Project Management in exchange for ownership percentage

[Scott Trahan]

Hello BP, 

I am reaching out to find out if anyone has ever done an ownership percentage in exchange for project management?  My background is almost entirely construction, I started and sold multiple construction companies before I was 30.  I have been in multifamily for about 3 years as a Project Manager of Renovations for a great group of owners (even if they changed 4 management companies within a year).  I have bought 3 houses and flipped them for decent profit each time. I have the biggest home (loan) that will eventually be flipped when my 3 daughters actually move out.  I have tied up most of my assets into my current residence & am curious if I could be compensated by an ownership percentage vs a salary through a management company?  

Thanks in advance to any replies!!

[Tony S.]

Any structure is possible, though I would think your equity position would be small for this kind of scenario.  It also all depends on what you negotiate with the owners you work for.  Typically I would expect this type of arrangement to be negotiated when the deal is being put together, not on any existing apartment complexes you service.  So I would pitch to your current owners that on the next deal they underwrite, you'd like to explore an equity arrangement in exchange for your project management services. 

If according to their underwriting an equity position of 5% ownership over the life of the investment will equal the sum of your salary over the life of the investment, I don't see why they wouldn't agree to that arrangement.