Deal-finding help - What shoud I pay?

Question

Hey BP community, as I continue to look for multifamily properties and network, I've run into a go-getting individual who would like to work for me and get some experience in real estate investing. We both want to be low-risk, so partnering is out this early. I've considered a flat rate for mailings and percentage of sale price if a deal is purchased.

What types of work and compensation have you used for this in the past? What would you recommend we do to get started?

Matthew Bernal · Answer

This comes up more than people expect as investors start to scale. A few structures that tend to work well at this stage:

For deal finding specifically, many investors start with a flat fee per qualified lead that actually gets analyzed, plus a finder's fee or bonus if a deal closes. It keeps the incentives aligned without giving away equity or making it feel like a full partnership too early.

The key is defining upfront what "qualified" means to you — property type, market, price range — so you're not paying for leads that don't fit your criteria.

As you start closing on multifamily deals, the financing side becomes just as important as the deal sourcing. Happy to connect when you get something under contract — multifamily financing has a few nuances depending on unit count and your strategy.

What size multifamily are you targeting — smaller 2-4 units or are you looking at larger 5+ unit buildings?

Juan Yepes · Answer

If this person finds the deal, finders fee is usually 1-3% of the price. If this person is helping you execute your plan with your materials (ie. mailings) then it's more administrative and I'd just set up an hourly rate.

Benjamin Aaker · Answer

@Juan Yepes Thanks for your reply. I don't mind paying a percentage of the price. Now I need to figure out what that amount is. I'm in medium to large multifamily and a percentage is great, but probably will need a maximum.

Anyone have insight or experience with the numbers?

Juan Yepes · Answer

Hi @Benjamin Aaker I would structure the fee as a % of transaction price and pay only when closed. Basically a finders fee that you need to bake into your model when analyzing deals. This is how I have outsourced deal generation.

If you don’t want to have an upfront cost for the acquisition (on top of down payment and closing costs), then consider giving this person a % stake in the deal (positive cash flow, sale proceeds) for finding the deal. Basically sweat equity where the ultimate payout is higher for this person but you get to avoid the upfront cost.

Dominic Mazzarella · Answer

I’ve done something similar before, and what worked best was keeping most of the incentive tied to actual deals. A small base for tasks like pulling lists, researching owners, or handling mailings is fine, but the real motivation should come from a success fee when a deal closes. That keeps them thinking like a deal finder instead of just completing tasks. If they’re newer, I’d start them on research and lead generation so they learn how opportunities are identified. Keep the structure simple at the beginning and maybe adjust it once you see what kind of value they’re bringing.

Benjamin Aaker · Answer

Thanks, Dominic. Would you recommend a flat fee or percentage or some other scheme?