I FEEL IM DOING TO MUCH

[YoungAmbition]

Hi Im 20 years old and new to REI. I recently just jumped in it.  I found 3 properties for an investor and negotiated a price and put it on contract. But the investor I found the houses for said he would give me a $1000 per house. I've been reading these post and realized that I should be in control of the situation. As a birddogger all i need to do is give him an address maybe a name otherwise I should find my own buyers and assign it to them for a better fee. Am I wrong and what do I need to do in order to start whosaling?

[trwilliams]

Where are you located?

[tedjr]

Howdy YoungAmbition:

Do the same thing you are doing but ask for more money. Like you said be in control. If you find a great deal below market  you should make a handsome profit for the contract. You should be making $3K per contract at a minimum. As a birddog you are finding property for a single buyer and as a wholesaler you will show that property to several buyers.

[YoungAmbition]

I really appreciate the advice.  Im in Canton, OH...But I have another question. Would it be smart to get a LLC so i can put the contract under that name or will I be safe either way?

[tedjr]

Howdy YoungAmbition:

Why do you want to use a LLC.? Is it for tax advantages, I believe there are none and a corp. may work better here any way. Limit your liability perhaps? Again not much liability to limit. It may make you seem neater or cooler to have a company image or something. Just make some money at the game first and then perhaps the LLC would be needed for various reasons.

[ForeverInvestor]

If you're wholesaling houses...you want an S-corp. An LLC will be serve your purposes if you plan on buying and holding properties. Good luck!

[realnew]

$3k per deal? Holy cow. Some proposed I birddog for him, and I was thinking 3% per deal, min $1000.  Man, I love it when ppl try to take advantage.

[aznewbie]

Hi everyone sorry to butt in, but is the 3k/deal your talking about only if you get it under contract yourself and assign it, or for detailed info like name, address, phone, situation, property details-size, condition, price negotiation etc.
That would be great to get 3k/deal but I'm new to this and not familar with contracts and don't want to get into that till I understand them better. What I have heard people around here (AZ) say is $250-500 for a name address & number more for larger deals, and 3-4% with a contract that I assign to someone else. Is that about average for Bird dogs?

[fulcher1738]

Aznewbie getting involve with a contract isn't difficult, but I hear you about not wanting to deal with a contract.  I am new to wholesaling as well.  What I am trying to do is do most of the work for the buyer by getting comps and getting estimates of repairs give him the numbers to the deals and tell him what I would like to make out of the deal everything is clear cut and no gimics.  I have several investors who will actually go out and do the contract themselves for the property, but the deals I have been doing have been large investor friend wanting to find another investor who will pay cash.  So my deal is a different in the sense I trust both parties and I just want $1000 finders fee per house.  

[REIMan]

Well if you market yourself as a Birddogger then you'll get that type of fee.  If you market yourself as a Wholesaler then you'll get that type of fee.

Once you control the property then you should be the Wholesaler.  If you don't but you want to make more, I would try to start a bidding war from different buyers as to who will buy your deal without you having to wholesale anything or put your name down on any contract.

Just my 2 cents.  I didn't read all of the posts so if someone already said this then disregard.

[youngtycoon]

Perception is reality, I started out that way out here in AZ. You should get at least 3k per property.  All you need to do is lock up a property with an option contract and assign your option to your investor. This way you dont have to deal with the intimidating purchase contract until your ready.  I think your best off if you dont refer to yourself as a birddoger. YOur better off calling yourself an investor or at least a wholesaler.

[REIMan]

Well said youngtycoon.

PERCEPTION is REALITY.

[aznewbie]

Thank you for your replies everyone, you have all been very helpful.