How would I structure apartment building purchase with investors?

[Menalik Archer]

By the end of this year, my goal is to purchase a million dollar apartment building. I'll omit units and location for this question. I know I'd have to put down at least 25% which will be $250k. I'm putting up $150k and will have two investors coming in at 50k each. Besides the LP structure, how would you structure the payout every month after all bills and debt services are paid? Would it be a percentage of the profits every month or would it be a percentage of what they put into the deal.

[Shawn Ward]

@Menalik Archer good question. Their cash contributions equate to about 20% equity each, but because you are putting in money AND all of the work, you have to get a premium on your equity. I'd say they each should be at 10% partners each. Max. 

Onwards!

sjw