Hi, newbie here obviously but can someone explain the difference between wholesaling and bird dogging?
Thanks!
Vanessa
Investors that wholesale get properties into contract at very low prices and then sell the contract for a fee, typically to rehabbers. This is known as assigning the contract.
Bird dogs are those that find information about undervalued homes and pass along the information to other investors for a small fee. Those that birddog make peanuts compared to those that wholesale and rehab.
So is process of getting the property under contract the same as buying the house myself (ie. getting a loan, downpayment, etc)? except with the option to assign the contract? Thanks again for the help.
Like the other people said bird dogging pays you small fees for locating properties for other people to buy.
Depending on what your intentions are wholesaling can be as simple as putting those same homes that you usually would just point out to other investors, under contract yourself then either, assigning them, back to back closing them, or closing them and then selling.
The main difference is how comfortable you are with risk and how good of a buyers list that you have developed.
Thanks for your answers but I still am unclear as to whether the wholesaling process is the same as a regular transaction (loan, downpayment, etc) or if it is not. I understand that I need to get the property under contract but what are the steps involved there. There is a REO property here that I have been speaking to the realtor about. Looking at comps and doing the math, the property seems like a great investment and I would love to get in to wholesale it (I would REALLY love to rehab it but again, no money for that).
Also, does anyone know where I can find contracts for the process online? Please don’t suggest I go to a lawyer and have them drawn up, gotta do this on the cheap.
I know that there are courses out there that teach this but I can’t afford $700 for a program. Thank you all so much for helping a struggling entrepreneur get off the ground.
Sorry about that, I somehow answered someone else’s question here (I was up all night with a sick child, sorry).
You can wholesale different ways, one being obtaining the property via a traditional mortgage and then selling it. For you, since money seems to be tight, getting control of the property via an option is the best for you. That means having the owner(s) sign an agreement for you to have the option for a certain amount of time to purchase the propertry at a particular price. That way, you have it locked up and time to find a buyer (although you should build a list of buyers first). Then you can either assign the property to that buyer or do a double close, using the money they will pay you for the property to pay the owner and you keep the difference.
HTH!
Thanks again for the input however my question about the process still hasn’t been answered. Hate to sound like a broken record but…
Bumping so you can see that I edited my answer.
Yay! Thanks for the answer. I thought it was something like that but wanted to make sure. Geez I love this place. :banana
office depot and staples have pretty simple purchase aggrement contracts that you can edit to your specific liking that only cost a couple of bucks hope this helps
Please note that you can’t assign REOs. You will have to find a title company to double close for you. Get this lined up first before you get the house under contract.
is there a name for a formal contract that ppl use for wholesaling?
yes, it’s called a purchase & sales agreement,there is a part where you can put in your particular requirements for the agreement to fit your neeeds. be sure to get one for the state you are buying or selling in. harriet(fl)