Bird dog fee or sell contract

[Account Closed]

Hi there,

I'm just starting with an investor who is a cash buyer for rental properties.

Should I get property under contract by myself and sell him the contract or what do you suggest as the best way to go ahead with this?

What amount of finders fee is fair for both parties?

Any input is appreciated.

Thanks 

[Jose Flores]

Hey @Account Closed In his book Financial IQ Robert Kiyosaki said "When people ask me if real estate is a good investment, I tell them I don't know, are you a good investor?" He is highlighting the importance of developing your real estate IQ. If you feel confident in the 5 skills needed to be a Pro at Wholesaling (marketing; estimating repairs; contracting; appraisals; and negotiating) I would get the house under contract and assign it to your cash buyer using an assignment contract for 3k-5k.  Now if you really don't know what you are doing I would come up with a standard finders fee; often much less (1,500) because he has to do the negotiating, estimating rehab, pulling the comps, and everything else.  Then you just schedule your showings with him being there.  Now the benefit is that you can watch an experienced investor build rapport with a seller; estimating repairs; explain market conditions; negotiate, and prepare the contract. If he knows what he is doing the education can be worth 10s of thousands of dollars.  If he doesn't find a teacher or mentor who will help you develop those 5 skills and move to wholesale deals to your cash buyer.  Good luck.