THE STRUCTURE AND SET-UP OF
A SUCCESSFUL AfBA

Of utmost importance in structuring a successful AfBA, is the choice of its investment members and managing partner. Troon Management Corp., in our role as consults, assumes the responsibility of impartially building a financial scenario within the guidelines of RESPA that is, from the start and over the long term, equitable and profitable to all investment members. 

Years of experience in structuring AfBAs have provided Troon Management Corp. with the skills to accomplish this fundamental goal.

Troon Management Corp. uses Limited Liability Companies and Limited Partnerships as its primary structure for AfBAs. The obvious reasoning behind this choice is found in the issue of liability. Our structure provides a financial return for a one-time investment with minimum risk to the investment partners. 

An additional benefit of our structure is that it allows for lenders, builders, sales associates and realtors of all sizes to participate equitably in an Affiliated Business Arrangement. Large realtors and builders are certain to own and operate their own "in-house" title agencies, reaping the financial rewards these operations offer. However, the small to mid-size companies, have the ability to gain the same strength though our unique structure. 

We do not expect the investment members/partners to become proficient in the title insurance arena. Nor are they required to follow every change in the regulatory environment. Our members are at their highest and best use while building and selling homes. 

Likewise our consultation client as the Managing Partner is at its highest and best use in providing management services to the operations side of the entity. Personnel issues, management reporting, tax filings, compliance regulations and changes in title requirements are all the responsibility of the manager and the staff of the entity, not the investing partners/members.