First deal through a sourcing service closed. A two-page scope did the work.
Closed on a small duplex six weeks ago that I did not find myself. Someone else found it, negotiated it, and I paid him $6,500 at closing for the service. I was nervous about the whole arrangement for months so I want to put down what actually happened.
The paper first, because that's the part I care about. Ninety day non-exclusive sourcing agreement, no retainer, fee earned only on a recorded closing in my name. That last clause is the one I'd fight for again. He wanted "earned upon executed contract" and I said no, and he took the change without much argument, which told me he closes deals.
Numbers. Purchase $184,000. Two units, one occupied at $1,250 which is under market, one vacant that I re-rented at $1,375. Fee $6,500 flat, which showed up as a line on the settlement statement rather than a check I wrote in a parking lot. Roof was at the end of its life and I got a $4,000 credit, which I already know is not a roof.
He brought me 14 addresses over about ten weeks. I said no to 13 and wrote one line on each saying why (price, layout, one was a flood zone I won't touch). Those written nos made deal 14 better because he stopped sending me two bedroom cottages.
The part that nearly broke it was deal 9, an estate sale where only one of three heirs had signed. He told me to get it under contract and "work the rest out later". I walked, and I told him if that came up again I'd end the agreement. He didn't push.
One more thing. I asked in writing whether he was collecting anything from the seller side too. He said no and it went in the agreement. Whether that kind of disclosure is required, and whether what he does needs a license at all, depends on the state, and mine is one of the stricter ones, so I paid an attorney an hour to read the thing before I signed.