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Multi-Family and Apartment Investing

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Yonah Weiss
Pro Member
  • Cost Segregation Expert and Investor
  • Lakewood, NJ
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KP / Sponsor / Loan guarantor - what's the standard fee?

Yonah Weiss
Pro Member
  • Cost Segregation Expert and Investor
  • Lakewood, NJ
Posted Aug 13 2019, 14:57

Is there a standard fee or equity split structure for someone acting as a KP (Key Principle) /deal sponsor / loan-guarantor on a multi-family acquisition? Let's say all they do is co-sign the loan, without bringing any money or active experience in the management of the deal to the table.

The situation is a first time buyer, who has a 10+ years as a broker and property manager, but does not have first hand experience in acquiring multifamily.

@Joe Fairless @Ellie Perlman @Brian Burke @Mike Dymski

*Asked this earlier on a couple FB groups, and got some great answers from @Todd Dexheimer @Dan Handford @Lennon Lee
and others, just looking to see if the BP community has any more input.

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