Investor Resources

When it comes to syndications, there's no one template for a structure. They range based on the deal and based on the operators or sponsors. We have read hundreds of subscription agreements to research how everything is done and realized there's no one set structure. 

Depending on the asset or fund the profit share split to the investors may be greater, less than, or equal to the managers or sponsorship group. There may be a preferred return paid or not, or the preferred return can accrue, and could be paid out when the property is sold. We've seen everything from 90%-10% to the investors or sponsor group all the way and probably swapped the other way if there's a ton of work to be done. 

With some assets and most development deals, there's no cash flow to be distributed. So, if there's a preferred return that accrues, there is probably a more favorable split to the sponsor for getting that development off the ground and leased up. For more straightforward deals it should be a more favorable split to the investor. However, as I said, there's no rule of thumb when we're talking about structures and syndications.