Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 11 years ago on . Most recent reply

User Stats

115
Posts
76
Votes
Peter K.
  • Investor
  • San Jose, CA
76
Votes |
115
Posts

How Much Would You Offer To Pay a Bird Dog?

Peter K.
  • Investor
  • San Jose, CA
Posted

I would love the BP Community's advice on a current situation with a gentleman. He brought a deal to my attention and I'd like feedback on what is fair compensation.

I met a man that mentioned he had a deal, but no money to put it together. I'll call him Joe. After talking with Joe a bit, it became clear that he had NO experience, just came off of a Guru course and was out trying to make things happen...which I really admire.

Along with no experience, Joe also has no money and has not tied up the deal. He is so green that he really doesn't know what he wants to do with it. It turns out that it's a pocket listing and Joe, being green has also enlisted the help of his buying agent, so now there are two agents involved in the deal.

I asked Joe what he wants and he was a bit unclear, so I ran the basic scenarios by him.

A. Tie the deal up yourself and assign the contract to me.

B. Bird Dog Fee of $1000 and you should ask for something from your agent buddy.

C. Bring money into the deal for an equity share.

Joe didn't seem too happy, so I told him that this is the typical scenarios out there and everything is negotiable. I think Joe drank the guru Kool-Aid and is expecting to get rich on his first "Deal".

Here are the approx numbers based on research and info from agent, haven't seen the property yet:

Purchase $700K

Renovaton 100K

Misc Costs: 70K

ARV: 950K

Net Profit: 80K (7% of ARV)

I'd love feedback from the community.

Most Popular Reply

Account Closed
  • Investor
  • Denver, CO
26
Votes |
105
Posts
Account Closed
  • Investor
  • Denver, CO
Replied

If Joe doesnt know what he wants there's no way for you to know either. You've laid out 3 clear and fair options, there's not much more you can do. Maybe offer to walk him through the rehab process as the project progresses? He wants to get paid, but he probably also wants some real-world experience as well. I would probably step away from it after making sure he understands your offers.

Loading replies...