Referral fees or finders fees for Private Investors

[Toni D.]

How much should we pay someone who refers us to a Private Investor?

[Vikram C.]

Investment bankers charge anywhere from 3% to 10% depending on the size of the deal. Mortgage brokers make less than that on smaller deals but their effort is less.

If the person is merely introducing you to someone they know, you may wish to pay a lower fee. If they are putting a lot of time and effort into getting the deal done, you may wish to pay an I-Banker type fee. You should probably also look into the legal aspects of paying a fee to someone who is neither a broker-dealer nor mortgage broker.

Let us know how much money they are helping you get and what their effort has been and we can give you better guidance.