The Commit to Wealth Podcast - Creating Generational Wealth through Real Estate Investing

CTW 099: How Much Skin Should Sponsors Have in a Deal?


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As a sponsor what is the minimum amount you should have in a deal? Does it depend on the minimum invest amount set for passives? Does it depend on your financial means? 

The short answer to that should be: Sponsors should invest an amount equal to or greater than the minimum amount of a deal. So if the minimum amount is $50k for passive investors, the general partners (or sponsors) should also invest $50k each (at a minimum) to fully align themselves with the passive investors. 

In most deals there is an acquisition fee, in which case sponsors should look to recycle that capital into the deals they are putting together. 

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The Commit to Wealth Podcast - Creating Generational Wealth through Real Estate InvestingBy Juan Vargas / Multifamily Real Estate Investing / Apartment Investing / Rea