Bird dogging question
I want to start building wealth by flipping to investors. I will call a few this week, but I'd like to check with some experienced people here first.
1.What do I say when I call?
2. What will they most likely ask me to do?
3. Who determines the fee, me or them? I'm thinking as I gain experience I can set my fee, but in the beginning I have to accept what they offer. True or false?
thanks,
andrea 
Dear Andrea,
I would meet with your potential investors face to face. Simply let them know that on occasion you may run across deals that they are interested in and that you would like to be paid for the lead.
Keep in mind that it is your business and you are the one in charge and providing the service. Most of my bird dogs get a 5k finder's fee and some I will even split the profits with.
What they provide me is a profit annalist, at least 3 comps, and a basic title search that they do their self and they negotiate the deal for me. The folks that I split profit with run the deal from finding to showing of property. I never allow them to accept an offer to purchase on my behalf.
I hope some of this helps, you are the one that must determine what you time is worth, because on an average you will put around 10 hours work on each deal.
Remember you are an investor, you must act like it, walk like it, dress like it and just be it!
[addsig]
You inspire me!!
I wish I had read your post before I made my calls this morning!! But tomorrow is another day and I will start again.
All of the investors I spoke with today said they would pay between 500 and 2K for a lead. It does not appear that 5k would be reasonable here or am I just contacting the wrong people.
I'll keep going,
andrea
Quote:
I'll keep going,
andrea
Please do, do not give up!
Just because they say that they will only pay X. If you find a good enough deal someone will pay more.
Lacashman,
Thanks for the encouragement. I really needed that today
andrea
simbajoy,
Bird-dogging is a very honorable profession and an absolute asset to any creative real estate investor.
Your fee's will be adjusted to the type of properties you find for your investors and should be tied into a profit center that you formulate.
In other words, let say you find a deal for a Subject To investor. I would base your fee at 10% of what the investor gets down on the house with a $500 minimum fee for finding any property for them.
This is also based on what information you provide to the investor. The more information you provide the investor the more valuable your expertise becomes.
It is a pleasure to see someone starting out by bird-dogging, or the field of unsung heros of our industry.
Everyone wants to fly the plane, but no one wants to take lessons.
John $Cash$ Locke
I will study more in the archives but on the tail f this thread---I have a friend that knows TONS of people--some want to sell their homes---some want to buy. What do I pay her for the leads she gives to me? I am getting my re license so if I cannot do a deal as an investor (my 1st priority) I can do a deal as an agent. This woman has helped me and others (and we will probably do some investment deals as partners) and I'd love to have as many leads as I can. I have no idea what's cool in this arena. btw she doesn't have time to run comps and other due diligence---she has a very busy company.
Any input here? Is there any rule of thumb or is it just whatever we negotiate? We both need $$$$$
As always thanks so much and sll the best to you all,
Mel