Pooling money from friends and family

[Travis Doyle]

Hey guys!

I am an investor from New York and am trying to raise capital for my friend who does development and currently owns about 90 units. I am trying to help him grow, as he doesn't like to ask people for money. He is currently passing up deals because of a lack of capital. We were looking to raise 500k-1mm in a private placement fund.

Primarily investing in multi-family deals that need renovations that pump out cash-on-cash returns between 12-17% His current strategy is just buy and hold rentals right now and I am torn on how to sell this to investors.

What is the best way to structure this? Cut ourselves some equity? Maybe 20-30%? Is this too low?

Also, do you guys generally charge a 1% gross revenue fee, acquisition fee of 1-3% and sale/refinance fee of 1-3%?