I’m new to this as many here are also. As with many others my financial situation isn’t the best so I have decided that the best way for me to learn the ropes and EARN some$$ at the same time is to start by bird dogging. I understand the concept and believe in in it, I do still harbor the fear of getting burned and having a potential buyer cut me out of the deal. I figure I’ll just have to take my chances on that one. The one thing I’m not to sure about is this, if I’m not going to actually be putting homes under contract, how much information do I need to provide to a potential buyer to expect a referral fee. I know the more the better, but is there a general rule for this? Will I need to enter into negotiations of some kind with the seller before I call my buyers or will the buyers handle the negotiations.
Get an option or purchase contract signed with the seller.If you dont have something in writing then you can get burned! I have been burned several times by the"So called investor".I’m not saying all will do this but there is a bunch that just dont give a dam# who they screw,and if they see that you’re a Newbie and no contract(other than pointing the deal out) then more than likely you’re setting yourself up to get the screws put to you.I’ve heard from several sites(and investors) that this usually will not happen and ive got one thing to say about that “My Assets they wont!”.Most of REI dealing is covering your a$$.So cover it well!
Havent found my first deal yet :-[ but I would personally never screw anyone over, even if I could. I believe lots of investors feel the same way I do because they know the value of a bird dog and would want to look to that same person for their next deal.
HOWEVER, you gotta go into it assuming I WOULD screw you over the first chance I got. I wouldn’t, but you don’t know me, do you? COVER YOUR ASS with EVERYONE you deal with, even if, and ESPECIALLY if they are nice and seem like a really “good person” Get it in writing or that jerko may just deny even knowing you when its time to pay up. The absolute best business advice I can give (and I HAVE been in business for myself) is TRUST NO ONE, trust no one to tell you the truth, to do their job right, to do what they say they will do. Ok you gotta give a little leeway so you don’t come across as a total jerk but keep your eye on everything at all times.
Now grab your contracts and go get em!
Let me tell you a little story of one of the srewings that i’ve gotten from the GREEDY so called INVESTOR!
It was about 4 years ago on a cold winterey night,every birddog was sleeping,with their contacts held tight.When all of a sudden! a seller came callling,"Please help me,please help me! I cant stop balling!
So I calmed the seller with words that care,never fear my darling,an investor will be there!
So to the phone i go,an investor surprised! I tell him the deal and it brightens his eyes.
No words,no contracts,nothing in site! Just pure honest words to the investors delight!
Just promise me anything anything tonight,dont worry he promised,everything will be right!
So weeks went by and the deal went down,but wheres the investor? he’s nowhere to be found!
With his money in hand,to his souls delight,the only thing i can say is “I got SCREWED that night!”
The moral of the story is get a contract signed with the buyer!
Does anyone have a sample birddog contract to use with investors?
You are hilarious! ;D I LOVE THAT! LMFAO!
What were saying is to get an Option or purchase contract signed with your seller ( instead of just pointing a deal out to someone),then you will have an interest in the deal.Then you can assign it or do a double close on it to an investor or a buyer.
Yeah,i amaze myself sometimes,LOL!
Isnt that essentially wholeselling? Sorry for the stupid questions but I have a unique opportunity here because I have been birddogging for a private investor and I have way more deals then he is buying so I thought I would start putting these deals out there. So if your saying to put them under contract and assign them, then I can definetly go that route…
bird dogging is getting the contracts and assigning them or double closing. Wholesaling is actually buying the properties and then listing all the properties you have for sale.
Yes,dont just have one investor lined up,find as many as you can and turn them on to your deals also.
No that’s not correct – actually, bird-dogging has nothing to do with contracts…
“Bird Dog - someone who identifies a potential good real estate investment opportunity and passes that deal on to another investor for a fee.”
A bird dog doesn’t sell real estate or contaracts…a bird dog sells information. He finds and points out potential deals (thus the name…)
Keith
Hi Go,
I have a standard fee agreement contract that you are welcome to. Just send me an email and I’ll send it to you - can’t attach stuff here.
Thanks,
Jean
Yes Keith you are correct! Birddoggin is only locating a deal and pointing it out,“However” being a birddog and having no contract on the property then the investor can get the deal and not give you anything( your going on "trust"only!).If you know the investor and trust them then go for it,if not then go the extra step and get a contract signed with the seller and assign it to your investor(you have a leg to stand on then).
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.
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
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.
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
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