How do you split your deals with investors?

[Donald Eggers]

What are some ways you split your deals between you and an investor(s) when you're not bringing any cash to the table?

I'm looking to introduce my first deal to an investor (or two investors to split), and will broker the deal. I want to come out of it with some portion of equity, but also want want to keep the deal sweat enough for the investors to enter. What are some of your ways to split deals up when you don't have the money to put down yourself?

Deeper dive: 7 unit rental property, cosmetic maintenance, 5% cap rate with under market rental rates, 6% cap with a 10% increase in rents (still very competitive rental rates in a community with low rental inventory). Secondary market with huge growth over the past 5 years and increasing. Building has 0% vacancies over the past few years.

[Brian Metz]

Hi @Donald Eggers, you could structure it so that they are debt partners. Make them your bank and essentially you are paying back a loan to them. You wouldn't necessarily have to give up any equity this way, and could give them an attractive interest rate that'd be more enticing than potential returns in the stock market, if there money was sitting there.

Best of luck!

Cheers,

Brian