I have a investor who has asked me to be a birddog for him. This is going to be my initial steps into REI so I am really excited. He has offered me 1% of the closing cost as a fee and that doesn’t seem right. That would barely cover the gas on some of the deals he would like to make. Is 1% of the closing cost an average fee?
Pay should be a result of how much you make them.
If you find him a property with 30k equity and charge him 1.5%, you just made $450.
He said closing cost, not equity. Doesn’t sound too shabby, on a $100k house you are getting $1000, not bad considering a lot of birddogs get $500 or so regardless of the home price, even for a million dollar home with a $200k spread.
It sounds like a good deal. 1% of the purchase price, think about it. 500,000 prop would give you 5000. that is a lot more most birdoggs get. I would also suggest some kind of indapendant contractor agreemant or contract, not to say that this guy is untrustworthy. But business can bring out the worst in people, Make sure you get your money.
Forget about the fee for a moment. Why has he asked you to be a birddog? Is this out of the blue, or did you originally approach him?
How experienced is this investor in REI? Does he have guidelines for you in order to search for potential deals? Is he willing to let you sit in on some of the negotiations?