Understanding Our Fees
Complete transparency is a core value. Every fee is disclosed before and throughout your investment. There are no hidden charges, no surprise deductions, and no fine print. Here is exactly what you pay and why.
Onboarding Fee
$2,500One-time · Paid at enrollment · Never repeated
The onboarding fee is a one-time charge for new investors joining Redoubt Capital. It covers the cost of setting up your investor account, preparing legal documentation (subscription agreements, operating agreement templates), conducting your initial consultation, and granting access to our investor platform.
What it covers:
- Account setup and verification
- Onboarding and review process
- Legal documentation preparation
- Initial strategy consultation
- Investor portal access
- Ongoing platform maintenance
Key point: This fee is paid once, regardless of how many projects you invest in. Whether you invest in 1 project or 20, the onboarding fee remains $2,500 total.
Capital Fee
5% of CapitalPer project · Applied to invested capital · Disclosed in operating agreement
The capital fee is your cost of access to Redoubt's full-service investment management. It covers the active, hands-on work Redoubt Capital provides to source, validate, acquire, and coordinate each project from start to finish.
Services covered by the capital fee:
- Property sourcing and market analysis
- Expert validation and due diligence
- Acquisition negotiation and execution
- Closing coordination
- LLC formation and legal setup
- Investor reporting and communication
Key point: The 5% capital fee is calculated on your invested capital, not on your returns. It is disclosed in each project's operating agreement before you commit.
Profit Share
5% of Net ProfitPer project · Only when the deal is profitable · Aligns incentives
The profit share is taken only from net profits when a deal is profitable. This means Redoubt Capital earns on the back end only when you earn. If a project does not generate a profit, no profit share is charged. This structure creates motivation for Redoubt to maximize returns, not just complete transactions.
How it works:
- 1 Project exits (sale or refinance) and net profit is calculated
- 2 You receive your principal back first
- 3 Net profit is calculated after all project costs, fees, and reserves
- 4 Redoubt receives a percentage of net profit as defined in the operating agreement
Key point: If the project breaks even or loses money, you pay zero profit share. We only earn when the deal is profitable — by design, not by promise.
Hold Management Fee
8–10% of Gross RentMonthly · Hold/BRRRR strategy only · Deducted before distribution
For properties held as long-term rentals (buy-and-hold or BRRRR), Redoubt Capital charges a monthly management fee based on gross rental income. This covers full-service property management so you receive passive income with no landlord responsibilities.
Services included:
- Tenant screening and placement
- Rent collection and accounting
- Maintenance coordination
- Lease management and renewals
- Monthly performance reporting
- Regulatory compliance
Key point: Competitive with market rates (typically 8–12%), and you get the benefit of Redoubt's full-service oversight including financial reporting and strategic guidance on when to refinance or sell.
STR Management Fee
15–20% of Gross RevenueMonthly · Short-term rental strategy only · Deducted before distribution
Short-term rentals (Airbnb, VRBO) require significantly more active management than long-term holds. The STR management fee covers the full operational stack needed to maximize occupancy and revenue.
Services included:
- Dynamic pricing optimization
- Guest communication and support
- Turnover coordination and cleaning
- Listing management and photography
- Review management and marketing
- Monthly performance reporting
Key point: Competitive with industry standard STR management rates (typically 20–35%). Redoubt's in-house approach keeps costs at the low end while providing comprehensive, hands-on management.
Worked Example: Flip — $100,000 Invested
Here is a worked example showing how fees apply to a typical fix-and-flip project. This uses our canonical deal: $180K purchase, $45K renovation, $295K sale.
| Line Item | Amount |
|---|---|
| Your Capital | $100,000 |
| Purchase Price | $180,000 |
| Renovation (R² Remodeling) | $45,000 |
| Closing, Holding & Selling Costs | $28,000 |
| Total Project Cost | $253,000 |
| Sale Price (ARV) | $295,000 |
| Gross Profit | $42,000 |
| Onboarding Fee (first project only) | -$2,500 |
| Capital Fee (5% × $100K) | -$5,000 |
| Profit Share (5% × $42K gross profit) | -$2,100 |
| Your Net Profit | $39,900 |
| Your ROI (6-month project) | 39.9% |
Illustrative example based on a typical Charlotte-area deal. Actual returns vary by project. On subsequent projects the onboarding fee is not repeated, improving returns by 2.5 percentage points. All fees are defined in each project's operating agreement. Past performance is not indicative of future results.
STR Worked Example: Short-Term Rental Property
For hold/STR strategies, fees work differently. Instead of a one-time profit distribution at sale, you receive ongoing monthly income after management fees.
| Line Item | Monthly | Annual |
|---|---|---|
| Gross Rental Revenue (avg) | $4,200 | $50,400 |
| STR Management Fee (15-20% of gross) | -$756 | -$9,072 |
| Includes: dynamic pricing, guest comms, turnover, listing mgmt | Included in management fee | |
| Operating Expenses (utilities, insurance, maintenance) | -$850 | -$10,200 |
| Capital Fee (5% of invested capital, amortized) | Varies | Varies |
| Estimated Monthly Net Income* | ~$2,100 | ~$25,200 |
* STR income varies by season, occupancy, and market conditions. The example assumes ~75% average occupancy and $185/night average rate. Property appreciation and eventual sale proceeds are in addition to rental income. Redoubt manages all STR operations including dynamic pricing, guest communication, turnover coordination, and monthly performance reporting.
"What If" Scenarios
We believe in preparing for every outcome. Here is how our fee structure responds to different scenarios.
Want Specific Numbers for a Current Project?
Contact our team and we will walk you through the complete fee structure and projections for your investment. Every number is disclosed before you commit.