Paying a finder's fee ??

1 Reply

I've read the tips from other investors suggesting using a $500 finder's fee, or similar wording. They pay this to anyone who brings them the lead, after the deal is complete and the property closes.

So I decided to check with the fine folks here in Oregon, to be certain I wasn't putting anyone in jeopardy. As it turns out, it's not ME who would have the problem, but the person whom I would pay the fee. Here's the official word back:

Per ORS 696.010 (11) "Professional real estate activity" (j); the person you pay a fee to would be doing professional real estate activity without a license. Per ORS 696.990 this act is a Class A misdemeanor and subject to the violator being charged a penalty.

So I'm sure other folks have come across this and I want to see how you handle it...

Thanks.

It all matters what the laws are in your state. I find deals for investor, and that is what I charge, $500 per house. But I am a realtor so the money does have to go through my broker first. It all matters what your law states.

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