Builder looking for investment partner. How can I lock in a 'finder's fee'?

Builder looking for investment partner. How can I lock in a 'finder's fee'?

Realtor · San Antonio, TX · Member since 2014 · 13 posts · 0 votes
Hello everyone! Happy Monday! Got a call this weekend from an old friend that his boss, a custom home builder, is looking to develop land and sell lots. He needs someone to invest $330k to match his investment. I have two other big players in mind for him. My question is, how do I assure a finder's fee? What document should I use? And what would be a fair fee for bringing him a potential investor? Thank you so much in advance! Albert Argüelles
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  • Denver, CO · Member since 2012 · 350 posts · 175 votes
    11y

    Do you have a series 7 license?

  • Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
    11y

    Legally I bet you need a license. Without one I don't know have you could assure one.  You would be relying on the guy to take care of you under the table in the hopes you would do things for him again in the future.

  • Realtor · San Antonio, TX · Member since 2014 · 13 posts · 0 votes
    11y

    Douglas:  I don't have a series 7 license.

    Paul:  I see what you mean, couldn't we just draw up a simple "commission" type of contract? 

    Thank you guys for the responses!

  • Real Estate Investor · Los Angeles, CA · Member since 2008 · 148 posts · 22 votes
    11y
    Originally posted by @Douglas Dowell:

    Do you have a series 7 license?

     Why would he need a stock trading license to do a real estate deal? Just curious. 

  • Denver, CO · Member since 2012 · 350 posts · 175 votes
    11y

    For a real estate deal he would not.   To pay a commission for a real estate security sales...almost certainly. 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    A contract for an illegal activity, is non enforceable in a court of law.

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