Page 1
Page 1
Started By
Message

Questions on Comm Real Estate Management Agreement

Posted on 4/2/14 at 7:07 pm
Posted by Martini
Near Athens
Member since Mar 2005
48829 posts
Posted on 4/2/14 at 7:07 pm
Not sure how to set this up. Wife has a small % in a commercial building which was inherited. Several small stockholders, one with over 40%. How to set up a management agreement that ensures equal distribution of dividends?
Posted by kaaj24
Dallas
Member since Jan 2010
601 posts
Posted on 4/2/14 at 10:02 pm to
Are you asking about distributions or property management? Distributions should be defined in company agreement. Management fees are paid to property manager who is actively managing property. Investors usually get distributions unless they're involved in actively managing property.
Posted by Martini
Near Athens
Member since Mar 2005
48829 posts
Posted on 4/2/14 at 10:10 pm to
I guess a company agreement. Not a management as per a realtor.

If one stockholder has close to 50% and ten or so have the other percentage how to safeguard the smaller investors to insure proper distribution of dividends. In other words how to keep the jackass from ripping the others off?
Posted by kaaj24
Dallas
Member since Jan 2010
601 posts
Posted on 4/3/14 at 7:20 am to
Company agreement will generally specify that investors can receive financials quarterly. May or may not be audited. Review those and ask questions. A lot of these smaller deals you're investing in the GP as much as the actual investment.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram