Wage and hour, payroll, sales tax, etc.

Not the pitch a sophisticated agent would use but 90% of the agents out there aren't sophisticated.

Often this is 1% - 2% of the asset.3) Promote: Many sophisticated operators will pay their investors a "preferred return", and then once the preferred return is hit, then there will be a pro-rata split of the remaining funds. 

I have never seen management fees broken out any further, but these are the items you are paying for.You then have another line item for payroll.  

You want to work with a sophisticated operator, I would encourage you to define your marketplace, identify a turnkey operator and visit their facility, meet the staff see the process.

Do not look to pay nothing for your contractor as a sophisticated contractor is worth every dollar, they will close you the fastest and they will be able to actually deliver the job in a timely manner.  

Under rule 506(b) of Reg D, for instance, you can only market your deals to accredited investors (and some sophisticated investors) that you have a pre-existing relationship with, where as under 506(c) you can go ahead and publicly advertise your investment opportunity to accredited investors.

Since federal laws have been enacted to protect these types of sellers, the risk of having some issue or complaint has increased to a point where it requires a more sophisticated and guarded approach in dealing with with these matters, newbies just can't go there.

Payroll fuel materials ect.

However, we are on BP and it is assumed we are more financially sophisticated.