Finders Fee for Investors?

[Luke Tetreault]

How would you structure a deal with a person who is on board using their network to bring in investors? Originally I said I would pay a finders fee per investor. This person is well connected but is now asking for essentially a commission every time their investor makes an investment, so every deal we do together. 2% per 100,000$ every deal. I’m doing about 20 deals a year at this point. Obviously of course I wanted to just pay a finders rather then commit to essentially a long term higher %. And gives me much less incentive to use those specific investors. Does that seem unreasonable? I’m paying 12% for private money at the moment. In my head that bumps me to 14 basically. For context I do not need these investors at the moment. I have a solid list I can fund most of my deals with, I’m just trying to be a little more diversified.