Originally posted by @Ian Ippolito:
@Jayman Petel, yes BREIT can have very high fees if you purchase certain share classes. On the other hand if you already are a member of an alternative investment platform through Fidelity or Schwab etc. they often will give you access to lower fee share classes.
Also, the I-class (institutional) shares have the very lowest fees. True: typically they require a $1 million minimum, but there are other ways to access it. For example, I know of a broker who charges a modest fee of around 1% per year to access at only $25k minimum. If you’re interested, private message me and I will give you their contact info.
Appreciate the offer. However, for me personally, there are too many numbers to crunch with BREIT. No doubt they seem to have an impressive management structure and a further impressive set of investments. The 1% per year, for I-class shares, does not appear to be the only fee associated with BREIT. They also seem to have the following which don't appear to be optional fees and may not have a workaround.
ADVISOR FEES
Management fee: 1.25% per annum of NAV, payable monthly
Performance participation allocation:
12.5% of the annual total return, subject to a 5% annual hurdle amount and a high water mark (Granted that it may not be 12.5% every year due to the 5% annual hurdle but this still seems high to me.)
Thank you
