What are fair fees and hurdles/splits in your experience for small syndicated deals. Thinking about tying something up and raising money and don’t want to be too egregious. I know a multi guy in SE who gets 50 over a 6 with no GP investment required. A guy I know who just started his own firm reached out on a deal with an acq fee and debt origination fee that totaled 800k on a 70m deal, not to mention he wanted a juicy promote. Just curious if anyone (in the know) has a sense for this.
Pick and choose:
Acq fee
Debt origination and/or mgmt fee
Asset mgmt fee
Prop mgmt fee
Construction mgmt fee
Dispo fee
Leasing overrides
Promotes…
F&F= friends and family
A lot of the splits will depend on deal size. A small $2MM dollar deal might be 50% over a non cumulative non compounding 8% because the operator needs to keep the lights on and a small deal can’t pay the bills. A big deal just has more nominal dollars to pay out so it can be over an 8% IRR with an 80/20 split because you’ll just make so much more money as a nominal reference.
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