How Much To Charge For Leads
im new to this so im looking for some guidelines and /or direction.
im wondering if i have a property ive found that i cant do nothing with but feel it would be a good opportunity for another investor how much would a fair price for that lead be worth to someone.
is the some kind of guideline to follow or an average charge in the business that i should stick with.
thanks for any advice on this matter
joe
I pay more for qualified leads than I do for just an address. it depends upon what you can negotiate with the investor you're working with, and how much you have to offer. Sometimes it's nothing unless I buy the property.
Good luck,
Jeff
i have noticed fees vary on this site by quite a bit.
is it a really good deal or so so
will owner carry some, how far under market value is it, ect...
John
P. S. I just signed an agreement to pay a $ 3,500.00 fee for a deal of $800,000.00. To be paid 3 days after close. obviously thats if the deal goes through
Its important to have it in writting in advance, before you reveal your property location and owner/seller so you are not cut out of the picture
I agree, you have to walk the fine line. Make sure you have them sign a non disclosure, or an agreement of fees if buying the property. Tell them everything except the address and contact info to get there mouth watering.
As far as payment, it really depends on your involvement on the deal. I have done 50/50 of the profits for just putting the money up. Or I have paid 500 bucks for getting me an address and contact info on a property that wasnt listed on the mls. There really isnt a one price fits all deal, unless its a subscription service.
Good Luck,
Kyle
Out here you would need to have more than a name and address not listed on MLS for $500 if the sale were not consumated.
You might get that if you had done credible comps as well but generally unqualified leads I have seen for $20 up to Kyles range.
Speaking for myself, if a property is being submitted for my evaluation I need the following:
1. Why get involved with this property.
2. What are the comps (third party sources).
3. What other properties are for sale nearby.
4. What is the area like (schools, shopping centers etc.).
I need to be at least 25% or higher below FMV or I need to be able to create financing to make it feasible for my buyer to be able to make the monthly payments but buy at a higher price.
This is geared toward SFHs, however I also invest in Land and Commercial properties. My requirements are different.
Normally I do not pay a finders or referral fee, I will pay a % of net profits. I do not need a list of properties for sale. I need properties that will work for me or my investors