First, I never mentioned management fee because as you said, it is not reasonable to double charge.
Secondly, buyer agent 3% commission is typical. But a buyer agent does not make decision and does not take risk of loss. A buyer agent won't care or handle repairs either. Especially for the foreclosed old houses (it is true in general for houses around Chicago), it is a lot of work. But we do have to do the dirty work. Responsibilities are different.
Thirdly, my friend does not care whose name the houses are under. But he does care how much profit he can have. Otherwise, he won't be a successful business man. It just has to be fair for both parties (at least we both think so).
Finally, my friend plans to invest about 400K only at the beginning. My partner and I have over 1m assets (about 500K net). Why don't you think we cannot guarantee 6% annual return for 400K?
