Finder's Fee on Shopping Center in LA?
BP readers,
Thank you for reading! I recently presented a shopping center deal ($10,000,000 in South Los Angeles) to a broker friend who has an investor interested in the deal. They will put in an offer on the property. The confidentiality agreement from the selling brokers states that buyers broker would receive 0.50% of sales price (is it me or is that relatively low?).
My broker friend mentioned that he usually pays 15% of buyer's broker commission for the finder's fee, if there is one, but because we are friends he would do 25% (or $12,500 = $10,000,000 X 0.50% X 25%).
What do you think I should ask for in this deal?
And if this goes on what are your thoughts on a sliding scale finder's fee, how would you say that would look like?
Thank you in advance!!
A