What would you pay an acquisition specialist??

Question

What commission percent would you pay a wholesaling acquisition specialist with the following tasks?

-	Respond to and manage leads and follow up by using a CRM system.

-	Research comparables, property value, and condition of the property.

-	Prepare letters of intent, purchase and buyer agreements, due diligence documents, etc

-	Act as a sturdy bridge between sellers and buyers to ensure each deal is closed smoothly. Physically drive to investigate properties and prospect properties on-site.

Joe Gonzalez · Answer

Hey Marissa,

I run a full-time wholesaling operation and here is my take.

Most wholesaling companies offer 10% however I have found that this does not keep AM's around for long - you would need to bring $60-100k a month in order for them to stay excited. The sweet spot I have found is around 15%.

NEVER ever pay an acquisitions manager 50%! You are the business owner, you are carrying all the risk, all of the marketing costs, overhead, etc.

If your marketing cost is 25%, your acquisitions manager cost is 50% and your over head cost is 5% - that means you only make 20% or less of your GROSS revenue.

So if you guys make 20k in a month you only see $4,000 while your AM get's $10,000.

Having an AM can help take a load off of your plate but just make sure to do it the right way.

Hope this helps.

Mark Shaver · Answer

@Marissa Turrubiates, the answer depends on what an income you get now that you do not have an acquisition manager:

• If the income is low, the acquisition manager will not work for you even for 100% of the profit.
• If the income is sufficient to hire an acquisition manager then the acquisition manager will prefer to work for your salary.

It will be difficult to find an acquisition manager who is willing to work for you for some interest.

Those who work on a pure percentage, are mostly high-class specialists. They are looking for a solid company where they can realize their skills. But a high-class acquisition manager is almost a ready-made investor-wholesaler, who is able to earn on his own in wholesale trading. Partnership relations, 50/50, are appropriate with him.

The same is happening to a smart real estate agent, who helps investor-wholesaler to look for suitable real estate. Soon the agent realizes what the investor earns money from. The agent is no longer satisfied with the interest on the profit. The agent becomes a wholesaler and resells the found investment real estate himself. But the investor may have a partnership with the former agent.