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Updated almost 8 years ago on . Most recent reply
Presenting to Investors: How to Structure a Deal?
I apologize in advance if this question has been addressed in previous posts. I couldn't find it anywhere it the forum.
I've got a few friends with disposable income that want to invest in multi family real estate. We're always talking about real estate but haven't taken any action. Their time is way more limited than mine (careers & family). They've got the money and I've got the time, motivation, and commitment. They'd invest all the money and I would be the one researching and presenting deals. Plus anything else required of me like helping with rehab, tenant calls, etc.
How do I structure a deal? I'd be working with 3 investors.
Thank you all for your time.
Most Popular Reply
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Makes it a bit complicated with that amount of partners but maybe in quarters. When we partner with investors, we take half and we give them half. This is a bit rougher as giving them each a 1/6 while you get half will be a tough sell when you are just putting in time but don't have a track record. Probably quarters on the first coupe but after you are good, then maybe start upping the percentage to account for your time or maybe start individually partnering with them. Just be up front with them whatever you decide. I have always operated that way and I can sleep at night because of that and you'd be surprised at what people can come up with as a solution. Invaluable.