THIS is How Much Money Sponsors Put Into Their Own Deals

how much should a sponsor put in their own money? I think if you ask a lot of investors, certainly seasoned investors, they want to see skin in the game. So it’s more of a market-driven thing as opposed to a legal-driven thing. Obviously we do hundreds of these. And so we see what people are putting in and it’s not a crazy amount. I mean, most people that are raising a couple million bucks are putting $50,000 in. It’s not like they’re putting in 200 or 300, or a third of the money or anything. But it’s not a requirement. It’s just market-driven. But again, I would disclose it though. I mean, if you’re going to put in the documents that we’re contributing, I would put in, hey, sponsor’s contributing 50 grand. And then if you say that, then definitely don’t put less.

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