I’m trying to figure out what a good finders fee amount would be on deals involving someone finding me single family homes and duplexes, not on the MLS, sold by owner. I’m in contact with someone who owns and rents 15 single family homes and says he is always coming across deals and asked me how much of a finders fee I’d offer if he found some place that I bought. So I’m just wondering what a reasonable finders fee rate would currently be. thanks
It depends on how much work he put into it. How much skin in the game he has. Does he have the property under contract and is going to assign it to you?
If he doesnt have it under contract and is just pointing you in the right direction, I’d say $500 to $1000. If he’s gonna assign the contract, you’re looking at about $3000-$10,000.
You are basically talking about Bird-dogging - where someone scouts properties for a finder’s fee.
Fees vary on the property and value: usually I pay $500/$1,000 plus a percentage of the proceeds (sliding scale up to 2%).
I have a Bird Dog agreement that spells everything out.