Creative Real Estate Financing
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 11 years ago,
Profit sharing for passive investors
I am joining forces with several investors for the purchase of an apartment building. What is the typical arrangement for distribution of cash flow, profit sharing, and sales proceeds? My template is: 8% quarterly return on equity contribution, then share profits 45% to equity partners and 55% to managing partners, and distribute the proceeds of the sale along the same schedule (45%/55%).