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.

Comments(11)

  • roberth8th January, 2007

    Do you have a fee agreement? If you expect to get paid you will need one.

    Good Luck,
    Robert
    [addsig]

  • BayAreaInvestor8th January, 2007

    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!

  • lassitermarketing9th January, 2007

    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

  • BayAreaInvestor9th January, 2007

    thanks for the advice guys sorry for sounding inexpierenced!

  • wjrucker10th January, 2007

    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.

  • pmatheson110th January, 2007

    I must have missed something! Who is "Judging" in this thread?

  • txboy18th January, 2007

    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

  • sanjosee19th January, 2007

    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 ]

  • windycitycommercial20th January, 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.

  • hsosa717521st January, 2007

    Yes you would recieve better terms with a higher down payment . Your decreasing your risk and the banks.

  • rmdane200021st January, 2007

    a five year balloon is pretty typical for commercial financing.

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