reasonable investment arrangement

[Yuriy Shepelin]

Hi, I'm about to invest in a first deal, with an acquaintance managing it. It's a remote real estate transaction, where I would probably look to put up about 10% of the investment, with other investors putting in another 90%. It's an investment where the manager would oversee a significant upgrade/renovation to the property, so he would be pretty hands on, but would probably not be investing his own capital. In my day job, I'm used to dealing with hedge funds that had a typical 2/20, or now more like 1.5/15 today type compensation structure. I'm using this deal as a way to get my feet wet. And I'm trying to understand what arrangements (and range) are more prevalent in mid-scale (say 1.5m post upgrade) real estate. Thank you in advance, Yuriy