I recently found a property that was a great deal but I am not sure how to proceed. I was contacted by a wholesaler who was helping out a family friend to sale there home. He was out of state and I'm not sure how accurate his information was. His sale price of the home was low. Here are the numbers. 395K Purchase, 50K Rehab, 600K ARV, the spread would likely be 120K. I knew my investor would jump all over this home. I viewed the property with my contractor and everything checked out. However, he wanted 10K earnest money. For whatever reason I did not feel comfortable moving forward and passed the property to my investor. She is now under contract and has agreed to pay me 15K consulting fee. Although I did not negotiate the deal am I legally allowed to collect a consultant fee? If so, how should I structure the verbiage on my invoice? Thanks
I am not a lawyer and shouldn't be taken as one, but I once had to collect my fee from the seller after he was paid due to the buyers needing to use an FHA loan. I downloaded a bird dog contract from the file place here and altered it a bit to what I need. Here is some of the verbiage..
PAYMENT. The Seller, through the Buyer, will pay a locator, referral and/or contact fee to the Consultant for the Services equivalent to $______________ (_______%) of the total proceeds derived from the sale and/or purchase of the certain property located, referred and/or contacted as requested by Seller and/or Buyer, or a flat fee in the amount of $_______________ for services as described in Paragraph 1 above. All fees due to Consultant shall be payable in a lump sum upon completion of the Services unless otherwise further negotiated between the Seller and/or the Buyer and the Consultant. Upon termination of this Agreement, payments under this paragraph shall cease; provided, however, that the Consultant shall be entitled to payments for periods or partial periods that occurred prior to the date of termination and for which the Consultant has not yet been paid.
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