All Forum Posts by: Kurt V.

Hi all! First time posting on bigger pockets but have followed the podcasts for a long time and always come here to learn. 

Myself and a partner are interested in purchasing a value-add apartment building(8-14 units). neither of us has experience in multi-family but I have owned single-family homes and have a business and construction background. In this deal, I will be doing the Renos on one unit myself and then will be hiring and managing a contractor to do the other units. All capital contributions will be split equally; downpayment, lender fee, construction costs etc.... 

All that said I don't think it's fair to split the profit 50-50. I am able to fully fund and qualify for lending myself but because this is my first multi-family I don't want to take on the full risk. A couple of things I have considered is a finders fee of 1% and a sponsor fee on cash flows and on the sale/refinance of 25%. So if we make 100k I take the first 25k and the rest is split 50-50. 

Would love to get any feedback or suggestions on this type of deal. This deal is in Canada and will be done through a corporation. 

Thanks! Kurt