Deal-Finding Comp. and Negotiation Strategies (First BP Post!)

[Diego Murray]

It is to my understanding that if I found a great deal on a property I could negotiate one of two outcomes with an investor.

1. If the investor's goal is to wholesale or flip the property I would state in a written agreement that my fee would be a percentage of realized profit. 

2. For the long-term investor seeking fixed income from rents, I would state in the agreement a percentage of cashflows.

What are reasonable percentages for either of these scenarios? 

What are some factors that could cause these percentages to fluctuate? (Perhaps the property is 20% undervalue or there is a significant ARV. )

Can you please give some different examples and likely outcomes for the Deal-Finder and Investor?

(I do not yet have an RE license and am aware of Futersak v. Pearl outcome)

Thank you,

Diego M.