How should I do this finders fee for a San Diego apt complex?

Question

Hi

I am new to this forum.

Here is situation:

I am a residential broker who got wind  from a  friend of a unlisted owner selling a pair of apt buildings in downtown SD little Italy area.

I couldn't handle this type of deal as I wouldn't feel comfortable.  I have a commercial broker that I can refer it to that has buyers for this.  The owner wont list the property.

What is the best way to :

1-structure it so I get paid well

2-structure so the commercial broker wont go behind my back after I give him address/owners info?

3- make it a win win for everyone.

the guy wants 6 mill for the properties and has potential for hi rise or mid rise redevelopment.

thank you

Garrick Oconnell · Answer

Indev if i remember that name correctly is doing multi story development as we speak in little italy

Dale Shin · Answer

Hi Andre, I might be able to hook you up with a Los Angeles-based developer who builds all over southern California.

Andre Mccollough · Answer

thanks Bruce.

This has escalated a bit.

Now I have access to purchase a entire block between little Italy and downtown. Wow. its pretty funny actually . I walk in to My WF to do a wire on Monday and now I have access to the land to build a 300 unit hi rise in San Diego :)   .  If anyone has knowledge of a developer who can do this and work us all in to the deal , let me know asap. thanks

Bruce May · Answer

One way to do it is to get the property under contract and assign the contract to the end buyer. If you present it to the commercial agent tell him to add whatever fee he wants to your fee. This would be a typical wholesale. There's risk in doing this but if you have it under contract then at least the others can't go behind your back. I would advise the seller that you intend to bring in a buyer and put the deal together for a fee that will be paid by the buyer not the seller.

You might also strongly consider putting language in your contract that identifies you as a broker and states that you are not representing the seller but are a principle. You don't want to run afoul of any laws that could get you in trouble or sued.