Good way to deal with Management Fees in NNN deals without iterative calculations?
See title. Have a STNL with a management fee that is reimbursed. Fee is a percent of EGI (which includes my recoveries). Currently, recoveries is directly linking to total Opex (which obviously, includes the fee). I was thinking about maybe making a hidden sheet that calculates some part of this circle to avoid the circular reference but so far have been unsuccessful. Anyone have any insights to share?
[{"id": "i50fosz", "text": "This seems like a simple enough calculation that allowing for this circular reference is fine. I understand a lot of people having hesitations using them at all but, I\u2019ve found it\u2019s a feature not a bug for this type of calc.", "replies": [], "depth": 1}, {"id": "i50hiij", "text": "I think you can just make the management fees reimbursement last and set EGR to =SUM(Income less management fees) / (1 - management fee) then set the management fee to calculate as the difference between EGR and the sum of the other revenue items, or just the management fee % of EGR. I'm away from my desktop but I can confirm when I have a chance to sit down.", "replies": [], "depth": 1}]