The expenses incurred by and reimbursable to the Company’s related parties for the quarter and nine months ended September 30, 2018 and 2017, and related amounts unpaid as of September 30, 2018 and December 31, 2017 are as follows:

	Quarter Ended				Nine Months Ended				Unpaid amounts as of ⁽¹⁾
	September 30,				September 30,				September 30,		December 31,
	2018		2017		2018		2017		2018		2017
Reimbursable expenses:
Operating expenses ⁽³⁾	$	227,393	$	221,415	$	754,188	$	652,824	$	68,844	$	197,235
Acquisition fees and expenses		8,680		5,816		10,183		27,705	―		―
		236,073		227,231		764,371		680,529		68,844		197,235
Investment Service Fees ⁽⁴⁾		545,625	―			545,625		481,500	―		―
Asset Management Fees ⁽⁵⁾		87,488		42,800		229,088		86,060	―		―
	$	869,186	$	270,031	$	1,539,084	$	1,248,089	$	68,844	$	197,235

FOOTNOTES:

⁽¹⁾

Amounts are recorded as due to related parties in the accompanying condensed consolidated balance sheets.

⁽²⁾

Amounts are recorded as stock issuance and offering costs in the accompanying condensed consolidated statements of stockholders’ equity.

⁽³⁾

Amounts are recorded as general and administrative expenses in the accompanying condensed consolidated statements of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying condensed consolidated balance sheets. For the quarter and nine months ended September 30, 2018, approximately $0.1 million and $0.4 million, respectively, of personnel expenses of affiliates of the Advisor are expected to be settled in accordance with the terms of the Expense Support Agreement and as such our general administrative expenses were reduced by approximately $0.1 million and $0.4 million, respectively. For the quarter and nine months ended September 30, 2017, approximately $0.1 million and $0.3 million, respectively, of personnel expenses of affiliates of the Advisor were settled in accordance with the terms of the Expense Support Agreement.

⁽⁴⁾

For the quarter and nine months ended September 30, 2018 the Company incurred approximately $0.5 million in investment services fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. For the nine months ended September 30, 2017, the Company incurred approximately $0.5 million in investment service fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. No such fees were incurred for the quarter ended September 30, 2017.

⁽⁵⁾

For the quarter and nine months ended September 30, 2018, the Company incurred approximately $0.1 million and $0.2 million, respectively, in asset management fees, all of which are expected to be settled in accordance with the terms of the Expense Support Agreement. For the quarter and nine months ended September 30, 2017, the Company incurred approximately $43,000 and $86,000 in asset management fees, respectively, all of which were settled in accordance with the terms of the Expense Support Agreement.

The fees payable to the Dealer Manager for the quarter and nine months ended September 30, 2018 and 2017, and related amounts unpaid as of September 30, 2018 and December 31, 2017 are as follows:

	Quarter Ended				Nine Months Ended				Unpaid amounts as of ⁽¹⁾
	September 30,				September 30,				September 30,		December 31,
	2018		2017		2018		2017		2018		2017
Selling commissions ⁽²⁾	$	121,413	$	138,544	$	343,087	$	481,913	$	16,522	$	10,000
Dealer manager fees ⁽²⁾		153,073		161,461		429,356		422,112		25,129		18,150
Distribution and stockholder servicing fees ⁽²⁾		307,630		239,677		822,477		462,356		1,395,460		798,524
	$	582,116	$	539,682	$	1,594,920	$	1,366,381	$	1,437,111	$	826,674

The following fees for services rendered are expected to be settled in the form of restricted stock pursuant to the Expense Support Agreement for the quarter and nine months ended September 30, 2018 and cumulatively as of September 30, 2018:

	Quarter Ended				Nine Months Ended				As of
	September 30,				September 30,				September 30,
	2018		2017		2018		2017		2018
Fees for services rendered:
Asset management fees	$	87,488	$	42,800	$	229,088	$	86,060	$	359,454
Advisor personnel expenses ⁽¹⁾		112,784		95,805		362,555		320,204		798,958
Total fees for services rendered	$	200,272	$	138,605	$	591,643	$	406,264	$	1,158,412
Then-current offering price or NAV	$	10.06	$	10.93	$	10.06	$	10.93	$	10.06
Restricted stock shares ⁽²⁾		19,908		12,681		58,811		37,170		115,150
Cash distributions on restricted stock ⁽³⁾	$	8,113	$	―	$	16,226	$	―	$	16,226
Stock dividends on restricted stock ⁽⁴⁾		170		―		340		―		340

FOOTNOTES:

⁽¹⁾

Amounts consist of personnel and related overhead costs of the Advisor or its affiliates (which, in general, are those expenses relating to the Company’s administration on an on-going basis) that are reimbursable by the Company.

⁽²⁾

Represents restricted stock shares issued or expected to be issued to the Advisor as of September 30, 2018 pursuant to the Expense Support Agreement. No fair value was assigned to the restricted stock shares as the shares are expected to be valued at zero upon issuance, which represents the lowest possible value estimated at vesting. In addition, the restricted stock shares will be treated as unissued for financial reporting purposes until the vesting criteria are met.

⁽³⁾

The cash distributions have been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations.

⁽⁴⁾

The par value of the stock dividends has been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations.