How Much Should Middleman Get?
investor/prop mgr presented deal to
our team...this will be a rental (SFR)
he had a letter written by the owner explaining their situation but the owners never sent it to the bank (& he was hesitant to send it because it was poorly written (his words)
I suggested lowering the amount in the letter & sending it....so he faxed the letter to the bank & they agreed to the amount
Equity left after all closing costs ~ $40k
How much should the middleman get? The owners are also asking for $. How do you calculate who gets what? I vaguely remember him saying (general conversation) that typically his fee is 1/2 of the equity (??)
I'm thinking there needs to be some %age left in the prop b/c prices will eventually come down as rates increase.
1/2 of the equity seems a bit high for simply giving you the lead and doing a little legwork. How about offering him 10 percent of your proceeds? That might be acceptable to him.