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