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Updated over 6 years ago, 04/10/2018

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12
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0
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Braxton Beyer
  • Software Engineer
  • Austin, TX
0
Votes |
12
Posts

What is a realistic share for managing a deal?

Braxton Beyer
  • Software Engineer
  • Austin, TX
Posted

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?

User Stats

17,158
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14,691
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Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
14,691
Votes |
17,158
Posts
Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
ModeratorReplied

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

  • Chris Seveney
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7e investments
5.0 stars
15 Reviews

User Stats

12
Posts
0
Votes
Braxton Beyer
  • Software Engineer
  • Austin, TX
0
Votes |
12
Posts
Braxton Beyer
  • Software Engineer
  • Austin, TX
Replied

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

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