can you please show work and give a reasonable answer.
The language below is taken directly from a partnership agreement for a hotel project. Members" are the members of a limited liability company formed to invest in this hotel. "Manager" is the person who put this deal together. This section deals with how they will make distributions of cash to the parties who are in this investment. er investms This incl. itial i use he is WW Stand 6.05(b) says that they cach get a designated priority" return. For example, this might be a cumulative 6% return on their investment. So for each year the project is in existence, and using my investments from the preceding paragraph, the investors get $720,000 and the manager gets $30,000 (6% of the investment). 60 en 7 % that after eva Volt their whi tu. e man the uns stri 11 M ment. es 50% to inst and townager So notice that the manager, who put the deal together, selected the site, designed the hotel and oversaw construction, and manages the property, gets an increasing share of cash as the deal generates a higher IRR. EXPLAIN WHY THIS WOULD BE DONE - WHY WOULD INVESTORS GO FOR THIS?? 6.05 Distributions of Distributable Cash by the Company Subject to applicable law and any limitations contained elsewhere in this Agreement, the Manager may elect from time to time to distribute Distributable Cash to the Members, which distributions shall be in the following order of priority: atrons TUKUMISKUPIE omriutions; (b) To the Members in an amount equal to the Priority Return to which cach Member may be entitled; and thereafter, ) five nervent embers in ALUMNI tage rate - The language below is taken directly from a partnership agreement for a hotel project. Members" are the members of a limited liability company formed to invest in this hotel. "Manager" is the person who put this deal together. This section deals with how they will make distributions of cash to the parties who are in this investment. er investms This incl. itial i use he is WW Stand 6.05(b) says that they cach get a designated priority" return. For example, this might be a cumulative 6% return on their investment. So for each year the project is in existence, and using my investments from the preceding paragraph, the investors get $720,000 and the manager gets $30,000 (6% of the investment). 60 en 7 % that after eva Volt their whi tu. e man the uns stri 11 M ment. es 50% to inst and townager So notice that the manager, who put the deal together, selected the site, designed the hotel and oversaw construction, and manages the property, gets an increasing share of cash as the deal generates a higher IRR. EXPLAIN WHY THIS WOULD BE DONE - WHY WOULD INVESTORS GO FOR THIS?? 6.05 Distributions of Distributable Cash by the Company Subject to applicable law and any limitations contained elsewhere in this Agreement, the Manager may elect from time to time to distribute Distributable Cash to the Members, which distributions shall be in the following order of priority: atrons TUKUMISKUPIE omriutions; (b) To the Members in an amount equal to the Priority Return to which cach Member may be entitled; and thereafter, ) five nervent embers in ALUMNI tage rate
