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Updated over 11 years ago on . Most recent reply
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Is Offering a Finder's Fee Illegal?
I am thinking of ordering some business cards and get into wholesaling. I have flipped and rented out several properties and wanted to do some wholesaling to
a. Find some good properties to rent/flip
b. Make some extra cash for rentals and flips
Everything I read says offer a finder's fee on your business card for people to bring you leads. But I heard that these fees can be illegal. Can I put that on a business card and leave them around? Or will it get me in trouble? I'm in Minnesota if anyone has any local knowledge. Thanks.
Most Popular Reply
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If you are not a licensed professional there shouldn't be a problem with giving referral fees but definitely check with legal consul. RESPA would be the ones to come down on you if you were an agent, I believe the law is something like you can only give $50 for a referral or something like that, You may need to have your bird dogs fill out a W-9 in case you pay them more than $600. I usually have a bird dog package to send to my referrers? Please check with your local ordinances for exact answers.