OfflineI notice that in my area there are several investors already advertising for people to help them find leads on ugly houses by providing them information. How will you know if the deal closes? What steps does one take to be assured that once you do the footwork that you are paid your finders fee?
For example, one investor on Craigslist in my area instructs you to send a card with the address of the house, pictures of the house, and mail it to him. If the deal closes you get our finders fee.
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A while ago, I asked my attorney to draft an agreement I could give to individuals who wanted me to find them homes. Once completed, it will clearly state my terms and fee(s). You could do the same for the individual who is asking for leads. Get that person to sign prior to you spending any of your precious time. That way, it will all be set up before you even submit a property for their review.
Lock these deals up FIRST! Then sign an assignment form between you and the 3rd party investor. I would NEVER give them the property address before I had it locked up!!! I have never done this, I have tried. People say it works. I for one would love to get the details on assigning a deal!!!!
D
Don't Wish the Past, Create the Future! - DH
D
Thank you for the advice. I suppose if the investor does not want to sign anything up front then ditch it! There are quite a few investors in our area that advertise in the manner.
J
I do think I like the idea of drafting an agreement prior to divulging the information to the investor. I believe I will go that route, thank you!
J
Use a Finder's Fee agreement and list the property/properties on that agreement. I you are working with a good investor, they will be honest and work hard to keep a good long lasting relationship. Of course there are no guarantees in life. If someone is dishonest with you then don't ever work with them again.
good luck!
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"If it is important to you, you will find a way. If not, you'll find an excuse."
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Individuals that are dishonest can only go so far in life because sooner than they know it it will blow up in there face!! It's a small world after all!!!