for right now. And then this is just my go forward analysis. And I probably would use this for to start marketing and just say, look, I there’s a lot of juice left in this property, this is being exceptionally conservative, we’re gonna get that number up to 60 and 70%, I think through some different value added techniques that will drive that that return. So that’s how we would do it. So I’m glad we found this error because that is going to highlight exactly what we need to do here. And so this is our property. Now this screws everything up because that’s now so let’s say I kept I don’t need a negative but let’s say I kept a missile is pulling from the wrong field. So now we’ve got this, we’ve got the projected returns here. This is what we’re promising investors. Now this is part of our profit. This is our money here. So we got the brokerage fee that we’ve decided we’re not going to put back into the property and that’s the $33,000. So the the total of 66, half of its going in half, half of its going into our pocket or you could choose to buy up shares, whatever. In this calculation, we’re not buying up shares. We decided we’re going to be doing distributions every 12 months. We’ve got the asset management fee, which is calculated on that over here asset management fee and then we’ve got our property management fees still and then our ownership distributions and this is based entirely on the spreadsheet in investors. So Based on this spread of how many shares are owned, so when we do this deal, so we can expect every month we’re going to basically be getting, this is only in the wrong number because of that this is wrong. So every 12 months, we are going to be getting this money, and it’s going to be increasing, this is really only for year one, we’re going to be getting $3,300 Pretty good. At the time of sale, we also have money coming in, right, we’ve got the sales price that we’ve already determined. Now we’ve got a brokerage fee of 3% that we’ve already baked in, which is a commission of 123 630. So this has our this has the amount of money that we’re making every quarter or every term, this is incorrect. This is to calculate essentially our net present value. And I’ll fix that calculation here. Now why do we do net present value, and why is this calculation is off, we do net present value to see if it’s worth our time to to basically do this in do this investment. Here, we’re going to be three to $3,000. Down, I’m just calculating based on very quick numbers. To get what the value is, and all I’m getting here is not that I need to get calculate my disposition share cost as well. But we’ll see that if my net present value is approaching zero, I need to really think long and hard. If it’s worth it for me to send a kid, every dollar that’s over it is is is being is discounting the money that I’m getting at 10% return which is great for my time that I’ve put in. So that that might be a little confusing right now. And we’ll go over that in more detail in in the underwriting section. Because it kind of goes, we need to have a long talk about IRR. And when then we can talk about it net present value. Basically, though, this is a property that you’re going to make a lot of money on, your investors you think is like are likely to be able to get up to 15% 16% 17% made definitely below 20. But you know, you’re certainly going to be able to pop it up. And we’ll go into some more details on on how we add value in just a minute. But first, are there any specific questions about this underwriting portion? Knowing that we went very fast? And that will cover it in much, much more detail? Not all at once. Well, I mean, we’re gonna be able to get a copy of the file, right? Absolutely. Yeah, it’ll be on the show notes on workplace by the today. I mean, it’s here it is. Okay. And certainly, if you have any questions on that, or how did you calculate that this or anything like that your questions are more than welcome. Just post a blog post on workplace is probably the easiest place because then I can answer it a little bit quicker. Alright, so let’s go ahead and talk about another portion of this. So let’s stop the share. And I’ll share something else. So back to my whiteboard. Okay. All right. So here we are, we’ve closed the property. And now we’ve got a basic, we’ve got some underwriting. So what do we need to do now? We’ve promised investors a few things. So, promise. So we’ve promised them monthly distributions. Now you can distribute monthly, you can distribute annually, you could distribute quarterly, you can do whatever you want. Monthly, is kind of a pain. But it’s, in a sense, it makes more sense than quarterly. If there’s a lot of things going on and your cash flow make make more sense if it’s monthly as well, because I think it’s generally easier to do everything at once. Especially if you’re the property manager from all expenses of the property and all of the expenses and distributions of the InVEST So, expenses of the investment is your if you have taxes that accounting fees, your bank and your asset management fees. So I think it makes most sense to do it monthly, it does not make any sense. And it is horrifically awful to have everybody on a different schedule. I’ve done it in it’s horrible. So get them all on the same schedule. Most people are good with monthly The only people who may have a problem with monthly as people using their SEP IRA. We can go into that detail when we have we’ll have another vendor call about SEP IRAs. So let’s go through this. So how what do we do first, every month now we are making a distribution and you are sending them a report I have a template for reports. There is also a very detailed walkthrough of the reports in the Knowledge Library if it’s not there today, it’ll be there this week on exactly how we do these updates. Basically, I’ll give you a very very high level view of what we are of what we go through what we’re really looking for is we’re looking for your to give them a helps first I like to give them pics you know couple pictures of the property and date the date the pictures, so that way they know that you are keeping an eye on July one then I like to have sort of a cash flow summary a notable expenses then there’s detail under here. Then there is your occupancy summary there is a discussion of any rent delinquencies. We talked about the reserves, because that’s their money. They won’t forget it. So that talks about how much is in reserves and then a investment overview. And here I’m giving just some more metrics about the investment as a whole. And then I break it down into even more specific key investor math tricks. This is basically how well their investment is performing different yields and then a summer so what I’m trying to do is I’m sending them this email every month. And it’s very simple once you’ve built basically a template for yourself to just plug all these numbers in and if you’re doing your own property management or their or you’re having it done for you, most of this number is going to come directly from them anyway. And so it’s very, very quick to to plug it in, and your investors will always know what’s going on nobody’s going to object to seeing this every month so this will make them feel much more comfortable. So these things are going on all the time, right so every month we’re doing this now at the same time we’re looking we’re doing a few different things and there are other things that are in the core that are that we are continuously looking at. We’re always looking at what I call the three options which are you know, hold refinance or sell we are always looking for value add opportunities and in this in the case of Wilson we know we’ve got a a cell tower and a billboard. Those may be value add opportunities for us so those would probably Believe bear a stronger look at now it isn’t necessarily that a value add isn’t now always going to be, you know, re tenanting or restriping, what you’re doing with a value add, really the goal is to get the cash in your investors hand quicker as part as quickly as possible. Now, if you think that you can sell your cell tower or your billboard or both, to a good buyer, and they do exist, they pollute just by those, then maybe you want to sell that at the very beginning and return a huge amount of money back into your investors hands in order to in order to give them that money sooner, which means your IRR is going to go up. Because as you go down this T bar of IRR, you know you’ve got your negative 1000 You know, you’ve got dollars amount here. And then ultimately, here you have your dollar amount plus your disposition. The larger you make this money sooner, the sooner you give them this money, the the larger your internal rate of return is going to be which means your your performance is generally going to be better. You if you can say look investors, we may do a 25% return it’s true, you did you made them a 25% return annualized over the course of the investment by giving them that money sooner. So that is another portion on this particular deal that I would think is a value add opportunity. There were also others such as changing the way tenants work, upping rents and things like that. And I know we’re not going to have time to go in detail on like how to do that in this particular call. But we can go over that in I’ll show you the tool that I like to use, maybe on the next call if people want to see that. And then ultimately, we are so we’re looking for, you know, our options do we hold do we sell do we refi or managing that property, this is their asset management piece. And this is our asset management piece. These are the two biggest parts of asset management besides that communication. So that is what’s taking place under all this, all of these is we are managing the asset. Ultimately, you’re going to decide, Okay, it’s time to sell. Most of you will put that final decision in voter hands. And there is a video also in the Knowledge Library about how you actually do a vote. It’s right now it is located in within the operations of the core section and in the it’s in the communication subsection of operations. But there will also be an additional one that’s under the exit because ultimately we need to make a decision on selling. And there’s a template that we have also for you on how you gather the votes and starts off first, do you have 51? Do you need 51% of the votes? Do you need 75% of the vote? Whatever that number is, you make a case for how you would make that determination. And then you’d put it out there to vote. If enough people vote to sell, then you sell the property you circling back on the question that we often get is yes, you can take brokerage fees on this. And that is you can take your brokerage fee if you want for the sale of the property, regardless of if you have, I believe regardless if if you have a license in that state because you are acting in the interest of an asset manager, not a broker in that context. And you can tell escrow to pay you accordingly. And so as long as it’s been disclosed that you’ll be doing that in your PPM you will be fine. And then we go to you’ll go to sell and you will run the transaction just like you do any other transaction. You will market it you know ultimately your choose a buyer. I would give yourself when you’re voting some leeway on how you would make a decision for it and have a rational basis for that you can explain on why you would choose this particular buyer. We talked about that in the in the core as well, and that is, you know, on a part of the exit and market section. So choose a buyer, and then you’re just making sure that all your due diligence and disclosures are done. And then it closes. One, once it closes, you’re now in this interim period where you need to finalize everything. So this is the finalized section of the exit part of the core. And under finalize, what we’re really looking at doing, from the assets point of view, is we’re looking at taking that distributor or paying off any extra costs. And this oftentimes is paying off a you know, your final accountant, your final tax bill, making sure that’s done making sure everybody’s up on their taxes, so that everything can just take place seamlessly. And then you distribute, you give a final report to your investors. And and then you close the entity when you’re doing this final report, you’re of course, you know, doing your your investor relations as well to try and encourage them to invest in other things with you. And that is the basic property process of what we do. And so, I will also include the quick spreadsheets that I have for calculating the existence this share I will distribute this one as well. But the that basically has, you know, a quick way of calculating what, who your investors are, what the distributions look like things like that. So that way you can see, you know how you can keep track of your monthly distributions or your monthly distribution amounts. And ultimately, you can use that same sheet to calculate what your final dispositions look like.