Christian Osgood defends a $36,000 assignment fee on a real estate deal, arguing it's standard compensation for raising capital and assembling the transaction. The deal is projected to return $2 million total to all partners.
Chapters
The deal is projected to make all partners a total of $2 million. Do you think anyone had any problem with me getting paid $36,000? The answer is no. The assignment fee— because we do a deal, you can get paid for all the work that you do to put it together. The order is deal, debt, equity. Now that we're raising capital, there should be a fee for the amount of work that I put in that no one else had to do in the deal. Now, your equity partners, You're showing them their return and say, you're going to invest in this deal. Here's how your money's safe and here's how we're going to grow your money. And one of the fees to close is the assignment fee from myself to our joint LLC. Usually it's 1 to 2% of the price of the building, but on some of these transactions that can still add up to a significant amount of money. The deal is projected to make all partners a total of $2 million. Do you think anyone had any problem with me getting paid $36,000? The answer is no.