For any bird dogger, past, present or future… When you find investors that will work with you is there a contract that is agreed upon and signed between the bird dogger and the investor?
I know leads and contracts can be sold to investors, but is there a written contract between the the 2?
For example, if a bird dogger has a lead that looks promising and calls one of those “we buy houses” numbers and the property is discussed and they want you to fax over the paper work… the usual answer has been ‘it all depends on the deal’. Well that seems to be a long shot when you fax over a potential deal, because it may end up disappearing… :o
I hope i am making myself somewhat clear about what I am trying to ask… ???
Birddogs can be like hookers. You get paid after the deed is done and by whoever you jump in bed with. Sometimes the John will not pay and even robs the girl or worse. All the paper work that the girl gets the guy to sign will not stop the abuse.
I do not know of any formal contracts and part of the problem is that some hold out that birdogging is illegal and to sell real estate without a license is illegal so that any contract would be voidable at best. Now what to do actually depends on how you plan to market yourself. Do you plan on having just one or two investors to sell to and to look for them exclusively or do you plan on showing anyone that wants to take a looksee.
In the latter case if you even need something in writing I just write on paragraph that states that you shared the info with Investor ABC and if he buys the property you will get paid xxx. It can be that simple, at least you have something in writing and you may want to register the names of people you show the property to in writing as well. This will not stop them from beating you out of a fee but at least it may help some.
If you are just working one on one it will be easier to control. Here to just a little paragraph or two should be enough to get in writing the understanding the two of you have agreed to. You could get two high powered lawyers involved and draw up a 37 page legal binding 40 year contract but the $5000 per page agreement will not protect you much more.
There are several companies on line that sell leads. One I see is $25 and they will give you the address and sellers name. They send the town and the size and the retail value and loan balance and a little about the condition and if you want more you got to pay up front. You may use this approach too. Something like I have a 3/2 for $29,900 on 1.3 acres that the tax value is $112,000 and needs $50,000 plus in rehab and collect $100 for the address with the understanding that you get $500 more if they buy or whatever numbers may work for you.
Just a few ideas for you at 5 am. Hope something helps
Alrighty then… You can’t make it any plainer than that… No room to second guess what was meant… Are you prior military? That’s how plain we made things during my 11 years in the Marine Corps and I think we used the same topic to make a point… ;D It’s amazing sometimes to think how almost everything can be related to what goes on out in the world… but back to real estate…
No military training here and I did not even stay at a Holiday Inn. Just a little of what I have read or had experience with. Here in Texas we are a bit more laid back and relaxed and trusting. I do see deals from time to time where the earnest money is a grand and non refundable. This scares me away from even looking. Another point too is when applying for loans and I get the broker who sends me 45 pages to sign and read over and fax back to them and insurance agents as well. Too much work. I deal with the agent who can get it done on line and then send the paperwork to the closing or at the committment stage. Too much red tape in some deals and in hiring a birddog if I need to sign a bunch of stuff and drive across town just to get to look at a deal why bother. I believe in the keep it simple stupid rule which I am sure is not govt or military.
I like your questions, no better way to learn except perhaps by doing.
No i never used a contract in the beggining, and acutally i was afraid I would get ripped off, but really never did. Thing was I wasting the investors time, and he was taking time to teach me, in hopes I was not another course buying newbie to start and stop quickly!
He was busy, fitting me in doing me a favor, only until later was a worth much to him, lol, I had it just backwards in the begining. Anywho, the ones who might have stolen a deal would only do it once then his name mud, and he was the loser. In fact I was wholesaling a nice little 10k or so deal and old Herby, was his name tryed to dis me and threaten a lis pendance thus clouding the title, so I learned early on, not to fight, I gave it to him, got my cash and what a freaken moron he was, oh god how dumb.
Me and my buddy talk about it today infact crusing around in her sl 500 mercedes, if herb had better people skills and less gready, the man might have gotton a good portion of my 65 deals wholesaled the past year. What a loser, stepping over a dollar to pick up a nickel. Kal my buddy and I laughted at him today. Poor sap, how many hundreds of thousands did he lose this year. I tell them now, you only burn me once then you are outta the loop, and 160 other investors locally find out, I dont threaten them they just know I have a big list of investors.
such a lose for him. so moral of story is find the men you like, who are honest, and want to help you some, then you honor them, work with them dont waste there time ect.
Are you prior military? That’s how plain we made things during my 11 years in the Marine Corps and I think we used the same topic to make a point… ;D It’s amazing sometimes to think how almost everything can be related to what goes on out in the world… but back to real estate…