I understand that with holding partnerships, it's standard to split everything (cashflow, refi bonus, future profit, depreciation) 50-50 between deal coordinator and 100% money partner.
But suppose the deal coordinator wants to outsource property management... should that come out of his 50% of cashflow or should it come out of Gross Income?
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I really think it depends on whether you offer a preferred rate of return to your capital partner and how your waterfall structure is setup. If there is a preferred return then you should be able to hire a property management firm and charge that to the asset level.
It's the deal coordinators responsibility; If the deal coordinator wants to outsource his duties then it should come out of his share of the profits, otherwise the money partner can do it by himself and hire a management company for cheaper than 50%.