Real Estate Profit Split - Friends and Family - LT Hold

MastersinCRE's picture
Rank: Monkey | 63

Say you have the benefit of having rich friends and you'd like to acquire, as the GP, multifamily real estate with the intention of holding in perpetuity. That is, never sell.

What is a fair and equitable profit split for such a transaction that would allow for majority ownership by the GP after some hurdles are achieved?

I have a few in mind, but would love to get any input based on what you may have seen / done in your careers.