Structuring a Syndication

[John Henry]

Hi there,

I'm currently in the middle of syndicating a 10 Unit property with my partner in Allentown, PA. I'm curious as to what the 'norms' are for these types of syndications, in your experience?

----

Purchase Price: $675k

Equity Being Raised: $170k

-----

Is it typical for GPs to invest pro-rata alongside LPs and get a 20% carry on the back-end in the event of an exit? I was under the impression that GPs could get away with putting let's say 10% of the equity down, but actually retaining something like 35% of the equity for putting the deal together and doing all the work, etc.

PS. We're putting up anywhere from $25-35k, but ideally are staying in the lower range and raising the rest so we can be liquid enough for more deals.

What are your thoughts?

Thanks!

JH