matildageletei

Hi mati
How is everything going?
Angela

Dear Angela,
This are certainly moving fast, yet not fast enough ... i guess that i must be very excited with all the great things happening.
I just got a call from on investor looking to buy a multi-family in New Jersey for about 2 million. I haven't worked with him before, he go my information online, so i need to pursue this case carefully, incase he is trying to use me and not pay me ... you just never know.
Then i got a call from a RE Agent, who has a client that wants property in my area, but as soon as i told him that i am an investor and that i would either charge him a finder's fee or assign the deal to the end buyer, he seems to be very reluctant. Any suggestions on what i can say or do when a RE Agent does want to pay a fee? Let me know if you have encountered this.
I am still trying to build my buyers list, primary looking to continue growing my investors, so that i can find them what they are looking for in my area.
Lastly, i may be considering purchasing a Short Sale for my own investment, then flipping or renting.
Lots to do and not enough time!!!
There just seems to be so many incredible deals out there, that once i build a good cash cushion, i will be enjoying these investments for myself!
How are your deals going?
Mati

I am working on 2 deals, things are going slowly though, If you have any questions (like the one about the RE agent who is reluctant to pay a fee), start a new forum topic and you are much more likely to get input from someone who has encountered this before. There are so many people here that have much greater experience than I have.
When you go online, look at the bottom of the right hand column and see who is online at the time. Try and post when there are a lot of people on the site. Early morning is quite good, less chance of your forum being missed.

Angela,

I want to try an protect myself and the time and effort that i am investing in all of the research that i am doing for this one questionable investor regarding the purchase of a multifamily property in NJ at 1 mil. I have done work and provided him with details (except for address and mls number), he now wants to see properties. Because these are commercial properties, the "making and offer and putting under contract" part of assigning this deal is a lot more complex than if i where dealing with SFR. So, in order to try and avoid him backdooring me on this deal, i was wondering if YOU had an actual promisary note OR non circumvent agreement that you use. I know that i can find examples online, however, i would like to see what one of my RE buddies are using.
Please let me know.
Lastly, do have any experience with bird dogging, collecting finder's fees and marketing to find investors? I have some basic questions on these too, that once again i would like YOUR input and help with.
Thank you so much for your time and help.
Mati

To get to your one questionable investor dilemma first: DO NOT GIVE HIM THE ADDRESS, I know this from what I have learned, not from my experience. You talk to him as a business woman from a business perspective. (This is how I run my business attitude). If he is interested you will not only give him the address, you will go with him whatever YOU want. But you have reached the point in this deal where you do not proceed without a signed promissory note/contract/agreement. A real investor knows how the game is played, understands and knows how a bird dog partnership works and knows that an upfront agreed fee payment is necessary. This guy could be playing you, he looks at the property, passes it off to another person (friend or REAL investor) and tells you that it didn't work for him. He could just be another bird dogger using your find to make money. He might be in a position to wholesale it for a much bigger profit than you. Which is fine, but he shouldn't be able to do that without you getting your fee for finding it.
I have found really good deals in my area but there are 3 "investors" I met through online ads who just will not give me anything to guarantee finders fee in advance.
Always I get, the way this works (condescending tones) is that you just email us the addresses and we send a confirming email back to you, you keep track of the property and if we make a deal you will your finders fee!!
I did meet someone at a REI club meeting who I trust a lot more, we are in the same county but quite far apart. He buys, rehabs and resells. I know his requirements but I am not really familiar with his area. He did tell me that if I found something remarkable in my area he would consider it. I am working on a very nice (remarkable) deal, FSBO but the seller is not returning my messages lately so maybe he has changed his mind or found another buyer already. (Or maybe my enthusiasm about the potential of his property has made him rethink it himself) ... I'll have to watch that in the future.
Also, I am looking for multifamily properties in my county. They are not selling well here at all right now but I think that is a way to go in this area in the near future. (Want to know what is out there, how they are renting etc.. Knowledge is power)
I have not used a promissory note, because I have not needed to yet but I have a RE attorney that I will use when I need one.
There are a couple of forums that might give you what you need - there is one ongoing right now with a mock up contract and someone asked Rina to post the one that she has used in the past.

Find the thread titled:
Is there a contract out there between bird-dog and investor?

The other one that is just priceless is:
How To Be A Bird-Dogger and GET PAID FOR IT!

Hopefully this has been helpful, I will also try and find one of the online ads that I spoke of and send you a link to it.

Angela

Angela,
I am still working on the multifamily deal. I have asked the investor for proof of funding, and i am waiting for my attorney to compose a non-circumvent agreement for me that i can use with all future investors. Dealing with a multifamily commercial property is a lot more complex than i expected. You are evaluating a business performance and a buildings value all wrapped into one. So i think that this might be one of those circumstances where i much just try to collect an upfront finders fee from the guy if he really wants to go and see the property after he gets information from me on P&L statements, tenant rent rolls, etc. I will not disclose address until i have some kind of agreement in hand.
Now i got another call from another investor looking to purchase a strip mall in NJ for CASH about 2mil. Boy - why can't i just start of my career with simple deals, like investors wanting rehab SFR? Strip malls, how on god's name do a find strip malls and evaluate them to be great deals. I think that this is going to be a post online ... see if anyone can assist.
By the way, when you bird dog, exactly how much information do you find on a property (do you assess sellers motivation, then visit home to evaluate repairs, then contact investor and what ...) How do you do it and how do you charge and how do you collect?
Mati

Hi Mati,
One investor I spoke to told me how much he pays. It could be a $200 just for a name and address. However, if I get him more information and find a motivated seller and a good deal he will pay up to $2000 per referral.
I think I read a post from northwest in his earlier posts that he charges a percentage ... I think there is a wide variety of pricing. Post in the main forums, everyone will tell you what they get and for what. There is a wealth of expertise here.
Just make a general request without giving out any details of what you are working on.
Angela

Mati,
I went back to the investor I met at my REI club and talked to him about finders fees etc.. He said that first and foremost we are part of the same club and he has a good reputation to protect. It is not worth him stiffing someone their fee when his hope is to build strong relationships with people in the RE field - bird dogs, wholesalers, contractors etc.. He did say that there are plenty of people out there in all the various aspects of this business from RE attorneys, agents, investors etc. that will take advantage and you just have to be cautious! (But that's the case in any business)

Hi Mati, how u doing? Let me know if you have any lenders you can recommend my way, that would help me out a lot.

Thanks a million$,
John A

Hello i am new to this real estate investing but more than ready to get my first deal done.. do u have any advice or words of wisdom for a new commer.

Hey mati im new to this real estate game and just wondering if you have any advice on breaking the ice on your first deal