A percentage charge is bad for the landlord as rents increase and bad for the PM in areas with low rents.

The insurance payout also impacts your taxable gain.

@Michael Darten  Most property management agreements have the monthly PM fees based upon a percentage of rents collected.  

It feels like the focus has shifted from creating value to chasing quick payouts, with little regard for the end buyer.

Here is an example with some figures:My LLC total investment = $204,000Partner LLC total investment = $196,000Value of project when complete = $500,000Each LLC value afterwards = $255,000 / $249,000The plan was for me personally to go get the refinance loan because the terms are so much stronger than if I went portfolio with the LLC.Loan total = $300,000 (keeping at 60% or under of value for best terms from the bank)Partner LLC payout = $249,000My LLC payout = $51,000In this scenario, I am struggling to see how to get the remaining equity in the project into my personal name? 

I am looking to connect with the investors there as the promotors are continuing to take Asset Management fees to the tune of $450K a year (on top of PM fees) even when their payout to the investors is around $20K a quarter (not meeting preferred) and the overall fund is negative about $450K.

The reverse mortgage company wants buyout and I dont have over 200k to pay out.

Insurance coverage for the structure covers up to 650K if a full payout is given.

The reverse mortgage company wants buyout and I dont have over 200k to pay out.

Regarding the payout inefficiencies, I remember the nightmare that some folks were experiencing with state unemployment benefits during Covid.