Selling sourced property leads

Discussion in 'General Property Investment Discussion' started by GlobalInvestor2018, Oct 18, 2018.

  1. GlobalInvestor2018

    GlobalInvestor2018 New Member

    Hi,

    I managed to source 4 good BMV property deals for a client I have worked with before from Singapore. Ideally would have liked to pull the trigger on them myself but unfortunately these properties are out of my budget - offered a JV option to him with me on board but he wanted 100% himself.

    Now I charged between £4,000 for each deal (all properties similar value) and he is just in process of completing on them now. Not bad for less than 3 days work.

    As we know each other well most of our deals have tended to be informal. Just send simple written agreement of introduction and confirmation my payment for sourcing will be sent on completion. Has paid no problem before and have introduced and been paid to a private equity fund that I also introduced him to in the past.

    My question is, does anyone have any actual legal documents I can use in future (for other clients that are not in a known business relationship with)?

    1. Should I be charging a %? Personally, I feel he has got a far to good sourcing deal for profit he can make. I thought most charged a source fee of £2000 to £5000? Or are you going by a percentage on larger value deals?

    2. What is methodology for introduction? Ie with him, I never needed to have an agreement and just sent him my research pack / excel modelling etc and seller contact details. Obviously I would need something in place with other clients so they did not cut me out and just transact with seller, dismissing my finders fee. What contract did you have?

    3. When is payment to me for finder fee paid? Once offer accepted and purchased? Is there a recommended timeline to offer?

    Thanks
     
  2. realdeals

    realdeals Active Member

    Personally, I think you live and die by your reputation and any deal should be possible on a handshake. However, we live in a world where not everybody is honest, fair and reasonable. Therefore, unless you have had a long-term relationship with an individual or a company I would recommend legal documentation. Remember, this helps both parties.
     
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