I’m a first year associate at a small MultiFamily PERE shop. I was told I could raise capital for deals, but how could I leverage this for compensation (without being unethical)?
Raise capital from family and friends and take a small percentage off return?
Ex. Raise $1M -Instead of 8% pref, offer 7.5% pref (take the .5%) -On the 30/70 split offer 25/75 split? (Take the 5% or some type of haircut)?
Any creative/ethical ways I can leverage raising capital in a junior position?
| +41 | What Is Your Backup Plan? | 17 | 5h |
| +38 | Where are free agents signing? | 19 | 14h |
| +32 | Future of Real Estate | 9 | 1h |
| +31 | Laughable Job Posting | 11 | 17h |
| +30 | AvalonBay Equity Residential Merger discussion | 12 | 1h |
| +16 | Extremely Slow Ramp Up | 1 | 1d |
| +14 | In RE, what is the ONE software tool you couldn’t survive without? | 5 | 1d |
| +10 | Dynex | 5 | 6h |
| +9 | Development Budget: use RENTABLE or GROSS BUILDABLE sf? | 3 | 3d |
| +6 | Heitman - Chicago | 7 | 3h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
standard way is create an LLC then make your own JV, within that JV.
Thoughts on how to structure it (returns/payouts/etc.)?
yeah, don't scalp your friends and family. Do Pari Passu until a capital event then promote yourself based on equity multiple. Makes the accounting super easy.
saved for later, great idea
Impedit aut dicta quia deserunt enim quia. Accusamus qui omnis laboriosam sit consequuntur quidem. Quis in sit officia accusantium. Architecto aperiam voluptatem eos temporibus recusandae asperiores. Quis ea quod porro hic et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...