- All syndications share some sort of promote fee, profit sharing and or waterfall fee structure. Fees are calculated based upon success and profitability.
- The sponsor/operator is incentivized to complete repairs and improvements at the best price
- Unit renovations and building improvements must add value to the property and appeal to tenants
- A syndicator makes the lion’s share of their fees upon the successful sale of the property, thereby keeping them focused on delivering great investment results
- The more money the syndicator makes, the more money goes to the investor
- A good syndicator will offer a fee structure whereby most fees are tied to profitability
- Loading up a deal with “garbage fees” only hurts the syndicator