I am considering hiring someone to help fill my property with a Lease Option buyer. They will do all the advertising for the property, screen potentional buyers, conduct and coordinate the showings of the property and they will even draw up the necessary contracts once a suitable buyer has been found. Some might view this as a waste of my investment dollars, but I don’t mind paying someone a small fee for this service. However, what I don’t want is to over pay for these services. Can anyone tell me what one might normally pay someone for this service? Is it one month of collected rent, is it based on a percentage of the Lease Option contract that is negotiated or is it something totally different?
What state are you in?
RTO consultants typically add their fee onto your price. So how much they make depends on how good they are at selling T/Bs and how much they think they’re worth. The seller usually doesn’t pay anything for the service.
The largest RTO consultancy I know of is Leasing to Buy which currently operates in Texas and New Mexico. They typically charge 2-3% of the seller’s price.
When I do these types of deals I usually charge around 3%.
Im in minnesota
So when would a RTO consultant get paid? At signing of L/O agreement? Or When?
They’re paid when they assign the L/O to the Tenant/Buyer.
Is there a space for this in the LO agreement? What would it read like?
I use a separate assignment agreement which all parties sign, the buyer and seller also totally release me from any future legal obligation.
Do you know where I can find some form for that or wording on it?
There’s a free one at dealmakerscafe but I don’t much care for it. Most courses have some sort of assignment contract. Probably the cheapest with the most contracts included is The Naked Investor by Michael Carbonare.