KP Equity in a syndication?

[Aaron W.]

Hello all,

This is our first time doing a co-GP syndication with a KP.  We are talking with a potential KP to come onboard for their experience as we've yet taken down a property of this size.  What do you typically offer as far as equity or fees to a KP for their experience?  

For future reference, I'd also be curious to know what others offer KPs to have them onboard for their net worth or capital raising, etc?

Thank you in advance for your assistance.  Have a great day!

[Jeffrey Donis]

I agree with @Bobby Larsen. I've heard investors offering a % of the cash flow, and fees for signing off on the loan. They're taking on the risk associated with the property, so their compensation is contingent on the size of the loan and risk involved.