Finders fees @ closing

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Finders fees @ closing

John Bruccoliere
Wholesaler · Philadelphia, PA · Member since 2013 · 3 posts · 0 votes

I just lined up a cash investor to purchase a property from another investor for his rental property portfolio How can I work in a finders fee @ closing?

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  • Brian Pulaski
    Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Someone from PA will have to chime in, however that is illegal in a lot of locations, so I wouldn't expect it to be part of a closing with a title company or lawyer.

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  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    8y

    Are you a licensed agent? Or did you at least have the properties under contract? Or even an agreement with the buyer or seller that you would be paid a finder’s fee? You didn’t post much info, so it’s hard to say for sure, but from what you wrote you likely won’t be able to get paid a fee at closing. Probably the most you could hope for is that the buyer or seller found value in you bringing them together and one of them gives you a gift card or perhaps some money. In the future, if you want to ensure you get paid at closing, consider getting licensed (if you’re not already). 

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  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    8y

    In regards to what the others are saying, I don't know your state's laws. You need to research it. If it is not an issue, have escrow draw up an assignment agreement. They put your assignment on the HUD of the buyer only and it becomes a part of his closing costs. They can add a one line item "marketing fee."

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    Putting a fee for this on the settlement statement would be a violation of PA's brokerage laws. If you know the parties that increases the likelihood that whatever happens ... happens outside of closing.

    Recommend you get up to speed on what is legit in your state and how to protect your interests.

    Gimer Law516 Reviews
    WebsiteView Page
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  • Ray Johnson
    Irvine, CA · Member since 2016 · 545 posts · 614 votes
    8y
    @John Bruccoliere This will depend on your state, In California where I'm originally from, a non-licensee can collect a "Referral or Finders fee" for the introduction.
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