CASH FLOW SPLITS
MIG pays investors a preferred rate of return, usually in the range of 8%-9%, depending on the property. The investors are paid first from cash flow generated fromoperations of the property; then the Manager (MIG and its associates)are paid. We evaluate cash flow for distribution quarterly.
When an asset is sold, usually in 3-5 years, the investorsget paid back their capital contributions first as areturn of capital.After all books are reconciled; any gains are split between the Investors and the Manager, as describedin the LLC Operating Agreement.The target annualized return for our properties are typically between 18%-24% annualized.