Investment deal structure

Hey guys,

I had a quick question for you. I am thinking about investing in a real estate fund with my friend. The fund has a minimum cheque size of $50k, which we plan on each putting half into ($25k my friend, $25k me). Since it can only be under one entity, our current thinking is to:

  1. Do a handshake deal where I give him the money and he puts in $50k under his name and we share profits / losses
  2. Put together a legal structure to do this

On 2), while I think this is the safer option, I am not sure how difficult this will be. How much will it cost? What are the options (LLC vs corp) and which is best? Would love to see what the group thinks. Also if there are any software solutions you would recommend, I am all ears.


Arash Param

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (1)

Nov 15, 2021 - 6:55am

Ad ratione magnam dolores quo. Et corporis dolorum dicta minima eos corrupti nemo. Ipsam hic minus dolorum ullam sit. Sed facilis illo incidunt.

Eum exercitationem cupiditate voluptatem quia officia. Ducimus enim ab aperiam ratione. Et qui sed ut qui fugiat.

Quisquam doloremque ut corrupti animi nostrum tempore illum. Ipsam inventore odio provident voluptatem molestiae sequi corporis culpa. Ipsam omnis tempore qui sed nihil voluptatem.

Rem est cumque optio laboriosam. Magnam id repellendus distinctio quos. Assumenda aperiam ut vitae.

Start Discussion

Total Avg Compensation

November 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (40) $360
  • Associates (236) $235
  • 2nd Year Analyst (145) $156
  • 3rd+ Year Analyst (34) $154
  • Intern/Summer Associate (107) $146
  • 1st Year Analyst (514) $136
  • Intern/Summer Analyst (394) $84