Partnerships are targeted towards larger buildings that are generating a net income of $250K or more.
Partnership consists of 2 or more partners – they generally consist of 1 active manager to run the building and a silent investor or group of investors. Each party holds equity in the unit and business to protect their investment based on the percentage of ownership.
Eg active manager – 20%
Silent investors – 80%
The percentage ownership can be split in any ratio.
Returns to the silent investors are currently around 15% – 20% after debit loan interest.
A partnership agreement is drawn by the lawyers to protect each party’s interest along with outlining roles and responsibilities. The silent investor generally doesn’t become involved in the day to day running of the business. This is left up to the active manager who is paid a management fee to run the complex.
Some of the benefits of the partnership are:
To find out more about partnerships or become a silent or active manager, please Contact Us