How are the returns to investors calculated and paid?
The manager will collect the rent derived from the property and deposit it into a separate trust account opened by the custodian. At the direction of the manager, the custodian will pay all the expenses including mortgage interest and management fees out of that account. Depending on the terms of each investment, within a certain period after the end of each quarter the manager will direct the custodian to pay your share of the surplus income according to the interest in the property which you own. The reason a time lapse is needed is so an accurate calculation of the cash surplus available to you can be made. The manager can only direct the custodian to make a distribution if the bank account is in funds and there is sufficient cash available to pay future expenses (after taking into account expected future cash inflows). Within 90 days after the end of each financial year and then again after the investment ends the manager will send to each investor details of their taxable income o
