Referal Fee
I have a question. I am helping out a friend who has a huge lot approved to build 75 homes in 6 monthes. They will need a partner to continue this project. I am reffering them to a couple potential partners as an equity partner or to buy them out completly. I need to know, how will I benifit financially on this deal if it goes through? Please let me know, Thank you.
Do you have a fee agreement? If you expect to get paid you will need one.
Good Luck,
Robert
[addsig]
no i dont have a fee agreement, i am new to this, so where can i obtain one and who is the one giving out the refferal fee, the one with the project or the one joining the project? thanks!
You can do a fee agreement IF they will escrow and pay you out of closing. If not, the fee agreement may not be enough. I would take it in the form of equity - could be worth more. Do a prom note and deed of trust against one of the houses in the first phase that way you will DEFINITELY be paid. Just my .02
thanks for the advice guys sorry for sounding inexpierenced!
Quote:
On 2007-01-09 18:48, BayAreaInvestor wrote:
thanks for the advice guys sorry for sounding inexpierenced!
Make sure you stay within state laws. Many states are very strict, if you take a fee, you need to be licensed.
I must have missed something! Who is "Judging" in this thread?
What kind of fees do bird dogs usually get? Are there different fees for just referring a contact and for actually finding the property, doing an inspection, and doing more leg work in general? Do you need a license to receive bird dog fees?
Thanks.
txboy
Go back to the title company & ask what requirements they need for them to reissue a check in your name. They will probably require a signature from the seller.[ Edited by sanjosee on Date 01/19/2007 ]
As others have said there are many other terms available depending on the type of property. If you put more money down you may have gotten a better rate once again depending on the type of property.
Yes you would recieve better terms with a higher down payment . Your decreasing your risk and the banks.
a five year balloon is pretty typical for commercial financing.