In this episode of the Alchemist Nation Real Estate Podcast, I talk to Sandhya Seshadri and her passion around why it doesn't make sense to take all the money from the investors upfront even though they put their money in then walk away and they're stuck in five years waiting for their return. Yet the other investor who raised their capital has actually gotten their money right upfront. I ask Sandhya what does it mean to an investor and why does she care so much where other syndicators don't seem to have that as an issue, in fact, it is very controversial in the community. She says that they are talking about acquisition fees, these are fees that are paid upfront to the sponsorship team as soon as the deal is closed. Before they start executing a business plan and returning money to investors, the acquisition fee has several parts to it where if a person acquires a property off-market and they have to pay a broker a fee, thats part of the acquisition fee. She says that she is OK with whatever that portion is but when the acquisition portion fee goes exclusively to the sponsors which are kind of 3% or 4%, kind of a number on a 50 million dollar deal. She knows for the fact the sponsors have no money left in the deal as investors themselves. A lot of them advertise that they're the sponsorship team have so much skin in the game. She always asks the sponsors how much skin in the game do they have after the acquisition and closing the deal when they begin to execute the business plan. Her rule is that the sponsorship team, every one of the sponsors still has the minimum investment of 50K, 75K whatever it is. The sponsorship team should have at least a minimum amount invested in the deal after closing. Let's say the deal goes poorly, badly for whatever reasons, it could be beyond their control as well as eviction moratorium where the passive investor is not the only one who should be sort of losing their money or at risk for the money, the risk should be shared as much as also with the sponsor too. If the sponsor is confident of the deal, let the sponsor put his/her money where the mouth is.