Whimsy incurs profits in a few ways:

Sourcing Fee (One Time):

This is the fee Whimsy charges for our work involved with sourcing the property and preparing it for investment. Our experienced sourcing and underwriting team analyzes thousands of homes across the country to bring you the investment properties that we believe will provide the strongest investment returns. This is a one-time fee, and it’s already included in the raise amount and share price listed. This fee is positioned in a way that Whimsy can continue to operate business without having to incur debt for each property. The sourcing fee for each property is listed in the Offering Details section of each property page.

Whimsy AUM (Assets Under Management) Fee (Quarterly):

The Whimsy AUM (assets under management) fee is a quarterly fee paid to Whimsy and helps cover the preparation of tax forms for investors, the distribution of dividends to all investors, procuring insurance policies and filing claims when applicable, ensuring property taxes and loan payments are paid, overseeing financial accounting for properties, and overseeing the property manager (rental rate competitive analysis, review of property improvements, rehab & turn work, and expense management & approval). This fee is paid out of the income from the property. The asset management fee is listed in the Offering Details section of each property page.

Agent Rebates - We collect a real estate agent rebate from the original property seller when we first buy the rental property. This fee is paid for by the previous owner of the property.

Specific details of fees for various asset classes listed below:

Sourcing Fee: 8% of property purchase price

AUM Fee: .50% of property purchase price (quarterly)

Sourcing Fee: 6% property purchase price

Gross Rents Fee: 6% of Gross Revenue

Sourcing Fee: 10% project price

Gross Rents Fee: Depending on property type refer to long or short term fee details.

The above categories describe how Whimsy makes money. Investors also incur other expenses to third parties through the regular course of business when acquiring and managing rental homes. These other expenses can include fees already included in the original offering price (like closing fees, escrow fees, etc.) and operating expenses (likeproperty management fees or property taxes) that are paid out of future rental income.

Currently the property management fee for long term rental properties is 10% of the gross rental income.

For vacation term rentals, the property management fee is between 15-25% depending on the market, which are specified on each property page.

Property managers may also charge one-time expenses for items like lease-ups, renewals, or rehab & turn support.