Assigning/Wholesaling Comission % Question...

Actually there is not really a set amount one can charge on the deal as to what percent. The investors I work with here in north texas tell me what they want to make off the deal for it to be interesting to them, they do not ask what I get or make out of it, they want numbers as to what they can make on the deal in the end either long term or short term as they do not keep all properties they buy either as they have other buyers they deal with also. Hope this helps and others correct me if I am incorrect.

shawn

Shawn has a good point.

There is no set number unless you make it that way. In wholesaling you typically make your own number each deal. But in this case it sounds more like a partnership type deal, in that case I would ask for at least 25% of the profits, since you're finding the deal for him. I would be more than willing to pay 25% or even more to someone who brings me good enough deals that I can use.

You should give the Investor a good enough deal to potentially open up the door for future business with him but you want to make enough to make it worth your while. Most of the time partnerships are more than 10% but if you are looking at an assignment fee then the fees vary from deal to deal and could range from 3% to 10% or even more if there is enough room in the deal to work it.

Dan

I don't know what you are doing to find the deals, but let's say it is your full time job 40hrs a week. Now if that was the only thing you concentrated on that week you should be able to find one deal.

Now I don't mean you call the investor and say John Doe wants to sell his house.

You have everything ready so that investor needs only to come over with his/her money and sign. Then and only then would I even think you are entitled to $2,500.00.

People need to stop and think about what they are talking about. Now the investor has to find and put up their money,find a contractor for anything that might need repair or painting,start looking for a buyer and hope that they can come up with the cash like they say,and take all the risk if you missed something.

$2,500.00 a week where are you going to find any job that will pay you $62.50 an hour.

I have been charging 10% of the buying price, for bird dogging it depends on how much info he wants on the property, if you are doing all the foot work then 10% is pretty reasonable, some investors want it all like comps, disclosures on lien holders, tax liens, damage report from insurance company etc, the way I look at it the more you do for the investor the better reputation you get and the more referrals = more opportunities and money

You have the right ideal and that is great. If you can give an investor all the information so all they have to do is close the deal you will get a lot of repeat business.

But I don't know about that 10% of purchase price,what if that was 200k you expect $20.000.00 with no risk only for your time,I think you need to look at that a little closer. Some deals only net the investor 30% ROI and you want them to give you a 1/3 of that for bird dogging???

Ultimately, any negotiations will be based on what the other party's alternatives are. If they can get a better deal somewhere else, they will take it. For example, if you tell an investor that you require a 10% fee, and they have 4 other people who will also find him deals for a 5% fee, what will he do? Just find out for each investor what their best deal is, and try to beat that.