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Updated about 6 years ago, 10/04/2018

User Stats

120
Posts
99
Votes
Harvey Yergin IV
  • Rental Property Investor
  • Columbus, OH
99
Votes |
120
Posts

How to structure private money deal

Harvey Yergin IV
  • Rental Property Investor
  • Columbus, OH
Posted
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?:)

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