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Updated almost 5 years ago,
Equity as acquisition fee
I am hoping to get some guidance from other investors. I am about to close on my first duplex, I will be co-signing with my dad. However, I have two other investors going in on the deal with me as well. I found the deal, performed due diligence, and done all other sweat work. I am charging a flat, small, aquisition fee to the other investors just for my time. I feel like I can’t charge much because it’s my first deal I have put together. I just ran into another deal that is slightly larger and again will be bringing other investors in as well. My question, is it common, heard of, or fair to take equity in the property as an acquisition fee? How would I structure it? Any feedback is greatly appreciated.