Certain Relationships and Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2019

The following table presents the Company's amounts receivable from and amounts payable to such related parties:

	June 30, 2019		December 31, 2018
Due from related parties:
Advisor	$	585	$	291
RAI and affiliate - insurance funds held in escrow		4,386		12,799
Resource Securities		409		682
	$	5,380	$	13,772

Due to related parties:
Advisor:
Asset management fees	$	—	$	5,238
Organization and offering costs		8,132,222		8,249,864
Operating expense reimbursements (including prepaid expenses)		2,782,214		2,700,703
		10,914,436		10,955,805

Manager:
Property management fees		52,848		50,912
Operating expense reimbursements		44,259		62,717
		97,107		113,629

RAI:
Internal audit fee		13,000		11,750
Operating expense reimbursements		629		14,843
		13,629		26,593

Resource Securities:
Selling commissions and dealer-manager fees		6,050		78,705
Distribution and shareholder servicing fee		1,913,360		1,818,555
		1,919,410		1,897,260

	$	12,944,582	$	12,993,287

The following table presents the Company's fees earned by and expenses incurred from such related parties:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fees earned / expenses incurred:
Advisor:
Acquisition fees and acquisition related reimbursements ⁽¹⁾	$	846,397	$	-	$	1,456,067	$	1,018,719
Asset management fees⁽²⁾		459,211		212,613		874,161		310,821
Debt financing fees⁽³⁾		137,900		-		229,950		163,125
Organization and offering costs ⁽⁴⁾		305,335		747,018		629,380		1,428,461
Operating expense reimbursement ⁽⁵⁾		360,699		148,772		766,144		401,260

Manager:
Property management fees⁽²⁾	$	171,388	$	77,952	$	330,476	$	115,670
Construction management fees⁽¹⁾		72,902		12,318		114,469		28,166
Operating expense reimbursements ⁽⁶⁾		7,454		23,209		37,925		26,397

RAI:
Internal audit fee⁽⁵⁾	$	13,000	$	11,750	$	24,750	$	15,250

Resource Securities:
Selling commissions and dealer-manager fees⁽⁷⁾	$	277,917	$	568,559	$	1,098,082	$	1,222,695
Distribution and shareholder servicing fee⁽⁷⁾		71,313		305,130		495,170		659,906

Other:
The Planning & Zoning Resource Company ⁽¹⁾	$	1,565	$	-	$	2,716	$	1,980

(1)	Capitalized and included in Rental properties, net on the consolidated balance sheets.

(2)	Included in Management fees - related parties on the consolidated statements of operations and comprehensive loss.

(3)	Included in Mortgage notes payable on the consolidated balance sheets.

(4)	Organizational expenses were expensed when incurred and offering costs are included in Deferred offering costs until they are charged to Stockholders' equity on the consolidated balance sheets as proceeds are raised in the offering.

(5)	Included in General and administrative on the consolidated statements of operations and comprehensive loss and excludes third party costs that are advanced by the Advisor.

(6)	Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss.

(7)	Included in Stockholders' equity on the consolidated balance sheets.