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Updated over 6 years ago on . Most recent reply
Out of State Deals For Investors
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!
Most Popular Reply
@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! :)