Let’s say with your plan they make an extra $100 or $200 in fees and you lose $1000 or $2,000 in bookings.

Typically this means they will take longer to close, may not have all the information for the companies they work with, and most hard money brokers get their money by taking an existing product and adding extra points to pay their fee.What is your investor success rate?

Should I take extra steps to verify their identity and legitimacy?

then theirs charges 1000s in extra fees. 

You can make more through co-living in most markets, but still likely to be better off house hacking 1 / year and then buy out of state with your extra cash.If you want to chat strategy with someone - feel free to PM me or reach out to contact info in my bio!

But I would charge the extra 3% to cover my costs.

.: I think you made a mistake.Yes, you get extra money.

We have aroun d420 units , and about 200 owners, we are coming off software developed in house, which made it hard to choose because our inhouse software had everything we wanted and nothing extra.

Because you negotiated with the seller and got it under contract for $2,000 less than your MAO, now you will make an extra $2,000 in profit.

But if you want to use a conservative approach and use the extra cash flow to pay off debt versus further investing, I think that's a very legitimate way to go about it.