Are there any fees that are paid to Menlo Gate, LLC for organizing and managing the investment?
Menlo Gate earns an Asset Acquisition fee of 5% from each investor at the close of escrow for each offering group. There is also a onetime Organizational Fee of $5,000 for each offering group that pays for (1) legal fees for the creation of the Limited Liability Companies (“LLC’s”) that hold and manage the asset, and (2) requisite fees payable to the Secretary of State for operation of the LLC’s. The company also earns an annual Property Management Fee of 8% of gross rental revenue. There is also a Dissolution/Winding up fee of $5,000 payable to the company subsequent to sale of the asset to pay for legal fees incurred for dissolution and winding up of the respective LLC’s created to hold and manage the asset. Subsequent to sale of the Property, the investors first receive the return of their Initial Capital Contribution of Fifty-Seven Thousand and Five Hundred ($57,500) Dollars, minus the application of the Asset Acquisition Fee, Organizational Fee, Dissolution/Winding Up Fee, and any