How to structure a deal with multiple investors

[William Washington]

I intend to purchase a multi family investment property and I have several individuals who want to contribute  to the capital necessary to acquire a property. At this point the capital is not an issue however, I need information on how to structure a deal properly and pay off my investors and what interest rate is appropriate to offer investors. Please offer any insight at all.

[Todd Dexheimer]

@William Washington with the limited information in your post, it sounds like you may be offering a security and should be setting up a Reg D offering (syndication). With the syndication, your company or you will be the General Partner (sponsor) and your investors will be the Limited Partners (LP). There are endless ways to set this up, but the most common that I see is a 1-3% acquisition fee, 1-3% asset management fee, 6-9% preferred return and 60-80% of the ownership equity to the limited partners. 

See a few articles on syndication: 

https://www.biggerpockets.com/blogs/10145/73373-op...

and

https://www.biggerpockets.com/blogs/10145/72118-sy...