1 / 6

Private Money Syndicator: Responsibilities, Fees, and Compensation Strategy

Learn about a Private Money Syndicator's roles in property investment, compensation breakdown, and analysis of short and long-term investments. Discover fee structures, equity participation, and financial implications for syndicators and investors.

martinkimberly
Download Presentation

Private Money Syndicator: Responsibilities, Fees, and Compensation Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Private Money Facilitator (or Syndicator) Fees and Responsibilities

  2. Syndicator Responsibilities • Finding Properties • Analyzing Deals • Supervising Construction (if needed) • Selling or Securing Long Term Financing • Managing the Syndication Groups

  3. Syndicator Compensation • Consulting/Acquisition Fees • 1% to 5% or/and flat fee • Brokerage Fees (if licensed) • Asset Management Fees • 3% of Gross Revenues or Asset Cost • Maintenance & Construction Fees • Percentage of Profit on Sale or Disposition • 8% to 12% goes to Investor • 10% to 50% of Equity goes to Syndicator

  4. Example – Short Term Investment Property bought on Courthouse Steps – hold time 6 months Purchase Price $100,000 Rehab Cost $ 30,000 Final Selling Price $175,000 Acquisition $1,000 + 2% or $2,000 Asset Management Fees 3% of asset cost or $3,900 Construction Co. Fee $5,000 Brokerage Fee (if licensed) 3% of sale price or $5,250 Equity Participation Fee • Investor receives 10% or $13,000 • Syndicator receives 28% of Equity

  5. Breakdown – Short Term Investment Final Selling Price $175,000 Less: Purchase + Rehab $130,000 Interest to Investor @10%$13,000 a year Brokerage Fees $10,500 (6% of SP) Asset Mngt. Fee $3,900 Acquisition Fee $3,000 Miscell (Ins., Title, etc.) $2,000 NET to Syndicator $12,600 or 28% of Equity

  6. Example – Long Term Investment Purchase Price $100,000 Rehab Cost $ 30,000 Final Selling Price $175,000 Acquisition $1,000 + 2% or $2,000 Asset Management Fees 3% of asset cost or $3,900 Property Management Fee 10% of Collected Rents $150 Leasing Fees for Vacancy Remainder goes to Lender after Expenses Monthly or Quarterly Construction Co. Fee $5,000 Brokerage Fee (if licensed) 3% of sale price or $5,250 Equity Participation Fee • Investor and Syndicator split the end proceeds from sale 50/50

More Related