Networking fee?!

4 Replies

Ok. I know a contractor wanting to do flips. He is willing to split profit 50/50 with an investor who will fund the deals.

I don't have enough money to partner with him. But what if I could find the investor? How would/could you monetize on this situation? I have a few things rolling around up there but I'm not even sure how to make it happen.

I'm interested to hear your ideas.

Thanks!
Taylor

I'd probably be left with a bitter taste if someone charged me a fee for "networking". Imagine if someone wanted to charge you when you asked them "Hey you know a good plumber?"

Elizabeth Colegrove 

I know exactly what you mean. "Networking fee" is a bit harsh but its the first phrase that came to mind.

I'm still saving and maybe one day I'll just be the investor but until then I'll rack my brain. 

Thanks

I wouldn't call it a networking fee, but I have a different mindset than Chris K. It definitely can pay to know the right people,  even if you aren't the seller or the buyer/lender (or in this case lender and borrower/contractor).

It can be staged as a "consulting" fee or whatever you want to call it, if you can prove to both sides that you bring value by bringing two parties together then you can certainly ask for a percentage of the deal (albeit likely a small percentage).

I have been paid multiple times by bringing a lender and a borrower together, whether it is a few points at closing or whatever. You could offer to help the contractor with small simple construction tasks if you have the time, things that are easy to do/learn even if you have no construction experience.

Do you have your real estate license? If so you could help bring the deals, analyze them, find comps, etc.

There are definitely ways to still get paid on this, you just have to be creative and show both sides why it is a benefit to have you as part of the deal. I just wouldn't expect to get rich through this since you won't have any of your own skin on the game or be putting in much sweat equity.

If you network with the right people you can still find ways to make a few bucks.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you