Seeking descriptions of your firm’s asset management pricing structure
Working with a very small team on some NNN deals for out-of-state buyers ranging anywhere from 1-15M in the 5-8 cap range. The firm’s founder has a background in property management and development but not so much the finance or investment aspects. He has been marketing our total AM fees as 1% transaction, 3% gross revenue annually. With just some incredibly quick math of (1%)(30%) vs (3%)(5%) we’d be way better doing 1% of managed capital. My boss is always willing to accept changes as long as I can back them up with a proposal behind it. With that context, I’m looking for information on what other firms tend to charge - 2&amp;20? 1&amp;15? Additional 0.2% for administration? No profit sharing in exchange for a higher base fee? Hit me with it :)
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