Whats the difference between a "commission" and a "fee"?

[Dan Krause]

I am refering to fee as "consulting fee" or "referal fee" . In a bird dog deal, where finder is not licensed, does asking for a consulting fee or referal fee instead of a bird dog fee make you legal enough to obtain a fee for locating a property?

[Carlton Ellis]

Originally posted by Dan Krause:

I am refering to fee as "consulting fee" or "referal fee" . In a bird dog deal, where finder is not licensed, does asking for a consulting fee or referal fee instead of a bird dog fee make you legal enough to obtain a fee for locating a property?

Don it's all about how you structure your relationship with an investor. This seems to be a VERY IMPORTANT question to you. If you want a consultant's fee when doing business then set up an AGREEMENT to work as a consult for somebody with the approriate terms and conditions. Once again it makes no difference what you call the fee your ACTIONS in a real estate transaction have to legal in the state your are doing business in. In Michigan you can't do the follwing without a real estate license:

Market the sale or purchase of a property for another person.

Negotiate the purchase or sale of a property for another person.

List a property for purchase or sale for another person.

Manage a property for another person.

If you are unsure about your legal standing in a deal then ask if you can become a partner in a joint venture agreement with an investor with the understanding that the investor in question buys you out at an agreed upon price once a transaction is completed. Now, finding a investor willing to do this may be easier said than done but it completely takes the "Is what I'm doing legal" question off the table.