Family "syndication" Fee structure.

[John C.]

Hello,

I own 100 properties in my own LLC. I have a lot of experience managing long term rentals, flips etc.

Two family members of mine have formed an LLC, each putting in an equal amount of cash. The intent is for this LLC to purchase properties, some cash and some leveraged. I am not putting any cash in, and will not have an ownership interest. I will be managing the LLC, finding properties to purchase, dealing with everything so that the "investors" can be completely hands off. The LLC will us a variety of strategies:

-LTR (we will hire a property management company at 7% of gross rent, I will oversee the company)

-STR, I will do guest communication and manager cleaners maintenance etc.

-Owner Finance.  Where we purchase properties deeply discounted at tax sales, and then owner finance them to buyers.  I would deal with buyers, collections etc.  

Please keep in mind that  I have extensive experience handling $13M worth of my own properties, so I have not problem doing the above.  I make about 30 percent cash on cash return on my own money.  

What should I charge for my management services?  My family has suggested a tiered fee structure based on annual profit.

X amount if they profit Y percent cash on cash return.

Z amount if they profit A percent cash on cash return.

What should the amounts be?  

How to handle when the LLC sells properties, take a cut of the capital gains?