DEALS WITH BIG INVESTORS

[Jeremy Kerr]

Hello my name is Jeremy.

I'm a fairly new real estate investor with only a few small deals under my belt.

I was recently speaking to a big time investor in my area and really just trying to pick his brain. We speak over the phone several times a month just answering various questions I have. Almost Everytime we speak he ask if I come across any land or historical houses to let him know. Well I came across some land (450 acres for 8.8 million) and I brought it to his attention. I wasn't sure what to expect when I mentioned the property to him but he asked me to send him all the basic info, so I did. Now he wants to meet me out at the property along with some of his developer friends.

In a nut shell I'm not sure exactly what he is expecting from me and I need some help to figure out what my worth is in this deal.

Has anyone ever came across a situation similar to this?

If anything I'll bring home some great experience and some new knowledge.

Thanks again

Jeremy

[Arn Cenedella]

@Jeremy Kerr

Props for stepping out of your comfort zone.

To be honest, your worth in this particular deal is whatever the experienced large scale investor thinks it is (assuming you have no finder’s fee written contract in place.)

Ballpark estimate in my opinion is that finding the deal might be worth 5% to 10% of the deal pending structure of the deal.

If the large scale investor is a person of character and integrity, he should provide some form of compensation given your relationship with this person.

My suggestion would be to not focus on the compensation per se but try to learn as much as you can from this person during the evaluation of the deal. This might actually be the best compensation for you - learning from this person about big land deals.

I think your “I’ll bring home some great experience and some new knowledge” is spot on.

Good luck, I imagine this is exciting for you!