Finder's Fee for bringing investor

[Brittney Blanco]

Hi there,

I am currently working with a developer who needed an investor to complete his projects...I found him one and we are finishing the deal. Does anyone know if the finder's fee is off of the debt or the new loan? Huge difference. Thank you.

[Chris Martin]

Finder's fees relate to what contracts you have in place. Your statement "Does anyone know if the finder's fee is off of the debt or the new loan? Huge difference." makes little sense to me because 1) we in BP Nation do not know your contract and 2) don't know your distinction between "debt" and "new loan". Please elaborate. About 13-14 years ago after the great recession I helped a developer land some development parcels using mostly his money and my expertise. He still owes me a few grand which I'll never pursue nor collect, which is ok with me. He was out of his league and lost more than I stood to gain. Live and learn. 

If you feel like your finder's fee is not applied correctly, 1) just ask the developer for compensation based on the contract, then 2) tell the developer to pay the agreed compensation, and if those fail, 3) make the developer pay your contractual compensation via small claims court order. 

That's the normal order of business. 

[Chris Seveney]

Quote from @Brittney Blanco:

Hi there,

I am currently working with a developer who needed an investor to complete his projects...I found him one and we are finishing the deal. Does anyone know if the finder's fee is off of the debt or the new loan? Huge difference. Thank you.

 receiving a finders fee to bring on an investor is against the law unless you are a licensed broker-dealer/investment advisor. If the deal were to go bad and the investor made a complaint and then found out you got paid raising funds for someone else you could end up in handcuffs and a jump suit. 

[Eliott Elias]

Play the Gp role here, refer to your state laws on this. Make sure the way you are getting paid is legal.