The Parent LLC in the Texas Series LLC will use facts, detailed research, and good business sense to demonstrate how a member could benefit by setting up and presenting a deal on paper that will benefit each potential member according to what each member brings to the table. The Parent LLC will only recruit potential members in a Sub-Series LLC after the necessary homework on an actual property is done by showing a prospective member an actual money-making transaction of the particular property that is being offered for sale. It is much more difficult for these potential members to walk away from the opportunity when a written plan that shows how the Sub-Series LLC will operate. The financial plan includes: How and when the transaction is scheduled to close; What the potential partner’s contributions will be; How partnership cash flow, profits, and benefits will be allocated; and How and when the opportunity and partnership will be completed. Preparation creates credibility.
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