Posted by David on January 29, 2004 at 10:26:01:
I am in the Orlando, Florida area. I was hoping that you had found an eight-plex in Orlando.
Finders Fee - Posted by Harry
Posted by Harry on January 27, 2004 at 18:34:06:
Perhaps someone has an opinion about what constitutes a fair finders fee for a commercial property. Specifically I have private non-published info about a profitable 8-unit apartment building for sale that’s not listed and want compensation for giving this up. Any ideas on how this fee should be determined? The building is valued at 800K and there are actually two available.
Re: Finders Fee - Posted by Mac
Posted by Mac on February 05, 2004 at 10:47:21:
Have you considered an option to buy the property, then sell the option? This would ensure a clean and legal transaction.
Re: Finders Fee - Posted by Cheryl Lopez
Posted by Cheryl Lopez on February 04, 2004 at 21:50:38:
I have also heard the phrase “birg dog fee” versus saying “finder’s fee”. There are even books about these “bird dog fees” and how to make money. I understand some people charge greater than professional real estate agent earn on their 20% (based on commission) referral fee on the side being referred out. I personally do not understand the difference between finder’s fee or bird dog fee.
But do be careful as another poster said … IRS IS looking at the real estate industry (I read that on their website). According to the website 4,000 real estate industry individuals are currently being audited !
Re: Finders Fee - Posted by cam
Posted by cam on January 30, 2004 at 10:11:37:
You will have to check with your state to see if you can even be legally compensated without holding a real estate license. (that is unless you are charging a fee that is not contigent on the deal closing, in which case good luck finding someone willing to pay you for just an address)
Re: Finders Fee - Posted by David
Posted by David on January 29, 2004 at 07:24:56:
Harry, what area of the country are you in?
Re: Finders Fee - Posted by Harry
Posted by Harry on February 02, 2004 at 03:07:38:
Attempting to basically broker a deal. Not list it or sell per se. Just want ‘introduce’ buyer to seller and think this should have some value. Property is not listed and there is no other way for the potential buyer to get sellers name or number except through me.
Re: Finders Fee - Posted by Paul, WA
Posted by Paul, WA on January 30, 2004 at 18:16:43:
Not only will you want to check with local/state government. You will also want to check with the IRS.
There have been many recent publications regargarding “Finders Fees” and even “Flipping” of properties. If you go to IRS.GOV there is a recent article (December) on the sheer amount of real estate investment fraud on “flipping” and “finders fees” being investigated by the government at this time. (Search under “Real Estate Finders Fees” and it comes up under the second page.
While not, necessarily, illegal, you may have to word it differently to pass the attention at local and federal levels.
Paul
Re: Finders Fee - Posted by Harry
Posted by Harry on January 29, 2004 at 10:18:50:
I live in the Mid-west, specifically Wisconsin. Why do you ask?
Re: Finders Fee - Posted by cam
Posted by cam on February 02, 2004 at 08:49:13:
And in many states “brokering” a deal still requires a real estate license if you expect to be legally paid.