Finders fee for pocket listing ?

Question

Hi all

I found a really nice property (MHP) through a pocket listing. It’s a little too steep for me and more importantly I have never ran a park by myself. I would not be comfortable bringing in other people’s money without prior experience. I figured it would make sense to try to partner with an operator on the deal. A mutual acquaintance has syndicated several deals previously and would be interested to make this happen but from the sounds of it wants me to invest as if it was a normal passive investment through a fund (something I am already doing), making a certain percentage every quarter etc. How should I be negotiating this? Wouldn’t I at least be expected to get a finders fee? As the likely lead investor and the finder of the deal I would want a better return than what is being offered. (8 percent preferred return) After all if I wanted to invest more in a normal fund I would have already done so.  I may still invest regardless but would certainly be way less inclined to put a lot of money into this deal. Really hope I can get some replies here as this is a time sensitive situation.  Btw if there are any good prior conversations in the forum that would be relevant I would greatly appreciate a heads up. I’m sure this type of thing has been covered previously.

Thanks so much BP. Truly appreciate it.

Greg Dickerson · Answer

@Josh Klauber It all depends on the size of the deal. Finders fees are negotiable and the bigger the deal the bigger the fee. I would need details to be able to give you an idea of an appropriate fee.

Your best bet is to get the deal under contract so you control it. That way you can either partner with an operator or assign the contract for a fee. Feel free to PM me to discuss in more detail.