Recommended Wholesaler fee and referral fee

[Account Closed]

Hello all,

I am new to RE investing. What is the recommended formula or value for referral fees and wholesaler fees? Can anyone provide guidance on what are the normal parameters that you would expect to pay in this scenario? Or point to another reference that my help?

Thank you,

[Nick Cifonie]

If you're asking about a referral, or "bird dog" fee, most investors usually pay $500-$1000 for a lead that ends up closing. That's if you don't contract to buy on your own, but just pass along the info.

"Wholesaling" usually entails you actually entering into a P&A contract then assigning or "flipping" it, and most investors go for $4000-$10,000. Of course in smaller deals in can be less, and some is more... sometimes much more.

The amount of markup fluctuates much more than bird dog fees. However, even those can be a LOT more on high-end properties or commercial deals...

Nick