Real Estate Consultant Fee Agreement: Fill & Download for Free

Gosh, yes. I’m usually able to suppress that feeling, but I’ll tell the story about the time that even I couldn’t.I was representing a client in an estate dispute against a relative. The defendant was a borderline personality and there were strong reasons to believe the representation would be lengthy, costly, require extensive expert testimony, and be very nasty. Plus the client had limited resources.We negotiated a fee agreement which gave me a percentage of the ultimate recovery that we both thought was fair.As a precursor to the lawsuit, I sent a demand letter setting forth the basis of the potential case. Pure formality and I knew it would be a waste of time, but I wanted to be able to show that we had gone through all the motions.To my utter astonishment, the defendant caved. Completely. Within two weeks, my client had a thorough accounting and a very large transfer of property to her. I had done very little real hourly work.And according to the fee agreement, I was entitled to hundreds of thousands of dollars.I was very distressed about this aspect and after considerable hand-wringing and thought, and consultation with colleagues, I simply picked up the phone, called my client, told her what had happened, and said, “Here’s how much you supposedly owe me under our agreement. It’s too much. I haven’t been able to figure an analytical way to reach the right number. I’m going to propose $X. That’s a quarter of the fee agreement amount. It’s still probably too much, but I can live with asking for that.”My client was silent, then chuckled and said, “I accept your proposal. Plus, you’ve given me a lawyer story that no one will believe. Thank you.”Afternote: that client became a dear friend and referred other business to me. I didn’t know it at the time, but my fee reduction proved to be an excellent marketing move.

Well, that’s one way to go about real estate investing. However, there are other strategies a real estate investor can follow:Buy and HoldThis is a more traditional, and probably the most common and most simple type of real estate investment strategies. It allows real estate investors to build a steady, passive income and gives them the opportunity to gain appreciation in the long-term.The buy and hold strategy involves buying investment properties, leasing them out for a long period of time, and make money from either collecting monthly rents or simply holding the investment property until it appreciates and selling it for a higher price than the initial purchase price. This is one of the best real estate investment strategies for long-term investments properties.One reason for the popularity of this type of real estate investment strategies is that during the time that a property investor holds the property and rents it out, the mortgage is being paid down each month, which builds equity in the investment property.When following this type of real estate investment strategies, you’ll need a reliable source of financing such as a convention loan (mortgage), personal cash, or funds contributed by a partner. Moreover, not all buy and hold investment properties are the same – they range from single-family homes, multi-family homes, to entire apartment buildings. Real estate investors need to know how to evaluate deals which requires a thorough comparative real estate market analysis in addition to an investment property analysis.Fix and FlipThis is the best type real estate investment strategies for real estate investors seeking short-term investments to quickly make money. The fix and flip strategy involves buying investment properties that are on the real estate market for a low price due to foreclosure, short-sale, or being in a bad condition and they need plenty of reparations and renovation. Real estate investors then work on renovating and improving these investment properties, and then selling it for a higher price, thus making a quick profit.Don’t think of fix and flips as passive income-generating investment properties; when real estate investors sell the renovated investment property, they don’t make money until they start flipping again! Furthermore, in order to make money through this type of real estate investment strategies, the selling price of the investment property must be higher than the initial purchase price plus renovation costs.When going for this type real estate investment strategies, look for deal-breakers and ensure that you repair and sell the investment property as quickly as possible in order to guarantee maximum profitability and avoid additional monthly expenses. In addition, it’s important to set a budget and consult with a home inspector or appraiser to help you identify important issues and avoid wasting time and money.Rent to OwnThis type of real estate investment strategies – also known as a lease option – gives real estate investors the ability to make a deal with a prospected buyer in which the buyer rents the investment property for a set time period (typically 1 – 3 years) before actually buying it. This way, a property investor enjoys a guaranteed passive income!This type of real estate investment strategies brings many benefits for real estate investors.First of all, the potential buyer is obliged to pay a non-refundable “Option Money Fee”. This fee allows the property investor to make a quick profit when the potential buyer first moves into the investment property, in addition to giving them some security in case the agreement is broken.Another benefit of this type of real estate investment strategies is that they guarantee that the investment property won’t be vacant for the set time period in the lease option.Moreover, the property investor is ensured that the investment property will be sold. Therefore, rent-to-own have fewer risks: potential buyers won’t cause damage to the investment property since, eventually, it’s going to be their new home.Additionally, depending on the lease, potential buyers are responsible for repairs and maintenance costs, which further gives the property investor a sense of financial security.Finally, when selling rent-to-own investment properties after the set time period, hiring a real estate agent is not required, thus eliminating the extra fee which a property investor would otherwise have to pay to the agent.Airbnb RentalsAnother great real estate investment strategies are Airbnb rentals. These are similar to buy and hold investment properties, but instead of renting those out for a long-term, Airbnb rentals are short-term rentals (typically rented for less than 6 months).Airbnb rentals have been increasing and are becoming more and more sought out by real estate investors as they have proven to be very profitable – some Airbnb rentals even generate more income than traditional rentals. Moreover, these real estate investment strategies offer a property investor more flexibility; real estate investors can buy investment properties for the sole purpose of renting them out as Airbnb rentals, or simply just rent out a room from their residential property any time they want (even for just a night), thus generating passive income without the hassle of being a landlord!However, before entering the real estate investing market following this type of real estate investment strategies, it should be noted that Airbnb rentals typically take more time to manage, involve more maintenance costs, not to mention the possibility of going through weeks or months without a short-term tenant, as opposed to traditional rentals where you ensure a steady passive income.In addition, many states and cities have legal regulations or restrictions regarding Airbnb rentals. Therefore, when considering this type of real estate investment strategies, make sure Airbnb rentals are legal in your state and city.Real Estate Investment TrustsReal Estate Investment Trusts (REITs for short) are among the most common types of real estate investment strategies that generate a passive income. REITs are companies that purchase and own multiple investments ranging from office buildings, apartment buildings, shopping malls, to hospitals and other investment properties.These are great real estate investment strategies for a property investor who doesn’t have a big capital or the time to focus on real estate as a full-time job. When you invest your money in REITs, you’ll receive a passive income in the form of dividends, which is great for retirement plans. Moreover, real estate investors have minimal responsibilities as they’re not required to actively manage their investments. Additionally, REITs mostly invest in more than one investment property, meaning this types of real estate investment strategies gives real estate investors the ability to diversify their investment portfolio which naturally lowers their risks.Real Estate WholesalingIn real estate investing, buying and owning investment properties is not the only option out there. While it is not necessarily the first option that comes to mind when thinking about real estate investment strategies, wholesaling is definitely a great option. This strategy allows you to quickly make money in real estate without spending any!Real estate wholesaling involves finding investment properties from sellers, writing a contract to acquire the deal, and then sell this contact to a buyer. Thus, a wholesaler is generally a middleman between real estate sellers and buyers who gets paid for finding deals. Many real estate investors consider this one of the best real estate investment strategies dues to its low startup costs – seeing as wholesalers don’t actually own the investment property, they are not responsible for any repairing costs, mortgage payments, banks, or other financial complications.In spite of this, becoming a successful wholesaler is not as easy as it sounds. Wholesalers must continuously seek out the best deals, besides having to network and make contacts in order to create a database of sellers and buyers.For any more information and guides on how to make the best real estate investment decisions, check out Mashvisor.

It depends on what type of consulting you are seeking. If you are seeking representation as a Seller or Buyer then that compensation is commission based and set by agreement between you and the agent representation your interest. However, if you are seeking specific representation of a consultant based on specific purpose and need therefore a specific expertise, then these are fee based.Real estate has many facets therefore require different and specific knowledge and expertise. Like comparing it to doctors. You can’t go see a heart surgeon when you have a brain injury for example.Commercial real estate require different knowledge base as well as skills since it involves in-depth analysis of financial information, asset types, demographics, cash flows etc.Residential real estate consulting does not rise to the same level of in-depth analysis.The same goes for real estate land developments and construction.Cheers