Setting up Partnership for a Portfolio buy

3 Replies

Hey folks

I just got an off market opportunity from my commercial realtor on a portfolio of 4 duplexes.  On the surface, it looks like a great buy.  I also have some potential partners who would like to join me on venture.  I am very familiar with the equity and cash flow splits on bigger properties (apartments). Anybody know how to set this up for this type of deal?    Thanks in advance.

Hey @DeWayne Allen - congrats on the opportunity. Are you partners going to be passive or active? If I were taking a stab at it, I would run it very similar to what you'd see in a larger property (as you mentioned). The 4 duplexes as a portfolio investment, pulling all four assets into one holding/operating company, and then distributing profits based on equity in this newly formed holding/operating LLC.