Selling opportunities to other investors??

Initially you would give a small blurb outlining the critical information, and if the party is interested you would then be required to hand over the detailed research.

An initial blurb might go something like:
Cash Flow Positive Property
10% rental yield on a 3 bedroom house in a mining town of 10,000 people. Capital growth has been steady over the past five years at a rate of 9% p.a. New industry is planned to commence in the next twelve months, providing more jobs and stability to the area.

Detailed research would be expected on the following:

Area Information
Essentially, why is this area promising for investment? You must also reveal potential threats to be completely above board.
Population (and growth)?
Metro or rural area?
Mono-industry, or diversity?
Income level in area?
Medium rent in area? Trends?
Vacancy rate?
Medium house value? Trends?
Infrastructure. Aging? New?
Services?
Unemployment rate?

Property specific information
Price
Rental yield (already tenanted? for how long?)
Capital growth liklihood
Development potential
Need for maintenance?
Proximity to schools/shops etc
What makes this property a good investment?

As for how much to charge for this information – it will depend on what you and the buyer want. You could do it as a JV, where you both profit from the IP rather than an upfront fee. In this case you would be expected to contribute to management of the property, liability on the mortgage, etc.

You could do it as a %of the property price, or a standard flat fee (more usual). A flat fee is usually about $5,000 – but really, it depends on how much interest you get from buyers, and how much money they stand to make from the deal. http://www.positiverealestate.com.au is a website that lists their finds – you may be able to guage from them some ideas in regard to blurbs and fees.

Click on ‘search’ in the ‘forum boards’ menu at the top left of the screen and type in “bird dog” or “spotter”. You will find a lot of information.

The Mortgage Adviser