@Doug Silverman If you are new at this 60/40 is fair.
Once you get more experience you can work different deals.
EX1: The Fee Deal
This deal is best if you have a large team or overhead you have to pay.
1%-2% Acquisition Fee
5%-20% Construction Management Fee
1%-3% Disposition Fee
30% of profit after fees to you
70% of profit to capital partner
EX2: Preferred Return Deal
This deal is best if your capital partner wants a consistent return with some upside and/or if you think you have a smoking hot deal.
8%-15% Interest payments on your partners capital investment (paid when the deal closes)
60%-80% Profit to you after Interest (Preferred return)
20%-40% Profit after Interest to your capital partner
EX3: The Simple Deal
This deal is best if your capital partner is not sophisticated.
50%/50% Split of profits
0%-2% Listing Commission (If you are the broker)
I've put together dozens of partnerships. Above are a few easy examples.
