Paying Distributions From the Deal's Bank Account: ACH or Wire?
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Distributions are paid from the deal LLC's operating account after the property's bills, loan payment and reserves, usually every quarter. For the payout itself, ACH is the usual first choice because it is cheap and traceable; a wire is faster and can cost more. Money in from investors is different: investor funding into escrow is by wire only. Distributions are not guaranteed; a quarter with no spare cash means no payment. For the full process, read how to pay syndication distributions.
Open an account: Mercury or Ramp. DoorRaise may earn a referral reward if you sign up through these links. DoorRaise's suggestion: Ramp by default, Mercury under $25,000 on deposit. A new deal LLC cannot open Ramp before closing (Ramp needs at least $25,000 in cash), so it opens Mercury first to receive the closing funds and can move to Ramp after closing.
A quarterly routine
- Close the quarter's books. Net operating cash after expenses and the loan payment.
- Move the reserve contribution to the reserve account.
- Decide the distribution as the operating agreement requires.
- Run the waterfall to find each investor's share.
- Pay each investor by ACH from the deal's account, with a clear memo.
- Record and notify. Ledger entry per investor, notice and, later, K-1 tie-out.
ACH or wire?
| Topic | ACH | Wire |
|---|---|---|
| Cost at Mercury (per its pricing page, November 2026) | $0 | $0 domestic |
| Cost at other providers | Baselane lists $0 ACH | Baselane lists $15 outgoing wires, waived at a $50,000 combined balance |
| Speed | Slower (often days; timing depends on the banks) | Faster |
| Best for | Regular quarterly payouts to many people | Urgent or very large payments |
Fees change; read the provider's current page. Do not promise investors an arrival time; banks decide it.
What DoorRaise does and does not do
For a DoorRaise deal, DoorRaise works out each investor's share from the deal's terms and prepares the payment list. With Mercury, DoorRaise tracks payouts automatically and marks each paid. With Ramp, the payments go through DoorKeeping's ACH payments or a payout file you upload to Ramp. Investors add their bank details on the bank's own secure page.
Worked example (illustrative)
After a quarter, Birch Court LLC has $82,000 of operating cash after bills and the loan payment. It moves $12,000 to reserves and distributes $70,000 as the waterfall provides, paid by ACH to 40 investors from the deal's account, each with a notice. Figures are hypothetical and not a projection.
Related guides: Two-person approval on a deal account and Monthly or quarterly?.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings; purchase funds sit in escrow at Enterprise Bank & Trust and investors send wires only. Fees: $1,500 to set up (non-refundable), then $5,000 a year from closing. See distributions.
FAQ
How are syndication distributions paid?
From the deal LLC's operating account, usually by ACH, on the schedule in the operating agreement (quarterly by default).
Can I pay distributions by wire?
Yes, if speed matters. Check your provider's wire fee.
Does the investor pay a fee to receive a distribution?
The deal does not cover any fee an investor's own bank charges to receive a wire.
Are distributions guaranteed?
No.
Sources
This article is general information as of November 2026, not legal, tax or investment advice. The example is hypothetical and not a projection. Ask your own attorney and accountant. DoorRaise is not a bank, law firm, broker-dealer, investment adviser or funding portal.