Deal Structure for Outside Investors

[Brian Fitzpatrick]

Hey guys - I am trying to work towards raising outside funds for multi-family properties in my area. My partner and I currently own 5 units between the two of us. We don't have much cash to invest our selves at this point, but we see a lot of good deals and want to act on them. I am curious how most are structuring these types of deals with investors. Here are some of my thoughts:

1. 1. Investor takes all of the returns up to 5% of the COCROI, and anything above that gets split 50/50 between us and the investor. 
   
2. 2. We charge a management fee of ~10% of the cashflow.
3. 3. Not sure the best way to structure the deal for the profits made upon the sale of the property. 

Looking forward to hearing other thoughts on this topic.

Brian