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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Finder's fee arrangement Posted by Ward-CA- on September 19, 2003 at 4:11 PM In Reply to: Finder's fee arrangement posted by David F on September 19, 2003 at 9:18 AM : Ward, : A fellow investor is offering me two properties in foreclosure, and he wants a finder's fee for them. : Here's the relevant information: : Neither property is under contract now, but both owners are willing to cash out now. Both properties are in the middle of the NOD period. The investor wants me to step in to buy the deals because he is too busy with other deals. The properties need fix up, and each one has profit potential of $60-70k. : Here are my questions: : 1. How would you structure finders fees in this situation? (flat fee, proportion of profit upon resale, etc.) : 2. When would you pay the finder? : Thanks! =?=?=?=?=?=?=?=?=?=?= David, When you're paying someone a finder's fee you probably want it contingent on the deal going through completion of the resale. In that instance pay the fee via the close of the resale escrow. #1. I'd make the fee a percent (like .6%) of the gross sales price. #2. At the close of the resale escrow. Hope this helps Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : A fellow investor is offering me two properties in foreclosure, and he wants a finder's fee for them. : : Here's the relevant information: : : Neither property is under contract now, but both owners are willing to cash out now. Both properties are in the middle of the NOD period. The investor wants me to step in to buy the deals because he is too busy with other deals. The properties need fix up, and each one has profit potential of $60-70k. : : Here are my questions: : : 1. How would you structure finders fees in this situation? (flat fee, proportion of profit upon resale, etc.) : : 2. When would you pay the finder? : : Thanks! : =?=?=?=?=?=?=?=?=?=?= : David, : When you're paying someone a finder's fee you probably want it contingent on the deal going through completion of the resale. In that instance pay the fee via the close of the resale escrow. : #1. I'd make the fee a percent (like .6%) of the gross sales price. : #2. At the close of the resale escrow. : Hope this helps 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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