starting from zero with good credit

Bird Dogs, Wholesaling
1

After researching and investigating ways to enter rei, I am figuring I need to create cash flow and learn more of the business by bird dogging. I am trying to create a game plan on how to build the dollars that I can use as a down payment for a rental that gives me cash flow. I figure I need $8-$10k for down payment + closing. How many leads should I expect I need to generate to attain this?

I, of course, understand that all markets are different but then maybe a percentage to expect might be fair?

Is there a general formula used or percentage that a bird dogger could take or ask for when giving leads? Of course if a lead generates a larger profit I expect the “reward” would be higher.

Is it safe to expect $1000 off of a successful lead? Is that even in the neighborhood?

2

I am not sure if I understand your question, but from what I am gathering I would say, if you are gonna bird-dog you are more at the mercy of the potential investor. Some will pay 500 to 1000, others will offer 100 bucks. I started out bir-dogging for like 3 weeks until I realized, wholesale and assigning was much better for me. I would suggest you look into that area. 5000 per assignment is not unreasonable and could be more depending on the deal you put together

If you are birddogging you only get paid if the investor buys, so no telling how many leads you would have to bring to reach your goal. You could bring 100 leads, the invesotr buys one and you get paid 500 bucks…so…

3

When you did your first wholesale, did you have many buyers in the fold to offer it to?
Were you new and scrambling?
What was the stress level on your part to complete your first wholesale?
Would you say wholesaleing is the least demanding of investing methods?
I have a big family so if I go IN…I don’t want to neglect them.

4

when I did my first wholesale I did not have buyers in the fold, from going to the REI club meetings in my area I had received business cards from other investors. I called them up and said " Hey I have a property under contract 123 main st, for X amount would you be interested?" I assigned the contract in 5 days.

I do not consider them in the fold because I had never presented a propertty to them before.

I also had met someone at the meetings and we clicked so I called him and said, if I dont get a buyer for my contract would you send it out to your buyers list if you are not interested, and we could split the fee. He agreed, but I did not need him after all so it was cool…

I do not consider them in the fold because I had never presented a propertty to them before.

Also I went about things the wrong way and had not called and asked these buyers what they were looking for and what areas they were interested in…lol goes to show you a good deal will get bought…

I would recommend you go to the meetings, network and actually call and ask for their likes/dislikes then go hunting…

I was new and EXTREMELY scrambling. Paralysis by Analysis had its teeth in me.

Very stressful, not much money, bills coming in, my wife and I had good jobs but still life happens.

I have not tried every method but I can say if you make your mind up to do it, the less demanding it will seem. Technically it is not demanding so much as it is putting in time. I spend time on the phone answereing potential seller calls, finding new ways to market and putting deals together. Alot of the stuff you need as far as info goes can be found online, but I have done my time driving to the tax office, and going over records etc…

this is the business I chose and I cant look back

I am building a business, that is how I approached it so the working demands were just part of wanting to be successful.

I would say not doing it would be neglecting them, having extra income whether it is rentals, a few thousand a pop on wholesale or whatever, it can only help your family in the short and long term…i say go for it.

5

Thank you for the time you put in your response. I appreciate that and it definitely was encouraging.

6

I can tell you this, i dont know everything by no stretch of the imagination but I can say that if you are willing to put in work, have the desire to persevere, get educated and TAKE ACTION, you cant fail.

Anything new is scary and intimidating, but once you get into it the fear melts away. If you know that going in, then you need to understand that the longer you procrastinate, the longer you are putting off your success.

Ask yourself these 2 questions

  1. “If I continue to do what I am doing, will I reach my goals and be happy”?

2."If I take a chance and believe in myself and pursue with desire and passion my goal of being successful in real estate will I reach my goal and be happy?

1 or 2 which will you choose for your future and your family?