Equity Splits and Pref vs no Pref Returns on Syndications

[Chase Louderback]

Hi Everyone,

So I am curious what other syndicators and groups are currently doing in the market and everyone's opinion on offering preferred returns for investors.  

I have seen splits ranging from 90/10 to 60/40 and from no preferred returns up to a 7-8%.  What are you doing? What are your thoughts on if you should offer preferred returns and what the equity split structure should be for you to take on a deal?

[Seth Ferguson]

Hi @Chase Louderback

A good norm, if there's such thing as a norm, would be 70/30 with a 6-8% pref. A lot has to do with the type of deal, if there's heavy lifting involved etc etc.