They appear to have run into liquidity and cash flow issues currently and worst of all have gone dark and not shared any of the requested financial information.

They had paused distributions in 2023.

That being said, the structure will matter, especially if any Pref or cashflows to you are being structured as a return of capital vs distribution vs something else.

. - Inefficiency with payouts and administration will be compounded as the FAIR Plan has zero experience with a major pay out and lack infrastructure of assessors and technology to distribute the funds they don’t have.

I’ve developed a Comprehensive Investor Report (CIR) for a property in Palm Coast, FL, designed to be transformed into a luxury rental asset while serving as the foundation for a scalable asset management strategy.Here’s a quick snapshot of the deal:Property: Red Birch Lane, Palm Coast, FLCurrent Value: $350,000+Mortgage Balance: $165,000Current Equity: $185,000Investment Required: $177,500 (for luxury upgrades and optimization)Projected Monthly Rent: $4,500 with 2% annual increasesTarget ROI: Full 1.5x ROI for investors achieved in 9 yearsLuxury Features: Smart home automation, designer finishes, professional-grade kitchen appliances, and more.I’ve also structured a capital distribution plan with a waterfall approach:8% Preferred Return for investors.Full Return of Capital to investors before profit splits.Post-ROI, a 20/80 split (Investor/Management) ensures long-term alignment.

Do not forget to prepare the balance sheet, track distributions etc.

If it isn’t repaid, it can be treated as a taxable distribution, which adds to the risk.

Property LLC is owned by Holding LLCHolding LLC is owned by Jane Doe.If you were shutting down the LLC and wanted to just put the property in the name of Jane Doe who owns the holding company who owns the LLC.Do you actually need to transfer monies back and forth or would this be done by a journal entry as a non cash distribution?

If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan?

You take your share of distributions if/when there is money to share.And then I go back to the person with money.