How Operators Get Paid (And Why It Matters More Than Returns)

Most investors focus on projected returns.

Smart investors focus on how the operator gets paid.

Fees determine incentives. Incentives determine behavior. And behavior determines outcomes.

At Cornell Communities, we believe fees should reward execution and patience, not just deal volume.

🧾 The Four Common Fees in Syndications

Nearly every real estate syndication includes some combination of these. Understanding them helps you spot alignment or the lack of it.

🏗️ 1. Acquisition Fee

“Who gets paid to close the deal?”

This fee compensates the GP for:

• Finding the opportunity

• Underwriting and diligence

• Financing and closing coordination

Typical range: 2%-3% of purchase price

The Real Question

Is the operator incentivized to:

→ Close any deal, or

→ Close the right deal?