Property Manager · Chicago · Member since 2021 · 61 posts · 32 votes
What's the best way to structure a deal if I were only bringing sweat equity into the deal? I have an open offer to kick in some sweat equity for a larger multi-family deal, should I find something that works.
How and when do I leverage that equity - is that only at time of sale? I'm not sure if equity is the best way to go about this if I can't capitalize on it for at least 5-years.
What's the best way to structure a deal if I were only bringing sweat equity into the deal? I have an open offer to kick in some sweat equity for a larger multi-family deal, should I find something that works.
How and when do I leverage that equity - is that only at time of sale? I'm not sure if equity is the best way to go about this if I can't capitalize on it for at least 5-years.
I would ask for a portion of ownership within the LLC taking ownership of the property. It would be very similar to a ‘credit' partner or ‘experience' partner when getting optimal rate and terms on a loan, except in this case you would be a member of the entity in question. It also ensures your name in print somewhere in case something happens.
What's the best way to structure a deal if I were only bringing sweat equity into the deal? I have an open offer to kick in some sweat equity for a larger multi-family deal, should I find something that works.
How and when do I leverage that equity - is that only at time of sale? I'm not sure if equity is the best way to go about this if I can't capitalize on it for at least 5-years.
Hey Gabe ! What you want is a joint venture agreement that outlines the responsibilities of each party