One more question question about finders fees - Posted by GM

Real Estate Investing Real Estate Financing
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Posted by GM on October 06, 2005 at 14:50:38:

Thanks much. Put it in my files.

Would still love to know about joint-ventures or the like (if anybody knows).

Thanks again!

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One more question question about finders fees - Posted by GM

Posted by GM on October 05, 2005 at 15:54:36:

I’m trying to build a business recommended to me by someone who runs workshops in Michigan: becoming a deal finder for investors interested in purchasing REOs.

On another thread (http://www.creonline.com/legal/wwwboard7/messages/28094.html) William Bronchick wrote, "If the finder does any pre-negotiating and/or his fee is contingent upon you closing with the seller, it MAY be considered a brokerage … not
illegal to pay a finders fee of any kind. Can be illegal (not criminal necessarily, but unenforceable) to RECEIVE it.?

The person running the workshops is finding properties, and submitting an offer to the bank (possibly through a realtor) on the investors’ behalf. On the day the property closes, he gets a check.

He doesn’t have an RE license, and because asset management companies are reluctant to assign REOs to third parties, I?m thinking that what he?s doing is some kind of a joint
venture agreement with the investor. If so, it WOULD be legal for him to receive money from the investor, correct (since they?re technically in business together at that point)?

If this is a legal way to receive finders fees, how would one go about “joint venturing” with an investor?

Really appreciate an answer to this. (I want to make sure I?m doing this legally.)

Thanks!

(Also, if you know of any real estate attorneys in Michigan who work with beginning investors (preferably flat fees), it would be great to have their names).

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Re: One more question question about finders fees - Posted by Tom-FL

Posted by Tom-FL on October 05, 2005 at 20:26:20:

Have a look here:
http://www.creonline.com/real-estate-clubs/mi.html

Your local club is one of the best places for contacts like that. Pick up all the flyers while you’re there, and the member list too.

I was hoping to find some web site links but there are none. One time there was someone asking the same exact question and I went to his state, the first club listing was in his town, called up the site and got six lawyer’s info. Oh well, you needed to get out of the house anyway, right?

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Re: One more question question about finders fees - Posted by GM

Posted by GM on October 06, 2005 at 05:19:06:

Thanks Tom.

Unfortunately, I’m in an isolated area when it comes to nearby reias. (Strategizing, and still hoping one of the attorneys chimes in, maybe with a preliminary answer and also a referral.)

Thanks again!

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Re: Give this one a try - Posted by CN

Posted by CN on October 06, 2005 at 11:57:38:

Ken Jacobs was once mentioned to me by the local real estate club. He is in SE Michigan. 248-926-1138