10 Ways to Make Money from ONE Deal | Office Hours
Making real money in commercial real estate isn’t about finding ten different deals. It’s about learning how to get paid ten different ways on one deal. Most investors get stuck in the same cycle: grind to close, park the asset, and wait years for a payday that may or may not show up. Meanwhile, overhead keeps coming, momentum fades, and the business feels way harder than it needs to be. The truth is, if you structure your deals correctly, you can create income at closing, during the hold, and again on the exit—without needing a massive portfolio to survive.
The investors who last in this game aren’t just deal hunters. They’re deal architects. They understand that every transaction has multiple levers: brokerage, fees, operational cash flow, backend upside, and even debt positioning. You won’t stack all of them on every deal, but once you know the menu, you stop being reactive and start building predictable income around your acquisitions. That’s how you keep the lights on while your equity compounds in the background.
In today’s breakdown, we cover:
• The 10 ways to get paid from a single commercial real estate deal
• Which income streams hit up front vs. during the hold vs. at sale
• How fees like acquisition, asset management, leasing, and development actually work
• A simple $1M example showing how these layers add up in real life
If you’re trying to turn CRE into a real business—not just a long-term bet—this is the framework that changes everything. Let’s dive in.
Get commercial real estate coaching, courses, and community to jumpstart your investment journey over at CRE Central: www.crecentral.com
Key Takeaways:
There are at least 10 different ways to make money from a single commercial real estate deal, including:
Brokerage fee (buying/selling commission)
Acquisition fee
Property management fees
Asset management fee
Development fee
Leasing fee
Disposition (sale) fee
Additional brokerage fee at sale
Equity (ownership share in the deal)
Debt (financing structure, sometimes with added fees)
Combining these fees and equity can help sustain an investor, even on smaller ($1 million) projects.
Fee percentages and structures are flexible and scalable depending on deal size, property type, and management choices.
The transcript includes real-world advice, such as strategies for growing a property management business, managing tenants with below-market rents, and not relying on credit cards for financing commercial real estate.
Personal and professional growth—such as company expansion, sabbaticals, and relationship-building—are emphasized as integral to real estate success.
About Your Host:
Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors.
Episode Transcript:
Tyler Cauble 0:00
This episode of the commercial real estate investor podcast is brought to you by my cre accelerator mastermind, where you'll get access to my step by step investment blueprint, essentially a library of resources on how to invest in commercial real estate. You'll get connected to a supportive community of other commercial real estate investors that are doing projects just like you. You'll get personalized coaching and feedback from me every step of the way. Go to www.crecentral.com to learn more. It is Tuesday, December 2. I hope you guys had a wonderful Thanksgiving and are on the road to recovery, at least I know that I am. Yesterday was a bit wild trying to catch up on everything. We've got a great show for you guys. Today, I'm going to be sharing with you 10 ways to make money on one deal. I get questions all the time of you know, Hey, Tyler, if I want to jump into running Commercial Real Estate Investments full time, like as my job, I'm raising capital from investors, and I get to focus on this. How do I keep the lights on right? Because I'm not going to get paid for my equity for 3457, years, depending on what kind of project we're doing. Well, I'm going to go through 10 different ways that I have made money on one deal, and you're not going to be able to actually make all 10 Ways work on every single deal. It depends on the type of deal you're doing. You're doing, but we'll break those down. We'll do a sample deal as well, so you guys can see kind of what that would look like this past week, catching guys up. Well, actually, this is office hours, guys. If you have questions on commercial real estate, if you have deals you would like to review, you are curious about how to get started. Whatever it is that is what this show is for. We go live every tuesday at 8:30am central standard time to answer those questions. We'll be diving into some comments and questions on the channel from you guys. Today. If anybody is joining live they would like to have a conversation about something that they have in mind. Feel free to drop that in the live chat, and we will get to it. We do go live every tuesday at 8:30am Central Standard Time, except for as many of you guys may know, if you've been following me for a little while, the month of December and January, things change around here, December 15 to January 15. I'm out on sabbatical. I'm not in the office. I don't respond to your emails. To be fair, I don't respond to emails during the rest of the year either. I'm not a big fan of email, but I highly recommend doing that. Look commercial real estate really slows down this time of year, December 15 through January 15. Nobody's really doing anything. You've got the holidays, but it's also the end of the fiscal year. You have most companies are trying to reconcile the, you know, 2025 or they're trying to plan for 2026 there's just not a lot of activity that's actually going on this time last year, we were actually closing a deal on December 31 which you guys know, I'm not a fan of. Fortunately, I don't have to deal with that this year. So it is just me, and I'm taking my sabbatical. I'm actually going to Japan and South Korea for three weeks. It's gonna be a lot of fun. My wife and I, big news. Got married last week, a little over a week ago. So we're gonna go take our honeymoon in Japan and South Korea. So it's gonna be a lot of fun. We wanted to pick a place that was drastically different from what we're used to. And we've got a lot of plans for that three week period. We are going to be moving practically every two days. So we're flying into Tokyo. We're hitting up Kyoto, Osaka, a couple of smaller mountain village towns. It's winter, so we want to see the snow. We want to see the mountains. We're gonna be flying into Busan in South Korea. We'll check out Seoul, and then go to some some smaller, smaller towns there as well. So really looking forward to it, the coolest thing ever, like this is what I'm most excited about. To be honest with you, we won the lottery to go to the tuna auction. Like, how cool is that you can't just show up to the tuna auction. You have to, like, you know, put your name into the hat for a lottery, and we got picked. So we get to go like, five in the morning when the fishermen are coming off the boats and selling tuna to all the, you know, the people that run the markets, or the sushi chefs, or whomever you know, really, really cool. So that'll be a lot of fun. Kevin, saying, congratulations, Tyler, I appreciate that. Kevin, thanks, man. Joseph fuzz also saying, congratulations. Thank you guys. Really appreciate it. It was, it was great. It was exactly what we wanted. We had a we had a great wedding, and here you are on the channel behaving all normal. Yeah, I know. Hey, the show must go on. You guys know I love you. I can't let you down. It's Tuesday. Okay, so this past week, this is also some exciting news, not nearly as exciting as that, obviously, but you guys know that I've had a property management company since 2018 scaled it. I co founded it with some friends. I, over the years, have bought them out, and it was just me, and we scaled it to well over 2 million square feet and commercial properties under management, both managing our own assets and third party and it was doing well. I mean, it's not like it's a super profitable venture. You really have to scale property management companies quite a bit in order for them to become super profitable, and we recently merged with an equivalently sized group out of Atlanta. So now we're targeting properties between Nashville all the way to Atlanta, and have doubled the size of the property management company. So my partners were in town yesterday, which is what I spent all day doing, touring Nashville, showing them what's going on in East Nashville and Madison, because we're under contract on a 10 and a half million dollar property here in East Nashville that we will be closing at the end of January, and so getting them familiar with the market what's going on here, so that we can get really aggressive on growing the property management company. So that'll be cool. I'm really excited for that. The Property Management has always been something that has kind of just grown with me as the brokerage has grown, as my investments have grown. Now it's becoming its own beast, which is, which is really cool to see, we're going to double the amount of employees that we have, probably by the end of next year, so lots of room for growth and really exciting things going on there. So I'll be sharing with you guys the journey behind growing a property management company. I'll tell you it's it's not been fun so far. It hasn't been bad. It's just not like, it's not my full time focus, and you really have to full time focus on that to make it a worthwhile while adventure. But the problem is, it's very like, you're not going to make a lot of money in it for a while. So we're probably going to start acquiring other commercial property management companies. So if you're listening and you you own, or you know of a commercial property management company in Tennessee or Georgia. I mean, to be honest with you, we'll look at the surrounding states to the Carolinas, Kentucky, maybe even Alabama. You know, we probably won't go towards, you know, Mississippi, Arkansas. It's probably too far out of our realm, really, really in the southeast, you know, we'd be open to considering, you know, either an acquisition, merger, something like that, and growing what we've got going on here. So that was a lot of fun having them in town, because it's, I love showing off East Nashville and Madison and what's going on around here. It's always really cool to see people see it for the first time, because it's, it's a really fun, interesting couple of neighborhoods. So All right, let's go ahead and dive into 10 different ways that I make money on any given deal, and I'm going to break this down so that you guys can do this as well. All right, so here are the 10 ways, and we'll go in order here. This is kind of in order, I mean, somewhat in order of how you're going to go about these fees in any given deal, but let's just assume you're syndicating a retail center. All right, your brokerage fee, that's going to be anywhere from 3% generally, to 6% now, I've had brokerage fees. I have my real estate license. If you don't have your real estate license, unfortunately, you can't really take advantage of this one. All right, but the nice thing about but the nice thing about having your real estate license is that you can get paid to buy your own properties, right? I, as a broker, am representing our Investment Group, which is a separate entity, so I can get paid a commission on that. So I've gotten paid commissions as low as, you know, 1% on an $18 million deal. I've gotten four and a half percent on an eight and a half million dollar deal. So you can see some very differing commissions. They're kind of all over the place when it gets into commercial real estate, because, you know, especially like, you know, 1% on 18 million, it's $180,000 right? That's a lot of money to get paid. So your your your percentage commission will typically scale down the bigger that you get, right? I mean, I've even seen a quarter of a percent, a half a percent on larger deals than that, but, I mean, that's a pretty good chunk of money, and you know, it definitely helps you keep the lights on, right? You get paid to buy your own deal. Now, if you're syndicating, you also can take advantage of what's called an acquisition fee. As the general partner, somebody that is actually going through this deal, you're going to be able to charge your investors a fee for having gone through the process. All right? So that could be, you know, let's, let's say, when you're going through the actually buying a property, there's a lot of work that's involved in that. I mean, you got to find it. You got to find it, you got to underwrite it, you got to review all the due diligence, all that kind of stuff. And so that's what the acquisition fee is really there for, right? That's typically going to be around 1% to 2% of the total acquisition price. That does not include debt, right? And again, I will break these down here in a minute, showing you an. Actual example of what this is going to look like, all right.
Tyler Cauble 10:04
So 1% to 2% of the total purchase price, all right? And that will get paid out at closing. So, I mean, at closing, you can see here, if you have your real estate license, and you're getting a brokerage fee and an acquisition fee, you could make anywhere from four to 8% just for closing on the deal. Right now, what I will say the brokerage fee that's going to get paid regardless of whether you are the broker that's doing that or not, right? If I have a broker that's representing me, they get paid the three to 6% so if it's my team, they get paid it. It doesn't really matter either way. Right now, this next one, property management fees. We hire our property management team to handle all of our assets. However, we only charge market rates. I will not discount those fees. We do not charge any more. All right, the big reason behind that, and I have to emphasize this, I will be the first one to suggest firing my team off of a deal if they are not performing, because I have every incentive in the world as a general partner, I'm going to make more money on my 20 or 30% carry as the GP than I will off of 6% of the revenues. Right? So to me, it's all about making sure that the right team is in place, and if I have to fire them, I'm gonna have to replace them at market rates, right, which means I'm gonna have to go hire somebody else. They're probably gonna charge me 6% whatever it is, so I'm gonna have to make sure that we've already accounted for that. So I typically just charge market rates. Eclipso is saying, bro, you're live. I've been pin watching your videos all day. Appreciate you, Eclipso, hopefully they've been really helpful. I go live every tuesday and kind of Wednesdays, so feel free to jump in, ask any questions you got as you're going through those videos. All right, this property management fee typically anywhere from 3% to 6% all right, and that's this is on the purchase price. This is on the purchase price. I'm talking about the brokerage fee and the acquisition fee if you're listening on the podcast. And then the property management fee is based on, let's just say, probably gross revenue. All right, so if your property management team collects $100,000 in rental rates, or, I'm sorry, in rent payments, then they're going to collect roughly $6,000 in a property management fee. All right, so, and that can vary, right? It's property management fees are the exact same as as you know, commissions, they scale up, they scale down. I've got larger properties where we're collecting 3% property management fees. I've got smaller ones where we're collecting 10% because it just doesn't make sense for us to do anything less than that. It's, you know, it just depends. However we can typically what we've been doing for the past few years is it 6% with a base right, like a minimum, a minimum payment, which I think is like 1500 a month. So it's 6% or 1500 a month, whichever is greater. All right? Michael's saying we love you from New York. Michael, I love you from Tennessee. Appreciate you being here this this name is amazing. Pace morby is wrong about taxes. Says, do you agree with me that pace is wrong about the ability to claim depreciation on sub two seller finance properties? That's a great question. I would have to know. I mean, I disagree with pace on a lot of stuff. I think that he's, I think that the the morby method, is literally teaching you how to defraud lenders. I'm not familiar with his claims around depreciation on sub two or seller financed properties. So I would have to know the specifics around that to see kind of what that would what that could be. All right, but happy, happy to dive into it if you have more information on it. Okay, the asset management fee, this is, again, something, if you are syndicating a deal. All right, you're going to have to manage the asset you're going to have to handle investor relations. You're going to have to manage the property management team. You're going to have to, you know, prepare K ones, or at least oversee all the K ones, right? And so this is typically 1% to 2% of of the gross rev as well, right? Gross revenue, okay. Now I have seen asset management fees based off of the total equity raised. And that can be more common in like, ground up development deals, all right, like, if I'm going to charge an asset management fee off of the equity raised on a ground up development deal, because there's no revenue coming in to pay. Pay me for, you know, the stuff that we have to do on a daily, weekly, monthly basis. Now, the asset management fee is not supposed to be something that you're living off of. You'll notice that none of these on their own should sustain any one person in a deal, all right, but the combination of them, as they start to add up, is pretty good, okay? And like I said here, here, in a couple minutes, I will break this down doing a sample deal, and I'll show you guys what this could actually look like. All right, so if you are developing a project, right, like you're project managing it, because you are the developer behind the deal, doesn't matter if you're syndicating it or, honestly, if you're doing it yourself, you can charge a development fee. My development fee whenever I'm working on projects is almost always 5% now this will scale down as well. It could be 3% but it can also scale up. It could be 7% right? If it's a much smaller project, I just kind of look at the minimum, see what it looks like. All right, that development fee 5% off of the total project cost. So let me keep hitting the Erase button. Let's do this project cost. So it's really your construction All right? That doesn't include the acquisition price, right? Because as a developer, you're not overseeing that. You think about everything that you're going to have to project manage as a developer. That is what this fee is going to be based off of. So you're managing the architect, you're charging 5% on the architectural fees. You're managing the construction. You're charging 5% on the construction fees. You're handling the engineering, you know, whatever it is, all of that falls under the developer's purview, and that is what you will be charging 5% on. We collect that on a draw basis. So whenever we submit to our banks for a draw from our construction loan, that is where we bake in our 5% development fee. All right, we've got a leasing fee. I've got my brokerage team that handled the acquisition on the front end. They're also going to be leasing up the units on the back end. So this, again, will be another 3% to 6% all right, and that'll get paid on the total, well, total lease value, all right? So basically, what you do is you take the total lease value over a five year period and or however long the lease is, right? You might sign a 10 year lease. You might sign a two year lease, whatever it is the total amount of rent payments that will be made over the entirety of the term. They get paid 3% to 6% on that. They're usually small. I mean leasing. I mean it depends on how big of a deal you're doing. If you're doing. If you're signing a 50,000 square foot tenant at, you know, eight bucks a foot for 10 years, that's going to be a pretty great lease. But, you know, generally, the types of deals that we're working on, I mean, we're talking about a three tenant strip center, right? That's got a 2000 square foot vacancy. It's going to be a $8,000 lease, right? It's, I mean, commission. It's not going to be huge disposition fee. As the asset manager, as the general partner, you have to prepare a lot of information in order to go through a sale, and that includes, you know, all of your paperwork, getting all of your financials pulled together, making sure all the accounting, the due diligence folder, everything is there to give yourself the best possible look for a buyer. All right, that, I mean, it's a lot of work. It really is. However, you don't charge as much as an acquisition fee, because it's not nearly as much work as the acquisition All right. Generally, my disposition fee is a half a percent, all right, on the sale price, that's where that comes out to be, all right? And of course, look on the back end, you're selling it again, so you have a brokerage fee that's anywhere from 3% to 6% as we discussed earlier on, the sale price, all right? So you get to, you get to represent the buyer on the front end. You get to represent the seller on the back end, right? That's exactly what, what any commercial real estate broker would love to do, and can make an entire career off of forever and ever, right? You get two clients, two deals out of one, basically, all right? And then, of course, we've got our equity. This is typically anywhere from 20% to 30% of the total deal.
Tyler Cauble 19:33
So that would be, of course, after debt, after you've paid back your preferred return to your investors, if you have one. I mean, honestly, I could add a preferred return into here. Now we're at 11. I could add in a debt guarantee fee on top of the debt. Now we're at 12. Like there's so many different ways to make money on any one deal. We could probably sit here for the next two hours and talk about all these different ways. But anyway, on the equity side. We're typically getting 20 to 30% equity as the general partners in a deal. Now I've had deals where we've gotten as much as 70% because we found such a crazy deal that the equity was still very interested in having 30% All right. On my hotel, we have 40% because I needed the extra 10% because I have to put a damn business together, like we're actually running a business, right? It's, it's far more labor intensive on my end than it is buying a an absolute net retail center. All right? So that's generally what you see. I've seen general partners go as low as 15% equity. I don't know why you would ever do that. I would never go below 20% it's not worth me getting out of bed. Like your investors also want you to have enough skin in the game and enough upside so that you go and make it happen. I generally, you typically don't see more than 50% for the general partner, I would say 20 to 30% 99 times out of 100 that's what you're going to see on a syndication. Let's see. Let me catch up on somebody else comments here real quick. Kevin is saying, always thought that property management fee was a flat fee based on the property. No, Kevin, it can be. It certainly can be, but it's the reason that you want to base it off of a percentage is revenues collected, right? So your property management is actually incentivized to make sure that they're collecting the damn rent. Because otherwise, if it's just a flat fee, it's fine. That tenant always pays late. We're not going to worry about it. Well, if they're getting paid based off of the rent that they're actually bringing in, they're heavily incentivized to make sure you've got your check. Robert, saying Good morning and congratulations on the nuptials. I appreciate it. Robert, good morning, man, good to see you here again. Pace for me. Is wrong about taxes, is saying IRS section 465, prevents doing so due to the at risk rules. Pace morby has blocked me. That's hilarious. I wouldn't surprise me at all. He doesn't seem like the kind of guy that would really want to jump into the discourse. His his assistant actually, mistakenly. This is a total tangent, but his his assistant reached out to me one time trying to get him on the show, and clearly had no idea that I had done a video breaking down how he was defrauding lenders with a Morbi method. And I sent her that video. I was like, hey, you know, just so you're aware, like, I want you this isn't a gotcha show. I want you to be fully aware of what pace is going to be walking into if you really want him to come on the show. She thanked me, and I never heard back from them. So is what it is. Kale says what's the best loan option for commercial real estate? I'm trying to leverage my business credit cards to purchase an asset. Well, definitely don't use credit cards to purchase commercial real estate. That's a terrible idea. That's like entering Dave Ramsey land over here. It makes me want to say, what are you doing? However, Dave Ramsey talks on how he talks. I always said to Dave Ramsey kale, here's the thing, man, go raise capital from investors. Go secure debt, do it, you know, get a raise 30% down payment, get 70% debt. Make it, you know, easy on. You just go to a traditional loan, right? If you're unable to do those things, then commercial real estate is probably out of reach for you right now, that's not to say it 100% as you can always get super creative. I've bought tons of deals with no money down, but I know what I'm doing. I know I really know what I'm doing. And so you have to have that skill set. And we've got tons of videos on this channel, man, that'll teach you exactly how to exactly how to go through this entire process. All right, let's get back to these fees. So let's see here debt. Debt is one of those ones that's, again, not every deal. I'm actually about to put a loan on one of my properties personally, this is not going to be traditional bank debt, right? This is basically a hard money loan, a mezzanine loan, right? So generally, what I see here is about a 12% interest rate on the balance, you know, whatever you're putting out there, all right. So I mean, in theory, if you have enough cash, like we have a member of the of the accelerator, mastermind, who did this on his own property. Instead of paying 100% cash, like I thought that this was brilliant. Instead of paying 100% cash for a deal, he put 30% down, and then he gave himself 70% debt at an interest rate. So he structured it as debt and equity, which I thought was really cool, because it's a really interesting way to do it. You're still making payments. He had two different entities. Different entities set up. I like it because then you're making money on your money. There's a lot of tax reasons and benefits for doing so. So anyway, there you go. There you have it. Those are all the different ways that you can make I mean, this is just 10. And like I said, as we're going through the list, there's, I could probably add two more, but brokerage fee, acquisition fee, property management fee, asset management fee, development fee, leasing fee, disposition fee, brokerage fee, equity and debt. Now let's get into a sample $1 million deal. Your brokerage fee on that is going to be anywhere from $30,000 To $60,000 I mean, come on, that's, I mean, you've made enough money right there, right? That's pretty wild. All right. Acquisition fee that's going to be anywhere from $10,000 to $20,000 All right, so right there on the front end, you've made your money for the year. This off of a million dollar deal. I want to emphasize this. This is a $1 million deal, right? You don't have to go massive in this world to make enough money to get by, all right? There's a $1 million deal, property management fee. Let's say that this is a 10% cap rate deal. So we're bringing in 100,000 let me write this up here, 10% cap rate. So that's 100k net. All right, your property management fee is going to be 6k a year. All right, that's at 6% now if you bring in the $1,500 minimum per month. I mean, if we run the math on that, what is that 18 grand? So it might end up being a little bit more, right? It just, it completely depends. But let's, let's assume for now, that it's just going to be the 6% all right, your asset management fee, again, like I said, these are not supposed to be something that you're living off of. Your asset management fee is going to be anywhere from $1,000 to $2,000 for the year. You can see that's literally just to cover costs right development fee. Let's say that we're going to spend $500,000 on on fixing this property up. Well, 5% of $500,000 is 25 grand, all right? Leasing fee, well, if we're gonna get 100k we're gonna sign, let's just say that the lease is flat for five years, right? So we sign a $100,000 lease flat for five years. That gives us a total lease value of $500,000 right? 100,000 $1,000 right? $100,000 a year for five years. So $500,000 times 6% that's another $30,000
Tyler Cauble 27:16
all right? Disposition fee, let's say that you sell this $100,000 income at because you bought it at a 10% let's say that you're able to sell it at a 9% that's 1,000,001 11. All right, your disposition fee of a half a percent is going to give you 5500 bucks.
Tyler Cauble 27:44
Your brokerage fee. Sorry, I'm running the math on my calculator while I'm doing this, your brokerage fee. Let's just say it's, you know, anywhere from three to 6% is going to be 33 k2 K to 66k All right, okay, and now we increase the value by $111,000 we're gonna have some fees in there, of course, right? Like we just paid a $33,000 commission. So let's take 111,000 right? That's the above and beyond what we bought it for. We bought it for a million. We're selling it for 1,000,001 11. So 111,000 minus, let's just subtract the full 66,000 we created $45,000 in equity here, right? Obviously, this isn't a phenomenal deal, but on that 45,000 I mean, you made 4045 grand, right? Let's just assume you didn't bring any investors to the table. You don't have to split that. Of course, if you did, you wouldn't probably charge yourself an asset management fee or an acquisition fee or anything like that. But, I mean, you, in theory, you actually could, all right, and then we'll just leave the debt out of it. Yeah. I mean, if you, if you charged 12% on your debt, it'll kill the deal. But 12% on your debt, let's say you brought 30% down. So 12% on 700 gram times five, that's like $420,000 right over the five year period. It's gonna kill the deal. So this wouldn't work in this deal specifically, but we'll do that. 30 plus 10 is 40 plus 40, you know, plus 6k a year. I mean, let's just take out, like your, let's, let's do this. Let's look at just your active fees, all right, like just the active fees, not the stuff that's ongoing, where you have labor active fees. So that would be your brokerage fee and your acquisition fee, right? That's $40,000 combined your development fee, your leasing fee, your disposition fee, and your brokerage and your. Equity. That's another what is that? 25 plus 30 is 55 plus 5500 puts us at 60,500 let's just say plus 33 puts us at 93,500 plus. Let me do I can't do this math in my head right now, 93,500 plus 45,000 gives us 138,500 plus 40,000 so over a five year period, you've made 178,500
Tyler Cauble 30:37
and excuse my writing. I know that's terrible. It's the end of my iPad, I can't really write very well. $178,500 from one deal that's in fees, right? That's including a whole bunch of stuff, right? So there are plenty of ways for you to keep the lights on as you are going through your first project. Keep in mind that was a $1 million project that wasn't a massive syndication, if you structure it, right, if you go about doing this stuff the right way, that is how you can keep the lights on and make a ton of money, right? Because a lot of that is front, loaded in front, like in the front we're talking about, you're getting paid roughly $40,000 to buy this property, or more. I mean, you get 40 to $80,000 right? So year 140 to 80,000 and then the the next chunk comes, really at the sale, which is like $140,000 more, right? So it's a pretty, pretty great way of going about doing these projects. Jamie's saying, quick question, what's the difference between brokerage and acquisition fee? So, Jamie, we covered that earlier in the show, a brokerage fee. If you are a commercial real estate broker, you can represent your buyers, group your entity and collect a brokerage fee. You, as the general partner, can charge your investors an acquisition fee as you're going through that. Let's see Kevin saying, Tyler, what do you do if you acquire a property that's already fully tenanted with a max of three years left on the leases, and they are paying under market rents. Unfortunately, Kevin, you're stuck. You got to adhere to those leases. That is why I don't buy assets that are locked in like that. There's just no value to be created. It's not going to be a good deal, to be honest with you, unless they're so under market and you're getting a good enough price that even though it's not making money for the first three years, we can raise rents so much in years four and five that I can sell it for substantially more, and then it makes up for three years of negative cash flow. But that's a risk. Kevin is saying, PS, this is the deal that you underwrote on day 29 next to the Savannah. Walked the property with the broker and owner and got a ton of info. What's the best way to raise these rents without destabilizing. Yeah, I mean, that's the that's the tough thing. You got to have conversations with the tenants. You got to make sure that they know what the market rents are, and you got to convince them that it's going to cost them a lot more to move than it would be to just stay. The other thing that I would do is maybe not go all the way up to market rents, right? Because if you want to take into account, Oh, dude, Jamie, you're fine. Don't, don't apologize. I was just saying that in case you wanted to go back and watch from the beginning. So Kevin, if you wanted to, you know, keep your tenants without really destabilizing the property. What I would say is, don't go all the way to market rate. All right, because market rate also accounts for vacancy and commissions and tenant improvements and stuff that you may not have to pay if they just decide to renew. So maybe give them a 10 or 15 or maybe even 20% discount on the market rate for not having to move, because there's no telling which you're not going to have to deal with because they're staying there. All right. Awesome day, guys, if you appreciated my going through like a little lesson like that, and kind of showing you guys a little tidbit and teaching you guys whiteboarding a bit, let me know in the comments. Happy to keep that going. If that's something that you guys would like to see more of in office hours. If you guys enjoyed this episode, don't forget to like and subscribe to the YouTube channel if you're listening on the podcast, give me a review. Every review helps us get out there to more and more people so that they don't have to buy single family homes anymore, right? It's giving Tuesday. Let's give back to our friends and make sure that they don't have to suffer with tenants and toilets anymore. Appreciate you guys. Hope everybody had a good Thanksgiving. I'll see y'all tomorrow for our commercial real estate deal desk. See you guys, not that one. This episode of the commercial real estate investor podcast is brought to you by my cre accelerator mastermind, where you'll get access to my step by step investment blueprint, essentially a library of resources on how to invest in commercial real estate. You'll get connected to a supportive community of other commercial real estate investors that are doing projects just like you. You'll get personalized coaching and feedback from me every step of the way. Go to www.crecentral.com to learn more you.