BiggerPockets

The purpose of this posting is to give you Birddogs (Property Locator sounds better) a little help in getting started in the birddog world. I just want to outline your responsibilities as a birddog and how to avoid pitfalls, which may discourage your efforts.

STEP 1. Find an Investor to Birddog for.

-You can find investors anywhere. Bigger Pockets is a great start. Look at their profiles and find out if they are looking for deals. Build rapport and see if that investor gives out referral/finder fees for properties that you locate for them

- You can always advertise your services in the the newspaper classified ads section.

- Use websites like craigslist.com, backpage.com, kaboo.org, etc. One thing you will learn in the Real Estate world is that MARKETING is what drives the biz. No matter if your a birddog, or an investor.


STEP 2. Identify your Investor's Criteria

- Ask them what areas they need properties in. If they say Nationwide, then you hit the jackpot because you can look anywhere.

- Ask them what ARV (After Repair Value) or LTV (Loan to Value) they purchase at minus the repair costs.

Here's an example: Let's say a property is worth $100,000 and needs $0.00 in Repairs. The investor tells you that they purchase at 70% ARV - rehab costs.

How much should the seller's asking price be? Your answer $70,000

[$100,000 (Home Value) X 70% ARV - 0.00 repairs= $70,000.

Therefore your investor will most likely not purchase this home for more than $70,000. If the seller is asking for more, Ask them if they'll consider less. If they say No, Move onto the next one. If they say Yes, contact your investor ASAP. If they say maybe, Contact your Investor ASAP. Unless you are really skilled at negotiating, let the seller know that you'll get in touch with your investor and he/she will be handling the negotiating offer, once you submit the deal to them.

STEP 3: GET IT IN WRITING.

-This is a good way to do business, but if you can't get it in writing, then so be it. You can still do business with the Investor. Don't let that hold you back. BUT with that said, when you start wholesaling or investing yourself, everything you do should be in writing. IT BETTER BE!! LOL


Step 4. Give your Investor as much INFO upfront as possible.

- The less info you provide, the slower the deal will probably go, because You'll be busy playing the messenger. Everytime Your Investor asks you a question, you have to run back to the seller, then you take the seller's answer and run back to the Investor to give them that. This can go on for days, before your Investor even contacts the Seller. DON'T WASTE TIME. Here's what they will most likely be looking for and forgive me if I miss anything, but you can always ask Your INVESTOR ANYWAY:


1. Asking Price
2. Property Value
3. Repair Costs
4. Repair details
5. Mortgage Balance (If applicable)
6. Mortgage Payments (If applicable)
7. Reason Why the seller is Selling!
8. Comparables
9. PHOTOS
10. Full Address and contact INFO of Owner

Now, I listed 10 things that are necessary for Investors to make decisions. There are much more thing's they'll need, but what I listed above should keep the questions to a minimum. If anything the 1st 6 steps to include the Photos is definitely a MUST Give. Investors want the NUMBERS and PICTURES. Just Numbers will do for some of them. That is what will make them look at your deal.

Step 5. Always keep the Contact Info of the seller and the Investor.

-If you do not hear from your investor. Follow up with them. If they can't be reached, follow up with the seller. Sometimes Investors get so busy that they may forget to update you on the status.

-Another thing is, if the Investor tries to go around you and cut you out the deal, then you can just follow up with the seller to find out what the status is. This is a rare situation, but it can happen this day and age. In this situation, you can let the Investor know that because he closed on the deal, he needs to pay you what was agreed to. If he ignores you, then simply move on. It would probably be less cost effective for you in the long run if you avoid courts, etc. NEVER DEAL WTH THAT INVESTOR AGAIN!! Yes, it is true that you lost out on a deal and the investor made money because of you, BUT with that said, they won't be making any more money off of you.

Ok Enough of the Negative side to this. Let's move on to the next step.


Step 6: When your Investor has the deal under contract, help him MARKET it. Many birddogs just rely on the Investor to market the deal and they just sit around waiting to get paid.

-Check this out, if you find a buyer for the property then you have basically coordinated the entire thing and you should get paid as soon as they close. I say should, because you know what we discussed in STEP 5.

- Another reason you want to find a buyer, is because some investors offer Double Bonuses!! They'll pay you for finding the the Property and finding the Buyer!!! Ask your Investor about that....They may do it, or they may not. Don't let it discourage you though.

- Not only can finding a buyer for your Investor make you money, but if you just happen to find another Investor who's interested in the deal, then you just found another Investor that you can BIRDDOG for.

- Now Occasionally you'll get people who will respond to your ad about your Investor's property and they want to see the property, or they just want to inquire about it. Then they decide it's not for them. So what do you do.....Forget about them, right? WRONG!!!!!! You keep their contact information and start building a Buyer's LIST. These are for those future properties that you'll be finding, that just may spark their interest!

Grow your list by MARKETING, MARKETING, MARKETING. Eventually when you move up to the investor stage, you'll have a Buyer's LIST of your own!! Make Sense???


STEP 7. GETTING PAID!!!!!

-Absolutely, this is the best part right? When your Investor Closes on the deal, you get PAID anywhere between $500 -$1000 per deal. If you find 5 deals a month that your Investor closes on, you could be making an extra $5000 a month that your investor. Sometimes you can even make more. It all depends on your investor. These are just average figures

-NOTE: You may have to wait 2-6 weeks to get paid. It all depends on the buyer. If they are a cash buyer, you should get paid within 2 weeks. If it's a buyer that is looking to close on a conventional loan or something, then you will be waiting a lot longer. But whether it is a cash buyer or a conventional buyer, you NEED TO FIND A BUYER PERIOD!! Income is Income no matter how you look at it. Patience is a Virtue!

- Set up a PayPal account, if you'd like. You'll get paid Instantly when Your Investor closes. Instead of having to wait for the mail. But hey, Income is income, right?




Well, that's all I can think of. I'm tired and I need to get to bed. I hope this will help you get started. Don't just be a BIRDDOG Forever. Start wholesaling yourself...Move up Quickly! You can Do it.
You'll find that the biggest struggle that everone has when getting started in Real Estate is themselves!!


Let me know if I missed anything.

Disclaimer: This is based on my personal opinion/experience. Proceed at your own risk!

Thanks Mr_Investor. That was my intent and I hope it is beneficial.

Thank you Ty. Hope they help...

Great post ! Lots of great information




[SOLICITATION REMOVED]

Great info and well thought out.

Make a ebook out of it and call it the "Birddog Bible".

That wasn"t something that I just thought up , it is prophetic.

Call those things that are not as though they are.

Even though the Bible is the greatest book on the planet. :D

J. Lamar,

Thanks for taking the time to write your 7 steps to getting started as a Birddog, I am sure I will be referring back to this frequently. I was recently laid off and would like to start birddogging to get some extra money because unemployment just will not cut it…

When I was working, my wife and I were looking to rehab and flip homes. I had a few deals slip through my fingers because I could not get the funding in time. Now that I am out of work it seems harder to try and get funding. Even many Hard Money Lenders that I speak to say they now will only lend to experienced rehabbers (4 - 6 flips) even though we had the 20% liquid assets they wanted.

I do have a few questions for you. When you talk about finding properties for other investors I assume you mean properties that I can physically check out? Do I do the walk through with the realtor? Because I doubt a realtor will show me a property or give me comps if they know I am just birddogging it for someone else.

Do YOU need a birddog in CT? If so please send me a PM with you criteria if it differs from the list in step 4.

ilmar molder

Awesome information, J. Lamar, for those whose goal is birddogging. But for those who aspire to wholesale, don't use birddogging as a stepping stone. Bite off more than you can chew; then, start chewing. Remember, finding the deal is the hardest part. If you have the ability to find the deal, you have the ability to wholesale the deal, yourself. You can't chew with somebody else's teeth. If you find a good deal and pass it along to another wholesaler, you'll give up the learning experience, you'll give up the opportunity to begin building your own buyers list and you'll give up almost all of the profit. That's not to say you shouldn't use an established wholesaler and the benefits of an already developed buyers list; you should, but do it from a position of strength, control and equality. Your "find" is worth more than a referral fee, 50/50, nothing less.

@ John Lydic- I agree with everything you're saying. If you want to wholesale, then you need to get it going. However, if you don't have the time, don't feel like dealing with paperwork, can't negotiate yet, would like for someone to "hold your hand" so to speak on some deals (all depends on the investor you birddog for), then I feel that birddogging would definitely be the way to go. It's all about what you're willing to do. Finding the deal is key, however Closing the deal is what puts the money in the bank. The question is, Can you handle wholesaling on your own? If no, then I think it's best to start with being a birddog. Just don't do it forever. As John, said you're losing out on big profits.

Thanks J. Lamar, that was very informative and definitely good and clear information for a newbie like me!