Updated almost 5 years ago on . Most recent reply
Manager equity split
Hi all!
I’m working on my first real estate deal with a partner and investors on a multi unit. My partner and I are trying to figure out a fair equity split.
Here’s how it goes: I put up down full down payment 220k. Investors (members) put in 200k. I get 100k back (selling off a portion of my equity to an investor) After the investors get paid back their investments including my 120k, then the managers get 25% of equity.
Of that 25% of manager equity, how much should be allocated to my sweat equity partner when I’m taking on all the risk initially acquiring the property?
They saw the property with me, ran the numbers, gathered investors, oversaw the inspections and escrow. They’ll be in charge of renovation (150-200k 6months), refinance, admin, and work associated with selling and future rehab/repairs.
Any recommendations for LLC and real estate partnerships would be greatly appreciated!
Mahalo!