Have you raised equity for Real Estate investments?

[Sean Robinson]

Hello - I'm looking for information around how real-estate investors typically structure their deals when it comes to raising outside capital to cover the down payment portion in transactions. I understand there's a lot of nuance and variability around how deals get structured, however if you've had experience with this I'd love to get a sense of the terms you set with your investors. Some components I'm trying to understand:

Do you typically set a specified return you try to meet? (i.e IRR %)

    Do you structure your deals where you have to pay back the initial principal before taking profits yourself or do you take profits immediately? (After any rehabbing work if needed to be done)

    After returning the investor's initial investment, does the investor continue to receive a % of the proceeds (if cash flowing) indefinitely or only until a specified amount is achieved (similar to question 1)

Again, understand each deal is different and there's no standardized format. Just trying to gauge how others typically like to structure their deals and the types of terms they set with investors. 

Feel free to DM if you have had experience. Happy to hop on a phone call to hear your experience to get a better understanding of how/what I should be thinking about.

Thanks!