Out of State Deals For Investors

6 Replies | San Francisco, California

Hi Everyone!

I wanted to run this idea by a few of my fellow investors and see how I can structure this new service! Let's say I have 10 investors, a mix of fix and flip, buy and hold, and short-term rental investors who each give me their preferences on acquisition cost, cash flow, property specs, location, etc. I locate properties on MLS.com and various real estate marketing portals. I analyze the property, and estimate rehab costs (with inspectors and contractors), add a buffer for unexpected repairs, as well as an ROI comparison of setting the property up as a rental vs. selling the property.

If I am ONLY presenting the deal to the investor, meaning I am NOT buying the property myself or setting up any type of assignment, just "connecting" the investor to the property and running the numbers. What type of contract and fee structure would be considered “fair” for both myself and the investor, to ensure I am paid for all of the “pre-work”, i.e. property analysis, and what fee/commission should I charge if/when the deal is closed? Any thoughts, concerns, comments (please keep it positive), would be greatly appreciated! 

Hey @Account Closed ,

Interesting service, I like your thinking of helping these investors with the due diligence process. By the way, have you heard of RoofStock? I chatted with a few investors at a previous BP meetup in SF and they described a similar experience using them.

@Tommy Hoang @Derek Janssen Thank you so much for your responses!! Your input is greatly appreciated! :) Unfortunately, I've learned that the services I would be offering to investors, would actually require a real estate license. Apparently, it is QUITE illegal to serve as any type of "intermediary" between a buyer and seller of a property. 

Of course there are all kinds of technicalities, but I'd like to stay on this side of the law! I've already taken the plunge and started my pre-licensing coursework to become a Buyer's Agent in Georgia. Arizona and Colorado are next! 

I have quite a few investors, especially those in expensive areas like CA and NY, who are interested in investing out of state, specifically Phoenix and Atlanta. They love the idea of the package I'll be able to offer. So I figured, why not?! I ONLY want to work with investors, and having access to the MLS is an added bonus! :)

@Account Closed awesome to hear about your learnings! Please do keep us posted as you continue to grow.

I recently closed on a property in Phoenix last month. I love that market so it's great to hear it's one of the places you're looking to focus on. Please let me know if you ever need any info/insight into Phoenix, I'd be happy to share why I chose that market while living here in San Francisco.