Self Storage Split for Equity Partnership

[Brian Keegan]

Hi BP Fam,

I am curious to see what everyone considers fair for allocating ownership in an equity partnership, specifically for self storage. To keep it simple, I am wondering what percent to allocate for (1) finding the deal and (2) for managing the facility, since I know value can vary depending on the deal. The balance would then be split based on capital that each partner brings.

For example, would 10% for finding the deal and 40% for running it make sense? If so, equity would be 50/50 split if partner A found the deal and was managing it, and partner B provided all the capital.

Or would 5% for finding the deal and 25% for managing be closer to being fair, making it a 30/70 split?

Assume $4M-$5M deal and partner A has some experience, already owning 3-4 class B facilities.

Thanks!