Reno loans are risky enough to the lender; they need the buyer to have some skin in the game.To be honest, it sounds like you're having analysis-paralysis.

For a syndicator with no experience and hardly any skin in the game, I personally would not invest with that sort of split. 70/30 is steep enough but then I lose all upside during refi?

In addition if you hold the property longer than 7 or 8 years, big cap ex stuff will start to surface.  

Keep in mind most HML will want to see a track record, etc or have you put more skin in the game. 

Let's use 2%- All profit after that point is split as equity between investors and management. 70% investors / 30% management for this example, but it depends on your skin in the game.So how you word it to your investors: The investors will get a minimum preferred rate of return of 8% per year.

I will probably eventually grow myself into doing it how @James Triano recommends.More than one way to successfully skin this cat, that's for sure.

I don't really have any plans of doing this out having some skin in the game.  

If you want a bid that is skin and bones, expect changes, if we feel like you as a client don't know what you're doing, or will likely change your mind and don't want to pay it, I for one will give a healthy bid to cover my unforeseen expenses and I don't want to deal with the headache of a change order, throw in the cushion and pray that it will be enough to absorb client's needs, especially if they don't know what entails a change.

@MelvinTo be honest that is still TBD, but on the surface it's looking as if it will be a little of both.

@Brenda B.On the surface, it looks okay.