Structuring Investor Returns on Short Term Basic MF CRE deals

[Shane Crockett]

I'm looking at a short term (2-3 year hold) MF (6 unit) deal and hoping to keep the investment logistics simple. I've already created an LLC, will be putting up some of my own money, and ultimately just asking my close friends and family to passively invest in the deal.

In this scenario should I be using flat ARR and equity or get into a preferred return structure for GPs and LPs? My goal is to keep it simple for them while still providing competitive ROI based on a well run deal that hits desired performance goals within the stated timeframe.