Finders fee/deal finder question
I have been doing some work on finding projects for a development company I have some ties with. I am curious what you all have seen for how a 'finders/referral' fee works in situations like this?

I know it can't be an outright commission, but I am intrigued to see what other people have requested/gotten in relation to this. 
% of purchase, profit sharing, etc?

Thanks in advance,

BI
[{"id": "cty4i8m", "text": "This is going to be very deal specific but typically, I have seen a finders fee paid at closing, or, in exchange, the GP will give a small promote in place of the fee. \n\nWhat's the asset type? Location? etc. ", "replies": [{"id": "cty6p51", "text": "Generally development ready land. Large holdings that used to be rural, now metro's are expanding into them. \n\nI have heard anywhere from 2-5% is pretty standard, but wanted to get a better look at what people here have encountered. ", "replies": [{"id": "ctyd0r2", "text": "2-5% is a commission. Unless you are licensed (at least in Colorado and probably other states) paying you a fee would likely be unlawful. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cty7ffg", "text": "Are you an agent? In my state only agents and attorneys can collect a commission like this.", "replies": [{"id": "cty8ako", "text": "It has to be structured as a finders fee/referral fee. \n\nJust like any other state. only agents can command a 'commission' but they can reword it to get around it in any state. ", "replies": [{"id": "ctz510m", "text": "I think its more likely they just don't get caught, because if the person being paid is happy, and the company is happy, who is going to complain?  If you ever wind up in litigation about it I bet this comes up......  \n\nYou are prohibited in my state from receiving compensation for the sale or purchase of real estate, by another unless you meet certain requirements (licensee, attorney, executor of an estate and a few other random ones).  \n\nYou can't just not use the word commission and expect that to be a enough.  If it smells like a duck, quacks like a duck, and tastes like duck, it is probably a duck.\n\nYou may be able to selectively restrict your activities to get around this, or not, but I don't think its as easy as you think.   ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ctyphqw", "text": "They should be able to pay you through a 1099, as long as you don't have some other interest in the deal to which you owe a fiduciary duty.   The cut's going to depend on how much work you did to find their deal.  If you dug it out of the weeds and its a lucrative opportunity, it's going to be higher than if you showed up to their office with a bunch of random brochures from brokers.   Also depends on the size, and how much ongoing work you're doing to do on the deal.   \n\nFrom the limited info that you've offered, and assuming you simply found a solid, but not spectacular deal, you might ask for 3-5% of the value of the land?   If you're going to be working on the deal throughout, then you'll start talking about points on the total development costs, perhaps 1-2%.", "replies": [{"id": "ctz6r2x", "text": "This is what we have been doing. I don't get how people can get so stuck on the 'it's a commission' side. There is a commission on the sale, i don't touch that. It's a development firm paying a 1099'd fee for finding deals they like/want to pursue. \n\nGenerally it is through PRing the deal through. seller knows I am not an agent or fiduciary.. nor do i act as one. I am just a facilitator of the two parties to get them together and working on the project. ", "replies": [], "depth": 2}], "depth": 1}]