bird dog commercial deals

General Real Estate Investing
1

okay in the last year I have been in contact with a broker in another State ,( I am in CA.) anyway I do not even remember how we found each other ,however , apparently he is a commercial broker and he gets new devolepement projects and such and tries to get funding via private or conventional for the principles.
I was working on a 5M deal with him last year and I was able to get him in contact with a Agent whose company does private funding , we were so close to getting the deal funded but then there was a communication breakdown and the deal flopped ,

Anyway he has sent me information on some new projects that need funding , Now I am a singe individual who is not tied to any broker and wanted to know how can I charge a finders fee if i am able to locate private funding for them and if so ! How do I protect my fee so I do not get left out of the deal?

I have a Investor that wants to see 2 of the deals and one is a 7M NEW DEVELOPEMENT and the other is a 3M NEW DEVELOPEMENT . Any help would be greatly appreciated

2

There are two ways to approach this situation, you can either set up a standing fee agreement between yourself and the lender, where he, the lender, pays you a fee for bringing him doable deals or you can establish a fee agreement between you and the developer, where he agrees to pay you a fee to find funding. The fee differs from lender to lender, some will only pay you 0.5% of the loan amount, others will pay you up to 2 0r 3% of the loan amount, provided your fee doesn’t break the deal. You need to talk to the lenders you’re considering and find out what they would be willing to pay you and if they would honor a fee agreement between yourself and the developer.

Whichever way you do it, make sure all your documents are properly signed and notarized. Check your PM, I’m sending you an important message.