#1 – It’s Not Just About the Legal Documents


There are a number of ways for real estate syndication sponsors to make money. First of all, if you are able to raise the minimum offering amount on your offering, a lot of your expenses are reimbursable. That includes costs to related to entity formation, hiring attorneys, legal fees, loan origination fees, closing costs, due diligence expenses, etc.

On top of that, there are other fees that you might be able to charge on top of your basic expenses. This includes an organization fee for finding the opportunity and bringing that opportunity to your investors; property management fees, etc.

If you have a real estate sales person or broker license or some other type of licensure that allows you to take a commission on the purchase or sale of the property, you could charge a commission when you actually sell of or dispose the property.