Too Many Investors??
I have found several investors that willing to pay a birddog for finding them lead. Most of them are delighted when I offered them my help.
The question is; is it wise to have too many investor to do bird dog with. The reason I asked this because I have two that I'm actually working with, but right now I'm focused with the second investor because the 1st investor I work with isnt aggressive enough to follow up on my lead.
My concern with my approach is that I'm affraid to put the leads to too many investors and it wouldnt become a great deal by the time all of the investors get their hands on the properties. This would contradict the idea of getting bargain property which is properties that no body wants. Because if every investors that do folllow up on my lead will put an offer (if the property is a good deal) and would flood the seller with contracts and will try to get the higher price as possible from every investors that made offers to the seller. Can you guys understand this? Does anybody have an answer to this?
Thanks[ Edited by greenwich on Date 04/19/2004 ]
Well, I think I would only pay a fee for a lead if it were an exclusive for a certain amount of time - say, 10 days. If, after that time, the investor had not acted on the lead, you are free to give it to another investor.
Personally, I'd stop working with a birddog who seemed to sell lists... I'd rather have a fully qualified lead, and pay good money for it to be MINE.
Of course, I'm looking for my first bird dog, so I don't know anything.
Some Investors are tire-kickers. You need to understand, investing is an aggressive market. You need to tell as many people as you can that you have it. However, you don't want to let the investor know that your doing this, they want to belive you are working exclusivly for them. But lets face it, its rare an investor can buy anything you throw at them, so you need a backup.
When someone tells me about a property. I immediately put it on my list and e-mail to about 50 people. I tell them all "first person with hand money gets the property."
Lori
[addsig]
I agree with Lori.
Once I have evaluated the potential investment, if I don’t want to get involved
I will then email, fax or phone my network. I will include all information (properties for sale, comps, what is happening in the area and why they should purchase the investment) they will need to make a informative decision on the investment. I will get about a 75% response within two days (I always demand a response otherwise I drop them from my network).
Taiyo
I would call your investor and say "I have a such and such deal and if you want it you have a half hour before I call someone else" you could give more than a half hour but I think 10 days is too long in this business. I wouldn't give more than 2 or 3 days. Then they need to give you some sort of contract.
Josh
[addsig]
Thank you for all of your replies, but the question remain unanswered. When there are too many investor find out about the particular lead, wouldn't that made the lead more difficult to get a bargain from the seller?
If all of them contact the seller at the same time and flooded with all sorts of offers, wouldn't the seller be more likely to hike up the price because suddenly he has more bargaining power to sell his property?
I'm new at this and maybe I'm overanalyzing the psychology of the game, but if a birddog's job is to look for a bargain, (properties at a 25% or more discount) and at a same time contribute to the seller's advantage having more choice in selling their properties at a premium that definitely could ruin the deal right? What are your oppinions?
Before I e-mail anyone I get an agreed upon price from the seller. This way my part is a done deal. I just need a verbal because I deal with the same people every month and that is the type of relationship we have in our network. But if you don't have that then I would suggest getting an option to purchase signed before you tell anyone else about the property.
I did have someone decide to raise the price after a verbal agreement in Nov. 2003 by $10K, guess what they are still holding property.
good luck
Lori
[addsig]
Greenwich,
If you are finding investments at 25% plus discount, I do not think you have a issue of a investor partaking. I think the bigger issue is your investors. Can they do the investment? Investors normally do not publicize marginal to good investments. If we can not/do not want the investment, we want someone in our network to get it.
Taiyo
Thanks guys, I think I can summed up all your answer to come up with a better solution for myself.
I wouldn't just tell a bunch of investors about every property I find, otherwise you're right, a good deal will no longer be a good deal. A good deal is one that you found & no one knows about it, because it's poorly advertised, if at all. You should present it to the investor you think would go for it, & ask him if he wants the property & if not, then let him know you'll pass it on to someone else. :-o