Bird dog fee for private money

[Lisa Knudson]

A friend has hooked me up with a European investor who intends to wire 200K to our RE company (we have both known him 20+ years). We are offering monthly interest payments of 9% for a two year, renewable term with a one time lump sum of 1% fee paid to the friend who hooked us up. All fine.

Question: Would you pay the 1% finders fee one time for the first two year term, or ongoing at each renewable term? I know we can do what we want but what is customary and what is fair?

Other Question: The EU investor has other family (the investor's relationships not the bird dogs) would you offer to pay the EU investor a 1% finders fee if his group comes in with more money or would you again kick some back to the original bird dog?

Just wondering what you all think. Thank you very much! LisaYatesKnud

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