I would definitively go for option 3. What? there is no option 3?
Then let's create option 3....
What if you get in a big or mid size deal where you put $10K and three other members put, let's say, $100K, $90K and $50K?
In that scenario you'd own $10K/$250K == 4% of the deal.
You could do a lot of the leg work using your knowledge, in order to increase your % of the deal.
But of course, you have to bring value to the table, as the other partners would be bringing the bigger bucks.
Say you do the research, find the property, and take care of managing the property or the PM running the show, and then you now own 10% of the deal instead of just the 4% of the contributions? If you have done things right your investors will definitively agree that you now are worth that extra 6% of the profits of the deal, don't you agree?
Take in consideration that this is just an hypothetical scenario, but I am 100% sure you can come up with a better one as you do have knowledge and are an INSIDERS for commercial real estate deals given your current job, am I wrong?
PS: I said two main approaches pertaining to the original question, given that you already have $200K. SeanS' scenario is a little bit different.
Then let's create option 3....
What if you get in a big or mid size deal where you put $10K and three other members put, let's say, $100K, $90K and $50K?
In that scenario you'd own $10K/$250K == 4% of the deal.
You could do a lot of the leg work using your knowledge, in order to increase your % of the deal.
But of course, you have to bring value to the table, as the other partners would be bringing the bigger bucks.
Say you do the research, find the property, and take care of managing the property or the PM running the show, and then you now own 10% of the deal instead of just the 4% of the contributions? If you have done things right your investors will definitively agree that you now are worth that extra 6% of the profits of the deal, don't you agree?
Take in consideration that this is just an hypothetical scenario, but I am 100% sure you can come up with a better one as you do have knowledge and are an INSIDERS for commercial real estate deals given your current job, am I wrong?
PS: I said two main approaches pertaining to the original question, given that you already have $200K. SeanS' scenario is a little bit different.
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