How did you all recruit your bird dogs? I want to expand my lead generator and people keep telling to to get some bird dogs. Also, what compensation do you give your birddogs? Is it like 500 to a 1000 dollars or 10% of the deal?
I am curious about this as well. Particularly in the state of Florida. I have been told conflicting information. I was told that you can not use the bird dog technique…offer people money in exchange for leads that you end up closing because you are essentially acting as a broker. However, I have also heard that it depends on your agreement and how pay them. If you are offering to pay them a percentage of the deal, than you are acting like a broker. Whereas, if you simply offer someone $500-1000 than you are simply paying a referral fee just as many auto dealerships do.
You could try and recruit people via facebook, myspace, and twitter. There are apps that allow you to search for people by location or keyword.
I see what you are saying, but I don’t think that a bird dog could be interrupted as acting in the role of a broker of agent. Brokers have listing agreements with the seller in order to market their property. A bird dog for the most part won’t have any contact with the seller. They’ll just be giving me the basic information. A seller under a listing agreement normally would be paid by the seller. As a bird dog, they will be getting paid by me from the funds I get from my buyer once the deal is closed. I was thinking about facebook and putting some ads on craigs list and backpage.
Brokers and agents are different things. Now I may not have the exact definition correct here, but I will be able to give you the general picture.
A real estate broker is like a manager for a real estate office.
The real estate agent is an employee that works for the real estate broker. Either the broker will take a cut of the real estate agents commission or the commission belongs to the broker and he pays the real estate agent a percentage. In some cases the agent just has to pay a sitting fee for using the real estate companies name and office, and does not lose a lot of their commission to the broker.
Again, while I am not 100% on the relationship of the broker and agent, I was told that offering a percentage of a deal for a bird dog fee can be perceived as brokering deals and paying a commission to non qualified real estate agents. I think the $500-$1000 is the way to go.
There are several RE Investos that I know who also provide “Bird dog” services and I happen to be one of them. Flat fees are the best way to go, no doubt. If you can email me your information, such as the location you are investing in, I can help find those service for you, if you like, for free. Fair warning though, if an REI gets several leads for you and there is no follow through, there is a risk of losing them. The fees are simply not worth the time spent on more than one lead.
Another way to do it is to befriend and RE Agent who will work hard for you to in return sell a property. This is how I manage things when I run short on time. Keep in mind that some do not like working with investors because their commissions are lower. But, to me a sale is a sale regardless of commission. Good luck!