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Updated almost 5 years ago on . Most recent reply

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65
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Jordan Meyer
  • Rental Property Investor
  • Lehi, UT
22
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65
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How to divide the ownership in a syndication

Jordan Meyer
  • Rental Property Investor
  • Lehi, UT
Posted

How would you divide ownership in a deal like this? It's a small multifamily property.

Investor #1: brings in half of the cash, finds the deal, manages the rehab, manages the property manager, does all other admin.

Investor: #2: brings in the other half of the cash. He is a silent partner.

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Basit Siddiqi
#4 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • New York, NY
3,692
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8,152
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Basit Siddiqi
#4 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • New York, NY
Replied

@Jordan Meyer

The great thing about partnerships is that everything is negotiable.

Now if you are asking for a suggestion - 
Investor #2 is bringing cash and only like a lender.
I think most lenders like would like somewhere between 5% - 10% rate of return annually.

What is the projected return of this multi-family deal?
Is his a long-term buy and hold or is this a flip?

Flip's normally have more risk and he may ask for more of a return.

But in general - it seems like person A has more of the leverage, especially if he has experience.

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Basit Siddiqi CPA
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