There should be a feature on bitfunder to allow stock and funds managers to e-mail newsletters to stockholders.
There will be soon enough which will resolve the contact issues we're having now.
Hi Branny,
I have a question re the management fee of 15%. Is that management fee 15% of what exactly, the net profit, the gross profit or something else?
It's off the top.I have a question re the management fee of 15%. Is that management fee 15% of what exactly, the net profit, the gross profit or something else?
So after all expenses, you will then charge a 15% fee on the net profit?
If so, what if that month there are lots of expenses (say, repairs etc) and the investment makes a loss, will you be happy to not take a management fee?
I think by "off the top" he means he gets his 15% *before* expenses, something that I don't really like... I'd like that clarified too please.
It's off the top, if the month will be negative, i won't take any management fee.
The average in my area for rental management is 10% off the top, or $75 per door, whichever is higher (Plus a $350 tenant fee). The reasoning behind the 15% management fee is so that at some point, after getting say 25 rentals I can roll the management off to either a outside company or a company I build for the purpose of managing the rentals. If I were to charge a low fee or no fee, there would likely be shock to the investors as to how high the management costs would be. So, in this scenario the costs will roughly stay the same.
Sorry, I need you to clarify what "off the top" means.
Does it mean you take the 15% from the income BEFORE expenses. Eg Income is $1000, you take $150, then its $850 left, then we minus expenses, say $300 and the rest ($550) goes back to shareholders
OR
Take 15% from the net profit (AFTER expenses). Eg. Income is $1000, expenses are $300, which leaves $700. Then you take 15% of the $700 left = $105 fee, leaving shareholders with $595.?
15% off the top before expenses. If income is $1,000 then my management fee is $150. Then expenses are deducted with the remainder being distributed to shareholders. If the management fee puts the dividend payment negative then I won't take a pay that month/period.
