How many buyers should I have before I really start advertising with bandit signs and flyers. Is 10 enough?
Don’t know that there is a good rule for this. If you think about it you really need just one good buyer. It’s been said many times on the board, if you got a good enough deal, finding a buyer is the easy part.
You can never have enough buyers on file. Count on many buyers backing out or not bidding on your properties. Many have a limited amount of cash or busy with existing rehabs. To avoid delays we require buyers to put down a large non-refundable deposit after their due diligence. This commits them and they can’t show up at closing trying to deal a short on the agreed upon price.(and they will try).
Just don’t give up!
SBarber
Thanks.
How does this come into play if I am assigning a contract? After they check the property out then I should assign the contract and get my fee right? Then they have a legally binding contract with the seller. How can the assignee to put a deposit down to the seller?
Future guru,
If you are assigning a contract, get your fee at the time of assignment(cashier’s check only!). As a newbie check your numbers closely, but don’t take peanuts for fees! Many buyers will try to give you “bird dog fees”.
Remember, the most difficult, time consuming, expensive part of the investing process is GETTING A SIGNED CONTRACT! That’s worth a great deal to buyers. But always be fair and honest in your deals.
Good Luck!
Thanks.
I was thinking of charging 3k. Is that reasonable?
What are your numbers? Is the buyer going to rehab and sell or hold the property as a lease option?
You can also send me an email (listed) for more advice.
I’m leaving for an appointment, will check back later.
Thanks
Example:
Property ARV after rehab is 110k
rehab 30k
under contract for 45k
I would like 3k for this.
I am not sure of my prospective buyers plans.
Are you guesstimating this or do you have a written estimate from a licensed contractor?
Guessing. I would get an estimate.
I think that it would be easier to negotiate loawer if I have paperwork to back up home much work the property needs.