Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 8 years ago on . Most recent reply

User Stats

3
Posts
0
Votes
David Hudson
  • Draper, UT
0
Votes |
3
Posts

How do I pay myself when using investors on a Multi-family deal?

David Hudson
  • Draper, UT
Posted

All,

This is something I have been trying to figure out for a while now. I was hoping someone with experience in partnering with investors to raise funds for a downpayment on a multi family deal could talk about how they and the investors get paid. If investors are providing essentially 100% of the equity/downpayment, how do you make money? I am aware of acquisition fees, asset management fees, etc., but I am talking more about money from monthly cashflow and sale of property. 

Here is an example (E.g.,)

Let's say we have a 500,000 deal and we will need 125,000 for a down payment. We go to a family member or friend to raise the 125,000 dollars. Let's assume the property cashflows after debt at 10,000 per month. How should the 10,000 dollars be spilt between me and the investor, if at all? Also, what should the split be on the sale profits?

Any insight would be awesome! Thanks!

Loading replies...