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Updated about 6 years ago, 10/04/2018
How to structure private money deal
We are looking to sponsor what will be the largest deal we’ve done to date. We will acquire a commercial loan and raise the downpayment plus CapX from private money investors.
This will be out first private money deal and I’m curious on best practices for structure.
80% for investors and 20% for sponsors. This share includes both cash flow and equity.
Questions:
-Is this a fair and simple structure
- Do these plans usually balloon after a given term (ie 5 years)
- Are we within reason to charge an acquisition fee and ongoing asset mgmt fee? If so, what percentages are typical for these fees?
- Do you have a pitch deck template that you wouldn’t mind sharing?:)