Builder looking for investment partner. How can I lock in a 'finder's fee'?

6 Replies

Hello everyone! Happy Monday!

Got a call this weekend from an old friend that his boss, a custom home builder, is looking to develop land and sell lots. He needs someone to invest $330k to match his investment. I have two other big players in mind for him. My question is, how do I assure a finder's fee? What document should I use? And what would be a fair fee for bringing him a potential investor?

Thank you so much in advance!

Albert Argüelles

Legally I bet you need a license. Without one I don't know have you could assure one.  You would be relying on the guy to take care of you under the table in the hopes you would do things for him again in the future.

Douglas:  I don't have a series 7 license.

Paul:  I see what you mean, couldn't we just draw up a simple "commission" type of contract? 

Thank you guys for the responses!

Originally posted by @Douglas Dowell :

Do you have a series 7 license?

 Why would he need a stock trading license to do a real estate deal? Just curious. 

For a real estate deal he would not.   To pay a commission for a real estate security sales...almost certainly. 

A contract for an illegal activity, is non enforceable in a court of law.