My partner owns an appraisal company and we would like to utilize his staff to locate properties for us, as they are constantly driving around. I am writing some guidelines as to what type of properties we are looking for - vacant, poorly maintained, FSBO, and in what neighborhoods.
My question is - what other information, other than the address and condition, should I expect from them? We are going to pay $750 for any home we close. I think they should supply the owner’s name and lien info as well, but I was hoping I could get some feedback from investors/bird dogs that are active as to whether I am in the ballpark as far as expectations.
I would want all the info I could get. Tax records can help but are behind most of the time. If there is a FSBO sign in the yard you would not need them to call and then you call and them your partner. The seller may think there are 3 or 4 buyers and may not be ready to wheel and deal as much as with only 1 call from you.
$750 is good pay for an address and phone # but it would be worth even more if it is a great deal that you may not have gotten. You could maybe even pay only $500 and get the same info. That is a weeks pay for most and not too long ago two appraisal fees and I remember when it would buy 5 appraisals.
Bird dogs make there money by providing a service to the investor they are developing the lead for. That service is researching the property so the investor can do what he does; negotiate and move on to wholesale, rehab, etc. As a bird dog myself I feel you should expect them to provide you with all of the public information that can be obtained on a property. This doesn’t take that long, and of course, this is the service they are being paid for. If you have to do the research beyond the address and name of the owner I would consider dropping the price paid per purchase substantially.