How do I work this deal? Someone has a prop under contract at 50-60% ltv in California, but I’m not the one with the deep pockets to buy the prop, I do however have an investor with deep pockets who is interested in making investments at 80% max, which is greater than the usual bird dog fee of 5-10k, it could be the difference of 50k to a 100k. I have a funder who will let me buy the prop myself 100% as a double close provided the transaction is done the same day, but how do I present the prop to my buyer and insure he does not deal with the original bird dog and cut me out? Am I making this harder than it seems? is there a reassignment of a contract?
Why not just get a option to purchase or sub2 contract on the property and then assign that form to your buyer for a fee…
Or, you could let him/her close it and trust that they’ll honor their word and compensate you. If they stabs you in the back, then get rid of him :flush and move onto the next. There are too many deals out there and too many ethical Investors that need birddogs.
Another thing is, you could close the deal yourself and cash in.
I don’t know man…It’s really how you feel comfortable attacking it. You can try to make some type of agreement between you and the investor.
If you feel skeptical of him/her, then don’t even do business with them period.
Wow! $5K - $10K for a birddog fee! That’s darn good! It’s usually about $500 - $1,000.
So you’re saying someone else has this under contract but doesn’t know what to do about it but YOU do? Are you looking to pay him/her the $500-$1000 fee and then do the double close or assignment yourself? If your buyer is ready and so is your funding, how much more will your profit be if you double close? Sounds great either way, but if you can double close for more than the (already large) fee would be, I’d jump on it! You’ll have one hell of a fish story to tell…which will be even better because it’s true!
Prncssmn7, I mentioned that the market of interest is California, Southern California, in fact, Los Angeles County. Before the market reversed, the average 3 bed/2ba was 500k just under 2 years ago. Now you can find deperate owners sellings their homes, or short sales for an easy price drop of 100k. Now, lets talk about an upper class neiborhood and say the house was selling slightly over 700K for a 5bed/3ba and now droped for a quick sale preforeclosure of 500k. That’s nearly 30% discount, and sometimes greater discounts is available. Would anyone be happy with 100 to 500 dollar bird dog fee? I’m thinking this is the common fee for a place like Detroit where you can still buy a home for under 80K. In my market, where there’s such a huge spread, $500, even 1K sounds like an insult, but…if you have a Southern Califonia prop with 200k and over in equity comming in at 50-60…heck 70% ltv then I’ll glady write a check out to you for $500.
Let me quote you. “So you’re saying someone else has this under contract but doesn’t know what to do about it but YOU do”. I’m not sure how you infer that the orignal birddog does not know what to do He could have a slew of buyers, hence the prop in theory should sell fast, its a first come first serve business right? I want to be the one to jump on this first and not lose this. This is the crux of my original post. Incidentally, the birddog in question wants for his fee 5k. There’s another birddog who wants 10k for a home with 500K equity.
Let me reiterate what it is that I am asking. Someone has a prop under contract at 65% ltv and I would like to sell it to my end buyer at 75-80%. I don’t want to bring Joe Blow #1 to meet Joe Blow #2 and shake hands and leave me out of the deal. He can back out of the dealwith me, wait a couple of days, and connect with the orignal buyer.
Ok…Now I kind of understand what you’re saying, but I still have the same answer.
Make an agreement between you and Joe Blow Investor and do the deal!
If you don’t trust Joe Blow Investor, then don’t even present the deal to him. Either way he could try to screw you over and go around you…with or without paperwork.
It comes down to Trust and communication. I’m sure there are more deals just like the deal(s) you just presented, so just send him one and see how it goes. Get an agreement in place and call it a day.
The other birddog is kind of bothering me because that means its more hands in the pot, but talk to him and see if you could get a contract on the property. He shouldn’t have a problem with this. Once you get a contract, then just market it to your Investor(s). Take the position of Wholesaler, instead of Investor.
Hope that helps…I don’t know what else to say on this. Maybe someone else can chime in!