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Updated over 1 year ago on . Most recent reply
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What percentage of the GP stake should the lead finder earn?
My partner and I are about to set up a 506(c) syndication for developing industrial condos, and we are in discussions with a potential partner who would focus on finding leads for land. If he starts making cold calls and eventually brings a lead in that we buy, what percentage of the GP stake should he earn? Has anyone here given the lead-finder a percentage stake of the GP before? Any insight or experience would be greatly appreciated.
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I have set up several GP partner allocations here is how I have seen the five groups break down.
Deal Finder 10 - 15%
Risk Capital 10 - 15%
Loan Guarantor 10 - 15%
Asset Management 30 - 35%
Investor relations 30 - 35%