Potential Income Stream
Hi Everyone!
I currently assist clients who provide business professionals and corporate employees with short-term rental accommodations via the rental arbitrage model. I have been quite successful, but the job keeps me away from home, more than I would like, as I have to physically visit the properties, have face-to-face conversations with the landlords, etc. (And yes, face-to-face meetings with landlords and property owners is non-negotiable. There's nothing like looking someone in the eye, and getting a feel for the type of person you are dealing with. Call me crazy, but that's what I do ;) ) Also, the short-term rental ordinances are increasing, making it a lot harder for investors in the markets I serve. That said, I am looking for additional income streams. So 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 5 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!