I understand I need to find motivated sellers, and I would bring those deals to another investor and receive a fee upon closing, but I have a few questions…
As a bird dogger…
Do I need to talk with the seller(s) of each property I consider?
Do I need to try and negotiate a deal?
Do I need to make offers?
Do I need to get a repair estimate?
I am going to my first REI club meeting this thursday, and I would like to network with experienced investors to build a buyers list for birddogging…
As a bird dog you will want to get all the info you can from the seller. Figure the deal as you would be buying it. Try to get a written option to purchase then resell the deal befor your option runs out.
Other way is find a motivated seller and get them to commit to pay you a fee for mktg/finding them a buyer. Be careful in wording as you may not be a licensed RE Agent.
I’m in the process of recruiting as a birddog someone who drives for a living. If the house looks vacant all I want them to do is to write down the address. If it’s a FSBO, all I want is the phone number. They don’t have time to do anything else.
I think it may depend on what you want to get out of bird dogging. Are you doing it for an education or striclty the money?
I am bird dogging at the moment and I am working for one person. We discussed a deal that he will mentor and pay me and I will bring him deals. He wants me to talk to the seller and have them agree to a price then he will come in and write up the deal. My intentions are to become a wholesaler so I feel this will be good practice with no risk.
Like so many other answers…it depends. Often times the more you do, the more you’ll make. Find investors and exactly what they are looking for…then go find it…
I sure wouldn’t pay anyone any money for telling me that there is a vacant looking house at 222 third street. Or that they have seen a FSBO sign. There is no value in that information.
At a minimum I would want to hear about properties where the seller has expressed some desperation and a willingness to sell for whatever he can get. Even better to have a seller who has expressed a willingness to accept a stated low price.
You should have buyers lined up and you should be keeping a list of exactly what they want. I suspect that a lot of buyers don’t want you to do any negotiating. But they don’t want any “deals” from you where the seller isn’t seriously motivated.
I would pay them if I closed on the house, since they found the deal, and it didn’t cost me any drive around time or marketing $. That’s what birddogging is all about!