KP / Sponsor / Loan guarantor - what's the standard fee?

[Yonah Weiss]

Is there a standard fee or equity split structure for someone acting as a KP (Key Principle) /deal sponsor / loan-guarantor on a multi-family acquisition? Let's say all they do is co-sign the loan, without bringing any money or active experience in the management of the deal to the table.

The situation is a first time buyer, who has a 10+ years as a broker and property manager, but does not have first hand experience in acquiring multifamily.

@Joe Fairless @Ellie Perlman @Brian Burke @Mike Dymski

*Asked this earlier on a couple FB groups, and got some great answers from @Todd Dexheimer @Dan Handford @Lennon Lee
and others, just looking to see if the BP community has any more input.

[Brian Burke]

Originally posted by @Yonah Weiss:

Great point, Yonah. I suppose if I did I could probably make a killing. Trouble is, I've spent 30 years building a reputation and there's too much risk in it for me. The market is uncertain, and some sponsors that don't have the strength to be their own KP/loan guarantor might be at a greater risk for their deal imploding when the weather gets stormy. That leaves me to patch it up, take over, contribute money, or any number of other unfavorable things. I could profit, sure, but from where I sit my downside is greater than my upside.  I make my money doing real estate investments, and if someone else's deal jeopardized my ability to finance my own deals, I threw my whole career away just to make a few dollars.  I'll pass!