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.
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.
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.
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.
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.
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?
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.
This is a pretty old post, but hey it’s going again. In business you should always do it in writing. I work with a lot of people that I would do handshake deals with, but we still put everything in writing. If the investor that you are working with doesn’t want to put it in writing, find another investor to work with.
I have some documents that I use that you all can have, PM me and I will send you the link.
