I'm a Realtor and an Investor and I'm looking to work with investors who want to buy and hold. My experience with them (as I currently have purchased such properties and they are great rentals) provides for a shortcut for a newbie investor. How much do others like me charge investor buyers to find such properties? Does it include the commission that the seller will pay (3% usually)? A quick response would be great because I'm in that situation now.
It depends on how good the deal is. You need to find the end price for your buyer that lets them cash flow nicely and then work backward from there. Say if they need the property at 100k a month to cash flow 200 bucks a month and you get it for 80k then charge 20k (assuming no repairs are needed).. This is assuming you are wholesaling and getting the property under contract and then selling your option to the contract via a double closing. If you are just charging a finders fee then I doubt anyone will write you a check for 20k but I don't think it is unfair to ask for 2k or so.. or you can ask for 3%... It is completely up to you.
Thank you for your response. It is a good idea. How is the TN market? Are you an investor there?
I would stay with the commission. If you have the seller and the buyer you would be pulling 5 or 6% anyway. If your newbie investor is happy with your services and his/her new found income, they will be coming back to you looking for more.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.