How to Make Money as a Property Scout

Become a property scout!

A property scout is someone who finds investment properties and presents them to investors for a small finder's fee. The fee can range from $500 to $1,000. With the right motivation and networking skills, this can be a profitable work-from-home opportunity. As a property scout, you'll basically need two things: 1) Clients, a.k.a. investors, and 2) Products, or cheap/distressed properties.

Things You'll Need

• Computer
• Cell phone
• Transportation

Instructions

1. 

   Get a list of potential products. To do this, start by using real estate websites. Here are some good examples:

   http://www.trulia.com/

   http://www.interorealestate.com/

   http://www.movoto.com/

   http://www.idxcentral.com/

   The above websites will help you to search for super-cheap deals, mainly fixers that you can present to investors. Each site has search parameters where you can specify your city, list price, number of bedrooms, bathrooms, square footage, acreage and other options.

2. 

   Get some investors. You can call it your "client list". Finding investors might be tricky at first, but with time, good service and circulation of your name among the investor circle, investors will seek you out. Start with Craigslist.org and then search the local newspapers. In the real estate section you'll find some ads from investors seeking bargain properties. You can also find signs on the freeways and local roads saying "I'll buy your house for CASH" or something similar with a phone number at the bottom. Contact them and find out what they're looking for.

3. 

   Once you have some clients, get familiar with the unconventional methods of acquiring property, such as tax deed auctions, probate estates, federal auctions and bank repos. You can find information on how to buy tax deed and probate properties in my other articles.

   http://www.ehow.com/how_4918574_buy-tax-deed-properties.html

   http://www.ehow.com/how_5023860_buy-probate-properties.html

4. 

   Submit a package. Based on what your client wants, you can choose what to include/exclude in the package, but typically this should include large photos of the property, front yard & back if possible, physical address, MLS # , zillow.com estimate printouts, contact information of the owner or administrator of the property, or the time & day of the auction. You should also include any information you were able to obtain from the county records office about liens and other issues with the property. If possible, include a preliminary title search, or an indication of whether or not the property is insurable. See if you can get this information free from your title company, you don't necessarily need a full report, all you need is a verbal that the property is insurable (your client might not even want this). You should also include notes about your physical visit to the property and your thoughts/feelings about it. Remember that your goal is to have the investor buy that property so that you can collect your finder's fee, so include as much information and as many web-printouts as possible. That way it's evident that you did your research and that the investor is getting a good deal.

5. 

   Collect money. Serious investors will keep good records and know when to pay you the finder's fee. You should not have to track them down, but a simple courtesy invoice should be enough once you know they've bought a property you found for them. Make sure that your card is in plain sight in your package, or if you want to get really fancy you can include your name and number in the headers on every page that you submit.

Tips & Warnings

• Always be on the lookout for new clients

• Attitude & presentation is everything

• Real estate is a very competitive industry, make sure your product is superior

Resources

• How to Start Your Own Business and Make Money
• How to Buy Tax Deed Properties
• How to Invest in Tax Lien Properties
• Money Making Blog