How to compensate agent for off market deals
Hello everyone this is my first post to Bigger Pockets!!! I am hoping to gain some information on how to appropriately compensate my agent when I "source" my own off market deal but invest from out of state so I still technically want/need help completing the transaction. What I mean by this is, if I am able to produce a property that is off market or off the MLS vet the seller come to agreement on price I still want my agent to view the property/schedule inspections/collect keys and give me insight to the neighborhood, comps, general area knowledge. What is a fair compensation considering I'm doing some of the leg work/marketing to find the deal to fill in the gap to closing? I want this to be fair for both parties and lead to continued work in the future.
I would say if you're finding the deal and negotiating with the seller on your own, then paying them a certain dollar per hour you both feel is fair could be a great option. If you can't come to an agreement on that, I would say 1-2% of the deal, depending on the price of the property, could also work.
I generally charge a $5k flat fee for transaction management if a client already has a contract signed and asks my team team to manage the transaction-to-close process. This is the starting point, at least, as I will definitely discount this for my repeat investor clients.
If a client is flipping the house then I would significantly reduce the flat fee (probably to around $1k, depending on the details), and the listing once the project is complete.
