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Updated about 1 year ago on . Most recent reply

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Shane Woolsey
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Investor payout problem

Shane Woolsey
Posted

Good Morning,

I am trying to figure out this distribution to avoid future fights. Say a $3M property is owned 3 guys. Max contributes another $1M to the property so his ownership percentage increases to 50%. Later the property is sold for $8M. How much does Max get? a, b or c?

a. $4M (50% of $8M)

b. $3.5M (33% of original $3M investment + 50% of $5M gain after contribution)

c. other? 

thanks, 

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