Be Careful who you Marry!
Deal Structuring with Partnerships
Need a financial partner, but don’t want to give away your first born? Wondering how much you should expect if you are the money partner? And when you figure out the basic numbers, how do you best structure the deal?
“Win-Win” terminology comes to mind. A deal has to work for all the partners, and risk taken into consideration when structuring the roles and compensation. Peter McLaughlin is an experienced developer in Boston, working with both residential and commercial properties, condominiums and rentals. He wishes someone had helped him figure out the partnership structures and compensation when he was starting out, and is going to show us what has worked for him, with alternative ideas for varying scenarios.
You will hear:
• How much you should receive If you are the developer, (or redeveloper) with no money in the project
• What percentage of equity the financial partners should receive
• Should the developer manage the construction as GC, or hire one?
• When to give a bird dog a percentage of the deal
• What to do when the hard money lender wants a piece of the deal
• If your GC is simply a contractor, or an equity partner
Peter has completed well over $25 million in real estate transactions and is sharing some of the techniques that have worked for him as he built his business.