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Updated over 6 years ago, 04/10/2018
What is a realistic share for managing a deal?
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?
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
@Chris Seveney any documents would be helpful. Thank you.