All Topics / Legal & Accounting / Spotters Fees…..
Hi Everyone,
I have just re-read a section of Steve’s first book about spotters fees, and it has really intrigued me. I am currently in the position of having found two houses, one I can purchase, the other I don’t have enough deposit for, so I thought maybe I could pass the information on to someone for a fee.
Has anyone done this before?
Are there any legal obligations?
How is the transaction of cash for information done?
What is a reasonable fee for finding property?Thanks for your input,
Regards Ian
Has anyone done this before?
-yes, me, I’ve written quite a few posts on it on various bird dog threads, have a search using the search function
-Are there any legal obligations?
yes, I’ve explained elsewhere how I do it, but others say it is illegal here without a licence, etc etc depending on how you define what a ‘bird dog’ does. I define it as someone who finds and presents deals to investors for a fee.
-How is the transaction of cash for information -done?
two consenting adults who agree, basically! you find someone who wants to pay you for the ‘information’ you have, and invoice them, then they pay you in the normal ways (bank transfer is how we prefer it, because it’s the quickest to confirm)
Your problems might be, how will they know if they want to buy the information until they’ve seen it? If they see it ‘on spec’ will they then be able to find the deal and cut you out of it?
-What is a reasonable fee for finding property?
It so depends – depends on what you are offering for your service compared to what others in the market are offering for theirs.richmastery charge 3995 – 4995 but offer a lot of due diligence for their trouble.
cheers-
Minijoy to the world
Thanks Mini [smiling]
Hi Mini,
For the spotters fee do you (or bird dogs in general) offer some kind of written report detailing info regarding validated current rental returns, vacancy periods, etc?
Cheers darl,
kind regards,
Gatsby.Hi Gatsby
As Mini has pointed out, it depends on who you deal with.
I am a licensed buyer’s agent and provide due diligence reports (written and verbal) of the areas in which I am finding properties. Others may do this verbally, or just pass on a deal and let the buyer do their own due diligence.
There are a number of people out there (not all) bird-dogging illegally and passing on some lousy deals, so be careful.Cheers,
scotty3
Cheers,
scotty3
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