How to Structure Credit Partners & Private Equity?

[Hannah Hammond]

Hello BP! 

My business partner and I have a goal this year to purchase an apartment complex for reposition and sale, and we're planning on utilizing private equity lenders as well as a credit partner in order to get this done. I would like to use private equity for the down payment and have a credit partner who will qualify for the commercial loan. I am planning to pay the private equity lenders a simple annual interest, but am not sure what is common for credit partners. For example a monthly payment plus an equity share in the property? Just an equity share? If so, what percent equity and or monthly payment? 

If anyone is willing to share how they have successfully structured this in the past I would very much appreciate it! 

Thank you!