Structuring a private money investor deal

[Nathanael Greene]

I have been searching for ways to understand how to structure a deal for investors on a multi family apartment. What are different percentages or ROI as well as a ratio of ownership like 50/50 ,70/30 and other ways. I don't really understand how to go about telling investors and showing them how much money they will receive from the cash flow and how much I get back.

[Evan Polaski]

@Nathanael Greene, the issues is there is no set way.  Some do an 80/20 split right off the top.  Some do a pref+ carried interest.  Most will charge fees, but some don't.  I have seen one that essentially has a 20% pref (if you invest enough), but no upside in the deal.

I would search around for syndication structures, waterfalls, syndication fees, etc.  Most will charge an acquisition fee, asset management fee and disposition fee. You might see a loan guarantee fee and/or refi fee from time to time.  Then, most syndications will charge a pref 5-8% is most typical from what I have seen, and a carried interest above the pref 80/20 to 65/35, and maybe a second or third tier to raise the sponsors take over a return threshold