Someone asking for Finder's Fee after the transaction

[Terri Johnson]

Recently, I had an acquaintance tell me about a great deal she found from a wholesaler. She wasn't interested in it because she only wants to wholesale herself right now. She gave me the name of the wholesaler and sent me the address of the place. She said that she ran the comps and felt like it was a good deal for a flip or buy and hold.

I wasn't looking for a property at the time because I was in the middle of a flip. However, it was a good deal, so I decided to buy it. I let the acquaintance know that I bought it and thanked her for bringing it to my attention. I was planning to also write her a note and send her a Starbucks card.

BUT then, she asked me for a finder's fee of $1,000. Honestly, I was taken aback because we hadn't talked about this at any time prior to this. I didn't know that that was why she was sending me the deal. What would you do? I'm grateful that she sent it my way, but I would have liked to know about the arrangement ahead of time.

Thank you for any insight you can give me.

[Adam Martin]

That seems like something that should have been discussed up front and I don’t think you would have to agree.  On the other hand this person is into wholesaling and helped you find a deal so good you bought it when you weren’t looking so I do see value in that.  If you pay the money you may get more leads but I can almost guarantee if you don’t that bridge is burnt so the real question is 1000 worth burning that bridge.  I’d probably pay them for their help and let them know that this is now the agreed upon deal 1k/ closed lead and we can let it go both ways.  Relationships are hard to build and I wouldn’t loose this one over 1k but I’d be frustrated.