Bird dogging/ whole saler how much does each make?

My bird dogs are people that know me and ive told them I would give them $250-$500 depends on how much they bring to the table. I get info its usually just an address but I put there name to it so if it ever does workout I know who to pay.
With that said I have only one that might pan out and he knows I will pay up, its a good one so he will get more.

The pay structure is whatever the two parties agree to.

I have seen a contract somewhere on this site, If I was going to be a bird dog I might want to have a contract drawn up to protect me.

Just my thoughts
Aaron

What Aaron said is about right...it's whatever you work out with your cash buyer. When I did my first deal, my cash buyer asked me "how much do you want?" I really didn't know what to say, so I just said I'll take 1k and he said ok and wrote me out a check for a thousand. I made him a lot of money on that deal so he didn't care. Since then we have worked together a lot. I think I did a short 3 sentence contract between him & I, but since then it hasn't been needed because we trust each other. Believe me, your cash buyer is not going to screw you because you are valuable to him/her. On the deal that I'm currently waiting on, I'm getting 2K from him. Hope this helps.

What about this scenario: I find property-prior to making offer, friend says he has buyer for it-friend says he'll split profit 50/50...Is this arrangement customary?

Thank you all who have left comments, I just couldn't imagine why someone would risk turning over information at the risk of being screwed over.

Generally I follow my gut and Aline it with my thoughts.

Those who try to screw over people will be screwed at the end. Because you never know how someone could have help you rise but out of greed, selfishness or plain lack of having genuine relationship in real estate investing with othee people you cut off many opportunities by trying to be Sly

Simply put: You have a house, friend has a buyer, work it just like a one party assignment deal.Your profit will be smaller because you're splitting it,but you won't have to shop the house around.And even though it is a friend, get your profit split agreement in written contract form and you both sign it. And don't get greedy with the assignment fee, could cost you the whole deal.

"Friend"

Is such a touchy word these days to throw it loosely.....

Especially when it involves money people change faces so much.

Not to come off as a Debbie downer, it all depends how you plan to proceed with this are you going to. Assign this? Double close?
To just pass it off?

Now when you say share the profits 50/50 whom do you speak of?

Well said and the perfect answer !

I see what you mean, thanks..I am aware of greedy factor: some is better than none & BTW, the 'friend' is my brother-in- law and it would have been a double close.

I would add a bird dog fee is usually less than a wholesale fee simply bc you do not have control of the property & they do not comp out the prop, just quick comps. I would pay someone here in So Cal 2k for a bird dog fee, just for an address in other words.

That is So Cal prices though so perhaps lower in other parts of the Country. A wholesale fee will be more, you have control of the prop, you can command a higher fee bc you can choose who you want to wholesale it too. You have hopefully comped it out & dug in to the comps to make sure the ARV is accurate & you have an eye for rehab to know what it is going to cost more or less.

When you co wholesale props yes it is customary & accepted that you will & should split the wholesale fee 50/50 if you have deal & someone has they buyer or vice versa.

I do write out bird dog fee a one pager agreement for my bird dogs & for co wholesaling I also have a one pager but usually I just include the other wholesaler on the assignment contract & have them sign it too & the buyer that they are going to get paid too.

I have one guy that brings me properties and the Bird Dog fee that I pay is $1,000. That's because I have to do most of the work, checking comps, touring the property and taking photos. I'm the one that gets it under contract and does the advertising to sell the property. I do almost everything.

This is entirely different than splitting a deal with someone. Sometimes I get a deal, but it's a more complicated one and I need someone to help me structure the deal. In that case I bring someone else in and we split it. This is really all just verbal in my case, and I do 1099 anyone that I pay out of my business.

This is also different than what I consider co-wholesaling. That is when a colleague gets a deal and we've worked together enough that he let's me advertise his property. I can either add my fee on top of his price or he tells me there's enough margin for me to make a certain amount. The person holding the contract is the one who has control.

I have signed agreements with people that I've never done any business with, but who knows, maybe we will in the future. I guess it all depends on how much you know someone and trust them. I usually start with the trust factor, but if they ever screw me.... I'll never do business with them again. You just have to be smart and be wary of a competitive market.

I agree with you.....

And the manner a person communicates automatically lets you know....

Wether business will continue to occur or not

for your input...also, at what point is fee collected?

yea mbjosheph that is what i think/do myself too really-no contracts with trusted collegues, if they ever burn me then they are done & word travels fast in REI circles.

Heidi-when you are paid a bird dog fee usually you get paid when the investor closes on the property you have sent them.

When co wholesaling usually same thing-out of closing-although I want/& will start to ask for upfront non refundable wholesale fee's-or at least part of it, say 2k-5k to ensure the buyer closes on the property-or maybe even all of the fee upfront.

I just heard someone get burned by another wholesaler by not giving a measeky $500 deposit wasting time and holding out to extend the contract length so be fair and firm