5-Minute PRIME: Bite-Sized Investing Insights

Follow the Money: How to Actually Get Paid in a Private Real Estate Deal

Martin Maxwell Season 1 Episode 71

You see an impressive 18% projected return on a private real estate deal, but how much of that do you actually keep?

The journey from a property's profit to your pocket is a complex path of fees and profit splits that every savvy investor must understand.

On this episode of the 5-Minute PRIME Podcast, host Martin Maxwell continues the masterclass on private real estate syndications by following the money. We'll deconstruct the entire economic engine of a private deal, moving beyond the marketing to reveal how and when you actually get paid.

Tune in to learn:

  • The Cost of Expertise: A transparent breakdown of standard sponsor fees—from Acquisition to Asset Management—and what's considered fair in the industry.
  • Deconstructing the Waterfall: A step-by-step guide to the profit-sharing structure that dictates who gets paid first.
  • The Power of the "Pref": Why a "cumulative" preferred return is a non-negotiable term that protects investors and what it means for your bottom line.
  • From Projections to Payout: A simple, real-world example that shows you the math of how cash flow is distributed between investors and the sponsor.

Are you ready to look past the hype and understand the real economics of a private deal? Subscribe now to learn how to follow the money.


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