How We Calculate Monthly Distributions
When determining a distribution, the criteria we look at is the Current Balance of Reserves vs. the Minimum Required Reserves.
First and foremost, it’s important to keep your reserves intact. If reserves are above the minimum required reserves of $3,000.00 AND the property is occupied, the tenant is current, and there are no pending large repairs, then we will send a distribution. If a property does not meet this criteria, we keep not pay distributions for that property and keep the reserves within the operating account. However, if the reserves are only $100.00 or so below the required $3,000.00 in reserves we can make an exception. Please contact us if you would like an exception made.
The calculations for Monthly Distributions (MD) are based on the Pro Forma revenues and expenses which are subject to change. The calculation is determined using the annual expenses and dividing them by 12, turning them into a Monthly Expense (ME) and subtracting them from the Monthly Rent (MR). The estimated Bedrock performance bonus is then subtracted from the amount. The estimated remaining funds are issued to the property owner(s) as Monthly Distributions. MD = MR -ME
Distributions will be sent via ACH directly to your bank account or by mailed check. If you are receiving your payments through mail and want it received by ACH, please respond to this email informing us of your desired change. Want us to mail to a different address? Reply to your Monthly Distribution email with the desired address and if you would like to update this as your default mailing address, or simply give us a call.
Thank you so much for allowing the Bedrock team to be a part of your financial journey. We appreciate the relationship and your trust.
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