Field services?

Question

here in baltimore there are a ton of rough neighborhoods, I frequently go through them when looking at deals, and lots of investors gobble up cheap houses in them.

I was tossing around the idea of starting a field services service where I would take pictures of the entire property, do a written report of the condition (not inspection) just visual writeup. That way investors wouldn't have to visit tons of properties and I could charge a fee for it.

I figured this would serve two purposes, 1) I could make some money while Im already going through neighborhoods, and 2) it could be a good source of leads that other investors pass on.

Are there companies that offer these types of services, how much do they charge etc? I was thinking 50-75 per visit depending on size of house and area.

Alan Brymer · Answer

There have been whole courses written on how to hire, train, and manage "researchers" to locate junkers, fill out an inspection form, and track down the seller.  My guess is that someone would be grateful to have someone to outsource at least part of that process to.

Is it worth your time?  If you're going to be doing something like that anyway, I'd start contacting the sellers myself and try to get a referral fee or wholesale it.

Jon Holdman · Answer

If you're offering a service to long distance investors, it makes some sense.  I though you were offering it as a way to pass along a lead.  I think you're right, it makes more sense for a long distance investor.

Jon Holdman · Answer

I can't see paying $50 for some pictures and notes about a property.  Maybe if it was a very specific property, was away from me, and I knew I was interested in buying it.  But, if you're just sending me the info for a, well, random property, I wouldn't want to pay much.

When I go out property hunting, I usually spend 5-6 hours.  We look at 10-15 properties.  Then, spend 10-15 minutes deciding exactly which ones to make an offer on and how much to offer.  Usually, thats three to five offers, and most likely, none of the offers come to fruition.

When I get wholesale listings, I get the same detail you're talking about, and I also get fixup, value and rent estimates.  I know I can call the wholesaler and have a pretty good chance of getting the property if I'm quick.

You're offering much less than that.  You don't have it under contact.  You've not even spoken with the seller.  Seems like birddogging might be the way to do this, if you're unwilling to go all the way to wholesaling.  Send me the info with the understanding that you'll be paid a bird dog fee at closing.

Shane Wilson · Answer

You would be better off collecting a fee if they buy a property that you send to them.

I wouldn't pay $50 per house for just a report but I would pay a bird dog fee at closing for finding a house that I eventually buy.

However, another idea is if you bundle them up and sell a list of 20 to 30 possible leads at once then you might be able to collect an upfront fee.

Terry Royce · Answer

Shane, sorry I'm not selling them the physical lead. I'm going out to properties they are interested in buying and collecting photos, and info for them that way these investors don't have to go to ghetto neighborhoods that are out of their way.

Terry Royce · Answer

Jon, it would be for a specific property. 
Ex you are interested in buying XYZ main st ave in baltimore.

I figured it would mainly be for out of town buyers etc.

Just tossing around ideas. I didn't know if this kind of stuff would be useful. But it seems to get a thumbs down approval so far.