I want to know the procedures and how does a property locator and assignment of contract work and how do you figure out the fee to charge? Please be specific
Thank You
A property locator (aka birddog) searches out motivated sellers and then passes them along to an investor who then tries to work out a deal with the seller. If the investor is successful they will usually pay you a fee for bringing them the deal (usually around $500). Typically the investor already has a set fee for what they pay for your leads. What you can do is talk to some investors and find out if they pay fees for leads. Then find out what areas they are looking for properties in and go to work.
On the assignment of a contract, you take control. You find the deal and get it under contract. You then find an investor to pay you an assignment fee for the right to take over you contract. Fees are usually $5,000 and up depending on how good the numbers are, but you have to buy it well enough to justify that fee. This business is all about the numbers.