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Updated over 4 years ago on . Most recent reply

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Matt Porter
  • Investor
  • Honolulu
1
Votes |
5
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Distributing Equity When You Put No Money Down.

Matt Porter
  • Investor
  • Honolulu
Posted

Let's say I want to buy a 16 unit apartment building and have absolutely no money. It cost $3million and $300k is needed to put down. I partner with 3 other people and they each put $100k down. What's a common way distribute equity/cash flow between 1 person that does all the work and 3 people that pit up all the money? I know there is no right or wrong answer, but I'm looking for common ideas that people have gone with in the past and have been successful?

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1,221
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Jeffrey Donis
  • Investor
  • Durham, NC
690
Votes |
1,221
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Jeffrey Donis
  • Investor
  • Durham, NC
Replied

@Matt Porter This sounds similar to a syndication. Here's a link that explains it:

https://www.millionacres.com/real-estate-basics/investing-basics/what-real-estate-syndication/#:~:text=Real%20estate%20syndication%20(or%20property,they%20otherwise%20couldn't%20afford.&text=Your%20skills%2C%20abilities%2C%20wherewithal%2C,you're%20best%20suited%20for.

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