Hello I was wondering I have 2 potential bird dog deals in the works. Both houses have roughly $1,000,000 in potential profit for the buyer. What should my fee be. In this case I feel the average $1000 fee to be too low considering the deals. But I don’t want to kill the deals by over feeing.
For some reason I think your numbers are off if you think there’s a million bucks profit in any home in a softening market. Are you looking at RECENT comps or a RECENT appraisal?
Are you dealing with high end houses? Where are you located? Why are the prices that high? Is it the land that is worth that much?
Anything deals you are putting together in you should be wholesaling with money like that being concerned. Don’t shortchange yourself.
Could you give more info, please?
Like I said I am only bird dogging these and am going off the numbers that were given me by the company that is selling them. They are a lending company and I believe these to be forclosures. I am located in south of Detroit, the houses are located in upscale Detroit suburbs. Here is the info I have provided for the potential buyer, keep in mind I have not seen the houses and since this appears to be REO’s I doubt they will let me put the houses under contract.
The first is a 8500sq. ft. SFH 5bdrm. 3bth. value is $3,700,000 selling for $2,350,000.
The second is a 5700sq. ft. SFH 4bdrm. 3bth. value is $2,500,000 selling for $1,400,000.
You’re defeating yourself. :banghead Stop that. Do you have buyers already? If not, get yourself some that can handle numbers like that and get them under contract to sell to them.
Don’t go looking for money that jingles when you have money that folds sitting in front of you…
I only have one person that said they were looking for houses like that, I e-mailed them with the info and they replied that someone would be calling me about them, but I get the feeling that they themselves are just bird dogging because they said to let them know what this person had to say. I do understand that there is a large difference in the amount of money this deal can make between bird dogging and wholesaling, but to be honost with you if I can put this together it will be my first deal EVER. And from a newbie point it would be better for me to bird dog it than wholesale it just because my total lack of experience. If I had at least one deal under my belt maybe, but I still have many unanswered questions and don’t want to screw it up.
What are those values based on?
You have to graduate someday. Wholesaling really isn’t much different than birdogging, IMHO. You have to have a buyer either way. All you have to do is get the property under contract for a good price. The rest will fall into place. Even if it’s an REO, you can get it under contract. If you need a cash buyer let me know. I’ll give you his contact info and any assistance you need to get it done if you like.
Sending you a PM Moonstruck.