Compensation
How much should a bird dog charge. Locke says 10% of downpayment with minimum of $500, but I get the impression that that's too high, what do you all think? I get the impression that being a bird dog is pretty degrading, is this true?
Thanks
Ben
Hey Ben,
Nothing is degrading.Some of the big investors of today did bird dogging when they started off investing.
Having such an attitude,will not help you.Please understand that bird dogging is providing valuable information for the investor to close on a particular property..you are benefitting,the investor is and so is the seller.Its kind of team effort,
As far as compensation goes,its usually 1% but you can work your way up as far as compensation goes and if you do more work than just giving a reference probably you can charge more too.But a start would be 1%
Good Luck Investing
I usually give $500.00 for a small deal and I'll give a percentage of my profits on a big deal. If I make $100,000 on a deal, I'll give the person who brought it to me $10,000.
john locke is within reason on those figures...use em
Personally, I would shy away from a fee based on a percentage of the purchase price. It smells too much like brokering and lord knows you don't want some RE agent thinking that you are brokering without a license.
If you want a percentage then do a partnership deal. As a matter of fact, if you can pull it off, do a partnership deal every time, even with a flat fee, so that way you are always a principal and brokering is never an issue.
I completely hear what you're saying. My agreement, does however, clearly state I am not a licensed real estate agent, am not acting in the capacity as one in the purchase of properties and will not provide any real estate advice. I also clearly state that I am not sending property availability reports to any one person nor is there a guarantee the property will still be available if the investor should become interested.
I hope this and the other terms I have in my agreement keeps me out of trouble!!
But - - - on the same token - I am looking into getting a license to give me greater access to buyers, sellers, properties, and commissions!! (right now I get paid a finder's fee not a purchase or sale commission.)
By the way - flat fees are a great way to go. I work with a locator who charges a flat (but tiered) fee based on purchase price. This might be desirable for others as well.
Thank you for the comments though - always helpful!!
Jenny