We want to make clear that all fees are separate from the return projections. These fees will have no impact on the return projects you will see in any of our deal decks; the LPs are not paying any fees “out of pocket.”
We make our money in our deals in three ways:
- Acquisition Fee (1-3% of purchase price). Paid at close and covers all costs associated with finding and putting the property under contract
- Asset Management Fee (1-3% of monthly revenues). Paid monthly and covers costs associated with executing the business plan, overseeing the property management company and construction management companies, identifying and implementing value-add strategies, improving operational efficiencies, etc.
- Equity Split (70/30 for LP/GP).