Partnership Structure shall be a single asset entity Limited Liability Company (LLC) registered in the State of Florida, whereas PB Built shall be the Managing Member and all the additional investors shall be members with the property ownership percentages equal to there financial contribution percentage. The LLC entity shall own the property and an operating agreement shall include the following deal points:
Managing Member shall enter into a Cost Plus a 15% Fee Owner/Contractor Agreement to administer all the improvements to the property, coordinate all plan development, manage all design professionals and construct the mutually agreed upon plans.
Managing Member shall forgo typical Supervision/Project Management of Direct Costs typically $250k for the improvements contemplated and to be considered as the Managing Member’s additional equity investment.
Managing Member shall invest an additional $250k of equity in the property.
Upon sale of property and the repayment of the Constuction Loans if any, and all Settlement Costs shall be returned first.
Upon sale of property all Members' equity shall be returned second
Upon sale of property cost of money (interest) accrued shall be returned third.
Upon sale of property 60% of the net profit/loss shall be distributed by a prorate share of all the equity members.
Upon sale of property 40% of the net profit/loss shall be distributed to the Managing Member.
Managing Member shall perform all accounting functions and pay all Accounting Fees.
Managing Member owns an affiliated Real Estate Brokerage entity and shall not receive purchase or sale commissions on any part of the deal.