I have investors willing to pay for finder FEEs but

there is a difference

For the out of state deals I do, I go with finders fees

I normally do the research for a property normally that doesn't have a realtor because it allows me to charge more than if there is a realtor is involved. If you're starting out, I recommend you find a FSBO

Contact the owner and mention you are not an agent but you know of people who could buy your property at no cost to them(you'll instantly have their attention). Get all the info you can on the property so that when you tell your buyer(s), everything or mostly everything in terms of the most important can be divulged in one convo.

On the buyers side, have a standard finders fee agreement made up with an escalating pay scale on homes found and purchased.

What I mean is for the first 3 homes you find, you charge a $3500 fee per home, the next 5 you charge $5k, the next 5 afterwards you charge $7500 and so on

Hope it helps

Thanks makes sense makes sense one more little question what are some sites to find these propertys for investers

how can i get help with my finder fee? I have all deans books. I see a lot of homes in my neighborhood for sale.all i need is the money to do this.I have no job to get a loan.really need this rightnow.I all so do home stageing when someone calls me.so if theres any one out there can help please let me know.

Ladyj,

You could promote yourself as a home stager to FSBO,s and say that if they have not had success with interested buyers to give you the opportunity to find a buyer for them at no cost to them and that you will stage their home for them for FREE.

Have an amazing journey!

Tammy

elix brown is right contact all for sale by owners in your area and learn how MOTIVATED they r as a seller and find their magic buttons.as you talk to each owner and ask many question LISTEN to what they have to say.Build a rapport with them and let them know you have a list of buyers built that MAY be interested in their property.write down all the info for future reference in case nothing becomes of it at first.As you do this for 1,2,3,4 etc properties you are gaining experience and knowledge of negotiating ,listening and possibly making a sale not to mention maybe repeat business.give your investors what they want GOOD DEALS of coarse after negotiating and signing something with your investor for a finders fee OR LOCK IT UP ON CONTRACT for yourself if you have gained enough knowledge to do an assignment.
good luck and take action TODAY!!
JAY

Good looking out I'm going tro try that out!

This is good information. I have been looking at assignments and it all gets a little confusing. Like a big jumble in the brain sometimes! I just keep telling myself one step at a time. I am looking at several REO's and want to make an offer. I want to assign because like alot of people on Dean's site I have no money to get started. I am looking into back to back closings, but how do I get started with this. Do I need money up front to make the offer to the bank?

This is good information. I have been looking at assignments and it all gets a little confusing. Like a big jumble in the brain sometimes! I just keep telling myself one step at a time. I am looking at several REO's and want to make an offer. I want to assign because like alot of people on Dean's site I have no money to get started. I am looking into back to back closings, but how do I get started with this. Do I need money up front to make the offer to the bank?

I am dealing with an investor that is only interested in short sales. He is a cash buyer and does all the negotiating with the bank himself. I can find the property’s, but am not sure how to approach the sellers. I don't want to tell them I am partnered with an investor, I don't want them to think we are just trying to make money off of their misfortune. I plan on sending post cards to people, but am not sure how to broach the subject of wanting to possibly buy their house. If anyone can suggest how to approach these people I would greatly appreciate it.

Hello,

That was great advise on how to get a sellers attention, but i notice you told the other investor how to locate sellers but what is a good and quick way to locate other investors that will pay finder fees. Thank you for your help. I just feel like i'm exausting myself searching for these individuals.

Sweetdeal,

If you're not upfront and honest with the sellers about who you and your partner, they're going to find out later and wonder what you have to hide. Explain to them HOW YOU CAN HELP THEM. If that scares them away, you can't control that. Better to have that happen right away, rather than invest your time and energy in a deal that eventually falls apart because you didn't tell them who you are and what you do from the beginning. As my DG partner said, "You don't need them, they need YOU"! There's nothing you can do if they don't realize that.

Vincent

I found buyers who want to give $500 to $1000 as a Finder's Fee. When I mention an agreement in writing, they've agreed but some have said they see no need for it. I've also been told that it depends on the amount that they'd be making. Have your buyers not barked at the escalating fees? I filled out the Bird Dog Agreement but changed the name to Property Locator Agreement since I heard a someone else call it that.

I found a Historical Victorian home that the bank was going to do a short sale on. Owner is out of state. It's in a different city from me so I found an investor in that area. I told him I found a Victorian home that he might be interested in since he told me he buys everything. I didn't give specifics on repair and it was a bit distressed. He said he pays $1000 for a finders fee. It's a 5/5 and I had a copy of the inspection report from the City. I told him that I charge $3000 for a finders fee. He said he could add it into the price of home. I faxed him the agreement and had to put the address on there. Is it safe to put the address on there and trust that he's not going to go behind my back or should I not have given him the address until he signed the agreement and faxed it back to me? I need help in understanding this.

Have an amazing week!

Tammy Alvarado

eeeeeeeeeevvvvvvvveeeeeeeerrrrrrrr, put the address on the agreement

What you do is have a standard agreement outlining the terms of your relationship. Throw in an escalating fee clause meaning after so many homes you find, your fee escalates. Example:

You have a 15 home agreement

The first 5 homes you charge $3k

Houses 6-10 you charge $4k

Houses 11-15 you charge $5k

If it isn't on paper, no deal exists and he owes you nothing. He can argue that you gave him the house referral for free

No info on home until the paperwork is signed on both ends. If an 'investor' says its not needed, move on.

I messed up here and have not heard back from the investor. Hard lesson learned.

Thanks for your input, this really helps.

Tammy

Tammy,

I think the investor got the short end of that stick, because he isn't going to learn his lesson: that he may have gained a property, but he lost a possible partner and bird-dog. Keep plugging away!

Vincent

Tammy, you got some battle scars. It has happened to most of us getting screwed out of a deal so just move on. Never get emotional over this

We've all gotten doo-doo'd on at some point so take it as a right of passage

Just don't make the same mistake twice

Does anyone have a pre-written finders fee agreement to share?

http://www.biggerpockets.com/forms/bird-dog-agreement.pdf

Hey guys

does any one have a copy of a flex option agreement they can share

So how does the finders fee work exactly? You just find a property, have your buyer sign the contract, and then "IF" they buy the property then you get your fee, or do they pay you the fee regardless? I am just crossing all t's and dotting my i's. I appologize for being so basic, but I want to make sure it is correct.

Richard
Bothell, WA

I found this through google.

http://www.highlandfinancialgrp.com/birddog.PDF

Since I am wholesaling properties, I don't waste my time on "finder's fees".
This blog sounds like the two are getting blurred. Don't under sell your efforts of marketing, costs, negoitating with the property owner and your time for a "finders fee". If you have a signed sales contract from the owner, you have a "done" deal. That's worth a great deal to an investor. Depending on the profit spread. If you are a newbie, being a "bird-dog" to offer leads to an investor may be a great way to start. Just make sure you have a signed,written agreement with the investor (letter of intent) that you get paid an agreed upon fee at closing for all the leads you give the investor. My assignment fees are "non-refundable", sent to my Title Company, along with signed agreement. That way you know they have done their due diligence and are not going to back out or try to lower the price on the day of closing. I've never taken less than $10,000 for an assignment fee, of course I live in California where prices are much higher. Hope this helps! Good Luck!

This one should cover everything you want.

http://www.no-debts.com/myflexoption.pdf

Talking to 2 different buyers as I read this blog. Want to get my first deal done, but at the same time thinking about putting in the time to get a bigger profit through an assignment rather than a "bird dog" fee.. I can't believe it.. 2 hours ago I had a little something going on.. Now I'm in high gear.. I love it.

Elix I just want to say thank you for this comment. As a fellow "Brooklynight", I love how so called "cash buyers" in NYC want to know the address immediately. I'm just saying to myself, "Really"?.. We see the hustle and bustle everyday. Never give the address out. I had a friend give me that quote a couple years back and loved it. I have 2 properties that I'm looking into now to assign or bird dog. Need to figure out my strategy. Thanks Elix.

Josh

If you haven't listened to the most recent conf. call-do so. Joe Jurek talks about REOs on the 2nd half.

For back to back closings-try insiderscash.com and watch their training tutorials. They seem to specialize in that. I haven't used them yet though.
Good Luck

The most recent conf. call-Jun 29 I think, has some good phrases that Dean and Joe use to talk with those who've had misfortune. Basically, listen, find out what THEY want, and let them know you want to create a win-win deal. What could possibly happen if they didn't use your resources? Let them know if they don't like what you have to offer, just keep it on the back burner as a plan B. These can be used for just about any strategy. Writing this is as much for me as anyone, as I'm new and haven't done a deal yet. I'd definitely recommend listening to the call.

Hope that helps.

I'm in a bind and need advice, please. I have an agent (my client) who represents a developer who is desperate to bulk-sale out the remaining 18 units of his development. I actually have several interested buyers, one of whom has already sent me his LOI. I have not submitted the LOI to my client (the RE agent) yet because we seem to have come to an impasse on my fee. He says that he cannot give me any money because I am not a licensed agent and he can lose HIS license if it's discovered that he gave me part of his commission. He did say that the developer would pay me directly .50 of 1% on the total purchase price, which would net me approx $23,000. But now he claims that this can also be a problem since I don't have a license, and that, legally speaking, as an investor, referring them the buyer, I am only entitled to a small "gift" of $300, or thereabouts, for the referral. So two questions: 1) How can I, as an investor, legally get paid on this deal? Buyer refuses to pay me claiming that I should be paid by seller, and now the RE agent (representing seller) is saying it's illegal for me, as an investor, to get a percentage. 2) What is a fair fee for a deal of this magnitude? The seller stands to make close to 5 mil, and the buyer will make a net profit of 1.8 mil. I was hoping to make at least 54,000, which represents 3,000 per unit (18 units). Is that unrealistic? Thanks. All advice is welcome.

Barbara