We are forming a syndication and have some questions about a Co-GP or Co-SPonsord

[Luis Herna]

We are looking for a Co-GP investor with good track record, he need to covers Earnest money and Due Diligence fees.

We will find the deals, bring lp partner investors, due diligence, management, asset oversight.

So my questions: 

1. What would an estimate fee for this Co-GP?

2. Can we pay a flat fee or we just share some equity?

3. If Co-GP has lot of experience, will this be sufficient to meet Freddie Mac's requirements? or all of the general partners should have sufficient experience?

[Chris Seveney]

@Luis Herna

If this was asked of me I would want 80% of the GP split and all fees go to me before any to you.

This is based on my explanation of you want the co-GP to fund the down payment and due diligence fees. This is riskiest part as if the deal does not go through they could be out money - especially if you bring the LP’s and fail to raise the necessary amount of money.

I think based on these terms you would have trouble finding someone to partner with, I am sure there are people out there, but those taking the risk are gonna want most of the $.