3. Commitments and Contingencies Litigation We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Dealer Manager Fee Generally, our dealer manager is paid a fee of up to 3.0% of gross offering proceeds from the sale of shares of our common stock sold pursuant to the primary offering, of which 1.0% of the gross offering proceeds will be funded by us and the remaining 2.0% of the gross offering proceeds will be funded by our advisor; however, our advisor intends to recoup the portion of the dealer manager fee it funds through the receipt of the Contingent Advisor Payment, as defined in Note 6, Related Party Transactions , upon the closing of acquisitions. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. As of March 31, 2016 and December 31, 2015 , our advisor had not incurred any dealer manager fees as we commenced our offering in February 2016 and had not raised the minimum offering as of March 31, 2016 . See Note 5, Equity  Offering Costs  Dealer Manager Fee, and Note 6, Related Party Transactions  Offering Stage  Dealer Manager Fee, for a further discussion. Other Organizational and Offering Expenses Our other organizational and offering expenses are funded by our advisor and include all expenses (other than selling commissions and the dealer manager fee) to be paid in connection with our offering. We anticipate that our other organizational and offering expenses will not exceed 1.0% of the gross offering proceeds for shares of our common stock sold pursuant to our primary offering. As of March 31, 2016 and December 31, 2015 , our advisor has incurred offering expenses of approximately $1,977,000 and $1,606,000 , respectively. These offering expenses are not recorded in our accompanying condensed consolidated balance sheets because such costs w