In this episode of the Building Passive Income Podcast, Wayne Courreges III discusses the intricacies of compensation structures in real estate investments. He emphasizes the importance of understanding various fees, including acquisition and asset management fees, and the significance of transparency in these charges. The conversation also covers preferred returns, equity splits, and the processes involved in refinancing and selling properties. Wayne encourages listeners to educate themselves on these topics to make informed investment decisions. takeaways Understanding compensation is crucial for passive investors. Fees are necessary to maintain operations and transparency. Acquisition fees typically range from 1% to 3% of the purchase price. Asset management fees are usually 2% to 3% of gross revenue. Preferred returns ensure investors receive cash flow first. Equity splits align interests between general and limited partners. Negotiating terms can be challenging for smaller investors. Refinancing and sales are additional revenue sources for partners. Transparency in fees builds trust with investors. Education is key to successful passive investing.