GP/LP Investor Structure

We are looking to put together a fund for investors… family and friends to begin… this is not a pitch. If anyone has done this, how have you structured the waterfall splits? And have you incorporated an annual, semi or quarterly distribution? These are park owned homes in great areas with near 0 vacancy.

Thanks to anyone that replies!

I would suggest first engaging a securities attorney and perhaps asking what he or she commonly sees for funds. I think it really depends on a variety of factors (skin in the game, track record, experience, etc).

Have done a few JV and syndication deals with waterfall provisions.

Lots of good options depending on the project and the situation. Happy to share ideas if you would like to get in touch.

Preferred return of 9/10/11 yrs 1, 2, 3+ with 50/50 backend LP/GP split. GP collects 2% acquisition fee, 1% financing fee, .5% guaranty fee, 1% disposition fee, 1% asset mgmt fee. We also have a related entity that manages the properties. Our pref is higher than most others we see but we have a large pool of people who have invested with us for a while and this is what they’re used to.

Cott Law out of atlanta is your guy for ppm, legal docs, entity formation, etc. He’s a small shop but extremely well known in the alt space. Can recommend fund administrators and auditors as well. Would highly recommend both for maximal CYA. Also saves you a ton of work on the administrator side.