One of the more frequently asked questions I get from new sponsors undertaking their first real estate fund or syndicating their first real estate deal is how does a sponsor make money?
I have been studying these deals for years and have compiled a short guide to help you understand the various fees that experienced real estate sponsors make money on. Below, I list examples of fees that real estate sponsors typically charge. Those include both fees that the sponsor charges for services performed and fees earned by a sponsor that are tied to the fund’s performance.
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