Thomas Costello explains asset management fees in real estate syndications, which typically run 1–3% of gross rents and cover rehab management, refinances, and disposition. These fees keep the management team paid and the lights on.
Thomas Costello
1–3% of the gross rents collected
therealestatecpa.com
Hi everybody. Thomas Costello here for the Realestate cpa. And today we're going to discuss asset management fees. If you don't remember, syndications is a big thing on my list. I've been investing in syndications for years and even participated in a syndication myself as a general partner. Whenever the general partners put together a deal, they will receive an asset management fee for managing the asset throughout the time of ownership. This fee can range from anywhere from 1 to 3% of the gross rents collected. The way you want to look at an asset management fee, it helps keep the lights on. It's meant to compensate the management team for managing the rehab process, managing any refinances, and the ultimate disposition of the asset itself. If you're interested in learning more about asset management fees and how they can apply to your business, head on over to therealestatecpa.com and we're happy to help you sort that out.
