A Finder's Fee is a fee, commission or payment made to a person who brought a deal or sale together. This is common in wholesale properties and large real estate deals --such as bulk reo portfolios.

Licensed real estate agents and mortgage brokers commonly collect a 'referral fee', which is simply another form of finder's fee. When a real estate agent refers a client or prospective buyer to another real estate agent (normally in another area), the agent receiving the referral normally pays a fee to the referring agent upon closing the transaction for the buyer. This is also common amongst mortgage brokers, loan officers, and mortgage companies.

A Finder's fee can also be a fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.

In real estate investing, it is common for bird dogs and wholesalers to collect a finder's fee. The bird dog finds properties for the investor or buyer, that are significantly under value and receives compensation for doing so. Many people have found this to be a very profitable business with almost no investment.

Receiving a finder's fee for real estate services in some states is illegal, check with your local laws or consult with a real estate attorney prior to entering such venture.