Typical referral fees for short sales?
I've started up my wholesaling business recently, and in addition to all the investors, hard money lenders, and wholesalers I've met, I come across many short sales specialists. My focus is 100% on wholesaling, but I'd love to help these people out and send any deals that can't work for me their way. What sort of referral fee should I be asking for and what kind of contract or agreement do you have in place to make sure the other side lives up to their word?
Most Popular Reply
It depends on the value of the property and also how great the deal is. If it's a $40k property don't expect a $2k referral fee. If it's a $1m property a $5k fee isn't out of order. I make my referral fees in line with how great of a deal it is and how much homework the birddog has done for me.
-Michael