East Property Management
Partner Opportunity
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Private & Confidential · East Property Management · 2026
East Property Management — Confidential Partner Opportunity
Own the asset.
Not just the hustle.
A co-ownership structure that turns your client relationships into a growing, saleable business asset — with passive income paid quarterly to your own entity.
Presented to: John Anderson
Presented by: Nicholas Breadman — Sole Director, East Property Management
This is a confidential co-ownership proposal prepared by East Property Management. This opportunity has been extended to a small number of individually selected, experienced and hand-picked real estate professionals. It is not a structure offered to everyone — and it was not designed to be. Every figure is based on agreed modelling assumptions and is subject to formal legal and accounting documentation.
The Opportunity
Everything you already do — now building something you actually own.
01
Majority Ownership of a Real Asset
You hold 60% of a licensed property management corporation. This is not a bonus scheme, a profit share promise, or a handshake deal. It is a documented majority ownership stake in a business with a real market value — valued at between 3.8× and 4.3× annual management fees. At 120 properties, your 60% stake is worth over $929,000 — a recognised, financeable and saleable asset.
02
Zero Management Headaches
East Property Management handles everything operationally — trust accounting, compliance, staff supervision, CRM, insurance, maintenance coordination, arrears management and reporting. You own the majority of the business without carrying the operational burden. Your focus is building the portfolio. Everything else is handled. Note: at approximately 120 properties a natural staffing threshold is reached — at this point both parties review the cost structure together before scaling further.
03
Your Clients Stay Close to You
Every landlord in this portfolio is your relationship — introduced by you, managed under a structure you co-own. You remain the face they know. You have the management conversation naturally as part of your sales process. No cold BDM. No stranger knocking on their door. Your clients stay yours.
04
Quarterly Passive Income
Once the portfolio reaches scale, distributions are calculated monthly and paid to your own entity every quarter. This income sits completely separately from your sales commissions — it is passive, recurring, and grows as the portfolio grows. At 120 properties you are looking at approximately $11,000 per month coming in whether you are working or not.
05
A Saleable, Bankable Asset
A rent roll is a recognised, financeable, and saleable asset. At 4.3× on 100 properties, the portfolio is worth over $1.1M. Your 60% is $717,000. You can sell it, use it as security, pass it on, or keep collecting income from it indefinitely. Commission stops when you stop selling. This does not.
06
40 Properties Per Year Is Achievable
For a senior agent active in the Eastern Suburbs, converting less than one property per week to management is a natural extension of conversations already happening. Every vendor, every investor buyer, every landlord referral is an opportunity. You are not being asked to change what you do — just to capture more value from it.
The Numbers
What this structure is worth at every stage of growth.
Avg weekly rent
$1,050
Eastern Suburbs portfolio
Management fee
5.5%
$250/month per property
Your ownership
60%
Majority stake
Valuation multiplier
3.8–4.3×
On annual mgmt fees
"At 40 properties per year — without trying hard — you are looking at a seven-figure asset within three years. Passive income activates the moment you pass 40 properties or the minimum management income threshold is reached — whichever comes first."
| Portfolio size |
Portfolio value @ 4.3× |
Your 60% stake |
Estimated Passive Income |
| 40 properties |
$516,516 |
$309,910 |
Building phase — not yet reached |
| 80 properties |
$1,033,032 |
$619,819 |
$5,000/month |
| 120 properties |
$1,549,548 |
$929,729 |
$11,000/month |
$1,050/week avg rent · 5.5% mgmt fee · 4.3× multiplier · estimated monthly income before agreed operating costs deducted · letting fees are excluded from gross income calculations
How You Get Paid
A simple, transparent distribution model — no surprises.
The distribution model is deliberately simple. Every month the gross management fees are calculated. Once they exceed a defined threshold, the surplus flows to you. The entire process is formula-driven, mutually agreed, and auditable — no discretionary decisions, no arguments.
You invoice the company via your own entity each quarter. It is a B2B payment — not a salary, not a bonus. Clean, efficient, and tax-effective.
Distribution trigger
$10,000
Band 1 — the first $10,000/month belongs to East Property Management. Once fees exceed this, passive income activates and the salesperson begins earning.
= 40 properties at $250/month per property
The monthly waterfall — in plain English
1
Gross management fees collected
All management fee income received from landlords for the month is totalled. This is the starting point for every calculation. Letting fees and all other ad hoc income are expressly excluded from the gross income calculation and do not form part of the distribution base.
2
Principal's protected floor — $10,000/month retained
The first $10,000 of gross management fees belongs to East Property Management. This covers the infrastructure, licence, systems, supervision, trust accounting, staff wages, HR and brand that make the entire structure possible. No distributions are made until this threshold is met.
3
Agreed fixed costs deducted
From the surplus above $10,000, agreed operating costs are deducted quarterly prior to the distribution of funds. These are mutually pre-approved and include: bookkeeper ($150/quarter), CRM subscription (proportional), insurances and licence fees. No cost can be added without both parties agreeing in writing.
4
Distributable surplus identified
What remains after the threshold and costs is the distributable pool for that month. This figure is documented and reconciled monthly by the agreed bookkeeper so both parties can verify it at any time.
5
Quarterly payment to your entity
At the end of each quarter, the three monthly surplus figures are totalled. You invoice the company via your own entity for your agreed share. Payment is made within 14 days of the invoice. Your accountant handles the rest.
What East PM Provides
You focus on growing the portfolio. We handle everything else.
Provided
Real Estate Licence & Compliance
The new corporation operates under a fully compliant NSW real estate licence with a qualified licensee in charge. All regulatory obligations — supervision, conduct standards, continuing education — are managed within the structure. You do not need to hold an additional licence.
Provided
Trust Accounting
All rental income, bond lodgements and disbursements are managed through a compliant trust account. Monthly reconciliations, end-of-month statements and annual audits are handled by East PM. You never need to touch trust money or carry that compliance obligation.
Provided
Property Tree CRM
The portfolio is managed on Property Tree — the leading property management platform in Australia. Where feasible, the new portfolio is integrated into the existing subscription, reducing your monthly cost base. If a standalone subscription is required, the cost is agreed upfront and included in the fixed cost schedule.
Provided
Professional Indemnity & Public Liability
Professional Indemnity and Public Liability insurance covers the management of the portfolio. Where the new entity can be added to the existing policy as an additional insured, a proportional cost is charged. If a standalone policy is required, the full premium sits with the new entity as an agreed fixed cost.
Integration
Vault Integration
The portfolio integrates with your existing Vault platform where technically feasible at no additional cost. If you choose to operate a standalone Vault account instead, that cost is 100% yours to bear — East PM's obligation is to make integration available, not to fund a preference for a separate system.
Ongoing
Property Management Operations
Day-to-day property management — tenant communication, maintenance coordination, lease renewals, arrears management, inspections, and landlord reporting — is handled by East PM's team. The portfolio benefits from an established operational process without needing its own dedicated staff from day one.
Your Legal Protections
This is protected by structure — not goodwill.
Formal Shareholder Agreement
Every aspect of this arrangement — ownership percentages, distribution methodology, fixed costs, trigger events, exit rights and dispute resolution — is documented in a formal shareholder agreement. You review it with your own lawyer before signing. Nothing proceeds without your legal sign-off.
Majority Ownership Rights
As the 60% majority shareholder you hold the controlling stake. Your rights, responsibilities and protections as the majority owner are clearly defined in the agreement — including what decisions require your approval and what decisions are operational.
Cross-Licence Agreement
A formal cross-licence and management services agreement between the new entity and East Property Management governs the relationship between the two businesses. This includes a minimum 3-year exclusive management arrangement with defined auto-renewal and termination conditions.
Pre-Agreed Valuation Methodology
The method for valuing the portfolio at any exit event is agreed and documented from day one — not negotiated under pressure when one party wants to sell. There is no ambiguity about what the business is worth and how that figure is calculated.
First Right of Refusal — You
If the principal decides to sell or exit their stake, you have the first right to purchase it at the pre-agreed valuation. You are never at risk of an unknown third party acquiring a stake in your business without your consent.
Formula-Driven Distributions
Your quarterly distributions are calculated by a pre-agreed formula — not a discretionary decision made by the other party. The calculation is auditable, reconciled monthly by an independent bookkeeper, and available for your review at any time.
Common Questions
Answers to the questions you are probably already asking.
Why are letting and ad hoc fees excluded from the gross income calculation?
Letting fees and ad hoc income are retained by East Property Management to cover the variable costs directly associated with generating that income — including staff incentives for property managers, leasing consultants and other team members involved in securing new tenancies. These costs fluctuate with activity and are not a fixed overhead. Including them in the gross income calculation would distort the distribution model and create an unfair outcome for both parties. The agreed base management fee income is the most stable and consistent measure of portfolio performance — and the most appropriate basis for calculating distributions.
Am I able to reduce management fees without authority?
No. The property management business operates under a mutually agreed base fee model that applies to all properties within the portfolio. Both parties understand that from time to time incentives may be offered to prospective or existing landlords — however, any fee arrangement below the agreed base structure must be discussed and approved by both parties prior to being presented to the respective landlord. This protects the integrity of the income model and ensures the distribution structure remains viable for all parties.
What happens if one of the properties in the portfolio wishes to sell?
The sales opportunity is referred directly back to you as the agent. This entity does not take any sales commission, nor is it entitled to a referral fee of any kind. Your role was to introduce the landlord to the property management team — the sales relationship remains entirely yours. This is one of the many reasons this structure works so well for a senior salesperson: your client stays close to you at every stage of their property journey.
How It Works
From handshake to active partner — a clear and simple process.
1
Initial Conversation
We walk through this proposal together. You ask every question you need to. No pressure, no timeline. This is a long-term partnership and it starts with full understanding on both sides.
2
Legal & Accounting Review
You take the proposal to your own solicitor and accountant. We encourage this. The structure is designed to withstand professional scrutiny — and your advisors need to be satisfied before you commit.
3
Structure Confirmed
The legal structure, ownership split, valuation methodology and distribution model are confirmed with input from both parties' advisors. The shareholder agreement and cross-licence agreement are drafted.
4
Entity Established
The new licensed corporation is registered with ASIC. You are appointed as licensee in charge. Establishment costs are shared proportionally to ownership. Systems are configured and integrated.
5
Portfolio Building Begins
MAAs are signed under the new entity. The portfolio begins building. Your natural sales conversations now have a structured, profitable property management conversation attached to every one.
6
First Distribution
Once the portfolio clears the threshold, the waterfall activates. Your first quarterly invoice is raised via your entity. Passive income begins — growing every quarter as the portfolio grows.
Your Growth Journey
Year by year — what this builds into.
Year 1 — Target: 40 properties
Establish the foundation
The entity is established, systems are integrated, and management agreements begin flowing. Converting less than one property per week is a natural outcome of an active Eastern Suburbs sales pipeline — no additional effort required. By the end of Year 1, the portfolio holds 40 properties and your 60% ownership stake is already worth approximately $310,000 at a 4.3× valuation. Passive income has not yet commenced — but a significant and growing asset is being built with every property added.
Year 2 — Target: 80 properties
Passive income commences
Passive income activates once 40 properties are under management or the minimum monthly management income threshold is reached — whichever comes first. From that point, quarterly distributions flow directly to your entity. By the end of Year 2 at 80 properties, you are receiving approximately $5,000 per month in passive income — entirely separate from your sales commissions. Your 60% stake has grown to over $619,000. The portfolio is self-sustaining, professionally managed, and continuing to grow.
Year 3 — Target: 120 properties
The asset reaches full maturity
At 120 properties, passive income is approximately $11,000 per month — $132,000 per year arriving in your entity regardless of sales activity. Your 60% ownership stake is valued at over $929,000, representing a recognised, financeable, and saleable asset. At this milestone, a structured review of the operational model is conducted to ensure the portfolio continues to be managed to the standard your landlords expect before any further scaling is considered. You now hold genuine optionality — retain the asset and its income, sell your stake at a significant capital gain, or use it as security for future investment. The structure was designed from the outset to give you every one of these choices, on your terms and at your timing.
Your Exit Options
How a sale or transfer works in practice.
Sell Your Stake
The structure includes a minimum management agreement holding period of three years, providing both parties with the stability and confidence required to build a portfolio of genuine long-term value. Following this period, you can sell your 60% stake at the pre-agreed valuation methodology. The principal has a right to purchase first. If they decline, you can sell to an approved third party. The sale process, timeline and conditions are all documented upfront — no negotiation under pressure.
Buy Out the Principal
If the principal decides to exit, you have the first right of refusal to purchase their 40% stake at the pre-agreed valuation. At that point you become the sole owner of a fully operational, licensed property management business generating significant passive income — with the infrastructure already in place.
Sell the Whole Portfolio
Both parties can agree to sell the entire portfolio or business to a third party. Proceeds are distributed in proportion to ownership — 60% to you, 40% to the principal. At 120 properties and a 4.3× multiplier the total portfolio value is over $1.4M. Your share of that sale is over $860,000.
Trigger Events
The shareholder agreement defines clear trigger events that initiate the exit process — death, permanent incapacity, insolvency, loss of licence, or mutual agreement. Each scenario has a pre-agreed process. There is no ambiguity about what happens if circumstances change for either party.
This is a select opportunity.
We are offering this structure to one or two senior salespeople. If you are interested in proceeding, the next step is a conversation — no commitment, no pressure, just clarity.
East Property Management
Nicholas Breadman — Sole Director
In Search For A Story Pty Ltd · Eastern Suburbs, Sydney NSW