Plain-English explanation
Typically 1-3% of purchase price. Aligns sponsor incentives but inflates basis.
Examples
- $10M deal × 2% = $200k acquisition fee.
Common mistakes
- Paying fee on deals that don't perform.
Related questions
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Multifamily
Upfront fee paid to sponsor for sourcing and closing a deal.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
Typically 1-3% of purchase price. Aligns sponsor incentives but inflates basis.