Raising money for a large multi unit deal

[Anthony Kondor]

I’m raising money for a large apartment deal and I’m part of a real estate community (Reia) And a guy from there would like to help me raise money to do large apartment deals. This involves meeting people via lunch or dinner. What’s a good rule of thumb to offer someone that’s raising capital? Do they have to become a GP? Is there a certain percentage or rule of thumb on how much equity you should give them ?

[Theo Hicks]

You need to bring him onto the GP. If all he is doing is raising money, anywhere from 15% to 40% of the GP is fair, depending on how much you are bringing to the table in regard to experience and expertise.