What to do? Big money Involved

Question

Ok basically, I found this investor that has like a 500M budget, and buys properties in NYC. So basically right now I'm bird-dogging for him, but I'm having a hard time find stuff. What should I do? He's offering me at least 15-50k per deal he closes on. I'm stressed =/

Steve L. · Answer

Luis, first you need to determine if he is for real and who's money it is (or who the decision maker is).

After that I'd start with history, ask for a list of what they have bought and get some of the numbers involved.

Sadly, to burst your bubble... usually the people that tell you they have $500million to invest are full of crap.  Its either 3 parties removed or a lie.

Vikram C. · Answer

People with a large amount of money, with the exception of Trump, do not announce how much they have.  So I suspect this guy does not have much money.  You can check public records for his past transactions or ask him to give you a list so that you can understand the types of deals he does.

And if he does have 500 million, he is not going to need a newbie bird dog to help him find deals.  You may be better off dealing with "poorer" rich investors, such as those that have only $5 or $10 million and do not know much about real estate but would like to profit from it as the bubble continues to burst.

Account Closed · Answer

What I'd do:

Find out what he is specifically looking for. Really specifically and not take him anything else that doesn't meet his criteria.

If he is the real deal, he wants really good bargains. So you find them, and if he doesn't take them, you market them to someone else.

That means you need to hook up with some additional investors.

He's not performing for you. That could be one of two things. Either the deals you are taking to him are not as good as you think they are (which is common with bird dogs), or else, he is not able to close on a big deal.

I don't waste a lot of time on people who can't perform.  A couple of chances and it's 3 strikes and you're out.

Don Konipol · Answer

when I stated investing 35 years ago, people would say they has $1 million to invest - even if their net worth was zero.  No people say they have $500M - quite a bit of inflation in the last 35 years.

Account Closed · Answer

By the way, while it's nobody's business what my net worth is, it wouldn't make any sense to me to send a bird dog out without giving them some sort of price perimeters.

If i wanted real estate up the price of 50 million, I'd have to tell the bird dog that, so he would try to bring me a bunch of SFRs. That would be a waste of my time.

Luis, take some advice and never work for empty promises. There are people out there who love to make folks jump through hoops by dangling money in front of them, but have no intention of ever giving up that power by actually handing the money over.

Michael Underwood · Answer

find out what he is willing to pay per sq ft if its commercial-office buildings also what his willing to pay per unit if its apartment buildings , what cap rate and  if he is look for A B OR C  buildings and what locations he wants,what % return on the dollar or NOI he is looking for this should pin point exactly what he wants and make your life a little easier

Steve Babiak · Answer

This is great advice.  The public records should show his past history of purchases, and you would expect his future purchases to be similar in size and their nature (commercial, industrial, residential - whatever) to those past purchases.  That should give you a very good idea of target property types, and target pricing as well.

Sammy Johnson · Answer

well For starters you can go thru want ads / classifieds  craigslist for FSBO

Luis F. · Answer

Well, I was mostly looking on advice on how to find properties. Mostly tips. Anyone have any?

Nick Abbate · Answer

Luis,

In the course of conversation find out the addresses of the properties he has closed on in the past 18 months. Then make sure you let him know you are coming across deals daily and in order for him to capitialize on this you need him to fax over his proof of funds. Hold on while you tell him to get a pen. Give him your fax number. Make him repaet it back to you. That way you know he wrote it down. Once you have a POF then do whatever you need to do in finding him a really good deal. If he won't provide it he is bluffing.

What to do? Big money Involved

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