New Bird-Dog

[holidaymom]

What kind of information does  a investor look for from a
good bird-dog, also how do you find investors to bird-dog
for? :D

[Mr.fancypants]

Hi holidaymom,

What an investor is looking for is profitability. An investor expects the birddog to provide information relative to the numbers. So basically all the investor does is sit down and "run" the numbers to see if it looks like a good deal or not. You should concern yourself with basic info about the property in question, it's condition, cost  of repairs and comps. If you do this, investors will be lovin ya'. By the way, I am in Tn, where are you at? Iam a busy investor that could use a good birddog. To advertise your services just go make some business cards and join a REI club. Networking is the key!! Hope this info helped.

[REI-NY]

I am new to this, can you tell me what comp means. Is there a glossary of the many terms that I can look at thanks

Michelle

[Mr.fancypants]

Comps is simply short for comparables. This means the average price of a house in a neighborhood. Who cares if a house appraises for $180k if all the other houses in the neighborhood are only worth $50k. That's kind of an extreme example, but you get the idea. Comps are just averages and aren't exact. I think this website offers a glossary. If not, just go purchase a cheap REI book. Take it easy.

[Admin]

Michelle,
There is a glossary of investing terms here...

http://www.reiclub.com/real-estate-terms.php

[REI-NY]

Ok great thanks I will take a look at it now.  

Michelle

[DClark]

Good info.  I'm in a simular same situation.  I just found several properties with all the criteria the books talk about, vacant, overgrown yard,etc..  But I don't know what info to gather.   I posted on another board and they were saying talking to seller and start the negotiations.  Do you think that would be wise?  Should I just talk to the seller to determine if they are motivated?

Also I just started calling my list of investors for the first time.   Do I offer the leads to just one investor or as many that are interested?  

I would appreciate some feedback.  Thanks

[Mr.fancypants]

Hi DClark,

To anwer your question the best way and really the only way to purchase an abandoned home is to contact it's owner. Don't be surprised if it's another RE investor or wholesaler. Competition is pretty stiff in some areas. You can contact the owner by finding the tax information. This info will give the the address of the current owner and how much the house tax appraised for. You can find tax info by going on line for your county or by going to the tax appraisors office and pulling the files yourself. I usually get a list of about 20 properties of interest and then send all the letters. I invariably get a bunch of calls in return. Don't be afraid to haggle with homeowners that expect way too much money for their abandoned house. Some people expect FMV. Good luck.

[DClark]

I appreciate the insight Mr.fancypants.  
Also you mention estimating the cost of repairs?  Is this information that most investor want to know when they get a lead?  or could you do without the cost estimate and just give a brief description about the properties condition.

[Mr.fancypants]

You can just take digital pictures and show what the property looks like. If you want to keep out of pocket expenses to a minimum then I don't recommend getting a contractor bid and all that stuff. It just depends on the investor you're working with. Personally, I am happy with just knowing some of the basic numbers.