A short YouTube monologue by Wayne Kiraj III (managing principal of CREI Partners) explaining common real-estate sponsor fee types (acquisition fee, asset management fee, and profit share), advocating for fee transparency and sponsor-investor alignment, and demonstrating how layered fees can materially reduce projected returns (example: 20% forecast lowered to 10%). The video closes by promoting a free passive investor coaching program at passiveinvestorcoaching.com.
Chapters
Do you examine the fine print to see how much of your money goes to fees? Good. You should hi, I'm Wayne Kiraj iii, managing principal of CREI Partners. Smart passive investors scrutinize the fee structure of any deal. They want to make sure fees are fair and in line with industry standards. Nobody minds paying a reasonable fee for good management and finding a great deal. That's the cost of doing business. But exorbitant or sneaky fees are a turn off. We keep our fees transparent and competitive, typically an acquisition fee to cover deal sourcing, an asset management fee for ongoing management, and a share of profits on the back end. There are no junk fees, period. Investors are looking for that clarity so they can calculate the true net returns. A deal forecast 20% annual return but has layers of fees. That's actually bringing it down to 10%. It's not really 20%, is it? We make sure the returns we project already account for our fees and we explain them up front. A fair fee structure where the sponsor isn't getting rich regardless of outcome, is part of our alignment. And passive investors seek that fairness. Want to ensure your money is working for you and not just lining someone's pockets. We agree wholeheartedly. Join our free passive investor coaching program@ passiveinvestorcoaching.com and learn how to evaluate deal fees so you always know you're getting a fair shake.