What is a fair partnership for a 30 unit multi family?

[Jim Growfer]

purchase price is $2mm.

25% downpayment is 500k.  

Is 7% interest on his 500k + a 60/40 split on whatever cashflows after that a fair deal?

[Evan Kirkpatrick]

That's not an awesome deal for the investor investor unless the operator has a sterling track record and the deal is set up to be slam dunk.  I'd expect to see it more in the 8-10%, 70/30 range by default.  Interest rates have been creeping up - 7% isn't more than 1-2% than I would expect your commercial loan to come in at.