Referral fees for passing on deals?

by Readers Question

14:48 PM, 20th February 2017
About 4 years ago

Referral fees for passing on deals?

Make Text Bigger
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. horse trading

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

Comments

Mark Alexander

9:10 AM, 22nd February 2017
About 4 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?!
.

Richard Peeters

11:14 AM, 22nd February 2017
About 4 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.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

5 Top UK Buy To Let Property Investment Hotspots