Torn over pooling money from friends and family

[Travis Doyle]

Hey guys!

My current partner currently owns 90 units, all multi-fam. He is currently passing up deals because we no longer have any capital. We created a private placement fund and am about to starting asking friends and family for capital.

How should I go about structuring this? We were thinking to just take equity in the deal of around 20-30%. Most of the projects require a lot of renovation. Is an acquisition fee, assets under management (1% gross revenue), and sale/refi fee appropriate here?

I thought cutting ourselves equity was the easiest option, as it provides an incentive for us to make the portfolio profitable. What do you guys think? Would writing a note be easier? We are just looking for capital to fund deals and thought this would be the best way.