What Do You Pay Birddogs?
I am just starting to really get involved with RE investing. I have found a few investors and a few houses but I am wondering what everyone is willing to pay for this information? I have seen that some people charge a flat $500 fee. But I am thinking of charging 2% of the purchase price as a finders fee. What does everyone think? What do you pay your birddogs?
Thanks
So you are trying to collect an assignment fee/wholesale the deals to another investor?
Why not take over the property then sell it?
Sounds like you got the lead and negotiation part down pat. Just need to expand your network and you should be set..
What is your investment plan?
Regards,
FrankSoprano
See if you can get the loan current and get a person with owner financing rather than lose the deal. Most banks will do a forebearance and that gives you a chance to find a buyer while making payments on the house, or doing owner financing using their money.
I personally hate owner-financing and would rather pay on the house until I get a buyer.
You might try lining up one or two investors first. This way you can work with them to select what they are likely to buy.
I was suggesting that you find investors and get to know them, then talk to them about what they want and then put the transaction together. You might start with a local investment group in the Atlanta area.
Another possibility is to look for out of state money where you can provide real service because of the distance from target properties. I know that there is alot of California money that is migrating to the east.
If you can offer a complete package, you might get more interest. I am working with someone on the east coast who will find the deals, arrange for contractors to rehab and manage or resell. I will be giving her one out of every five properties we acquire.
I hope that this is of some help to you.
Regards,
Ed
ambitious1 my suggestion to you would be to call up some of the " I Buy houses" signs or adds in the paper. They must have some sort of money if they are advertising to get houses. I think this is a good way to find some investor. Make sure you find out right a way if they are buying with their own money or if they are borrowing/partnering whatever. You want the ones who are buying with their own money. Find out what sort of houses they look for and you should soon have some investors. Good Luck
ambitious1 my suggestion to you would be to call up some of the " I Buy houses" signs or adds in the paper. They must have some sort of money if they are advertising to get houses. I think this is a good way to find some investor. Make sure you find out right a way if they are buying with their own money or if they are borrowing/partnering whatever. You want the ones who are buying with their own money. Find out what sort of houses they look for and you should soon have some investors. Good Luck
Good ideas guys, keep em coming!
Can you give some details on the contracts you had signed? Was there enough room for everyone to make a profit?
You may have found a great deal for sub-to or a rehab if you did it yourself, but not good enough for a invester to step in also.
Just a thought
craigslist and RE clubs
Yea, the houses vary. My first was a cute 1 bed 1 bath condo in upscale Atlanta $87K the owner signed with me at $57K. This just needed carpet and paint and a fixup of the HVAC. This went to auction sold for $93K!
2nd deal: Custom built 5 bed/4bath w/ lower level all the bells and whistles. $450K comps. Contracted for $398K. No repairs.
3rd deal: Fast growth, blue-collar area. Solid Rental /lots of apts, duplexes and rentals nearby.
ARV/COMPS: 135k & contract for $98K. Attempting short for $84K
The investor either negotiated a short sell with the bank and took title to the property. This usually requies the assistence of the home owner. Or the investor negotiated with the bank to buy the note. Or possibly the homeowner deeded it back to the bank and then the bank sold it to the investor.
During a preforeclosure situation, the homeowner has the deed. the bank can not sell the house, it can only sell the mortgage. unless the homeowner signed the deed back to morgagee.