Website design By BotEap.comWhat is a real estate bird dog?

Website design By BotEap.comA Bird Dog is someone who finds and refers properties to an investor for a fee.

Website design By BotEap.comIt’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 earn money immediately, sometime within days of starting, which can provide a great boost and motivating factor for someone starting the business with no money or credit.

Website design By BotEap.comThe 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 the “Reverse Approach” or “Buying Mindset vs. Selling Mindset.” It is important to know what buyers/investors are looking for and to create trust between the Seeker (Birdogger) and the Investor. A buyer’s list 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. Property location– once the buyers list is ready, the selection of the buyers will provide enough information to compile the requirements of the properties: area, price range, property type. 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 to the attention of your buyers.
3. bag the deal– this is where the deal is made. Birdogger notifies your buyers that you have located a property that meets their requirements. Before address and other specific information is provided, a Bird Dog Consultation Agreement must be signed, which sets forth 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.

Website design By BotEap.comWhich are the rates for a real estate bird dog?

Website design By BotEap.comIt depends: a good practice is to charge $500 plus 2.5% of the profit, 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. House is listed for sale at $50,000 – 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;

Website design By BotEap.comgold

Website design By BotEap.comThe investor buys the house and sells it for $70,000; there is an $18,000 differential after closing costs: the Birddogger earns $500 plus $450.

Website design By BotEap.comAll of these terms will be set out and agreed to in the Bird Dog Consultation Agreement, which must have been prepared by a knowledgeable attorney.