CLOSING FEES AND MANAGEMENT FEES ON A $5.8MM DEAL
I have a deal under LOI at a $5.8MM purchase price. I am trying to determine a reasonable closing fee and ongoing annual management fee for this size deal. My research indicates a very wide range, so I wanted to see if I could get some capital providers to provide me some insight as to what would make you feel comfortable and aligned when funding a sponsor. I will be going to investors I know, most of whom are in the commercial real estate space or oil and gas. I want to balance making sure that the investors FEEL GOOD about our alignment while also making sure I make enough money to support my family needs.
Thanks so much for your input.