Does the Managing Member obtain any commissions? How will the properties be sold?
There are two potential commissions the Managing Member may collect. One would be a reimbursement from the LLC for any commissions paid out to purchase raw land. This will only be a pass-through expense with no gain to the Managing Member. The other commissions structure could be via a real estate listing agreement to sell the LLC developed properties. The Hoover Companies’ real estate entity is O48 Realty and all sales of homesites and new home sales will be contracted through the brokerage.
