Frequently Asked Questions - Big Dog Partners

Frequently Asked Questions

Learn more about the process

Frequently Asked Questions

Q. What information should I gather, from a seller, if I want to partner on a deal?

A. In order to partner on a deal, or secure financing on a deal, you need to gather the information below. Once you have gathered this information, you can email it to Olivia@BigDogPartners.com to discuss partnering and financing scenarios. If you have questions about a deal, get on one of the Big Dog coaching calls.

  1. Full Address (with city and zip)
  2. Year built
  3. Square Feet
  4. Beds/baths
  5. Neighborhood name
  6. Description of the property
  7. Comps with map & pictures of comps and summary of comps
  8. Rental Rate in the area
  9. ARV
  10. Purchase Price/What you have it under contract for (what seller would be willing to accept)
  11. Days on market (for similar sold properties)
  12. Months of inventory (for similar sold properties)
  13. Repair amount, with scope of work
  14. Loan information (PITI payment, loan payoff, reinstatement amount, interest rate, bank name, origination date of loan)
  15. Close date
  16. Pending foreclosure date (if applicable)
  17. Potential Profit/ROI

Q. What if I don’t have all of the information needed to partner on a deal?

A. The question is, what do you really have? A “deal” is generally considered a property that you have under contract or at least have identified, in which the seller has agreed (at least verbally or in writing) to sell the property.  If the seller has not been contacted, you have a “lead” and not a deal. If the seller has been contacted, and if open to selling, but has not agreed to any price or terms, you have a qualified lead. In general, the most work you put into qualifying a lead, the closer you are to having a deal.

Q. How are profits typically split, when partnering?

A.In general, it depends on who contributes what? The lead is generally worth 10-15% of the profit. The fully negotiated contract could be worth an additional 35%, and thus finding a deal and getting it under contract, with a set of terms that don’t need to be renegotiated or adjusted (on a good deal) is worth up to 50% of the ultimate profit. This means the expertise, money, and management of the project is worth the other 50% of the profits. But, this is just the “general rule”. For example, a project that involves construction, that will take a lot of time and money, may make the contribution of the partner providing the management and expertise worth more. In general, the goal of a partnership is to leverage the time, money, and resources of each partner, in a fair and equitable.