How to pay myself in a MF deal?

[Daniel J.]

If this has been well answered elsewhere please point me there, I couldn’t find it.

If I’m look at small mf deals that require more than one additional partner, so in my area more than $500,000 per say. These would be 10 or more units. I suppose the same principle ultimately applies to any size though. I would be self managing. 

Would you account in a management cost that would pay to you plus than the true profit percentage split on the back end, or would you design it somehow else?

For example: I account in 9% as a management fee total for both lease ups and everyday mgnt. Then as well  my 2 other cash partners and I agree to a 3 way split of all profits. Is that how it’s typcially structured?

I do understand you can structure it anyway you want to, but a typical well balanced approach is what I’m looking for. I’m trying to figure out analyzing the next size of property.

Thanks!