Question on KP Equity Splits - Louisville 10-Unit (Stock Yards Debt)

[Patrick Lismon]

Hey everyone,

I have a stabilized 10-unit under contract in Louisville. I’ve secured financing with Stock Yards Bank (Term sheet in hand, 6.75% fixed).

I am bringing in a Key Principal (KP) to sign on the loan to satisfy the balance sheet requirements, but I want to make sure I offer a fair split.

The Question: For a standard KP who is only signing on the debt (no operational work), what kind of GP equity or fee are you seeing in this market? Is 10-20% standard, or is that too high/low?*

Thanks for the help.