Often this is 1% - 2% of the asset.3) Promote: Many sophisticated operators will pay their investors a "preferred return", and then once the preferred return is hit, then there will be a pro-rata split of the remaining funds. 

So if the property's value has declined, you will need to reduce the depreciable basis of each of your components pro rata until your total basis equals FMV. 

Have you considered investing directly alongside the cash of an experienced buy and hold investor in a cash flow property with equity and cash flow split pro-rata?

If you dont have water submeters for each apt, just apply a RUBS water billing system (google it) applied as a pro-rata based on the number of occupants in each unit.

Would it be a pro rata calculation?

Hope the LO I know also don't mind quoting ratas. lol.

I give a KP a piece of the equity, in addition to the equity piece for their pro rata share of the cash raise, for putting their name on the loan.Short answer, you gotta get out there and start spreading you gospel and raising money.

In joint ventures, I typically allocate 75-80% of the returns to equity and the rest to the active manager(s).Here's our typical setup:- LLC ownership is determined by equity- The LLC operating agreement includes a waterfall such as:* First, return of capital* Second, 80% by ownership (pro rata) and 20% to managers

Or if you purchased a NNN building that doesn't have the units separately metered, the tenants may pay for a portion of the water/sewer (pro-rata share) through their TICAM charges. 

A commercial loan would cross all deeds as collateral and contain providions for partial release meaning each property is pro rata to the illoan balance.Also, Fannie does have a limit to the number of conventionally financed properties.