Multifamily Syndication - GP Contribution

[Pete Largo]

Few of my friends and I are forming a Multifamily real estate syndication. We are at the stage of evaluating various markets. Can you please let us know what % of purchase price the General Partners usually contribute in a deal?

Thanks in advance

Pete.

[Jeffrey Donis]

I agree with @Vinay Kolluru. 10% is pretty average. An alignment of interest is important between general partners and passive investors. This means that the general partners also have "skin in the game," which incentivizes them to ensure the property's success (because their own personal money is also on the line).