Equity as acquisition fee

[Taylor Colligan]

I am hoping to get some guidance from other investors. I am about to close on my first duplex, I will be co-signing with my dad. However, I have two other investors going in on the deal with me as well. I found the deal, performed due diligence, and done all other sweat work. I am charging a flat, small, aquisition fee to the other investors just for my time. I feel like I can’t charge much because it’s my first deal I have put together. I just ran into another deal that is slightly larger and again will be bringing other investors in as well. My question, is it common, heard of, or fair to take equity in the property as an acquisition fee? How would I structure it? Any feedback is greatly appreciated.

[Jay Helms]

@Taylor Colligan  - congrats! Acquisition fee or equity or....both! Deals can be structured numerous ways, it's what you and your investors agree upon. Some investors I know take 50% of the equity +an acquisition fee just for putting the deal together, just as long as it still projects the returns his investors require.