Birddog/Investor relations
Ok, here's a specific question that I haven't found specific answer to. When a newbie (as in me) is contacted by the first investors, what questions should he ask? What are the customary parameters of this relationship? What should the birddog learning the business, and the investor who he is hunting for expect of each other? Is flat fee or percentage a better way to go? After talking to a few investors, things all sound good, so I don't want to ruin a potentially profitable relationship through my ignorance. However, I'm not learning CREI so it will look good on my resume.
Any help and advice would be appreciated. Horror stories and other lessons are also welcome.
If your Real Estate Investor is for real, then he / she should make you feel comfortable with them in any case.
As far as splits are concerned, my birddogs get a 50% / 50% split of the net profit. And they will know what the expenses are and why they are being used.
I will do about 5 projects with each birddog and after that has been done I usually let the leash go. So that they can try some projects on their own, with my help of course.
This seems to work well with us.
James
Thanx for the info, James, I really appreciate it. I definitely agree that doing business with someone with whom I am comfortable is the only way to go. I was a bit unsure of the numbers and the specifics and ettiquette.
Again, I'm grateful for your time,
Lou
Hi james;
50/50 seems unusually high for a referral. Especially when I read that others offer 5% or $500. or such.
Of Course you can get some good deals that way. What area are you located in ?
Tom B.
Hi Designshack. Just thought I would chime in. I have an agreement with my BD's that the first 2 deals will be for a finders fee of $500.00 if completed. After those original 2 are completed then we can talk about a higher percentage. This goes hand in hand with them doing more like adding direct mailers, flyering additional tracts and becoming more hands on. It gives them incentive to continue plus there is the learning that helps you not only to sharpen your skills as a teacher but also to help free up more of your time in order to become more effective. Work up to the 50-50 splits. Usually by the time they get that far they are wanting to go it alone and become an investor themselves. Good luck and keep posting. Brett
This is to the loanranger, where are you ? I tried to email you but message was returned, is your email address right ? This message is from BESS . Thanks