Determining a finders fee
I am trying to determine a finders fee amout. I've read post where people say $500-$1,000 but that seems to be for single family houses and for the finder to just find the deal, not broker it per say.
The deal.
It is a 32 unit apartment complex 3 buildings. Low occupancy, needs fixing up.
I have gotten the current owners to agree to owner financing, $300k 10% down and 3% interest with a 30 year amortization. They want a balloon payment at 7 years but trying to get it to 10 years to give the buyer time to get the units fixed up and rented and time to get the loan paid down.
I originally started looking at the deal for myself but the capital needed for improvements is a huge issue for me, also I live quite a far distance away so that runs into an issue with the rehab and looking after them.
I'm just trying to determine what would be a fair amount for a finders fee. Realtor fees are 6%, would that be fair? Or would it be a little more since terms are more favorable than a commercial lender(lower interest rate and lower down payment). Or is that asking to much?I have not set up a deal before so I thought I would get the opinion of people from here.
Jared