How Much Should I Pay For Advice?1?
I have a friend who has access to the MLS and has found properties for her ex husband which they have rehabed over the last 3 years or so and made a ton of money. She very much wants to be free of this relationship and has offered to help me find great deals. She really knows this town. I just had my first offer accepted on a condo and seems to be a very good deal. She showed the listing to me and basically talked me into it. She is willing to take me around and show me where she gets the best deals on everything and to even use her subcontractors, realators, appraisers if I would like. I really appreciate all that she is doing and would love to continue doing deals with her so that we both can benefit but I have no idea how much to pay her for her time. I have only seen sugestions on birdog profits but this situation is different since I still make the www.deal.The condo I purchased is 460,000 and I plan to do about 10.000 in repairs and flip for 530,000.
Thanks
She hasn't mentioned a price? I would ask her
[addsig]
From your description of her work and MLS access, it sounds to me that she is a RE agent. If so, she's already getting paid. No need to pay her more.
Well she said that she was just wanting to help me get started and needed no money, but like I said she desperatly needs money. And no she is not an agent but has access to the MLS because of a realator friend. And yes I no this is not ok. How much should I compensate her or set up future deals with her?
Thanks
Hi ceedee, sounds good, I wish I had a friend like her.
Please tell her I'm looking for a friend exactly like her. I'm not too far from you, so if your friend needs more friends, please let me know.
Now back to your question, It's obvious that she is in a way your MENTOR, and that your success is dependent on her knowledge and experience. Having said that, I would make things very clear from now. Sit down and talk to her, friend to friend. Set the rules where both are happy. We all know that having no advance agreements, especially in business situations between friends or family members, can lead to sad endings.
As for how much, If she's finding these deals from the MLS, then a RE agent is involved, so a gift of $250 to $1000 would be nice. If no RE is involved then a 1% to 1 1/2% of the sales price would be appropriate.
Just my opinion.
Good Luck and I wish you both a good and long relationship.
Wish we all friends like that!