Agent work for % of profit on rehab deals?
I was wondering if anyone has been doing this and if so how has it worked? The plan is to have an agent or multiple agents, who would both handle the purchase (finding the deal, negotiating it, and all standard buyers agent tasks) and selling it.
The purpose is to streamline acquisitions and sales and also I like the idea of having an agent with the same interests in the deal as I do. Also by eliminating the 6% in commission it opens up a few extra properties that may have just been a bit to thin to consider otherwise (the 70% rule would become the 76% rule).
I was thinking 20-25% of net profit to be paid for this, does that seem fair? The better deal they find the more they make. 20k net is the lowest I consider for a flip so at that they would make 5k, which is slightly more than what they would make on just listing a property at about 150k (avg price in area), but there is room for much better returns if they bring in good deals.
Any thoughts or ideas are much appreciated, Thank you and have a great day!