All Forum Posts by: Josh Cochran

What do you think of these fees, fair or a little over-the-top?

- Acquisition Fee - 1% of Purchase Price

- Asset Set up Fee - $8,500 total

- Asset Management Fee - 3% of income

- Disposition Fee - 5% of difference b/n purchase price and eventual sales price

- Mortgage Guarantee Fee - 1% of amount guaranteed

- Financial Services Fee - 5% of capital contribution of each limited partner

- 65/35 Split: After investment repaid

Thank you in advance!!

@Sam Grooms

Sam, I'm newer to this and don't know the difference between what I read and reality.  

Personally, do you think their fees in this deal are fair?

Thank you Sam Grooms!  I appreciate your candid, abundance mindset about a competitor.

They have a new offering as of 2/27/2019

What do you know about them?

Have you invested with them in the past?   What was your experience?

Thanks in advance.

@Dave Foster Dave, you are the man. Detailed and yet concise!

Do you, or someone you recommend, set up a "TICs with a strong management agreement and managing entity" ?

I am in WA state.

I’ve heard that both of the following will work:

- TICs - Tenants in Common

- DSTs - Delaware Statutory Trust

However I’m new to this...

What is a win/win/win model look like?

Tenant-Owner

+Pros

- lowers risk

- motivated broker and builder

+Cons

- sharing rent $ with broker and builder

+ Questions

- Should this person get a 5% equity bonus as anchor tenant?

- Should this person pay reduced rent rates?

Broker

+Pro’s

- gets land commission

- gets commissions on leasing vacant suites

- gets built in rents from owner-tenant

+Question

- Commission rates for broker at full fee for land purchase and leasing? Or discounted? If so, what’s a popular number?

Builder

+Pro’s

- Gets project with full 7-8% fee

- gets built in rents from owner-tenant

+Question

- Fee for builder at full fee, or reduced discounted?

- Or, is fee taken as equity in the project? If so, is there a tax benefit there?

Thanks!!

How does one set up a real estate partnership so if that partnership eventually sells, each member can 1031 exchange their individual share at a future sale?

(It is my understanding that typically partners cannot 1031 exchange into new individual investments, they could only 1031 together into a new investment)

Thanks in advance!