In this episode, I dive into a topic that many active multifamily investors struggle with - how to structure partnerships when working with just one large LP or money partner. I share a simple partnership structure that can help you navigate this process effectively. Please note that while I provide conceptual advice, it's important to consult with an attorney to ensure compliance with legal requirements.

Throughout the episode, I walk you through a hypothetical situation, explaining how I personally approach and have successfully implemented this structure in our business. I cover important aspects such as operating agreements, preferred returns, splits, and overall value creation.

In this episode we discuss:

• How can investors compensate their money partner with a preferred return and profit split?
• What are the considerations when structuring the deal to meet bank requirements and SEC compliance?
• How can investors navigate the equity threshold with the bank when bringing in a big investor?
• What are the benefits of using a preferred return and profit split structure in communicating with investors?
• How can investors start putting together joint ventures and partnerships with this structure?

Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.

Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.

Connect with Axel:

Follow him on Instagram
Connect with him on LinkedIn
Subscribe to our YouTube channel
Learn more about Aligned Real Estate Partners