What is a realistic share for managing a deal?

What is a realistic share for managing a deal?

Software Engineer · Austin, TX · Member since 2008 · 12 posts · 0 votes

Hello all,

I am wondering what a reasonable fee is for managing a deal for other investors.  I am interested in buying a property to hold and rent out.  So let's say I get a single investor who pays cash for a property.  But I find the property, do all the legwork, manage the entire process. They just write a check and wait for a return.  Once the property is rented, I simply cut two checks each month, one for his/her share and one for me. So what percentage would be reasonable to keep myself?

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  • Chris SeveneyBusiness Member
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    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    8y
    Braxton Beyer in many of these scenarios you need to run an analysis of what each parties Yield will be. Working for a developer and having done many deals where we operate and manage and have investors the deal is typically a water fall where. The investor gets a preferred return then as it goes higher more goes into your pocket I have a spreadsheet I can send you
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  • Software Engineer · Austin, TX · Member since 2008 · 12 posts · 0 votes
    8y

    @Chris Seveney any documents would be helpful.  Thank you.

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