Become a Property Locator - Property Locators Earn Big Commissions Helping
Investors Find Properties
Why Become a Property Locator?
The first question you probably want the answer to is, “What exactly is a property locator?”
A property locator is an individual who works at the ground level to find properties for
investors to purchase.
For example, let’s say that Joe Blow is an investor that buys six to ten properties per month but his success
has caused a problem.
He doesn’t have much time to sniff out deals anymore.
So Joe, in turn, brings in a property locator to find deals while he’s closing them. It’s a win win situation because Joe
can focus his attention on closing deals while his property locator can focus their attention on finding
How Does a Property Locator Get Paid?
This is a commission based opportunity that happens
typically on one of three levels. The first two levels are flat fee commissions. On the first level, the property
locator gets paid a flat fee anywhere from $100.00 to $500.00. On this level, all they do is locate potential
properties that fit the parameters set by the investor and once the investor closes the deal, the property locator
gets paid. It is important to note that the property locator IS NOT involved in the negotiation process of the
deal; all they are at this stage is a referrer.
On the second level of flat fee commissions, the property locator is paid a lot more because of their increased
responsibilities. On average, they can earn anywhere from $500.00 to $4000.00 per deal. However, not only are they
the referrer, they also prepare the deal for the investor. Those responsibilities could include but not be limited
to: performing a comparative analysis, estimating fix-up/repair costs, negotiating the final sales price and
getting a signed contract from the seller.
The third level of pay is percentage based commission in which the property locator essentially does everything
but fund the deal. When he presents the packaged deal to a real estate investor, it’s pretty much a slam dunk.
Meaning, all the investor has to do is fund the deal, prep the property and put it on the market for sale.
The property locator gets paid a percentage of the sales price after the investor sells the property. This level of
pay is only for an experienced property locator who is versed in the art of negotiations, has a firm grip on determining
property values and knows how to perform fix-up/repair cost analysis.
What kind of money can a property locator make?
It really depends on the person. It’s not
uncommon for go-getters to rake in six figures or more locating properties for real estate investors. The beauty of
being a property locator is that there are always private investors seeking aggressive men and women to sniff out
deals for them. In addition, being a property locator, work from home and work you own hours.
What kind of people become property locators?
Anyone who is driven, self-motivated and can
work with very little to no supervision. Primarily, people who become property locator are usually individuals who are looking to get into real estate investing
full-fledged but they might not have the cash resources to do so right at the moment.
Author, Joel Marks of REODr.com