A client of our company (I am one of the part owners) is looking for some land to put up a building on in a specific location. My company is going to put up the building sincewe have done work for them in the past.
I have met but not dealt with the client very often myself but since I know the area is in high demand I have done some homework on the side to get things going.
I found a piece of land that might be ideal for the project. I knocked on some doors and found the seller privately. I would obviously like to make some money off of the land deal. What is the best way to approach this?
I wish I had the capital to buy then resell it to the buyer, but I don’t.
I might be able to get together100-200k as a deposit at best.
Would it be best to just get a contract from the seller or buyer agreeing to a 3-5% commision on a pass through deal?
How would I go about this?
Initially I was really hoping to keep my fee private from both parties and make about 10%. Compared to the going price for surrounding land even with my 10% it is a very reasonable price.
Even though you may have found a great deal for the buyer (your client) and will have facilitated new business for your company do not hide your financial interest in this deal from anyone. Many might consider this less than ethical and if you hide the details and they later come to light this may reflect very poorly upon both you and your company.
I agree. What is the best way to approach this, do I need to get contracts or written agreement into place before I present the property to the client?
With everything on the table what would a reasonable request for commision be and do I need to get contracts or written agreement for this as well?
Does anyone have a link to/or have a standard contract I can use for this? I wanted to put the information on the property in front of the client asap, was on my agenda today actually. I assume I would need the/a contract in place first.