LeGrand Commercial Partnership
Guidelines for Students
[ Effective February 8, 2007 ]
Option One: Bird Dog
Student receives a minimum fee of $50,000 and wants no participation in project. Payment terms as follows - Ron pays $25,000 at closing and an additional $25,000 upon sale or refinance. Student moves on to find another deal.
Option Two: Student Apprentice Program
Student desires to participate in project, learning how to become an Apprentice Project Manager in lieu of receiving cash fee so he/she can participate to a greater degree in future projects. The Regional Project Manager will drive the project and direct the student’s activities relative to completion of the project. Student must reside close enough to the project to make frequent visits to the development site and receives payment from the "NET" proceeds. Funds and financing provided by Ron or his designee.
Student's NET Profit Percentage Participation for Option Two - UP TO 10%
Option Three: Student / Regional Project Manager (Work The Project Jointly)
Student desires to participate in overall "NET" profit of the project in lieu of receiving cash fee. Student should have enough management experience to manage project through to completion. Student will work at the direction of the Regional Project manager. Student will be responsible for due diligence and binder deposit, which will be returned as project sales revenues are collected. Financing provided by Ron or his designee.
Student's NET Profit Percentage Participation for Option Three - UP TO 25%
Option Four: Same as Option 3, but Ron does not guarantee funds
Student desires to participate in overall "NET" profit of the project in lieu of receiving cash fee. Student should have enough management experience to manage project through to completion. Student to provide all up front funds necessary, including, but not limited to earnest money, and due diligence.. If Ron is not required to personally guarantee the debt the student is eligible for maximum payout. Student must be willing to co-guarantee any loans.
Student's NET Profit Percentage Participation for Option Four - UP TO 40%
NOTICE #1: Student Partnership with Project Manager when Ron Declines Deal
In the event Ron declines to participate in the project for any reason and student desires to proceed with assistance of Project Manager, Ron will retain 10% of the deal. Funds due to Ron or his designee will be paid when profits are reduced to cash and received by Project Manager.
NOTICE #2: Overhead & Management
All Options will require a $25,000 overhead fee be paid to or his designee when cash is pulled from the deal from any front end financing, secondary financing or sale. Ron or his designee may also charge the project a Management fee to cover overhead. This fee will be charged monthly and taken from the operating capital of the project.
NOTICE #3: Option Selection
Ron will make the final decision on one of the options above. If the student does not agree with Ron's decision, student is free to remove the deal from consideration.
NOTICE #4: Performance
Student and Regional Project manager will agree to an assignment of duties in order for the student to receive the agreed-upon payout. In essence, there will be a performance clause in the agreement. The student will agree to perform them to the best of his/her ability. Should the student decide NOT to perform those responsibilities or for any reason is unqualified to perform the duties agreed to, the student’s percentage payout may be adjusted.
