Partnership Financial Model

[Cory Brown]

Hey all!

Does anyone have a financial template that would model out the finances of property purchased through a partnership? I’m sure it varies for every deal, but a starting point would be great.

Some of the assumptions/questions I’m looking to answer are (in no particular order):

1. What is a suggested % ownership structure between the GP and LPs?

2. Should the LPs get a preferred interest or payout - about how much?

3. As a percentage of revenue, how much is reasonable for a GP management fee?

4. How much of a contingency should be kept on hand (% rule of thumb)

5. In case of an unexpected expense and a required cash infusion from the partners, any thoughts on how that is handled best?

Cheers - CB

[Taiwo Okusaga]

Hi Cory, 
Been reading a book on multifamily apartment syndication by joe fairless, that should give you answers to the above questions and future guidance you will need as a starting point, including the financial model templates.