How much do you pay your brokers / bird dogs for deals?

Just curious what others are paying for deal flow or for off market deals. I’ve heard of some sponsors paying birddogs (who hunt off market deals for the sponsors) a weekly or monthly retainer fee on top of any fees. Anyone here pay a broker fee at closing AND % of carry? What’s the most you’ve paid on a deal?

I can start… we paid a 1% fee on a $40mm deal and are giving 2 to 4% of our carry, depending on IRR at time of refi/sale.

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Based on the most helpful WSO content, here's what you need to know about broker compensation:

Commission Rates:
- Deal Size and Commission:
  - $0-15M: 2.5-3%
  - $15-50M: 1.5-2.5%
  - $50-100M: 0.75-1.5%
  - $100M+: 30-75 bps (0.30-0.75%)
Brokerage Shop Split:
- The brokerage shop typically keeps 30-50% of the commission.
- The remaining amount is divided among the brokerage team(s) based on pre-negotiated splits.
Broker Compensation Variability:
- Compensation can vary widely based on market conditions and individual performance.
- Some brokers make $0, while others can earn multiple seven figures.
Additional Fees:
- Mortgage broker fees for large deals (e.g., $100MM+ loans) are typically in the 25-35 bps range.
- Debt brokers may have to give a certain percentage of their fee to the brokerage shop, ranging from 10% to 50%.
Retainer Fees and Carry:
- Some sponsors pay bird dogs a weekly or monthly retainer fee on top of any fees.
- It's also possible to pay a broker fee at closing and a percentage of the carry, depending on the deal's IRR at the time of refinancing or sale.
Example:
- A 1% fee on a $40MM deal with an additional 2-4% of the carry, depending on the IRR at the time of refinancing or sale.

This information should give you a comprehensive view of broker compensation structures and practices.

Sources: Let's Talk About Broker Compensation, BROKERS: What Is Your Compensation In Real Estate?, To all the commercial real estate brokers out there...how much money do you make?, Commercial Real Estate Broker Compensation, Commission Schedules - What have you been seeing?

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