Updated almost 4 years ago on . Most recent reply
Structuring a Partnership
Am looking for some input on what are good terms for a partnership.
I have a deal that I am presenting to a potential partner.
Its to purchase a commercial building and lease it out to a long-term tenant. The numbers look good. The only thing. I can not come up with the 20% downpayment for this building (priced at 359K--so downpayment is $71,800). The rest would be financed.
Based on my calculations...IRR of 48% per year; 15yr holding period.
Now since I am the source for this deal and will take all the steps from negotiating purchase price etc; bidding to lease the space, negotiate terms of the lease, oversee the tenant improvements etc.
So the main thing the partner is contributing is the capital for down payment.
Whats a reasonable partnership split for such a deal?