I have been in the real estate business all of about 3 months. Most of this time has been spent reading multiple books by various authors and listening to seminars as well as audio training sessions. I have acquired a Mentor along the way to help me understand the business. In any case one of the most recent literature I’ve listened to suggested that if you can perform all of the tasks required by a wholesaler, then become a wholesaler thus bypassing becoming a Bird Dog altogether. It was suggested to that since I don’t have much money to start out as a wholesaler and new little to nothing about the business that it would be best to become a Bird Dog. This way I could learn and it would require virtually no investment to get started. In all of the information that I have read it really doesn’t take any money to become a wholesaler (in the beginning) as well. Fundamentally I would be marketing (get leads however this is done), finding sellers (right homes), negotiating/ evaluating the deal, put under purchase contract/ clauses/ contingencies with a whole $5-10 earnest money (if this was required), finding cash buyers and wait for my assignment fee. I realize I’m simplifying all of this, but in essence this is it. Now, my Buyers list consists of one, which wants only vacant properties. I find as a bird dog that finding vacant homes where I live is highly time consuming and produces a very low quantity, not the 25-50 as he wants – good luck. I figure that there has to be a better methodology to find homes in bread and butter neighborhood 1-3 family owner occupied homes that needs some works then driving through neighborhoods for hours on end. I’m sure the highly skilled BD’s and wholesalers have refined methods for finding these types of homes. I apologized for rattling on without posing my questions, so here we go. Any opinions on these subjects would be appreciated.
a. Is it a good idea to bypass being a BD directly to a wholesaler?
b. What’s the risk if any? Am I missing something - is my logic skewed?
c. What other methods are utilized in finding homes that require little to no money?
- FSBO websites, etc…
Can of worms? Possibly. In any case I open it up to the forum. Thanks in advance.
Unfortunately my mentor is not very responsive - I’ll leave it at that. I am looking for new guidance, hopefully someone close to where I live which will provide greater detailed guidance and support.
I never did the whole BD thing. I told a few of my friends that if they found some FSBOs with contact info I would give them $500 if I closed the deal!
I went right into wholesaling, put up some (I buy houses CASH bandit signs) and the calls started coming in! Got a house in preforeclosure within 4weeks and closed the deal in another 2weeks with a construction company I found out of the phone book. Made a $4000 assignment!
Personally I don’t see the purpose of BD’ing unless one just wants to make less money and have a more boring job than being a wholesaler.
If your worried about messing up a contract close it with a real estate agent. Just make sure you work your #s right so that there is atleast 30% profit for your buyer. 30% profit should have buyers come running to your door with flowers in hand.
P.S. What part of Oregon are you from? I’m in SW Washington right on the Oregon border
Absolutely. You can start right at the wholesaling level. Bird dogging gets recomended to people who really have no money at all, not even $100 to buy signs or place ads.
Also, some people are better at being people people. I think to wholesale you have to be able to deal with people and project that you are trustworthy (and you’d better be trustworthy if you want to succeed).
Also at the wholesale level, you have to be prepared to do enough work to hold a deal together and follow it through until it is finished. A bird dog is in and gone, and it’s not his problem after he’s turned over the information.
Needless to say, the wholesaler makes more money on the deal than the bird dog does. He’s doing more work, he should get more money for the deal. But if you can start at the wholesale level, then more power to you.
Thanks to all that have responded. Great information! Certainly there will be some fear when performing the “first” deal, but hey that’s life. Doing most anything the first time makes people anxious. I believe I will perform due diligence as required before I start looking for deals, just to ensure I’m ready. In addition I think it’s best to find a local mentor to help me through the hurdles as time goes by. I current reside in Hillsboro just outside of Portland if anyone is listening hint, hint. I can’t wait to start this endeavor as it would mark the end of working for people and the beginning of freedom for me and my family. Thanks again.
I am not an investor, but a lot of my clients have been using the trustee sales lists to try to catch auction properties before the properties sell at auction and go to a wholesaler or back to the bank.
Yeah, I agree on firing the mentor. Actually it sounds like we may have had the same one…not very responsive. Hopefully you didn’t pay $5000.00 like me before you found out how unresponsive he/she would be! As you said though, live and learn. My suggestion would be to follow the posts on here because if you have the time to sit and read you will, as I did, get all the information I paid $5000.00 for and then some! Good luck in your REI endeavors!
so do construction companys work well, how did you structure that if you don’t mind me asking. I’ve been taught to try to do “wolf” ads to attract buyers and investors, but you can never tell if someone is really an investor. any suggestions?
RE agents just have to disclose that they are an agent in any of the transactions. They would use an attorney to close the deal just like an investor, with all the disclosures to all parties.