Hello BP! Have theoretical questions. I'm oversimplifying a LOT here just for the sake of questions, and I'm curious to know how other people view this. • If we broke down the GP into two roles - fundraiser & asset mgr. How would you weight them? (50/50, 40/60, etc.) • What is a good split? • What would be the minimum split you'd take? Thank you in advance for any/all perspectives. -TB

@Tommy Brant you also need to add deal sourcing (finder) and loan sponsor into the mix. The percentages definitely vary for each deal and are negotiated accordingly. I have seen allocations such as this: Loan Sponsor 12.5% Deal Sourcing 12.5% Capital raise 50.0% Manage deal 25.0% Allocated Ownership Percentage 100.0%

@Tommy Brant This post might help: https://www.biggerpockets.com/... Maybe this one too: https://www.biggerpockets.com/... You need to separate what is investment and what is a job... I hope the references make sense. Good luck.

IMO, the deal finder is the linchpin / rainmaker.

I get that, @Justin G. I didn't want to overcomplicate the question with a small army of different roles in this example, ha

@Tommy Brant With the limited information, it will depend on who is doing what and what everyone will agree on.

It's hard to break it up into two roles because this doesn't take into account the percentages given to those who found the deal, underwrite it, guarantee the loan (KP), etc.

Thank you @David M. for the resources. I will check them out! Cheers,

Thank you for your input, @Brian Adams! I appreciate you taking the time to provide the breakdown. I like to see how you value the different "lanes" of a syndication deal

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Updated almost 4 years ago on 06/27/2021. Most recent reply

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Tommy BrantPoster

Investor
Nashville, TN

Multi-Family and Apartment Investing

What is a typical split within GP?

Tommy BrantPoster

Investor
Nashville, TN

Posted June 26, 2021 15:27

Hello BP!

Have theoretical questions. I'm oversimplifying a LOT here just for the sake of questions, and I'm curious to know how other people view this.

If we broke down the GP into two roles - fundraiser & asset mgr. How would you weight them? (50/50, 40/60, etc.)
What is a good split?
What would be the minimum split you'd take?

What is a typical split within GP?

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