Partnerships are targeted towards larger buildings that are generating a net income of $250K or more.

Partnership consists of 2 or more partners - they generally consist of 1 active manager to run the building and a silent investor or group of investors. Each party holds equity in the unit and business to protect their investment based on the percentage of ownership.
Eg active manager - 20%
Silent investors - 80%

The percentage ownership can be split in any ratio

Returns to the silent investors are currently around 15% - 20% after debit loan interest.

A partnership agreement is drawn by the lawyers to protect each party's interest along with outlining roles and responsibilities. The silent investor generally doesn't become involved in the day to day running of the business. This is left up to the active manager who is paid a management fee to run the complex.

• Ability to purchase a larger complex
• Larger income
• Capital gain should be greater than a smaller complex
• Matching up with experienced operators
• Higher return on funds invested
• Larger base to work on - no. of units in the pool
• Options for sale

To find out more about partnerships or become a silent or active manager, please call Mark Ryall on 55641100 / 0419640215.

The below example illustrates the figures on a partnership with 1 active manager and 1 silent investor.

P/Price Unit	$ 695,000
P/Price M/Rights	$1,315,000
Costs and Working Capital	$ 135,000
Total cost	$2,145,000
Total Loan	$1,432,000	(loan is split based on equity ownership)
Equity required	$ 713,000
Cash input
Active Partner	$ 237,000	33% equity
Silent Partner	$ 476,000	67% equity
	$ 713,000
Income	$ 304,000
Less Management fee	$ 60,000	Paid to onsite manager
Net profit	$ 244,000
Active Manager
$244K x 33.3%	$81,325
mgmt fee	$60,000
	$141,325
Interest	$ 38,598	Loan $477,000 (33% of loan $1.432M)
Surplus	$ 102,727
Silent Investor
$244K x 66%	$162,675	Loan $955,000 (67% of loan $1.432M)
Interest	$ 77,068
Net Income	$ 85,607	Return on funds 18% after interest