Wayne Courreges IIIManaging Principal, CREI Partners, CREI Partners, CREI Partners, LLC · Disciplined Passive Real Estate. Transparent Leadership.

PPM in Real Estate Syndication Investing, Part 7 Executive Fees

Name: PPM in Real Estate Syndication Investing, Part 7 Executive Fees
Uploaded: 2023-08-02T00:02:02+00:00
Duration: 53 s
Channel: Wayne Courreges III
Description: This content was created by Wayne Courreges III, CPM®. This content was uploaded by Wayne Courreges III, CPM®. This is a YouTube video segment titled…

2 Aug 2023 · 1 min

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This content was created by Wayne Courreges III, CPM®. This content was uploaded by Wayne Courreges III, CPM®. This is a YouTube video segment titled "PPM in Real Estate Syndication Investing, Part 7 Executive Fees" (created 2023-08-02). The excerpt is a spoken explanation—likely from an attorney or industry presenter—about how preferred returns relate to expenses, what executive fees are, and how to evaluate them against your risk tolerance. It notes typical asset management fee ranges (commonly 1–4%, often ~2–3%) and mentions acquisition fees are often in a similar range.

Questions this video answers

Executive fees are expenses paid to the executive team before the preferred return (prep payment) is paid.

Typically about 1% to 4% of gross receipts; commonly around 2%–3%.

Acquisition fees are often in a similar range as asset management fees.

Chapters

Well, with a preferred return. Again, that's after all expenses are paid. So executive fees are expenses that are paid to the executive team in some form before you get your prep payment. So you want to look at those and see one do they fit your risk satisfaction or your risk tolerance? And do you personally think they're reasonable for an investment that you would make? It's very typical to have asset management fees that are anywhere from about usually see 1 to maybe 4% of the gross receipts. Typically it's again, it's market based, so different areas had different ones, but I typically see more about a 2 or 3% is what I usually see. Again, I'm just one attorney, so don't take that as the law or the standard, but that's what I typically see. You'll also see acquisition fees kind of in the same range as the asset management fee as well.