I am a bird dog trying to find wholesale deals to market to my buyers. When I call other wholesalers to see if they have deals that I can market to my buyers, they tell me they’ll pay me a fee for finding them a buyer. I have been told to have the wholesalers sign a flex option to market their property. Which way is the right way to do it? I live in CA and I know that finders fees are legal, but not sure whats the best way: to have the wholesaler pay me a finders fee without getting a flex option signed or to have them sign a flex option? If I choose to accept the finders fee, when do they pay me?
If you wholesale the home yourself, you will be able to get 50% of the assign fee, not just a fee. Bird Dog Fees can range anywhere from $100 to $2,000. Whatever you do, if you choose to bird dog with them on whatever deal you’re working on, make sure you check out the deal 1st. Use calculations to make sure it is a deal ( <ARV = Average of comparable homes sold> : ARV * 70%, - Repair cost, and your assign fee = Final offer to the seller/owner). Then you add your fee on the accepted price, and market it to buyers or wholesalers.
What I’m getting at, is there has to be enough room in the deal to make money, esp. if you are JV’ing with other wholesalers. I could go on and on, but this is only a jist of what you can do. I’m not saying a finders fees is bad, either. :bobble
On the other hand, if you choose to birdog, make sure you get your birdog fee in writting, signed by the wholesaler or the buyer. You don’t want to just give them a good deal, and not get paid for your effort either. :banghead
If it wasn’t for you, they wouldn’t have that deal. :beer