Appraiser · Clovis, CA · Member since 2008 · 11 posts · 0 votes
I'm new to bird dogging ad was curious exactly how others charge. Do you charge an invester for the property information on the potential investment, or is your pay based on whether the invester chooses to act on the property? Just curious as to how others were doing it.
I don't bird dog for other people but I do make it a point to let everyone around me know that if they bird-dog for me (bring me a deal) and I close on that deal that I will pay them a finders (bird-dogging) fee.
If you brought me a deal I would only pay you if it was a deal that I closed on. However I would be willing to sign a NDA with you that I would not tell anyone else nor would I close on a deal that you brought me and I rejected. In other words I would not use the info you gave me to cheat you out of your fee or give the info to another investor.
I don't bird dog for other people but I do make it a point to let everyone around me know that if they bird-dog for me (bring me a deal) and I close on that deal that I will pay them a finders (bird-dogging) fee.
If you brought me a deal I would only pay you if it was a deal that I closed on. However I would be willing to sign a NDA with you that I would not tell anyone else nor would I close on a deal that you brought me and I rejected. In other words I would not use the info you gave me to cheat you out of your fee or give the info to another investor.
I wrote up a non-disclosure agreement contract for the investor to sign. I made my payment subject to the successful purchase of said property, and I charged $2,500 per property, which comes out to about 2% of the net profit. I did this with my first 2 properties and it worked out well.
I have a guy in my area that will pay me up to $1,000 per short sale lead, I have to get their basic information, which requires meeting with them mostly, bank contact and balance owed, etc., and he won't deal with war zone areas or condos. It's worth sending them his way because I do not have proof of funds to work the short sales myself - that's next! :clap: Mike
correction of the profit percentage on my last post:
the $2,500 is 5% of the net profit. I have seen other company's that offer 10% of the net profit to bird doggers. I don't think I could go below 5% myself, and I will more than likely charge 10% on the next few property's that I find for them.