How much should I charge this guy?

[Luke Carl]

Met a guy who said he wanted to go 50/50 so I showed him a couple deals. The second one I showed him he was ready to buy. I had to explain to him the 1% rule right there in the kitchen. He's clueless. Funny thing is he recently quit his big W2 job to do real estate and has his license. I'm thinkin, dude, you're the one with the license and I'm showing you the deals? What's wrong with this picture. We've both decided 50/50 isn't for him. He has time and the drive to do these on his own he just doesn't known and he's a "chicken little" He also has 100k from a flip and another 100+k HELOC and wants to put it all in to buy and hold (he's gonna find out quick he shouldn't have lost the W2 before he did this). So basically he wants to pay me to find him his properties and write out the business plan for each one. He also wants me to PM but I don't think that's a road I want to walk down so I'll refer that part of the gig to a buddy. He gets to save the broker fee on his end because he is a broker. Basically he's asking me to be his broker and teach him how to be a landlord. Is 3k per house fair? I made that number up. It could be ridiculous in either direction. I figure free do 5 of them that's another down payment for me!

[Steve Vaughan]

For sourcing deals I generally charge a finder's fee about equal to but not considered 2% for assets in the $240k-$1.4M range.  'Percent' sounds too much like commission and I'm not licensed.   Doesn't sound like one gets licensed for the 'education'.  Sheesh  

But mine are sourced to experienced investors that know what they want.  To hand-hold and write a business plan for?  Don't know if I'd bother.  

What asset price are you talking about in general @Luke Carl?  $10k?  $100k?   Maybe charge $3k plus $x for y amount of your time with the education.  Or maybe a small equity% for your time and expertise.

You're right about him wishing he didn't quit the w2 before seeking loans.  What do they teach in agent training anyway if that and the 1% rule is a new concept?  LOL   

Please keep us posted!