Should i hit the referral fee to my buyer or the investor?

5 Replies

HI guys So I'm a newbie at JV wholesaling. Im currently in the Central,NJ market.

Here's the scenario:  I text an investor who put ad up on CL that fits my buyers criteria.

ME:. I ask him if i can JV on the deal if i bring a buyer to the table.

He : I'm JV on this deal. Get your buyer to hit you with a referral fee for we can both make money on the deal.

My question is. Can i hit my own buyer for a referral fee? and if so , what contract do i use let alone convince him of such a thing.

Thanks,

Derek

@Derek Arcila You should know that the seller is most likely itching to get rid of the property as well (assuming he's posting to craigslist.) Yes you can utilize a 'finders fee' with your own buyer, however; I would push the craigslist guy for a fee as well.

Since every party is a non-licensed investor, as @Nick Britton mentioned it is a smart idea to place a fee on the craigslist buyer. After all, without you, he would have not found such a good deal. Negotiate with yourself a firm price on this fee.

All of you are running a very thin line of legality right now...

Couldn't agree more with Devon Garbus , this is starting to sound like you guys are representing the buyers and sellers side of this transaction. Tread very carefully.

Thanks guys! Appreciate it.