I need some quick help on the best way for a bird dog (not wholesale assignement contract) to collect fees without getting burned???
Also, is it normal for a bird dog to charge an investor or wholesale assignor a fee for finding them a buyer for their property and from the purchaser as well??? :help
P.S. Should I have them sign a fee agreement with me before I begin to work???
My experience is you don’t need to worry about getting paid, or signing a work contract. The reason is, if you bring deals to investors, they will realize that you are making them money. if you stop bringing them business, they don’t. So it is in the investor’s best interest to work with you. it is the best type of win-win situation. The ones that you do need a written agreement with, they are not the ones you want to do business anyway.
And yes, if you bring a buyer to them, it is normal to get a finder’s fee also.
Of course, if you are good enough to find both the buyers and sellers, it sounds like it is time to upgrade yourself to a wholesaler.
The best way to keep from getting burned is to work with reputable investors. It is easy to identify these investors if you are new to the market. I would suggest talking to some hard money lenders in your town and ask them for some referrals. You may also contact the presidents of your local investment clubs and ask for some names.
Once you start doing some deals you will establish the relationships with the investors yourself. You will quickly discover as a bird dog you will end up doing most of your deals with just a hand full of investors. These investors will have a few things in common. One they will be able to actually close on deals. Two, you will be able to trust each other.
Your right on track by wanting to get paid for your buyers as well, I have made a ton of money selling buyers as a real estate wholesaler. You can use a contract if your worried about not getting paid but there truly is no reason to worry, good investors need you as much as you need them. Just be sure to establish what you expect to get paid right up front. Don’t do a will talk about it later bit, once an investor has spent there money in their head or in the real world it will be very tough to get anything from them.