Hi,
I have a few questions about bird-dogs. I’m relatively new to property investing and am discussing with a bird-dog a couple of properties they have introduced me to.
– I know there isn’t any “real standard”, but what is a reasonable fee?
– I’m doing by own checks on the properties, and am happy with what I’ve found so far. I am not aware of any of their “qualifications”, but if I do my own checks (checking the numbers I’ve been given, getting the lease agreements, building inspections, council rates searches) are there any other things I should be wary of?
– I have been told that once I sign up with the bird-dog for the property that the sale contract is automatically unconditional. I’m a bit unsure because I haven’t seen the contract of sale and I’m not sure of any encumbrances, etc. Is this common practice, and how do I best protect myself?
Thanks.
Hey There Happy Jack!,
Few things…. reaching an agreeable fee is like buying a house at the right price… it all comes down to an mutual agreement between buyers agent and purchaser (assignee)…. best thing to do is …. compare the market place and see what it has to offer and then compare the service(s) each ofers to the client…. Ease of dealing with and assistance are some things you may need to consider….
As for signing up an assignment…. you need to look at the contract first so that you can make sure you have the relevant conditions that give you time to check out the deal first ….. once you hae built a relationship0 withthe bird dog … they can usually do most of the checks with genuine due diligence professionals to show you that you are getting good value for money…
Most bird dogs will make you pay in advance for the right to sign over thier portion of hte assignment of the contract or option and this is not usually refundable… so if you pull out of hte deal…. they will keep your funds … however the genuine ones will allow you to roll the initial fee into the next deal that rolls of the assembly line and you will have first go at it.
Hope this helps you find the right team for your strategy. I buy them myself and if you are interested PM me for more information sharing.
Cheers
Kiwifar. I am not aware of any of their “qualifications”, but if I do my own checks (checking the numbers I’ve been given, getting the lease agreements, building inspections, council rates searches) are there any other things I should be wary of?hi – these services are designed to reduce the amount of due dilligence that you have to do BUT early on do as much due dilligence as you can and check and re check.
cheers
I Buy Property http://www.cashflowproperties.co.nz
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