finders fee - Posted by Rob FL

Posted by J. Tschida on November 13, 1998 at 19:57:00:

I have leurked here for awhile and I finally have a question…(you guys are great by the way)

Speaking of finder’s fees and getting around the real estate license thing, I just read on a web site a plan to help people who are about to go into foreclosure. It involves offering the seller a price for their house and drawing up a contract with a good faith deposit (on this website they mentioned a g.f. deposit of $10) and then finding a buyer who will purchase the house for about $10,000 more than you contracted to purchase it. You sell the contract to the buyer for that amount and pocket the extra $10,000. They say it is a win-win-win situation because the seller avoids foreclosure at the last minute, the buyer gets a good deal and you get a nice middle-man commission.

I had never heard of this before…they say it is legal because you have given the seller money as a deposit for the contract…anyone have any insight on this? Legal or not?

I should point out that it was a website that was also selling a course…

finders fee - Posted by Rob FL

Posted by Rob FL on November 11, 1998 at 17:50:54:

I have read in several books and seen also in the Sheets course and others that one way to get a house sold is to offer neighbors or anyone that can find you a buyer a finders fee of $100-200 or so. Wouldn’t this normally violate real estate laws unless the finder has a license? Just wanted some input from the pros. Thanks for your help everyone.

Re: finders fee - Posted by PBoone

Posted by PBoone on November 11, 1998 at 18:46:58:

We offer and pay more for finding good deals for us in the local area. We sub-comtract their services when a deal goes through.

Re: finders fee - Posted by Rob FL

Posted by Rob FL on November 11, 1998 at 21:53:07:

How does this “finders fee” work in regards to going around the need for a real estate license in order to get compensation?