Q&A for How to Make Money Locating Property for a Finder's Fee

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Can I show or sell the house as a finder?

Arun Ghosh Aravindakshan
Real Estate Expert
Arun Ghosh Aravindakshan is a Real Estate Expert and Licensee with over five years of experience, specializing in commercial real estate. He recently received a certification in Commercial Real Estate Analysis and Investment from the MIT School of Architecture and Planning. As the founder of Hutfin.com, Arun created an online marketplace designed to streamline the selling and buying of commercial property. Previously, he worked as a certified Cloud Architect and DevOps Engineer and is a member of prestigious organizations such as REIN, ISACA, EC-Council, and PMI. He has also served as a U.S. Army Officer. He holds a Bachelor's Degree from the University of Kerala and a Master's Degree from the Hough Graduate School of Business at the University of Florida.

Arun Ghosh Aravindakshan

Real Estate Expert

Expert Answer

You cannot show or sell a house as a finder. It's illegal to do that unless you are a registered real estate agent or broker. The Act requires all individuals who are going to show or sell real estate to have in their possession a current license to engage in that practice. The purpose of this statute is to prevent those who are not qualified from practicing real estate, so that buyers and sellers are better protected. In fact, if a finder also happens to be a holder of a real estate license, then they can show and sell properties; but otherwise, they are not supposed to under law.

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Question

How can I do this without a license to practice real estate?

Community Answer

A licensing board cannot regulate the agreement between two non-licensed individuals.

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Question

Where are some good leads in finding homes for sale by an owner?

Community Answer

Craigslist is a good place to look for listings that have been unsuccessfully sold for many weeks or months.

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Is it a good idea to join an online group that provides videos and support for getting started (for a fee)?

Community Answer

Yes, it is. Joining a community of other property locators can give you a good opportunity to find advice on getting started.

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Question

Do I need a license to do this?

Community Answer

No, but you will likely have to sign a contract when you're agreeing to a fee for your services.

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How much can I expect to get paid on a finder's fee from a real estate agent if I referred the agent to the seller and the agent double popped the transaction of my friend's house?

Community Answer

You can probably expect nothing, depending on where you are. In most places, it is illegal for a real estate agent to split their commission with anyone but a licensed broker or agent.

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What are typical finder fees?

Community Answer

It depends on the money that is inside. You probably will be offered about 20 percent of the value you returned to them. However, you are obligated to return it to them, so they aren't required to give you money.

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