How Do I Get Paid to Locate Investment Funds?
Full Question:
I have asked two local lawyers, but have no response. I would like to find money for people and get 6% for my trouble. What is the best way to get the money?
07/23/2009 |
Category: Contracts ยป Finder's Fee |
State: Pennsylvania |
#17720
Answer:
In a corporate context, a company seeking a merger or acquisition may pay a finder's fee to a person who locates a prospective company for the transaction desired. It may be in the form of a performance-based commission, where the finder gets paid upon closing of a sale. Usually the fees are paid by the seller, but in some cases the buyer pays the commission.In a real estate context, a finder's fee may be paid for locating property, obtaining mortgage financing. or referring sellers or buyers. A finder's fee is money paid to a person for finding someone interested in selling or buying property. To conduct any negotiations of sale terms, the finder may be required to be a licensed broker or he violates the law. However, state laws, which vary by state, may also provide an exemption for certain individuals, allowing them to be compensated without the necessity of licensure. For example, one state's law allows an exemption for either a property management firm or an owner of an apartment complex to pay a finder’s fee or referral of up to $50 to a current tenant for referring a new tenant. The fee can be in the form of cash, a rental reduction or some other thing of value. The party claiming compensation under this exemption is not allowed to advertise for prospective tenants.Many states regulate finder's fees among real-estate licensees. Few, if any, states regulate finder's fees in regard to personal property (washing machines are a form of personal property). The answer depends on the type of business transaction involved and the states involved. Certain professions, such as real estate brokers and investment brokers, are required to be licensed. Assisting in financing a transaction may be considered a licensed practice. Licensing and applicable requirements vary by profession and state. I suggest calling the local professional licensing board.
