What is a real estate bird dog?

A Bird Dog is someone who finds and refers properties to an investor for a fee.

It’s a great system for a new investor, who is still learning the real estate game, as it will be like “training on the job”. It will also provide a way to make money right away, sometime within days of starting, which can provide a huge boost and motivating factor for someone starting the business with no money or credit.

The skills the investor learns to be a real estate birddog will also be important for other strategies:

1. Buyer location– this comes even before locating properties. It’s called “Reverse Approach” or “Buy Mindset vs. Sell Mindset.” It is important to know what buyers/investors are looking for and to create trust between the Seeker (Birdogger) and the Investor. A list of buyers should focus on quality rather than quantity: a dozen smart and capable investors is all Birdogger needs to run a successful business. These buyers must be cash buyers, so the deal can be closed quickly without delay.
2. Location of properties– once the list of buyers is ready, the selection of the buyers will provide enough information to compile the requirements of the properties: area, price range, type of property. With this information, it’s all about finding the properties that qualify and in this economic chaos it’s pretty easy: Foreclosures, Previous Foreclosures, REOs, Abandoned Properties, Absentee Owners – these are all ideal properties for a Birdogger to locate. and bring them. the attention of your buyers.
3. package the deal– This is where the deal is made. Birdogger notifies your buyers that you have located a property that meets their requirements. Before providing address and other specific information, a Bird Dog Consultation Agreement must be signed, which sets out payment, confidentiality, and other important clauses. This is essential to protect the Birddogger from being removed from the deal and provides full disclosure of the transaction.

Which are the fees for a real estate bird dog?

It depends: A good practice is to charge $500 plus 2.5% of the profits, if the investor changes or sells the deal, or $1,000 if the investor plans to keep the property. Here’s how the deal works:

1. The house is listed for sale at $50,000 – it is assigned by a Birddogger to one of his buyers/investors;
2. The investor buys the house, keeps it as an investment, a fee of $1,000 is paid to the Birddogger;

Prayed

The investor buys the house and sells it for $70,000; there is a spread of $18,000 after closing costs: the Birddogger earns $500 plus $450.

All of these terms will be set forth and agreed to in the Bird Dog Consultation Agreement, which should have been prepared by an experienced attorney.