Give yourself at least 2 months to digest the information and start a system. Don’t take on too much at one time or your head will be spinning. Being organized is important. I received my first check about 2 1/2 months after getting started. In the beginning, you will be doing a lot of work and not seeing any money. But as you begin to understand what the investor needs, you will become valuable. The next thing is to advertise your services on some of these websites. I usually meet face to face first to see if we are a good match and then I sign an agreement with the client and put together a profile of his needs. Then I go to work finding properties that match their criteria and sending them ASAP. In today’s market, the deals don’t hang around too long, so you’ve gotta move quickly. Good luck. Don’t get frustrated, overwhelmed or discouraged. It will all come together. I thoroughly working with my investors. Its a great feeling when you’ve brought them a profitable deal. Good luck.
Hello DBS,
I am a newbie to the RI game. I read in one of your posts that you are a real estate agent/investor. I am currently working on getting my real estate license and would also like to invest in real estate. I would like to start off being a bird dog.
Does having your license conflict with being a bird dog? How does this work for you?
I noticed you do lead generation. Can you tell me some more about this?
Any help would be greatly appreciated.
I have contracts with 2 investment groups (about 50 total investors). I identify investment leads for them, put together the contract, negotiate the deal and facilitate the closing for a fee - usually 5-10% of the purchase price based upon how much of my service they use. If they want to do their own contract and facilitate the closing, the fee is 5%. My contract with my real estate broker does not preclude me from doing this. You will need to check with your broker to see how much of your fee he will want to claim. It all depends on the contract you have with your broker.
OK, DBS or anyone,
So what would be the main difference between bird dogging a deal…
AND…
doing an option on a property and finding a buyer to pay more than you’re paying?
Advantages one over the other?
Difference in how much you can make?
Does bird dogging just entail less of the actual purchase?
I understand the definition of each and how they differs, I guess the end reslut just seems very similar to me.
What am I missing?
Karla in Amarillo
main difference, wholesalers do a LOT more than just find “potential” deals. They have to facilitate everything from determining profits by analyzing repairs, fmv, market trend, etc. all the way to negotiating a price and getting it on paper, finding a buyer, making sure the deal closes etc…there’s just a whole lot more involved.
Bird dogs simply find potential deals and send them to a list of investors. They don’t need to see if it is truly a great deal, thats the investors job…
Wholesaling can potentially provide thousands more a month than a bird dog…
Good Luck!
thousands ?
Can’t attest to this statement myself YET but yea thousands more a month wholesaling, I’ve talked to investors myself and gathered a lot of information from the internet. I suggest checking it out…unless of course you’re in the Orlando area, I don’t want any more competition!
Hi David,
What does your partnership agreement look like?
To DBS,
As a Real Estate Agent, are the houses you find for investors, listed in the MLS?
For Example: If I found a house in your area, called you because you were the listing agent, … do you then contact the Investor? And if I buy the house from you, you get the commission from the Real Estate Broker Office and the Investor?
Sounds to good to be true 
To answer your question, most of the properties I find for investors are NOT in MLS. They are distressed properties that I have found and contacted the owner who usually wants to sell. I give the lead to my clients, and if they are interested, I submit the offer for them. Some of my leads are also from other investors who want to sell their inventory. I pass the lead to my investor client and submit the contract offer. In this scenario, I get paid by the Buyer for both the lead and the contract preparation and negotiation.
IF by some chance, I find something cheap and interesting in MLS, I refer it to my investor client. If interested, I submit the offer to the listing agent on behalf of the Buyer (Buyer’s Agent). In this scenario, I am paid by the SELLER. The Buyer does not pay.
DBS,
Thank you.
What do you think about this?
I found a distressed property. Looked it up and found it was sold at Sheriff Sale about 1 year ago. Found out it was bought at the auction by the Plaintiff ( Which was Fannie Mae) I called Fannie Mae, and they said they had just turned it over to a Real Estate Broker in my area ( a well know Real Estate Company) Fannie Mae gave me the contract name, so I emailed her. She said she would get back to me with a listing price. After 1 month, I emailed her again, and she said it was just open THAT Day. An gave me the listing price. I pass the house daily, and it’s been about 37 days, and there is not a For Sale sign on the property. In her last email, she said she had many people interested in the property.
What do you think is going on? Do you think she is not putting the sign out for a reason? Do you have any ideas on this?
PS. It still is NOT listed on the MLS.
DBS, Thanks again for answering all the questions on this forum. We really appreciate your time.
First of all, you’re welcomed. I sure don’t know everything, but I’ll share whatever I know.
If that property you mention was a Fannie Mae property, the owner has a certain amount of time to redeem himself. Here in Maryland it is 30 days from date of first notice. So, legally, a sign cannot be put on the property until that time is up. Another thing to note is that a For Sale sign on any property is not mandatory. If an owner doesn’t want a sign on his house, the agent can’t put one on it. Some people just don’t want their neighbors knowing they are selling or they don’t want passers-by dropping in. When Fannie Mae turns the property over to an agent to list, he is given a “lock out” date which means this is the date the house is officially LOCKED and the owner cannot enter again. THEN, the agent can put it in multiple list and accept offers. He may never even put a sign on it. Many people (myself included) go to the courthouse periodically and identify pre-foreclosure houses and keep track of their time frame for my investor clients. Many times, we approach the seller prior to foreclosure and make them an offer. Here in Maryland, however, a new law has just recently been passed that precludes anyone from approaching people in pre-foreclosure, therefore, my clients are forced now to track them in multiple list. I hope I’ve shed some light on this for you. There is a lot involved but its worth it if you can get a property this way.
==========DAVID===========
you wrote
[Realtor contracts “DO NOT HAVE THIS CLAUSE.”]
referring to legal flips…
If I understand you correctly, you are saying you cannot use a state promulgated re-sale contract containing:
[…Joe Shmo to sell to… "Jane Smith Or assignee " (allowing you to flip/wholesale the property)
-Assignee being the person you sell to, while in escrow.
I’m a Realtor here in Austin and I’ve used this in several offers…
Your thoughts?
MC
Yes. If you are going to assign the contract, you shouldn’t use the state form. At least, here in Maryland, we have a “Do not assign” clause in our state form. I don’t use it if someone is going to flip the property. For investors, I have a contract that is short and sweet with no such clause in it. It was given to me by a lawyer so I feel confident it is a goo document.
Actually, DBS, it’s pretty easy to adjust the “standard” REALTOR purchase and sell contract for assigning.
First, list your name (or company) with the usual “and/or assigns or nominees,” in the buyer’s spot.
Second, cross out the contract line that says something to the effect, “this contract is not assignable unless both parties agree to it in writing” and initial and date at the cross-out. The seller must initial and date this change in contract as well.
And now, you have a fully assignable standard contract.
Raj
Raj:
I don’t know about your State’s laws, but here in Maryland it says on the contract that we cannot edit any of the contract - if we do, we can lose our license.
Wow,
That’s pretty strict. Yeah, in NC, I’ve crossed out several things before. Purchase price has been crossed out and printed in several times on the same form.
The key point is that BOTH parties have to have initials and dates beside EVERY change in the contract.
I guess I should have added: “verify your own state laws before attempting.”
Thanks, DBS
Raj
Raj:
We can do some of the same things you can - like changing prices with initials, etc. - But we can’t cross out or edit entire paragraphs without getting in trouble. You’re right - it all varies state to state.
Bird dog, where can I find that contract that you’re using? thanks!
Not sure if it was me (DBS) who you were talking to, but you can get the contract I mention from a realtor.