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Updated almost 5 years ago,

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122
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11
Votes

Syndication Entity Structure?

Bellman Tumasang
Posted

Let’s say a real estate private equity firm like Cardone Capital, MLG Capital etc sets up their deals like this:

8% preferred return, 1% acquisition fee, 1% asset management fee on revenues,1% disposition fee and a 70/30 profit split. Money is shared with investors and the management firm ( Cardone Capital, MLG Capital etc ) of the money paid to the management firm how is it split with sponsors and employees is it based on time worked, due diligence, who’s managing the deal etc?

Could someone please tag experts who have companies like this and can tell me how they structure things please as it would be a huge learning curve for me.

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