JV with multiple partners (no syndication)

[Tonya Weathers]

Hi BPers!

I'm looking to do a JV with 3 other people. I will be contributing most of the work and capital. $100k (me); $20k (from each of the other 3 Members) = $160k total investment.

I've never done a JV and need help with structuring the splits. I have most of the other things hashed out except the splits. I'm considering splitting based on contribution (62.5/12.5/12.5/12.5).

Ex: If monthly rents after expenses = $12,000, then the splits would be $7,5000/$1,500/$1,500/$1,500. After refi, the $ would be split based on % again, same with sale.

Does this sound right? I'm having a hard time with this one. Any help would be appreciated!

[Christopher Burge]

@Tonya Weathers If you do want to do a JV, then they will also need to participate in the deal in an active manor so as to not get in trouble with the SEC. You may want to find out what things they are wanting to do in the deal and create a split based on that value that those tasks bring. Otherwise, it might just be good to talk with your friends & family about what returns work for them while keeping them realistic in their expectations.