Expert: Brian Bocchieri - 3/18/2008

Question
Brian,

I am in the process of introducing a wealthy investor to a seller in the matter of a resort property.  There are various details and variables to be sure but I am trying to determine my finder's fee that would be fair to all parties should the deal go thru.  I estimate the sale price
to be $40-60 million USD.  Thank You RM

Answer
Hello Rex;
Congratulations on your adventure.

You are correct to assume there are many issues to consider.  

The answer will depend on how involved you will be in the transaction,  Will there be a realtor involved?  
             Is the property listed with a realtor?                 what is your relationship with the buyer and seller?
Are you sure the buyer can close the deal?  

Remember your fee (in most cases) will come from the seller.  You will need to set your fee with them before you bring the buyer to the table.

If there is a realtor involved you will need to deal with them.  You can work out a consulting fee or finders fee (depending on the state) with the realtor.  There is no set fee for such a transaction that I know of,it is always a negotiation and once again depending on your involvement will determine your fee.  I would look for 1 point you may want to start at 2 and work down it is up to you.  I will caution you whatever you negotiate be sure you have it in writing signed by all parties to the transaction (consult your attorney).  I have seen deals where it has happened and the seller refused to pay the finders fee. Make it part of the closing documents.

I hope this has helped.  

Fell free to contact me with any further questions.

Wishing you all the best

Brian Bocchieri
brian-bocchieri@hotmail.com