Cash distribution to multiple investors

[Amber Murray]

Hi, this may be a dumb question but I am trying ensure I have a clear understanding how cash is disbursed to multiple investors.  

Example: Let's say I have a property that produces annual cash flow of $50,000.  The equity spilt is 80%(member) to 20%(manager) and I have 5 investors. Would this mean that $40,000 would be split evenly amongst the 5 investors assuming they all put the same amount of money into the deal?

[Max T.]

I have a 3 member partnership:

Me 50%, JP 25%, NP 25%

I also do the management, so I get 6% of gross rents every month (income before expenses).

We do distributions based on previous year's profits. At the end of each year I run an annual profit and loss report and calculate our total profit. Then I take that number and break it down by our ownership ratio 50/25/25 and distribute that amount (either once at the beginning of the year or divided by 12 and each month for the next year depending on what we decide at our annual meeting).