Ballpark Birddog Fee For Unsure Investor
I am trying to figure out a good way to explain to an investor what a ballpark fee would be to pay a birddog . I know that the fees are negotiable, and dependent upon the amount of research I do ,and how accurate the info is . Another thing to consider is the sale price,possibly a percentage of that.
So say for example I find a 200,000 home and it leads to a purchase . I find the motivated seller,in the investors price range,& ARV,comps, past deed info, no tax liens,no title issues . What would a ballpark price be? I want to be paid for what my work is worth, but don't want the investor whose not sure how this usually works to think I'm jipping them . Ya know what I mean? Please share your ideas. Thanks.
Hey,
Before we get to your question, lets be sure we agree on what a Birddog is.
To me a Birddog is someone who has lots of interest in RE, but absolutely no idea what they are doing. An investor has to hold their hand when they cross the street or they will get hit by a car.
The reason I say this, is why else would anyone want to be a birddog??? If you find a great property, with $40k in profit, why would you give that to someone else, if you knew the correct ways to acquire it yourself??
A Birddog has two jobs: one, to find houses for an investor and two, to learn the business from the investor. Both parties get something out of the relationship BEFORE you throw in the Birddog fee.
A birddog fee is around $500 per property purchased.
Hello ther,
This has been a question that has been asked numerous times and the consensus has been, depending on the area and how much work the Birddog actually does, will dictate what the payment is. I know in Florida, most investors are paying a flat fee of $500 for each property they buy. Some people are negotiating higher fees. It all depends on the property and the amount of equity when it is purchased. The fees should be commensurate with the level of experience of the Birddog and what the negitiated fee is for the particular deal. Some areas pay a flat fee of $1000. Like I said, it depends on the area. I would suggest you look thru the older posts here and come to your own conclusion and base it on the deal and your experience, not on what other people are doing in their areas. Every place you go is different. Hope this helps a little. Good luck
I'll chirp in on this one:
First of all (and I've said it many times) I think "birddog" is a derogitory term. Lufos probably defines it better as "real estate analyst" and appropriately so.
I turn a lot of deals over to investors. Why? I operate a third party loss mitigation business where I charge homeowners a fee to negotiate a fair workout with their lenders.
Some folks MUST liquidate in order to avoid foreclosure.but I don't have enough money or risk tolerance to acquire every investment opportunity. I would go crazy trying to manage 15 to 20 deals a month - so
I have a relationship with the homeowners and the lenders. I inspect the properties, I estimate the cost of rehab, I know what the homeowners need in order to walk, I know if the deal can be shorted and it becomes a matter of matching the right investor with the right peoperty but by the time I turn it over to the investor , 90% of the due diligence is done and all they have to do is show up with the money.
If the deal is skinny, I may take as little as $500 just to bail the homeowner out. Moslty, I charge the investor 1% of the fmv + $180 an hour for the research, providing a motivated seller where the deal is pre-arranged and I will also negotiate the short sale with the lender.
In my area, this formula works for me. My loss mit clients keep calling and my investor group, thanks to TCI, keeps growing .
I hope this answers the (ahem) "birddog fee" question for all but please, don't call me no damn birddoggy. ARF!!
C-
Thanks for the www.replies.I have been looking in the older posts and searching articles, but figured I would try on here as well.
I was trying to give an investor an idea of what to expect, and what is expected of me.
Hello ..oo!
Have U ever heard of anyone who eats house?
No one can buy all properties that come across, I believe U R missing the point. Any way
find fees can be accordly with the deal. And level
of knowledge, on different areas.Some property
are good deals, others are great and all aspects
should be taken in consideration , for a fee sometimes passing the deal along to somebody else is better deal than try to embrace all deals at once. And one has to eat too...
I know what birddog www.is.I know fees are different with every investor etc.
I had an investor that was new to birddoging and wanted to know what a ballpark/standard fee would be for my www.services.That was the whole question.
I already explained to him the scenario, but was looking to see what other ppl. would tell him.
Alexis,With the amount of research you have done I would say 1% of ARV is fair. I pay $500.00 for addresses only and $1,000.00 if owner contact information is included and correct.Just my $0.02.