This is my list so far. Any other suggestions?
•Condition of Property, including description of known repairs needed
•Seller Contact info (agent info when applicable)
•Seller’s equity, when possible
•Comps (similar style homes, in same or similar neighborhood)
Howdy Nicole B:
All i need from a birddog is the address. It is nice to have the owners name and number. If I were buying long distance I would want all the info I could get. Your list covers most of the data. The sellers reason for selling is tops on my list. I want to know right off the bat if it is a wholesale deal or retail. The MLS is full of retail deals that anyone can buy and hold and hopefully go up in value. I want my buy and hold deals to have equity already built in and at least 20% below retail.
the question that was posed, is that what most investors want from Real Estate Jobbers(Bird-dogs)? I asked, because most of the one’s I’ve come across are also asking me to make sure the property meets a certian ARV and in some case evaluate the cost of repairs. I figured if I’m doing that then I might as well move into becoming a wholesaler and make more on the deal than the measley $250 -500. What are your thoughts?
That is correct. The more education and experience and risk you are willing to take then the more you should earn. All I need is the address of the vacant property or the name and number on the FSBO sign in the yard. The dogs that hunt for me even get that part wrong sometimes and we end up driving to the property together to make sure it is correct. Dogging is not brain surgery and therefore only pays a few hundred dollars and for the dogs I have that is 50 hours pay. I have been told by several investors that I am good at finding deals and I should dog for them and my answer is yea right no way Jose but I am not just starting out either. I did not start out dogging either and just jumped right in and starting buying to hold for rentals.
So if I provided more than the usual like the tax and comps as well as do a preliminary interview with seller, what would you pay for that sort of work?
I do all that myself. The comps and tax info are just a few clicks on the computer and the seller contact is what I like to do myself. It only takes a few minutes to find out if they are motivated or if their is any equity. If you find a super deal I would pay a grand more than likely if you have done a lot of the leg work already.
Just out of curiosity, are you a lic. Realestate agent or perhaps know one? I’m wondering because you mentioned you are able to get the comps pretty quickly. Also what method do you usually say to the seller in order for them to give you very sensitive information, like equity in the home, loan value etc. ?
I was a Realtor/broker for 25 years and when it got more expensive and more buyer friendly laws I gave it up. I just gave away 3500 commission on a deal in Corpus but I still stand to make over $65,000 in a few months flipping the building or several hundred in rehabbing and selling or keeping and refinancing. I will probably keep it.
I can only get for sale comps which are just OK. You really need sold comps which I can get Realtors and an appraiser to get for me when I have to have them.
I am just open and friendly. I do not have any scripts etc that I use. These seem too impersonal and fake to me. I am just natural. I come across as trying to help them solve their problem yet they thing we are all vultures. Some pre-foreclosures you may never get to talk too, I have had the door slammed more than a few times saying we took care of it just to see it on the steps Tue am.
Do you limit your investing primarily to Austin or do look in other parts of the state, say the DFW area?
Ted this question is somewhat off the subject, but I was wondering what’s your take on RealEstate Jobbers establishing an agreement, a contract if you will, with the investor they are working with? Nothing to wordy, but something that helps to establish the guidelines, rates, and method of payment?
I am doing a deal or two in Killeen and the office warehouse in Corpus looks great. I have not seen much in Dallas. I did look at an apt building in Oak Cliff but the owner jacked up the price and over priced it for me. For some reason I buy junk property and rehab, probably too much rehab but I am doing better by working smarter and hiring almost 100% of the work to subs.
Some sort of written agreement would be great even if hand written just so the parties will not forget the agreement if nothing else. It would be hard to collect in court but Judge Judy says get it reduced to words on paper.
most realty companies have a search on their site that you can look through just the sold properties which makes it very easy to get comps.
Again, a little off topic.
What is a going rate for a wholesale deal with a contract in hand? I have several leads/agreements on junkers but since I am just starting out I need quick cash on one or two. After that, I will do the rehabs myself.