Should a rural land flipper's diligence provider get paid per parcel or on the back end?
Pricing a diligence service for rural land flippers comes down almost entirely to the fee structure, so it's worth laying out how the tradeoffs actually work. The work itself is the unglamorous middle of a deal: pulling the deed chain, confirming legal access against the tax map, checking whether a road is county maintained or private, flagging heirship, checking for recorded easements and old mineral reservations, and writing it into a two page memo an operator can decide from. There are two common ways to charge for it. Flat per parcel, say $250 to $400 depending on county difficulty. The operator pays whether the answer is buy or walk, which gives the provider a clean incentive to write an honest memo, since a walk memo pays the same as a buy memo. Operators tend to dislike paying for a no. On a mail campaign where 30 parcels get looked at and 3 get bought, that's $9,000 in memos against 3 acquisitions, and the memo cost per acquisition looks steep even though the walks are what saved the operator money. Back end, a fixed fee at closing or a small piece of the resale, nothing if the deal dies, keeps the operator's cash out of the walks entirely. But it means getting paid for yes and not for no, and a memo on a marginal parcel becomes worth less once everyone in the room knows what the provider is rooting for. Whether a percentage of resale on land starts to look like something requiring a license also differs by state and is a question for an attorney before it's ever offered. A third structure some operators prefer is a retainer, a monthly number for unlimited parcels in a defined set of counties. Predictable for both sides, and it rewards the provider for moving fast and staying thin. Operators who'd actually pay for this kind of service tend to have strong opinions about which structure earns their trust, and it's worth hearing the reasoning behind each choice.
How should a rural land diligence service charge?
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