STR Complex and Investor Split

[Josef Bryan Gerster]

Hello,

I want to build a STR cabin complex and need to figure out the investor split. Does anybody know what the industry standard is? I have several interested parties who would like to invest but don't know if the split would be 80(investor)/20 or 70/30? Any insights would be greatly appreciated.

Thanks

[Zach Edelman]

Depends which partners are providing what. A common and simple investor split I have heard of in the past is the classic "Partner A provides most if not all the capital, Partner B provides the sweat equity and management" and the partner's go 50/50.