Referral fees for passing on deals?
I keep spotting potential deals that I don’t want to take on myself (various reasons such as out-of-patch, already committed, slowing down etc), and would love to package them up and pass them on to investors, for a referral fee each time. This would build my own cash pot for deals that do tick all my boxes.
Two main questions:
1. How would we set fees, basically for finding the deal, researching it and doing some basic numbers for due diligence. Should the fee be a percentage of the PP, or GDV, or the uplift, or some combination?
2. It’s all a bit of horse-trading, but what percentages are common these days (Home Counties)? 2%? 3%? 5%? ??
Many thanks
Richard
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Member Since January 2011 - Comments: 12193 - Articles: 1395
9:10 AM, 22nd February 2017, About 9 years ago
Reply to the comment left by “Richard Peeters” at “22/02/2017 – 08:24“:
I still think you need to register as an Estate Agent.
HMRC recently took over the regulation of this act. Do you really want to risk falling out with them?!
.
Member Since November 2013 - Comments: 158 - Articles: 1
11:14 AM, 22nd February 2017, About 9 years ago
Reply to the comment left by “Mark Alexander” at “22/02/2017 – 09:10“:
Thanks Mark: for the sake of the £100 (non refundable) application fee, and £115 per year (for each premises), I could grit my teeth and register. https://www.gov.uk/guidance/registration-guide-for-estate-agency-businesses.