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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Finder's fee... Posted by David f on September 17, 2003 at 9:50 AM In Reply to: Finder's fee... posted by Ward-CA- on September 16, 2003 at 10:35 PM : : Ward, : : I am not a licenced mortgage broker or real estate broker. I am leading several people in foreclosure to mortgage brokers who are successfully closing bridge loans for them (usually hard money junior loans). : : 1. How can I legally receive a finder's fee for this? : : 2. How much would you charge for this service? : : 3. When would you take payment for this fee (before, during, or after escrow closes)? : : 4. Can I receive such fees and NOT be viewed as a foreclosure consultant by the courts? : -=-=-=-=-=-=-=-=-=-=-= : David, : In CA, for merely introducing A to B you can legally charge a finder’s fee. It’s only when you negotiate the terms of a real estate transaction on behalf of another that the state requires you to hold a real estate license. : 1. The amount of the finder’s fee is up to the parties to determine. : 2. I’d try to get about 10% of what the agent stands to make on the deal. : 3. I’d try to collect my fee at the time of the introduction of A to B. : 4. To be viewed as a foreclosure consultant you’d have to be collecting the fee from the owner in default before the service was rendered. : Hope this helps. Great. Thanks, Ward. One follow-up question: You say, "In CA, for merely introducing A to B you can legally charge a finder’s fee. It’s only when you negotiate the terms of a real estate transaction on behalf of another that the state requires you to hold a real estate license." One of the mortgage brokers that I am sending a deal to says that in merely introducing her to a prospective borrow and then getting paid a flat fee out of escrow puts me in the role of broker. Thus, she says I can't get a finders fee b/c I am not licensed. Can you point me to the law or regulation that will prove her otherwise? Thanks, David Follow Ups: Finder's fee authority.... Ward-CA- 7:19 PM, 09/17/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward, : : : I am not a licenced mortgage broker or real estate broker. I am leading several people in foreclosure to mortgage brokers who are successfully closing bridge loans for them (usually hard money junior loans). : : : 1. How can I legally receive a finder's fee for this? : : : 2. How much would you charge for this service? : : : 3. When would you take payment for this fee (before, during, or after escrow closes)? : : : 4. Can I receive such fees and NOT be viewed as a foreclosure consultant by the courts? : : -=-=-=-=-=-=-=-=-=-=-= : : David, : : In CA, for merely introducing A to B you can legally charge a finder’s fee. It’s only when you negotiate the terms of a real estate transaction on behalf of another that the state requires you to hold a real estate license. : : 1. The amount of the finder’s fee is up to the parties to determine. : : 2. I’d try to get about 10% of what the agent stands to make on the deal. : : 3. I’d try to collect my fee at the time of the introduction of A to B. : : 4. To be viewed as a foreclosure consultant you’d have to be collecting the fee from the owner in default before the service was rendered. : : Hope this helps. : Great. Thanks, Ward. One follow-up question: : You say, "In CA, for merely introducing A to B you can legally charge a finder’s fee. It’s only when you negotiate the terms of a real estate transaction on behalf of another that the state requires you to hold a real estate license." : One of the mortgage brokers that I am sending a deal to says that in merely introducing her to a prospective borrow and then getting paid a flat fee out of escrow puts me in the role of broker. Thus, she says I can't get a finders fee b/c I am not licensed. Can you point me to the law or regulation that will prove her otherwise? : Thanks, : David Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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