FAQ 108 How do spotters fees work?
If you intend to act as a ‘Spotter’ then you need to understand that each state has differing rules concerning legal operation.
in some states there is NO requirement to be licensed provided that you DO NOT negotiate price with the owner/seller/sellers agent. Other states require real estate licensing. Check with your STATE Department of Fair Trading for more information.
What does a spotter do?
Exactly what you would do for yourself if you were looking for an investment deal ie. find the deal, perform due diligence to gather the facts and numbers, run the feasibility study to check the worthiness of the deal then promote the deal using appropriate media outlets.
How much do I charge?
This depends entirely on the profitability of the deal and the time you spend researching and preparing the deal. Obviously, a deal with very low profit will not demand as big a fee as one with a much higher level of profit. Approx $5k is a usual standard amount.
Where is there more information about this technique?
You can find more information within the OPM training course.
Follow this link and access the video for session #4
/opm-other-peoples-money-bootcamp/
