Hello everybody,
Can anyone advise me how to go about offering information to investors for a finders fee?
I’ve come across a couple of rather amazing commercial-property investment opportunities that are simply way too big for me.
Regards,
tassiecyclistIf you are thinking about becoming a Buyer Agent or performing the servcices of such you may need to check the legislation in your particular State.
Most States require a BA or REA to be licensed and the penalties are harsh if this is not complied with.
Merry Xmas to all forumites.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
I see, thanks. Wasn’t thinking of starting an actual business though, just passing on information when i see something good. My sources are simply real estate agent, websites, and anything else thats publicly available.
tassiecyclist
Interesting thought. Steve is calling it bird dogging. But I do not know how to go about it. If anybody can tell us beginners, that would be great.
Originally posted by tassiecyclist:I see, thanks. Wasn’t thinking of starting an actual business though, just passing on information when i see something good. My sources are simply real estate agent, websites, and anything else thats publicly available.
tassiecyclist
You need to be licensed to get paid for what you propose – no matter where you find your information.
One question you should ask is – what value are you adding and why would someone pay you for your services? As you say your information is freely available publically.
An investor who would be prepared to pay a buyer’s agent, and many are, would want to employ someone who is licensed, has professional indemnity insurance, is a member of a professional body and has a network of contacts that gets them “insider information”
IT’s a great job – maybe you should consider doing some study and getting a license
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 17,000 readers.
FREE subscription http://www.PropertyUpdate.com.auDid Steve’s mappers actually have licenses for their bird dogging?
Yeah, i guess becoming professional could be a good job, but its not the direction I want to go. If it’s going to be a legal effort to pass on interesting information then i guess I wont. Seems a shame though, saw some really exciting stuff.
Were Steve’s finders licenced or just ‘lookers’? It sure made things a little easier for him. And while we’re out there looking & learning it could help grow our deposits.
There are many investors out there accepting “finders fees” or “spotters fees” for properties that they are passing off or assigning to other investors. Yes it is done alot and it is not an issue until you get caught doing it!
Whether you are conducting a business or not, accepting a payment for a property transaction without a license is illegal. In SA the fines are $20,000 per transaction performed without a license and also paying back any commissions or fees that you accepted.
Yes people are doing it and seminar gurus are advocating it as a way of quick money or quick flips, but it is also illegal. (got me confused when I started out too and I asked the same questions as you)
At the end of the day, you take the “business risk” that is right for you, could you make over $20,000 in finders fees before you get caught doing one of them?
Also if people decide not to pay you, you have no recourse action against them at all, they don’t have to pay you!
A way around it is to take it to a licensed buyers agent who will put the deals through legally, they would not be able to pay you a commission but you can accept a gift voucher [biggrin]
I run a licensed buyers agency and so does Michael Yardney, what state are you in?
Investment Property Management
http://www.adprop.com.au
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