Preforeclosure Investor wants me work..questions on how not to get ripped off
will provide me with leads of preforeclosures to visit and bring him the deals ready to do business with him
how much should i be getting paid to bring him the deals if he is providing me with the leads and how much should i charge if i generate my own leads ...he says when i asked him how much will i get paid he said it all depends on the deals i bring him i am lost on how he figures to pay me if it is not on a straight percentage what is the best way to get paid on a straight percentage or some other type of system that is dictated by the type of deal brought to him so then what system may he have in mind
how can i prevent from getting ripped off
feel free to call me 917-687-8995 8:30-11:30 pm NYC time
Hi,
I just fisished a book today that answers this question. It is call Flipping Properties by William Bronchick.
The author breaks this down.
The Scout
The Dealer
The Retailer
You would fall under The Scout. The Scout is the information gatherer. The Scout finds potential deals and sell the info. to ohter investors. Scout finds the property for sale, gets all the necessary info, and gives it to the investor for a fee. The fee varies, depending on the price fo the property and the profit potential. The scout can expect to make $500 to $1000 each time they provide info. that leads to a PURCHASE by another investor.
Scout need to gather MUCH info as they can find.
The complete address
Owner's name and phone number
Photo of house
Info about the owner's aking price and loan balance, and are payments current or behind. ( If foreclosed, then you know the answer to the payments)
Liens on the property
Summary about condition of property
And Owner MOTIVATION to sell (divorce, death of spouce, foreclosure or whatever)
Your question is now? Will someone steal the dea? Answer: This rarely happens, the experienced investor knows that the unhappy Scout will not bring any FUTURE deals thier way.
Or if you are really concerned, ask your investor to put something in writting you can both live with.
Hope this helps.
PS
Sorry for spelling errors.
The sentence should read : Will someone steal the DEAL ( not dea)