A new investor looking for help leads to an easy 5 figure net pay day.
If you've been in the business a while, you've probably gotten lots of calls from new investors looking for help. If you're just getting started, you're probably constantly reaching out to more experienced investors seeking help. Each party can benefit in these situations.
A new investor reached out to me with some typical new investor questions about assigning contracts. I told him what I could without overwhelming him and I thought that was the end of it. Then he called me and said he had a property under contract and wanted to know if I could find a buyer. Well, I love these types of phone calls. We negotiated on what cut of the wholesale fee I would get if and when I did find a buyer. (My fee is 50%.) He sent me the details and I started sending it out to the buyers who I thought it would be the best fit for.
After a few hours I had several buyers chomping at the bit to get their offer accepted. It turned into a mini bidding war, but I went with a buyer I've sold more than a dozen houses to over the last year or so and knew he would perform. That deal netted me $12,000 referral fee.
This same investor then called me up and told me about a deal he was buying and looking for private money on. He needed to close quickly and was looking for around $600K. Getting that amount of money quickly isn't easy... unless you have connections and strong relationships - which I do. I put him in touch with one of my preferred lenders. He funded the deal and as a referral, paid me 1 point. I got a nice $6,500 check for maintaining that relationship.
Not a bad month in easy paydays; $18,500 helping a new investor move product and fund another deal. What are you doing to strengthen your relationships and are you investing a little bit of time giving back? How has it benefited you?
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