Getting Refferal Fee For Finding Tenent Buyers?

Instead of just looking for houses for a partner then getting a refferal fee if they buy, how about finding tenent buyers and building a list then passing that along to your partner, or someone else looking to fill their L/O properties and then getting a 10-25% of that tenent buyers option fee depending on the size of the option fee.

This a good idea, or no?

Thanx-

Comments(4)

  • newinvestor197522nd November, 2004

    Hi Jo,

    Could you place your question in the Lease Option Forum, you may get more responses. I'm interested in knowing what experienced investors have to say as well.

    Best Regards,
    Jacinta

  • kenmax22nd November, 2004

    i would have no problem dealing at 10% but as you have said "depending on the size of the o/f" if the deal is "sweet" enough 25% would be no problem. each deal will be different. depending on area, price, how desireable, ect. they are all nego. you can't set a one price fits all. you must access the marketability of the prop. and % accordingly........km

  • kenmax22nd November, 2004

    you will need to "read your buyers needs and % from there.......km

  • Joe_Oh22nd November, 2004

    I'm sorry about the forum mismatch, I was thinking that this was more like a "market and find" thing. But yea, makes more sense to have had it put in the L/O forum.

    Anyhoo, I'd think a disclosure of understanding agreement between the seller and the T/B finder should be in order too.

    Maybe this formula will be of interest:

    (Option Fee x .1)+(ARV x .002)
    example:
    ($2500 x .1) + ($100,000 x .002)
    ($250 + $200) = $450

    Unless this maybe too much, I want to take into the value of the house of well, lower the house value, the lower the fee but the base of the option fee x .1 will keep the refferal fee from being too low to be worth the time to look around.

    any other ideas?

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