Sponsor Promote Proposal and info

[Andrew Harris]

I've been asked by a colleague to put together a proposal to attract investors to a residential real estate portfolio. I want to set it up on a promote for myself as the GP. I'm having trouble putting the proposal together as well as figuring out what makes the most sense from a return standpoint. My market generally shows 6-8% IRR on most properties. I know that most investors want more than this. Any suggestions? Also, and maybe I'm missing the calculations, but how would I be paid in the event the IRR is not beaten on an annual basis, but most of the returns come on the ultimate sale of the property? How would I calculate that?