ATTENTION BIRDDOGS. THIS IS A MUST READ FOR YOU!!

[fadi]

Ability to negotiate and structure a good deal, ability to correctly evaluate the deal, ability to get rid of the deal..etc.

[tvaldez]

Right Fadi, wouldn't the list of items lamar gave PLUS a contract and assignment make it more then a birddog deal? Please don't take my reply other then an inquiry to learn more. I have been researching to do a couple of side wholesale deals and this very topic is by biggest concern. I mean if I were to put together a great deal and hand it over to a buyer(already lined up and meeting their requirements) wouldn't it be in my best interest to seek more money from the deal since I did find it, negotiated it, packaged it then delivered it to the buyer? I just know from experience that i's fine to do a lot of legwork, but getting paid from a buyer is another thing. Once performance has been done, a buyer somehow FORGETS the value you brought them and wants to renegotiate your fee. Maybe I'm over thinking it.

[fadi]

Absolutely. If you know how to do all that, and can wholesale it, then by all means do.

I see birddogging important in couple of situations:

1. You are new, you do not know the ropes yet, you may want to birddog deals you can't do to make some money and learn in the process.
2. You find a deal that does not fit the rehab or landlord requirement, you may birddog it to sub2 buyer.


For example, a wholesaler I know got a bite on her marketing. The house was an expired listing that did not sell at $122k. Seller owed $108k. Just about every wholesaler I know would usually walk away from such deal since there was not enough equity in it. Knowing what I do, she called me. I bought it at $108k, gave her $1000 referral fee, and making about $36k profit on this deal.

For her, it was a dead lead. For me, it was a great deal. She made money where someone else would have walked away.


I hope this makes sense.

[tvaldez]

WOW Fadi, thanks! That's exactly my mindset in lining up my buyers. Each one has their own criteria and buying goals which will allow me to find a seller then offer it to the right buyer. "One man's trash is another man's treasure".

I've been mortgage loan officer for the past 4 years which has allowed me  to analyze a homeowners variables and to quickly assess their situation. That along with my carpenter experience to evaluate the physical property should enable me to put together some really good deals!

Thanks for the confidence and happy holidays.....

[Freevoice]

@Lamar,

Do you have a sample Bird-dog to Investor agreement?
I need this for a commercial real estate investor...Thx!

[DeeinAustin]

The easiest way to spot a wholesaler who SHOULD be a bird dog is how strong the contract is. We've had some horrible contracts assigned to us, but they were good deals and it didn't matter.

I can tell strong investors by how well the contract is written because it has a good option (no less than 14 days, which is tough unless it's a great deal), fair earnest (but not too much, let's say .05%), etc. You don't have to fleece the seller, but we've had deals with 5-7 day options and 2% earnest. We knew we were going to close even though we only had 1-2 days for due diligence.

[tvaldez]

Hi, so based on everything you've told me, what should I LOOk for in an investor? I have one now who wants to buy low ARV properties, no more then 10K in repairs with a few other requirements. I plan on calling some of the ads I've seen(craigslist, backpage, bandit signs, penny pincher,etc..). What would be some telltale signs of a good/bad investor?????

[nrinvestor867]

I don't usually post but I have been a member of REIclub for the last few years.And I could not resist this one.

I just wanted to point out that in this industry it dosen't take long to make a name for yourself , be it good or bad, especialy if you work in one specific area.My target area is Sacramento Ca. And I have gotten to know a lot  of the areas best and worst investors here.

Your career as an Investor or Birddog will either take off or die depending on how you conduct business.

I treat my Birddogs extremely well , because without them as part of my team I would not get half of the deals I get. Each one brings me exactly what I'm looking for and that alone is priceless!

I also recommend getting the amount of your fee on a seperate contract. It's less complicated that way. Then there will be no confussion on what you are getting for each closed deal. I do have some that don't require the contract but I have worked with them a long time.

Anyway that's my 2 Cents.

[LuckyBuysYuckyHouses]

Interesting post....

[Lamar]

No problem, just keep moving forward.

[closer2home]

Linda made a great point! I've used non-circumvention agreements to assure payment. This is a simple 1 page form you can find online for free with a simple search. You worked for it, protect it! 

[Lamar]

I figure I would put this thread up to the top again, as there are still questions about birddoging that I believe I have answered so far. If there are any more questions, feel free to ask the forum.

[Lamar]

Floating this one to the top again. I added a poll. let me know if you think it was helpful, as I'd like to know what you think I should of included.

-Lamar

[oahuopps]

Lamar, this post was very helpful.  I had a question about fees. You mentioned $500-$1,000 as a commission. I have heard investors offering a % of the profits.  Is the birddog fee normally a flat fee structure or percentages that you have used?

Do you know where I could find a basic contract to use between the investor and property finder?

[Lamar]

Oahuopps,

    It can bee whatever you work out with the investor. It doesn't have to be a flat fee. Also it doesn't have to be $500 - $1000 either... It could be more or less... but usually that is what I see on average. As far as percentages, I've personally seen 1/2 to 1 %. Again, its whatever you two agree to.

As far as finding an agreement. I would google it. Look for Property Locator Agreement or Birddog agreement. Also, you can post that question in this forum as well as other forums to find where people are getting there's from. I had one through a birddog site that I signed up for when I first got started. They actually updated their site. Haven't been there in a while, but you could check it out and they may have what your looking for. Again, I used them a long time ago and I didn't do deals through them, so I don't know their criteria or anything now. They actually shut down for a while. Looks like they're back. Check it out: www.Birddogz.com and hopefully you'll find what you're looking for.