Real Estate

• A newly-formed limited liability company ("LLC") is formed to acquire the project, and obtain the first mortgage financing.
  
  
• The LLC is owned by Sentry and the Sentry Partner.
  
  
• Sentry's ownership interest ranges from 30% to 50%, depending on the relative skin in the game.
  
  
• The Sentry Partner receives a reasonable management fee for managing the Project.
  
  
• Sentry receives a monthly supervisory fee for monitoring the progress of the Project (generally an amount equal to 25% of the Partner's management fee).
  
  
• The Equity Contribution, together with a reasonable return, is repaid before there are any distributions to Sentry and its Partner in their capacities as owners of the LLC.
  
  
• The financial projections for the project reasonably demonstrate an adequate cash flow coverage, plus the ability to repay the Sentry Capital in 10 years or less.
  
  
• The Sentry Partner (and/or its principals) contributes cash of (and/or guarantees) between 10% and 50% of the Equity Contribution.
  
  
• The Sentry Partner either pledges the project if permitted by the first mortgage holder (in which case it grants to Sentry a second mortgage on the property), or pledges its ownership interest in the project as collateral for the Sentry Capital.