Hey all,
I found a guy with 16 properties for sale. All told owes 830K on these 16 properties. 14 are SFR’s and 2 duplexes. He sent me what he owes on each property, bedrooms, rents,etc. and simply wants out of them. These properties are about 55 minutes away from me and are all rentals. I have no desire to buy them so I was going to wholesale them.
Then I made a call to another investor (his ad is always in the paper) to see if he would be interested. He absolutely is so I asked him to come with me to visit with the seller this Friday and he said he could make it. The seller said that was fine and was looking forward to putting something together.
Since this investor is coming with me should I still sign them up as to which ones he wants or now am in a position of a bird dog? I might have got ahead of myself inviting the other investor but I didn’t want waste the sellers time as he is an out of towner. Any thoughts?
Nate-WI
Not only are you now in the position of a birddog as opposed to a wholesaler, but you’re in that position and don’t know what, if anything, that you’re going to get out of it.
You don’t give the breakdown on the numbers, so can’t really determine what type of deal this really is, but what you need to find out ASAP from this investor is exactly what is your expected fee for this deal?
Off of the top of my head, the best way that you can do that and not come off like a complete newbie is to simply call him back up and say something to the effect that you forgot to mention that your “usual” fee for birddogging a deal is $500 (or whatever works in your area) per PROPERTY. You just wanted to let him know before you made the trip that this was okay with him. (16x500 = $8000). No need for either of you to be wasting the other’s time, so get it down before you go.
Raj
He knows I’ve been investing for a year. Not sure what you want to see for a breakdown on numbers. I figured I could avoid wasting everyone’s time since its a bit out there so that’s why I called the other investor. He’s been investing for 25 years and we must have talked for about 20 minutes about the RE in this area and this possible deal. Taken with a grain of salt it was a good conversation. I would like to see 1K on each deal or a flat 2% on the total amount that he buys i.e. He buys 200K worth of property so I make 4K. I’m just gonna draw up a simple document that will have both of our signatures on it, properties listed, and what I have coming to me if he were to buy ANY of the properties.
Nate-WI