Using an agent for wholesale deal

[Jeff Lee]

Ok ok - rookie mistake. An agent I know (who is also my property manager for a SFH) sent me a wholesale deal I hadn't seen. He walked the property with me, gave me some tips, and did the sales and rent comps. I never bothered to ask how he was getting compensated until we had negotiated the deal and agreed in principle with the seller on a price. The lightbulb finally came on, I asked him how he was getting paid, and he said "That's totally up to you", but noted he typically gets paid by his other investors on the settlement statement at closing. I want to make sure the relationship stays strong and not underpay him, but the services rendered were also not on par with a typical agent-buyer relationship (we checked out 1 house and ran comps - maybe 2-3 hours work, tops).

ARV is $220K if that has anything to do with anything.

What would you do?

[Jeff Lee]

@Ray A Delfi Haha - Why does he need me? "I deal with the engineers so the customers don't have to! I have people skills! I am good at dealing with people!" I guess it's like anything else - why don't wholesalers keep their own deals? Or why do flippers pay bird dogs when they can go find their own deals? Just specialization I guess.

We ended up settling on a $2K finder's fee, and he's continued supporting me through the process (closing next week). I'll be sure to talk about this in advance next time so there aren't any surprises...

Thanks to everyone for your suggestions! @Danni Catambay@Remington Lyman @Jeff Joachim