All Forum Posts by: Jason K.

@J Scott Thanks for throwing your hat in the ring. Investors would be pooled funds from myself and personal friends/colleagues of mine, all accredited investors who have talked to me in the past about getting them involved in passive real estate investments. I was thinking the developer and I would manage the PPM in the sense of revising & constantly revisiting the numbers, but ultimately I would be the ones communicating everything to the investors. In this case, it was my understanding that SEC guidelines would not come into play based on my relationship with the investors & their accredited status.

@Karen Margrave I'm a licensed broker, so I figured part of my contribution to the deal could be the sale, whether by myself or co-listing with a trusted friend. 

@Jeremy Hauben Finder's fee vs. equity - I guess it depends on whether it's worth rolling the dice & how bad you need the cash. I'm an optimist so for the most part I would want to have the equity.

Wow, thanks for the input everyone.

@John Blackman This is the current deal. Still in flux but I'll try to be as specific as i can to see how you guys would structure it. Potential partner is a Developer/GC, I have a pool of investors to draw from. This is based on a pro forma presented to me.

-------

He found the deal. He will manage construction as the GC (~16-18 mo project). Expects to be paid GC markup. 

I will raise 100% of the capital needed & manage investors. I will manage the sale.

We both will sign off on the construction loan.

-------

Investors get paid off (will underpromise & work very hard to overdeliver, great tip). Then with the remaining profit, is it fair to split 50/50 with my potential partner? Based on what you've said, he would have already cashed out some during the construction & didn't have to place any capital into the deal. I brought in the investment capital & executed the sale, but then again, he brought the deal & managed everything. At the end, would like find a place where both people feel like they got a good deal, win-win.

Again, unfamiliar with these development deal structures so appreciate all input, would love your input as well @John Carlo Gallo

@Joe Fairless Are you in a similar position & what kind of deal structures have you seen so far? 

Thanks so much everyone.

Hello,

Need help with structuring a partnership and thought I'd finally reach out to the amazing folks at BP for help.

I'm looking to partner with a developer who is looking for capital to fund some more projects. His role would be the finding of the deals & overseeing construction. My role would be to raise 100% of the capital and keep the investors happy. I can also manage the sale of the property. In this type of scenario, when it comes to the Developer-side profits, is it normally a 50/50 split between the developer and myself?  I know every deal can and should be different but if the roles were split like this cleanly, is this a reasonable way to structure the partnership? Thanks so much for listening.