So I wanted to get everyones opinion on the best way to filter bird dogs. As a restaurant business manager I know people can waste hours of your time for nothing in return. Should I send them to a squeeze page then have them fill out a application? Or just leave a number? Or should I give them a Google number? (I feel that’s a time consumer) Or something else? Also should they fill out W4s? Or something else?
Hi,
Does it matter? In the real world were qualifying real estate as viable or not viable! Do we care whether a bird dog works at McDonalds or has a PHD in real estate analytics? Does it matter to us whether our bird dog has a Walmart reloadable Visa card and no credit or whether our bird dog has a Visa Black Card with a $3m dollar credit line and an 850 three bureau credit score? No we could care less, were the buyer and the brains (We Hope) and we control the deal!
All a bird dog should do is bring deals, you should be analyzing your numbers and comparable sales, rentals or cap rates. Do you want to contract a property where you know nothing about the numbers or how it was found to be viable or not viable?
Besides bird dogs are going to only perform when they can, we get 5 bird dogs hoping one brings at least one deal each week and that 1/3 are viable!
Stop worrying about what someone else is doing and start finding deals! Your the one paying the bird dog so you could care less what they do with there money after the deal, and there personal situation does not effect you, you do not want them to be employees and as independent agents the less you know and control your bird dog the better!
All you need is some court to find you have been dictating what your bird dog should do and found to be your bird dogs employer with back pay and payroll taxes due today!
Now go make some money!
GR
As I understand it, a real estate wholesaler gets a house under contract and then sells/assigns the contract to someone else. He/she collects a wholesale fee as part of the contract sale/assignment. A wholesaler does not have to be a licensed real estate agent since he/she is not selling the house.
A bird dog points a real estate investor toward a house that might be a good investment and gets a bird dog fee if the investor buys the house. But unless I’m missing something, based on my description the bird dog is selling the house without a license. And there are very stiff penalties for doing so.
If the bird dog gets a contract to buy the house, that makes it legal but would that not make him/her a wholesaler?
And without a contract, what protects the bird dog’s interest in the property? Without a contract, the investor could buy the property and not pay the bird dog.
In essence, what I’m asking is… What’s the difference between a wholesaler and a bird dog?
I am very familiar with how this works, but your questions got me confused.
If a bird dog points to a house and I buy it how does that make him selling real estate?
Bird dogs don’t get contracts to buy houses. Wholesalers do.
It’s interesting how such a simple process can turn into a complicated cluster Ruk.
It’s best not to worry about every thing, just find some deals at below 60% of after repair value.
Then contact some wholesalers. Yep, a wholesaler cud rip you off, but he wont, cuz you got more deals coming.
“If a bird dog points to a house and I buy it how does that make him selling real estate?”
The same way that a Realtor sells a house by “pointing” to it. Granted, in an effort to get the house sold many Realtors would do more than a bird dog… some of them do not. But it would be essentially the same thing. They both point to the house, but neither one has ownership.
Redstar, is that you?
Thanks for the info guys. :beer
The time wasters are only going to appear after you’re poking around. There’s no way to avoid people who waste your time though.
They exist in every walk of life.
We have a squeeze page setup for these guys. When they come in, and they always do, through our main ad campaigns… we kick them over to our page. Many don’t fill it out. So bye bye time wasters. But some do. And once they are in that loop, our system gives them instructions on how to submit info on properties.
It saves our team time not having to repeat the dealio, and it sets clear expectations with anyone who might want to work with us.
"If a bird dog points to a house and I buy it how does that make him selling real estate? "
The same way that a Realtor sells a house by “pointing” to it. Granted, in an effort to get the house sold many Realtors would do more than a bird dog… some of them do not. But it would be essentially the same thing. They both point to the house, but neither one has ownership.
So if a bird dog plays the role of matchmaker between buyer and seller, would the bird dog then be selling real estate without a license?
This just became illegal in Texas as of yesterday. SB 2212
I read the bill. It does not make bird-dogging illegal. This bill defines ‘equitable interest’ for agents. It doesn’t apply to investors.
Correction it became illegal for a agent or broker to wholesale.
No. It’s legal, as long as the agent/broker notifies all parties to the transaction that the agent has an equitable interest in the property.
Agents by their nature don’t ‘wholesale’ deals. They list, market, and sell deals.
Investors wholesale deals, insofar as they get a contract to buy, market, and sell deals.
Bird-dogs don’t wholesale deals. They say, here’s the wholesale deal to the wholesaler, and the wholesaler contracts to buy, while arranging to pay the bird-dog a finder’s fee (or any other name that makes it legal) upon closing.
Nobody cares what kinds of non-sense agents are put through by their states. Hopefully, the states will cripple them so bad, that it makes our jobs more fun and easy, and obviously necessary.
So to stay on point you can pay a bird dog just like a independent contractor. He is offering a middle man service. Not as a employee. So you can give Joe birddog his 1000 for finding a paying lead and he has to pay taxes on it as a service given.
You don’t want bird-dogs as employees.
You want independent contractors working for you as a bird-dogs.
You can write up what’s effectively called a ‘performance contract’ with each bird-dog, outlining what you want them to do for you in return for a fee. Just make it clear that they are ‘independent contractors’ only, and that you don’t control their time, or hours worked.
Don’t get muddled up in the terms, except that any bird-dog of yours is working as an “independent contractor,” just like your gardener, the plumber, or the Japanese stripper that did your last birthday party.
Haha I will ask May Ling for a tax write off next time. Ok I will make sure I include in my pitch that this is performance contract. Thank for the help.