The minimum is the absolute minimum amount a syndicator can raise from investors and still be able to close, meaning you are not collecting an acquisition fee or getting reimbursed for pre-closing expenses, and may not have all the capital improvement budget raised yet. You may also have to leave more of your own money in the deal (scraping together manager funds) while you continue the raise post-close. If you don’t raise the minimum, you can’t close and have to give every investor their funds back without deduction.
The maximum is the target raise plus a contingency in case you need additional funds post-closing or within the first year. The maximum allows you to raise additional funds without doing a capital call or getting investor permission to increase the raise amount.
The three numbers you need to calculate are always the Minimum, the Target, and the Maximum Raise Amount.