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Updated over 5 years ago,
Typical Sponsor or GP Fee and example structures.
Hello All,
What are some typical Sponsor or GP Fee structure, how is it broken down, and what are some example structures? Just trying to get an idea of what to look for and whats fair. I realize they obviously bring a value and deserve a fee, just trying to wrap my head around what is the going rate? Is it a flat $ amount fee or a percentage typically? Also does this differ between MF syndication deals in the 50-200 unit range vs self storage vs Mobile home? in addition, over what period of time should the sponsor fee be given out? How do these fees effect the LP preferred return?
Thank as always, just trying to fill in knowledge gaps.
Duke