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Author Topic: A quick question  (Read 13731 times)

Offline real deal

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Re:A quick question
« Reply #15 on: January 19, 2007, 12:59:37 pm »

Then you've moved out of bid dogging and into "wholesaling"...a bird dog never contracts for property...

Keith
Yes Keith,i'm just saying that why dont these birddogs go the extra effort and start assigning or double closing.Atleast you've got something in writing instead of just "Trust".
  Now correct me if i'm wrong because i very well could be.But someone just posted a reply that they would send another some kind of form that they use for birddogging(and therefore they would collect a fee from the buyer or investor).With that said woul'd'nt that be acting as a realtor and getting payed some kind of commission for the deal? I mean i guess the investor does not have to show for what purpose that he gave them money,but if the investor srews them and they try and take it to court and their contract says something like this" Joe investor owes me $ 500 for me locating a property at 123 dumpwater dr." Then i would believe they may be setting themselves up as acting as a realtor without a license( seeings they have no stake in the contract or the property),please correct me if i'm wrong.

Offline kdhastedt

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Re:A quick question
« Reply #16 on: January 19, 2007, 01:24:51 pm »

You sign a separate contract with the buyer reflecting the amount to be paid to you upon closing the property...that's what I'd do.

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline Rich_in_CT

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Re:A quick question
« Reply #17 on: January 19, 2007, 01:29:04 pm »
You can also have your buyers sign a contract agreeing to your bird dog fees without ever having a purchase contract on the house.  I've seen one on one particular site but I don't think I can post the document here as I think they won't allow it to be reproduced.

Offline Macguyver

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Re:A quick question
« Reply #18 on: January 19, 2007, 01:57:34 pm »
Looks like I stirred up a wasps nest with this question. I agree with Keith however, I thought bird dogging did not involve getting anything under contract hence no need to try and negotiate a contract with the seller. Birddogging sounded good for me for now, learn how to gather info, learn the market, learn just exactly what investor/buyers are seeking, and get payed while doing it. I'll get into negotiating contracts with sellers once I've leard this stuff and have the means to hold a property should I want to or for some reason I get stuck with one. That's wholesaling. If an investor feels like a bird dog hasn't realy earned his fee if he hasn't "gone that extra step" and done all the negotations for said lazy ass greedy investor than to hell with that investor. I may lose a few to investors like that, but it'll only happen once for each bad apple. I figure I'll find a few honest investors and they'll get all my good stuff, that is once I find it lol.
My 2 cents. Thanks again everyone,

Mike

Offline jrmeyer

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Re:A quick question
« Reply #19 on: January 20, 2007, 09:24:19 am »
The standard fee agreement I have assumes that you have the property under contract.  When you assign the deal, you have the investor sign the agreement saying he will pay you X amount when the deal closes.  You assign the deal and the fee agreement goes in the pile of papers for closing.  When the investor closes, you get paid.  This is not acting like a realtor, you should have the property under contract first.

- J

Yes Keith,i'm just saying that why dont these birddogs go the extra effort and start assigning or double closing.Atleast you've got something in writing instead of just "Trust".
  Now correct me if i'm wrong because i very well could be.But someone just posted a reply that they would send another some kind of form that they use for birddogging(and therefore they would collect a fee from the buyer or investor).With that said woul'd'nt that be acting as a realtor and getting payed some kind of commission for the deal? I mean i guess the investor does not have to show for what purpose that he gave them money,but if the investor srews them and they try and take it to court and their contract says something like this" Joe investor owes me $ 500 for me locating a property at 123 dumpwater dr." Then i would believe they may be setting themselves up as acting as a realtor without a license( seeings they have no stake in the contract or the property),please correct me if i'm wrong.

Offline real deal

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Re:A quick question
« Reply #20 on: January 20, 2007, 09:54:01 am »
Looks like I stirred up a wasps nest with this question. I agree with Keith however, I thought bird dogging did not involve getting anything under contract hence no need to try and negotiate a contract with the seller. Birddogging sounded good for me for now, learn how to gather info, learn the market, learn just exactly what investor/buyers are seeking, and get payed while doing it. I'll get into negotiating contracts with sellers once I've leard this stuff and have the means to hold a property should I want to or for some reason I get stuck with one. That's wholesaling. If an investor feels like a bird dog hasn't realy earned his fee if he hasn't "gone that extra step" and done all the negotations for said lazy *** greedy investor than to hell with that investor. I may lose a few to investors like that, but it'll only happen once for each bad apple. I figure I'll find a few honest investors and they'll get all my good stuff, that is once I find it lol.
My 2 cents. Thanks again everyone,

Mike
Yes Macguyver,birddogging is just pointing out the deals(no contracts),what i'm really saying is if you want a secure stake in the deal then forget the birddogging and start wholesaling! I mean if you already have found the deal and its good,then why not take about 5 more minutes and fill a purchase contract out? Heres the difference:

 !) Birddogging-- $500 to $1000 (usually) No contract involved( but mostly a trust issue)

 2)Wholesaling--$2000 to $5000( """""  ) Contract involved ( but a secure stake in it.)

 If i could start over then i would start out as a Big Dog and not a birddog.I would have done my homework and found out what the specifications are in a deal that makes it a deal.I'll lay them out for you.

 1) Comps--What have the houses in the area been selling for(sq.ft.)

 2)Repair costs-- Either buy having a general idea of what the repairs will be ( or a G.C. for an estimate)

 3)Having your Investors ( or end buyers) already lined up.

 4)Motivation--Why is the seller needing to sell? This will let you know how good you can negotiate the deal.

 5)ARV---To me a deal is 75% or less ( but that also depends on the market)

 As far as you saying you'll be getting stuck with the deal( if you dont find a buyer),you always have a back out clause in the contract( sub2 inpection,sub2 buyers partners approval,etc.)
  That's just my 2 cents.

Offline Macguyver

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Re:A quick question
« Reply #21 on: January 22, 2007, 10:02:38 am »
Deffinately worth consedering. Thanks for the advice,  for now I still need to get started building a list of buyers, always a good thing to have (:)

Offline randyfarber

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Re:A quick question
« Reply #22 on: January 23, 2007, 10:42:09 am »
Use a purchase option.  No obligation to buy, just the right to.  Purchase option can include clauses that include right to assign.

Yes, if you obtain any fees for buying, selling, or locating services, regarding real estate, without having ownership rights, you are acting as a real estate agent (Not a realtor, who is a real estate agent belonging to the Board of Realtors), and subject to big boo hoo problems if caught.

Bird dogging, wholesaling, whatever you call it, it's all about the Franklins!

We need forms and options and assignment sample links included here guys.

Offline GoSoonersGo

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Re:A quick question
« Reply #23 on: January 23, 2007, 10:06:35 pm »
Would anyone be willing to share a purchase option contract?

Offline randyfarber

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Re:A quick question
« Reply #24 on: January 24, 2007, 02:10:18 pm »
I would be, I guess, when I get around to physically reproducing one.  I have to type one out from a print copy, as I haven't needed one since my last laptop got stolen.

I'm thinking I might put some effort into doing a few more deals here in the next month, so it might be sooner than I expected.

Mine is fairly lengthy, as it contains everything necessary in one document.  

Offline kdhastedt

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I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline GoSoonersGo

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Re:A quick question
« Reply #26 on: January 24, 2007, 02:37:16 pm »
That would be fab....if you decide to share. Thanks again.

Offline randyfarber

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Re:A quick question
« Reply #27 on: January 24, 2007, 06:54:19 pm »
The option shown in the link above will work.  

I would highly advise though, that you include a clause, that states something about you being an investor and that you intend to possibly assign this contract to another buyer, for a profit.

Hustler doesn't think this necessary, but it won't hurt to cover your butt and leave no doubts.  When in doubt, divulge everything.

Offline HoldAndBuy

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Re: A quick question
« Reply #28 on: January 25, 2009, 03:00:53 pm »
I know this is an old thread, but....
if birddogging is at least technically illegal in some states, are these written agreement (for the birddog fee) with the investor really enforceable? Wouldn't it be better just to have a verbal agreement?

Offline phillyinvestor

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Re: A quick question
« Reply #29 on: January 29, 2009, 05:25:51 pm »
Bird dogs find deals for investors and together they agree on the fee that will be paid for the leads provided and when. There are independent contractor agreements that a bird dog can sign with an investor to make sure they get paid. The bird dog doesn't actually sign any seller contracts.
Learn How To Become A Real Estate Wholesaler
http://TheRealEstateInvestingCoach.com

 




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