Limited Liability Company:
When Lev Investments purchases a property, it forms an LLC or an LP which takes title to the property in a single purpose entity. The ownership of the LLC or LP is shared by individual partners and Lev Investments. Lev Investments acts as the manager and performs all duties associated with owning and maintaining the property.
The partners are typically paid a monthly preferred return based on the annual cash flow generated from the property, plus share the profit of the excess income. When the property is sold, partners also receive their pro rata share of the net sales proceeds from the increase in value of the property, as well as their original investment. |