Syndication - Equity Partners Finding Fee

[Troy Fisher]

So this weekend I met an interesting guy who is working on some pretty big commercial deals. He's got a couple of syndicated deals in the works looking mostly at rehab and resells.

I've got a guy who is an asset manager for some 'accredited investors', my question is two-fold:

1. What's the best method for bringing these investors to him?
   1. Should I talk to my Asset Manager and say, "Hey, here's an opportunity, talk to this guy?"
   2. Talk o the Asset Manager and lay out the opportunity and mine his client list for the people who'd be interested and talk to them individually
   3. Try to form a pool of investors from the asset manager and bring this pool of interested parties to the Flipper?
2. What kind of finders fee should I be asking for?
   1. 3-5% of the funding that is supplied?
   2. A Lower % and an Equity/Cash Flow share also?

This is an area that I'm unsure of myself and I want to present myself and the opportunities for both parties that I can bring together to maximize the ROI of my time investment.

[Brian Burke]

Your best bet is either option 1, or maybe even none of the above. The guy syndicating commercial deals is selling a security. Unless you have a securities license and are employed by a licensed broker/dealer, you cannot be paid a commission for selling securities and this includes a "finders fee" that is tied to the raising of capital. The only way I could see you profiting off of this is if you tell your syndicator friend that you'll give him a lead on a money guy for some set price, and if he agrees, you pass on the name of the asset manager (or vice-versa). Of course he won't agree to that because nothing says that a deal would be consummated so it would be a long-shot gamble. That's the only way to "disconnect" the finders fee from the sale of securities.