Fee For Pulling A Deal Together
My client is putting together an investment partnership w/ a few other investors to purchase $5 million in residential real estate buildings.
His question is what is a fair fee for him to charge the partnership ( he is also a 33% partner) for the time, effort to find the properties, perform due diligence, obtain financing ,etc. He is not the RE agent, so those commissions go elsewhere.
My initial thought was an overriding interest of 1-3%.
I think gvt. projects allow a 5% "developers fee" That seems about right to me.
Yeah, but he's not really a developer here. I think being a developer is a LOT more work (or maybe I'm just not efficient enough!)
I'd stick with the 1-3%. Well, OK, 3%.
=CT=