Commission on high rise development

[Randy Buff]

I am a commercial RE Agent and I am representing a condo developer that wants to build a high rise in the Southeast US.    I have introduced my developer to another large developer that is wanting to do a mixed use high rise that is looking for a joint venture with a condo developer.  We have had several meetings and it looks like a joint venture is in the works.  The project is in the $100's of millions.  Normally we get a percentage of what we sell but in this situation I am just helping the partners get together not selling anything.  One thing to note is that if it wasn't for me these two would never have gotten together.  I have discussed with my developer (condo one) about him paying me for my services.  He is thinking of a flat fee.  His potential upside is about $30M to $40M (possibly more based on final sale prices of the condos).   My Broker suggested a flat fee like $50K upfront and a free condo ($450K construction cost - move valuable when completed).   I am not sure of the structure I should ask for and thought this might be a good discussion for the forums.     What say you BP, what would you ask for and when should it be paid????

[Ronald Rohde]

Whatever you ask for be sure to get it in writing.