How to add equity classes to Cash Flow Portal. Quick Guide

How to add deal classes to Cash Flow Portal. Quick Guide

In this demo, we will answer a question that many of you asked: “How to add equity classes?”

Equity classes make up the deal entity, so before you add the classes, you need to add your deal and the deal entity to the portal. If you haven’t signed up yet, now you can try our syndication software completely free without a paywall or commitment till you close your first deal.

Real estate syndicate structures vary from one another. Before adding deal classes, perform your due diligence and review every detail of the offering document.

Step 1. Once you’ve added your deal to the portal together with the deal owner entity details, click on your deal.

Step 2. While on the Entities tab, click on the entity name, and you will be taken to a page with classes.

Step 3. Click on “Add equity class.”

Add-equity-class

Step 4. Then you can select equity class from the dropdown list. For example, Class A are limited partners, or, in other words, passive investors.

Select equity class name

Step 5. Enter target raise amount. For example, type in 50,000 USD and the ownership percentage. It is usually 80%. The preferred return can be 0% or 5%. For this demo, the preferred return doesn’t matter.

Step 6. Scroll down to add one more class. Select “Class B – general partners.” Class B are general partners, as well as syndicators or sponsors. The raise amount for sponsors is usually zero.

Note: Sponsors also make investments, but their shares are classified as Class A because they do all the work. 

Step 9. Type in the percentage of the ownership of the entity. So technically, in Class B, there is no investment, but there is 20% equity. The preferred return is 0%, and the minimum investment is 0 USD.

equity classes with amounts

Step 10. Now the ownership adds up to 100%, so click “save.” Now you’ve added the classes. Well done!

Don’t forget to check out our K1 filings demo to speed up your K1s.

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About The Author

Alexandra Kazakova

Alexandra is a Community Manager at Cash Flow Portal. She writes blog posts, demos, guides and shares tips and tricks for running a successful syndication business.

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