Referral Fee Etiquette

[Justin Baker]

Hey guys, quick question. I am on a buyers list for a wholesaler who regularly sends me deals through email, and I have never bought from him before. He sent me a higher cost deal, 550k but the ARV is around 1 mil., this is above my head currently but I did have a friend who was looking for a property similar to this one so I passed it along. She is very interested in it, and might close on it and wanted to give me a finders fee, which I wasn't really looking for, but will gladly take. Next, the wholesaler asked me what type of referral fee I want from him, for bringing them together. My question is I am not sure if I should take a fee from one or both, or what is customary in this situation as I really don't have any equitable interest, and just brought them together as a way of helping out. If I do decide to take the fee(s), I am not sure how much would be appropriate to ask for (from the wholesaler only, not going to ask for anything from my friend, whatever they give is fine if anything)? Any help is appreciated, thanks!

[Joel Owens]

Justin ask your friend what they think is fair??

The number might be better than you had in mind. Example quietly you think 6,000. The friend tells you 10k is fair without knowing you were happy with 6k. Instead of acting super excited and saying thanks. You lower your tone on the phone and pause and say well I was hoping for more but I think that might be a fair price.

If you are too excited they might chop you down some more. You want them to believe they won the better part of the negotiation. I don't care what people think they won as long as I meet my objective.

The friend is likely asking you to see if your number will be lower than what they were willing to offer............. : )