Acquisition Fees Uncovered: What Multifamily Investors Need to Know

Unravel the mystery of multifamily investment fees with our new YouTube short, focusing on acquisition fees. 🏢💰

The acquisition fee is a vital cost investors need to understand. Paid to the general partners, this fee covers underwriting, earnest money, and the costs of closing the deal. With rates generally between 1 to 4% of the purchase price, understanding this fee is critical to effective investment planning. 📈📝

Whether you're a seasoned investor or a novice in the field, understanding these fees can pave the way to smart investing decisions.

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Transcript:
The first fee that are investors need to be aware of is the acquisition fee. This is the fee that is paid to the general partners for underwriting, running up earnest money, getting the deal to close and making sure they raise them enough money to close on that deal. I've seen acquisition fees be one to 4% of purchase price we generally do around a 2% acquisition fee.

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