$500 (or Whatever) Referral/birddog Fee
Do any of you offer a $100-500 bird dog fee to people for leads that result in a purchase?
If so, how much? And do you use some kind of formal contract with the birddog...or could it be as simple as a hand written note on a napkin? What does it say?
Thanks,
Brian
I have paid between 500 and 1000 for referral fees that have ended up in sales.
Well worth the money...
I take no less than 5,000 or 10% of the profit for bird dogging,no less.You can get assignment contracts from almost evey guru lesson.
R,
Are you sure you're not confusing bird-dogging with wholesaling? Bird-dogging is just a referral, You haven't got a contract for anything except providing leads. If you're getting 5K or 10% just for bird-dogging, more power to you, but you won't be doing bird-dogging for me.
jeff, he must be talking about assignment.
I have heard oter birddogs here saying that they have gotten good percentages on some of their deals. As much as 15% upon closing, but I am sure those were high equity deals and the were few and far between. I know I would not pay that much for just leads, I would need much more than that, such as all the foot work done..comps, searches the works..but if someone is willing to do all that, they should just do the deal themselves.
I do this for real and I get as much as 33% or as little as $1,000.00
for every deal or assignment they buy off of the lists I generate.
If you have less experience, you may have to charge less.
Its how I got started, I was paid to learn.
then I just kept reinvesting.
make some money, bought John Locke's book, made more money, went to his workshop, made more money, etc, etc. The rest will be History..
Pardon me for posting this question here.
What is bird dog fee called? just bird dog fee, consultation fee? any ideas.
What happens if I find a lead, convince the owner to co-operate to do the short sale, get Auth to release and then bring in an investor to close the deal after doing a short sale? Is that still a considered a bird dog?
First of all, if you want a dogs wage then continue to describe your activities as bird dogging
True name. Real Estate Analyst
Get cards made and have them reflect your occupation. Do not put your address on the card but everything else.
You can even give yourself a motto.
"Value Discovered"
A REA (Real Estate Analyst ) working for me got 10 % of any earnings of the company after all costs expended.
If he brought in a listing from earned commission we paid a finders fee to the Analyst.
As time went on the amount increased as the Analyst learned that it paid to work on the biggys.
The Hight Limit Office Building on Wilshire Blvd. bought by the Japanese who overpayed almost double for the priviledge. At 12 times gross the office did well. Highest fee ever paid by the office to an Analyst. $36,000. That was to M. Cordingly a lady who never graduated from High School. Had to go to work. Had a thick Oklahoma Accent which we helped her modify. On her first commission she had her teeth fixed. They used to stick straight out. Sent her to Magnins to get her hair and nails done. Sent a stylist with her to buy her clothes. When the office finished with her she looked like a typical bitchy lady from the Hamptons. The Japanese were so impressed. She went on to become a Broker and then a specialist in Investment groups buying old garment factory buildings to remodel into ritzy wannabe Artists Lofts. Married a Director. She was a winner. Bird Dog Indeed.
Lucius
Maybe "bth" and "ksmntci" needs to be explained further the difference between those two: BIRDDOG & REA.
The name of the game is "Find Thee Motivated Seller" so the question is, wher do you find them. Where are those characters? They are everywhere, here and there but much more often you'll find them on the outer limits of the social parameters. Simply sad, more on the bottom and less on the top.
And why is that so? On the top because expensive properties are hard to sell and on the bottom... well I guess you all know why there. Speaking of birddogs, the term describes the one who finds deals on the lover end of the price range. Speaking of Lufos' REA, one should know that a higher end of the spectrum requires deeper pocket, better taste and faster thinking skills, so if you do not look good in the high hills without your high school diploma, don't bother because you'll not be Mr. Miamoto type . BTW, high five for Ms. Oklahoma M. Cordingly. She was one of the kind! I guess
Since we all know that not everyone will become a power broker with an address in Hamptons or Sends Point, NY, it is reasonable to expect that some would still like the chance to enjoy being the good old birddogs. And how is that works?
Birddogs may provide leads only in the beginning stage of the relationship with investor but as he or she learns more, they are expected to write their own contract and bring deals all the way to the investor's table, so he (or she) can open the escrow and close the deal. In the time when the deal close, birddog gets his "bone", which is on the lower end properties about $3k -$5K, depends on the after repair property value and the option price . For leads that result in purchase the fair commission should be between $500.00 and a grand. And if a lead result in 100K profit, i do not have a problem paying up to 10%. Even babies need to eat.
The relation between birddog and investor works just fine because the birddog gets to learn the ropes while he takes no financial responsibility or obligation to handle the deal after the investor close on it.
jeff12002,
1) What do you pay for leads and
2) what do you pay to birddogs in AZ
if you do not mind, you can also comment on type of contracts you use there, etc. Let's help birddogs learn the basic ropes so more deals can be brought to investor's table.
Woof, get it boy! [ Edited by omega1 on Date 01/29/2004 ]
ARE THERE ANY CONTRACTS TO SECURE A DEAL BETWEEN THE INVESTOR AND REAL ESTATE ANALYST. OR DO I NEED TO CONSULT A REAL ESTATE ATTORNEY. I AM ACCOUNT EXEC/MORTGAGE BANKER WORKING WITH INVESTORS. I WORKING ON A BIG DEAL. HOME VALUED BETWEEN 1.7TO 2.1M. WE ARE OFFERING $800K. I CHARGED MY INVESTOR 6% OF THE PURCHASE PRICE. WAS THIS TOO LOW 6%
I have seen different contracts, but the important thing to remember is to spell out what you expect from the investor and what does the investor expect from you in order to consider the deal good for them. Good negotiation skills are in order to maximize your profits. Be creative and dont be afraid to ask for what you want. I have a few contracts if anyone wants to see them. Nothing special, but none the less, they are effective.
Good luck
mtaone,
Welcome to the TCI.
Board ruleNo.1: PLEASE NO SCREAMING CAPS! We can read your questions just fine - without them-.
As far as did you charge ithem to litle, my gess is you should charge anyone up to 100% if they (I supose investors) agree to pay you that much. And, if you clcik on the tab FORUM you can get the list of the boards. There, you'll se a more apropriate Forum called: Paper / Notes / Mortgage Investing Forum. Your question will be unswered better there then here unrelated.
Good Luck!
Go for it tiger!