Consultant Fees and other fees

Typically what is the fee if you found an investor for a commercial project (Multi-family units) or a REO portfolio package that others are putting together for investors?

One requires cash of $3M

And the other requires $12M

I am working with a mortgage professional on these projects and I feel they only understand what they charge if they funded the loans, which is typically around 3%.

I am wrong to assume that fees could go up high as 25%?

Edited: 06/26/2010 at 08:39AM

Kyle Koller

Real Estate Investor · Chicago, IL

101 posts
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Icon_minipost Jul 27 '09, 04:27 AM

Francisco,

I'm not sure if I completetely understand the question so elaborate if I'm not answering it. If a licensed broker/salesperson referred a client to my company that ended up becomming a client, he or she would be entitled to a 15% referral fee.

I suppose fees could go up to 25% but that's way to high, in my opinion. Other than bringing some capital (which we may or may not NEED), you'd bring nothing to the table. No negotiations, no property analysis, no syndication forming, no due dilligence... you get the point. I think that 15% we offer for referrals is generous!

Edited: 06/26/2010 at 09:08AM by Kyle Koller

Scott M.

Real Estate Investor · Rochester Hills, Michigan

632 posts
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Icon_minipost Jul 27 '09, 05:36 AM

I think Kyle is very generous :)

I would doubt that you could get 25% for just being a matchmaker - bringing person A to person B with no other work involved.

The more you do the more you make and at the same time if all you do is bring person A and person B together and they give you 1% of 12 Million or $120K for that - that isn't bad cash for the work involved :)

Kyle - would you actually give someone $1.8 for bringing a buyer-seller together on a $12M deal?

I think that would be unreasonable as well.

Edited: 06/26/2010 at 09:08AM

Scott M.

Real Estate Investor · Rochester Hills, Michigan

632 posts
4345 Influence
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Icon_minipost Jul 27 '09, 06:00 AM

yes that was a joke - 15% of your fee Kyle I get it :)

But 15% is still generous - do more and make more.

Edited: 06/26/2010 at 09:08AM

Eddie Ziv

Real Estate Investor · Studio City, California

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Icon_minipost Jul 27 '09, 06:06 AM

If you think about it, this is like being a real estate agent. You find a buyer for the seller. RE Agent rarely get more then 5%

Edited: 06/26/2010 at 09:08AM

Matt Mathews

Real Estate Consultant · yucaipa, California

239 posts
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Icon_minipost Jul 27 '09, 08:00 AM

In the Realtor to Realtor world! If you agent A. send me a Buyer client B. and We close a deal-the referring agent gets minimum 25%. My referral contract shows 30%. (that would be off the Buyers side commission before Broker gets paid.)

Edited: 06/26/2010 at 09:08AM

Kyle Koller

Real Estate Investor · Chicago, IL

101 posts
685 Influence
3 Awards

Icon_minipost Jul 29 '09, 02:20 PM

Originally posted by Scott M.

yes that was a joke - 15% of your fee Kyle I get it :)

But 15% is still generous - do more and make more.

You're right, 15% is very generous for essentially doing no work. We actually get 95% of our clients from our own marketing so we haven't actually given away too much in referral fees.

Edited: 06/26/2010 at 09:10AM