Standard Rates for Capital Raisers

[Shafi Noss]

Hi everyone,

I've found several investors interested in apartment communities, about 720k worth. I've been talking with syndicators who offer GP membership in exchange for bringing some of the investment capital.

One person I've spoken with gave these stats

-2.2MM Raise

-20% GP reserved for capital raisers

-120k acquisition fee

-10% equity for GP

So, 100k raised is 1% of the GP

The deal will be cashflow-poor so most of the profit will be from acquisition fee and the sale, maybe an 8 year hold.

I basically trust these guys to be competent and honest, but I'm interested in what other people think. Is there anything else I should be thinking about?