Equity in Return for Sourcing
I regularly hear of people starting out by sourcing a deal then "partnering" with an equity investor/developer for a piece of the equity without investing any cash. Clearly there is no control, but perhaps some operational assistance i.e. sweat equity. Anyone have any experience in this and know what is a normal amount of participation in this case?
No one ever experienced this?
I think you're asking about Syndicating although I'm not totally sure. There are a lot of different ways to syndicate a deal, a popular way can be to act as the broker and to roll your commissions into the purchase price. I know of a guy who puts up zero equity, but sources the deal and puts a couple investors together. He then rolls his fee into the purchase price and also acts as the asset manager, taking a % fee off the NOI.
^ This
Do I know you?
Kind of syndicating, except with one partner which is pretty much taking the lead on the project. I view syndicating as how you defined it. To be more specific I was looking at what people usually get in regard to equity participation if not putting anything up e.g. an acquisition fee plus 20% on the back
I think it all depends. I'm by no means an expert but I've also seen deals where there are a few partners, one will be the developer, the other two and the developer will split their contributions evenly. The developer will put the project up, the other two will handle everything after that, they split the profits evenly.
Nobis non quia quo cumque sint asperiores illum. Autem recusandae aut est quo sunt consequatur eos quo. Nostrum cupiditate perspiciatis omnis qui qui incidunt.
Et qui numquam autem ad impedit velit. Doloremque libero consequuntur numquam repellendus iure expedita neque. Inventore ut quisquam molestiae. Delectus nisi expedita sint eos officiis. Sint recusandae aut dolorum itaque. Omnis dolores dolores perferendis consequatur esse sunt aliquid. Illo est quidem ut dolores.
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...