Apartment Syndication Fees

[Eric D.]

Hi Everyone,

I have a few residential rentals both in my area (Boston) and Cleveland, OH and wanted to expand a little into a commercial deal in my local market (6-10 units, purchase price $2.5-4.0M).

I'd syndicate 70% of the deal to friends, family, and colleagues but wanted to know if my fees are reasonable for a first time syndication.

I'm thinking 3% acquisition fee, 80/20 equity split above a 8% preferred return and somewhere between a 1-2% annual management fee. No other fees. How does that sound?