More from Dennis: "Works fine in S Corp because gain on distribution is offset by stepped up basis plus basis added by gain recognition.

In general I think it would be fair to pay the LPs back first prior to any other distributions being made, but I can't really speak (write?)

The reason for the S-corp Election is if you have two or more member and would like to take in some of the profits as a distribution rather than wages.

Reviewing the math doesn't really fall into their responsibility.The title company was hired to prepare all these docs and distribute the money.

Do investors even know what 'reasonable' assumptions to apply to your illustrations, and even how to do these additional calculations on their own, if they in fact want to derive more reasonable/conservative long-term ROIs.I apologize that I misunderstood about your providing a Year 1 rent guaranty.

They could then cash your check, distribute it as they saw fit, and you would have had your deposit.

Full time for 7 years now.This is derived almost exclusively from flipping houses, although I do hold 3 notes.I however don't work full time, I don't even come close to part time.

You would make your loan payments to the trust, which would distribute them to the other four.

If the claim is that they are unsophisticated then you never should have sold them a derivative to start with.

Many apartment complexes in my area divide the total water bill each month and distribute it to the units evenly, and maybe based on unit size as well.