Finder's Fee / Commission

[Kyle Miller]

I recently found a home in the Reno/Tahoe area for an investor who does many flips. The ARV would be about $750k to $800k. The most the investor is willing to pay on the property is $548,000. The deal offered to me is a $2500 flat-rate for finding the home or $2500 + 50% of whatever amount I can get the owner to agree to under the $548,000. Ex: I get the owner to agree to $540,000 so I would receive $4k + $2500 ($6500) for the deal.

Any thoughts on this? 

[Marty True]

@Kyle Miller be careful about taking a percentage - this puts you in the realm of "unlicensed brokerage". Getting a flat fee is generally fine (bird-dogging fee) but you may want to consult a RE attorney about accepting a percentage of sale.