Bringing on outside investors for the first time

[Alex Flaugher]

I am wanting to bring on investors for the first time in a multifamily property. Here is what I am thinking:

$1,000,000 cost and putting $200,000 down. If I bring on 5 investors to fund the deal, how should I structure the deal for them? 

I have read many different stories of offering a preferred return, waterfall return, etc. What has worked best for you in terms of structuring these types of deals with outside money? I want to make sure I structure this in a way that all parties can benefit from the deal. This is new to me and open to any recommendations on routes to take.

Thanks,

Alex