OfflineWhat Up DG Fam? I guess I am still having some complications with passing deals onto other investors with foreclosures. Today I recieved a call from one of my ads on craigslist in search of investors to wholesale deals to. Well, the investor lives out of town and is looking to purchase some property to rehab and rent out for 5 yrs in my area. She is looking to invest in foreclosures and is willing to pay 5% of the purchase price for a finder's fee.
So questions:
1) Should I sign an agreement with this investor about working to help her find deals?
2) How can I assign these foreclosure deals to her, or rather, lock up the property and get paid?
I guess I am still a little confuse, just thought I could get some advice on this.
Thanks1
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
first off, if she is "willing to pay you 5%" as a finders fee, she is assuming you are a bird-dog. Then you wouldn't need to lock anything up. Just find her a property and do little leg work and then forward the info for her to follow up on. Otherwise you need to clear things up with her to let her know you are an investor that wholesales properties. Don't get confused on the two strategies. You have control of the property and then can therefore take a bigger profit. If she wants in on the deal you can assign it to her for what YOU want, not what SHE is willing to pay you. Otherwise you will move on to another investor who wants in on the deal. See the difference?
2nd, you might have a problem assigning foreclosed properties. Banks don't like that. You might have to do a double closing.
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