Money (Equity) Partners

[Casey Turner]

I am new to commercial real estate investing and I have a questions about the best way to set up an equity partnership and how to compensate the equity partner.

I would think they would get their initial investment plus a certain percentage of the profits after completion of the exit strategy along with monthly or annual compensation taking into account how well the property is performing.

My question really is in the detail of the partnership. What are reasonable splits of profit when liquidating the property? How much or what percentage of NOI after Debt Service should be distributed to the equity partner?

Any help concerning these issues would be much appreciated.

Best,

Casey