Disposition Fee vs Aquisition Fee

[Eli Shicker]

I saw on a multi family syndication that the syndicator was charging a 2% aquisition fee and a 1% disposition fee.  What is the difference between acquition and disposition fees? I may be wrong but I understood the acquisition fee to be like a finders fee, but can't figure out the disposition fee.

Thanks.

[Evan Polaski]

@Eli Shicker, difference is one is paid at the front and one at the back end.  But I know that's not what you really mean.  Selling an asset takes a lot of work, and the disposition fee covers that work.  Interviewing brokers, reviewing offers, interviewing buyers, negotiating contracts coordinating property tours, coordinating due diligence/inspection tours, financials, questions, etc...  Then communicating with investors, answering their questions, etc.  

Point being, selling a property can be nearly as much work as buying, so the GP wants to be compensated for these efforts.