moneynfast 0 Report post Posted January 25, 2003 When you tell people that you will pay them a finders fee, If they send some business your way how do you come up with a dollar amount. Also will they be getting this finders fee when t/b excrise there option to buy? Because I would not be able to give a finders fee until the house is sold especially starting out with limited funds. MichaelR Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 25, 2003 The dollar amount is whatever amount is agreeable to both parties. Ask around in your area and see what the going rate is. Maybe you can call someone who is looking for a bird dog, play the role, and see what he offers. Just a thought.........Generally, payment is made when you secure the deal with the homeowner, not when the property sells months down the road. If this is not financially feasible, find your first deals yourself, Michael, then you can get the assistance of others when you have some additional cash to do so. Share this post Link to post Share on other sites
Dave T 0 Report post Posted January 25, 2003 When you tell people that you will pay them a finders fee, If they send some business your way how do you come up with a dollar amount. Also will they be getting this finders fee when t/b excrise there option to buy? Because I would not be able to give a finders fee until the house is sold especially starting out with limited funds. MichaelR MichaelR, In my investment area, a real estate sales agent will pay a $250 referral fee for a listing that sells. Perhaps the local agent's referral fee is a good barometer for the amount you could suggest as a finder's fee. You would pay the finder's fee if you enter into a contract with the seller as a result of the referral. If you get a tenant-buyer, aren't you collecting an option consideration? Additionally, while you have a tenant-buyer in place, you should be collecting a positive cash flow from the rent spread. With these income streams, you should be able to give a nominal finder's fee immediately. Another consideration, if you don't give the finder's fee as soon as you have a contract in place with the seller, your referral sources will dry up immediately and perhaps spread the word that you don't pay as promised. Share this post Link to post Share on other sites
