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Updated over 5 years ago,
Putting my first partnership deal together - Equity question
Hi BP Community:
I am putting together my first buy-and-hold partnership deal together having four partners - me and three partners. I am using OPM (other people's mulla), thus doing all the work of putting the deal and will manage the partnership/deal beginning to end. I do not have the capital to put in an equal share, but plan to structure where my compensation is equity in the deal. Not a large deal, probably 2 to 4-plex property.
Can anybody suggest how much equity I should propose to my partners for me putting the deal together and managing all aspects, but not putting any of my own money in the deal. They will be "active" legally speaking as voting rights, but really playing passive roles. I know in larger syndications, there is often 40/60 or 30/70 split. But not sure how much to propose in this smaller deal; just looking for a starting point.
Some things to consider - I have 13 years of commercial real estate experience, but this would be my first residential investment project/deal. I also have a BRRRR project in the works as well. They are taking a bit of chance on me, but I still bring a lot to the table in terms of experience and commitment to make sure we succeed (whatever that's worth).
Thank you, all!
- Andrew Myers
- [email protected]
- 303-503-6555