Tilden Moschetti: One of the
things I like best about being a

syndicator is when it comes time
to make distributions,

especially the final
distribution, but I love all the

distributions. I like sending
money to people, because I know

they're happy to get it. And I
just did a good job for them. So

I like making distributions, I'm
sure that you will as well. But

exactly how do we make
distributions? That's what we're

going to talk about in this
module.

Alright, so how exactly do we
make distributions. Now, when

you were putting the whole
project together, you should

have been telling your investors
at that point, the potential

investors, what the regularity
would be on when distributions

would happen. Now, you may
decide to be making them

annually, and you may be
deciding to make them quarterly,

you may be decide to do them
monthly, annually is pretty

unusual. But it certainly does
happen from time to time. And

some investors actually prefer
it, especially if they've got a

self directed IRA, and they're
getting charged fees for every

time a deposit comes in, they
probably like to get paid

annually. That said, I would
suggest to you, it makes a lot

more sense from the very
beginning to just have one kind

of time that you make
distributions, whether that's

monthly or quarterly, I think
annually is probably people

wouldn't like as much, but I
could be wrong. I don't know

your investors. So the I would
make them monthly or quarterly.

Now if you're making a monthly,
it's a lot of work to do every

single month, and you do not
want to miss it, when you make a

late payment, you can absolutely
count on hearing from a few of

your investors about where that
money is, I think quarterly is

the easiest to do. But But you
you get to choose for yourself

monthly certainly is ease is
better for your, for your people

most of the time, because they
get to see regular communication

with you, which really means
money in their bank. So make

that decision, I'm going to
speak generally about

distributions here, whether
you're doing monthly or

quarterly, either of them
applies. So you start with,

you've got some money. Now, this
is after your expenses have been

paid on the property management
side. So all the Property

Management Budget pieces have
been spent and you've got some

money left over that you're
looking to distribute. I like to

then forecast through the next
period. So if it's a month, it's

if I'm distributing monthly,
it's month out. If I'm

distributing quarterly, it's a
quarter out. And then I like to

go out one additional phase more
like what like if I'm for if I'm

paying out monthly, what does
that whole quarter look like? Or

if I'm paying out quarterly,
what is half the year look like?

And then see, is there anything
that I'm forgetting that's on

the horizon that I need to
budget for, I want to make sure

that I have the right reserve
account. Now, I like to set a

what my deposit regular deposits
are into my reserve account. But

a reserve account is there to be
used for things that it needs to

be used for. So your reserve
account may go down just as it

may just continually go up. When
it comes down, you want to build

it up to a certain level. And so
I need to give some amount to my

reserve account, really all the
time, there really isn't a time

unless I'm really have so much
in reserves that I'm doing that

I can hold that back. So I make
sure that money gets allocated

to reserves. So now finally,
I've got this pool of money. And

rather than just dividing by the
number of shares that I have, or

units that I have, and then
paying out that amount per unit.

What I like to do is I think
it's uncomfortable for for

investors, if they see the
amount of money go up and then

down. I don't ever want it to go
down. So I always like to be

conservative. If my if I'm
paying out monthly and I

figured, okay, I really can only
pay paying. I can pay $5 a unit

right now. But next quarter, I
think that I'm going to be

paying closer to like $4 a unit.
If this is why I like to look

ahead and see what's coming. I
don't like bumping it up to five

and then four, I would much
rather keep it at four, pay down

four and then it just builds up
my reserve a little bit and then

I can take money added the
reserves and pump it in, once I

brought up brought that expense,
it's coming under control. So

I've done that I've then figured
out, okay, I'm going to be

paying whatever I'm paying per
unit, I just multiply that price

or that value by the number of
units each investor has, and

then I queue it up with my bank.
There's a lot of different ways

to do that, whether I like to do
direct deposit with my

investors, it makes it much
easier on me, I've get better

reporting. But and I don't have
to run and sign a lot of checks

and do postage all myself, I
don't like doing that. But I

will if I have to. But try and
get all of your best investors

on the same thing. I think it
makes much more sense to make

them all direct deposit, it's a
lot easier for you. And your

bookkeeper probably would
appreciate that too, rather than

having to reconcile checks all
the time. So that is how we make

those distributions. So now
you're in orbit, you're doing

these things time and time
again, and for the duration of

that whole period, right? Well,
there comes a point where it's

time to reenter, it's time to
come back to Earth and that

investment is going to be sold,
and everybody's going to exit.

So how we do that is the subject
of our next set of modules where

we're going to talk about, well
first off, when do you decide to

sell? And then when you do have
made a decision that it's time

to sell? How do you do you need
to vote on it and how does that

take place? And then how do you
make that final distribution and

what things should you look out
for? And then finally, those

final closing things that you
need to do to close that

syndication and be done