Posted by Ray(OH) on November 17, 1998 at 18:33:33:
Millie,
You are too cool!
HELLLLLLLLLLLLLLLLP??? - Posted by Barbara
Posted by Barbara on November 14, 1998 at 17:18:45:
I’m new at investing in distressed properties. I have a company that will give me up to 40% of net profit everytime i find them a fixer-upper property. My question is this…
Should i bother looking for properties for someone else and settling for receiving a 40% commission OR should i look for properties that I have to deal with, and get the financing and stuff for myself? If anyone here has ever dealt with companies that give a referral fee, was it worth it?
I’ll appreciate ALL responses.
Thank you.
Barbara
Re: HELLLLLLLLLLLLLLLLP??? - Posted by mjs
Posted by mjs on November 16, 1998 at 17:50:42:
Hi menewbee
Get things in a contract.
guidelines
- appraised value after fix-up
- purchase price
- repair costs + 10%
#1 - #2 = n
n - #3 = v
40% of v = ttl
ex; 100k(repair value) - 50k(purchase) -20k(repairs) = 30k x 40% = 12k (paid when deal is accepted)(not to exceed 3 mo)
make sure you both understand the rules first.
If they take advantage of you the first time (move on to more $)
Re: HELLLLLLLLLLLLLLLLP??? - Posted by Mark R in KCMO
Posted by Mark R in KCMO on November 15, 1998 at 12:12:15:
Barbara,
Here are a few thoughts, make sure there isn’t a non-compete agreement in thier sign up material, also find out what the define as profit, there is one organization that hires bird-dog and agrees to pay on sale, but the company moves the homes with Lease Options, with the sale years down the road. They also calculate the holding cost through the entire period and there basicly is NO profit at the end.
Your best bet would to see if they would be interested in buying flips from you. If they take it great, if they don’t either do the deal yourself, or flip it to another investor.
Hope this Helps
Mark R in KCMO
Re: HELLLLLLLLLLLLLLLLP??? - Posted by Yianni
Posted by Yianni on November 15, 1998 at 09:14:15:
Barbara, I’d be conserned with the “net profit” percentage. That number could be whatever the company’s accountant likes it to be.
If I were you I’d be more likely to settle in an up-front fee based on the acquisition price if the company would buy the property. (You’d be more like a “recruiter” than a “bird dog” that way, and you’d get what you want for sure.
Re: HELLLLLLLLLLLLLLLLP??? - Posted by Wade
Posted by Wade on November 14, 1998 at 19:58:39:
Hi:
I saw your posting and wanted to respond. I am a new real estate investor and I inquired into a classified ad in the Fort Lauderdale area and a company in PA sent me a packet for signing up as a “bird dog”.
I dont want to name the company. I dont believe in slander!
They wanted $1500 as a “signup/materials purchase kit” fee. I feel that this is unacceptable. The key to your success is knowledge translated into ACTION. Read the following book “Fast Cash…With Quick Turn Real Estate” by Ron LeGrand. It will show you how to really profit from distressed properties. I have read it 3 TIMES.
I paid most attention to Lease Options/Options without
a Sublease aka Straight Options.
I sure dont have $1500 to use to purchase these materials. I have chosen to focus on Lease Options/Options and I have just ordered my first course by J. Keiser for $103.00! He says that I can do my first deal in ONE WEEK and I believe him!
I dont know what the arrangement is that you have with this company you found but I would be very hesitate giving 50% of my profit away when you can learn how to structure a deal and keep 100% of the profit using other peoples money. Believe in yourself and read this book named above. It will change your life.
Go to his site…
I have talked to their reps and their service is very outstanding. I plan to order his course too once I get a part-time job. I am low on cash…but HIGH on dreams and spirit! I have what it takes to be successful in real estate.
I am very excited about changing my life with real estate. If I can help you in any way, please don’t hesitate to contact me. Their is POWER in UNITY!!
Warmest Regards,
Wade
Fort Lauderdale
Russ Whitney Seminar Grad
“I am a real estate investor”
Re: HELLLLLLLLLLLLLLLLP??? - Posted by Mr Donald
Posted by Mr Donald on November 14, 1998 at 18:21:31:
Doesn’t sound like a problem that requires a distress cry here. Sort of like the boy who cried wolf. Anyway…
What’s your comfort level? If you find it easier and more financially rewarding to be someone’s else bird-dog, then go ahead, hunt down, secure and retrieve the properties for your master. Just be certain that there’s some gravy awaiting you at the end of your train.
Re: Dreams must have plans to come true - Posted by Millie I.
Posted by Millie I. on November 15, 1998 at 01:06:05:
Wade,
Careful with the word ‘Dream’. Dreams without action makes one a permanent Wanabe that gets no where.
Call your dream ‘Vision’. Have a 10 step plan to make this Vision come true. Conquer one step at a time, and don’t stop till you accomplished the 10th step. When you are there, then call yourself a ‘Real Estate Investor’. Now improve the plan, and do it again, only better every time.
Millie I.