ANYONE HAVE EXPERIENCE W/ FEE STRUCTURES FOR REAL ESTATE DEALS?
Hi - I'm trying to match up real estate deals with capital and already have the access to both. Types of deals are a mix of ground-up developments (total cost ranging from $160m to $365m) as well existing income producing properties in the core plus and value add category across industrial ( approx. $60m in total cost for multi asset industrial portfolio) and multifamily (ranging form $30m to $50m in total cost). Would anyone who has experience with institutional real estate investing be able to guide me on on the following questions:
Q1. What fee % (or fee range) typically would a GP pay to a external 3rd party who brings them a deal that they end up executing on in terms of both an upfront fee ($ terms or % range of say total cost) as well as what would be market terms and % for a back-ended promote or equity in the deal ?
Q2. On the capital side what is current market range of fee % of capital brought in which you can expect to charge a GP who has deals but lacks capital for connecting them with a capital source?
Q3. Is it possible to double dip where on the same deal as the middle-man connecting the capital with deals, you get paid from both sides (i.e. you get paid by the investor/capital provider for bringing them a deal, as well paid from the GP who has the deal for bringing them capital)?
4. What (if any) is the average or typical term/period of time one can hope to get through a contract where if you are introducing a investor to a deal source you protect yourself where post introduction the investor doesn't side step you and go to directly to the deal source going forward for future deals? This is obviously a negotiated process but wanted to get a sense of what if any were current/typical market terms are for something like this.
Any guidance on the above questions would be greatly appreciated, Thanks.