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Updated almost 9 years ago, 01/13/2016
Partnering with a Mortgage Broker and Environmental Attorney
I am partnering with a Commercial Mortgage Broker and Environmental Attorney on a big real estate deal (a warehouse conversion). The mortgage broker and environmental attorney are saying they want 33% equity each. Granted they are each doing a lot initially - the attorney is clearing the brownfield hoops and even suing the liable party, while the mortgage broker is arranging very good 100% financing, working with the city to setup the bridge loans/grants.
The question is, is this really a fair split? A friend and I are splitting the remaining 33% doing EVERYTHING ELSE - the rehab, the contracting, the tenants, (the management too but probably at a cost to the operating account pre-owner-draw).
In other words, is it common for an asset manager side of an investment team to make only 33% while the legal and capital side of the investment team make up the other 66% of the ownership?
Thanks!