CalculateRealEstateROI

Portfolio Building

How should partners split equity on a deal?

Capital partner: 65–80% equity. Operating partner: 20–35% equity + GP economics.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Capital partner: 65–80% equity. Operating partner: 20–35% equity + GP economics.

Expanded explanation

Operating partner's value compounds over hold; structure incentivizes performance via promote on profits beyond pref.

Examples

  • 70/30 capital/operator + 20% promote past 8% pref.

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