Deal Structure
Simple. Consistent. Predictable.
Our Structure
Acquisition Fee - None
Asset Management Fee - None
Preferred Return - 5%, increasing annually
Distributions - Immediate, paid monthly
Equity Share - 10%
Waterfall - None
Their Structure
Acquisition Fee - 2%
Asset Management Fee - 1%
Preferred Return - 8% not increasing
Distributions - Deferred
Equity Share - 5%
Waterfall - 30% after preferred return met
Why?
From a young age we were taught to loath fees. Bank fees, credit card fees, service fees, processing fees, fees fees fees. So when creating our deal structure, we made a concerted effort to eliminate all fees where possible. We landed on a method of being partners with our clients. 100% of the capital raised is equal to 90% ownership of the asset. 90 -10 partners from day 1. We want our interests and profits to be aligned with our clients, because its fair.