Fresno, CA · Member since 2017 · 3 posts · 0 votes
Hello everyone! I'm just getting started in real estate investing this year. I work a full-time job and have a family, so I'm very intentional with my time. I have a cousin who could use some extra cash, and I was considering having him drive some neighborhoods for me, looking for vacancies and deals -- win-win, right?
Has anyone else done something like this? How much should I pay him? And HOW should I pay him -- by hour? By lead? By successful deal? Any insight would be appreciated. Thank you!
Specialist · Westlake Village, CA · Member since 2010 · 1k+ posts · 781 votes
9y
This is a tough one, I haven't had a lot of success paying people to drive for leads.
If you pay per hour, that won't reward profitable activity ( deal making).
If you pay by lead or by successful deal, it will require skill & a lot of patience to keep someone long enough to cultivate profitable leads. Sometimes these type of deals have a very long closing cycle.
If you find the right person, it could be gold. I know someone who split deals with a great deal finder & they have made 6 figures each for the last few years.
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
9y
I'll second what @Ellis San Jose said. I've had drivers and have tried different things. If you pay hourly, a 2hr drive takes 4hrs. If you pay per house they find, they find the entire town. If you pay per deal, they'll never stick around that long. What I found most effective is finding someone who wants to learn the business. I paid $500 per deal and $2000 if they tracked down the owner and set up the appointment. I reimbursed their mileage at $0.55/mile which added up. I also mentored them along the way for free. I've be tried that w 4 people and they all fizzle out after 2-3 months. The deals usually drop a month or two after they quit. I tried to get them involved in other income producing activities like doing our. Lean out side but they don't want to work that hard.