Why do you need to pay the finders fee upfront?
I understand that it may not feel right to pay the finder’s fee before knowing much about the property. However, at the stage that I pass deals to investors, I have done a lot of work to find and evaluate the deal. It is a delicate stage where the seller can still choose to sell to someone else, and I need to protect myself. I can’t put myself in a situation where I do all that work only to get cut out of the deal.
So to show that you are serious and that you appreciate the work I have done and the time I have saved you, you will need to pay upfront. However, there is a fourteen-day cooling-off period. So you will have two weeks to view the property yourself and to do your own due diligence before committing. So if you decide that the property is not right after all within the 14-day cooling-off period, I will give you a full refund.
Can I view the property before paying the finder’s fee?
As above, you will need to pay the finder’s fee and sign an NDA (non-disclosure agreement) before you can view the property. But this is not a commitment to buy the property as there is a fourteen-day cooling-off period when you can and should do your own due diligence to check that you agree that the deal is as good as I say it is.
Can we negociate a lower finders fee?
The fee not only includes all the work I have done to look at properties online and in person, but also negotiating a price with the seller and selling agent. I won’t be putting out deals that don’t stack up and don’t leave a decent return on investment for you. The fee is factored into this and is considered fair. Remember, that I don’t share deals that I wouldn’t buy myself if I could, and I hope that we will do business together again and again. So, our incentives are aligned and it is not in my interest to get you into a deal that will not be good for you.
What happens if the deal falls though?
There are many reasons that a property sale may not go through to completion. A survey may shine light on a problem that was not foreseen, the seller may find a buyer willing to pay more, the list goes on and on. If this happens and it is out of our control, I will refund the finder’s fee or find a similar property for you that meets our criteria. However, if you just change your mind about the purchase, it is preferable if you could make that decision before the end of the fourteen-day cooling-off period when I might still have other investors who were interested in buying the property.
What happens if the property doesn’t rent out?
I will have done my research into the market and spoken to agents about rental rates that could be achieved. However, you are buying the property so you should do you own due dilligence on the deal and make sure that you agree with my numbers. Again you have the fourteen day cooling off period to do this.
Can you help me to do the renovation and get the property rented out?
I will help you wherever I can. As I mentioned before I hope we will do business again and again, and I want the deal to be profitable for you. I am happy to share with you any contacts I have to help get the property up and running. However, my service is that of a finder and at this stage I am not in a position to manage renovations. That being said I will stay in touch and help in any way I can up until you have a tenant paying rent.