Help me understand bird dogging....

My interpretation of bird dogging is finding below market value properties and then presenting them to wholesalers who then flip/rehab the property. The bird dogger charges a flat-rate commission or a % of the sale price to the wholesaler as a "finders fee".

I just got off the phone with a friend who is a real estate broker in my town. She explained to me that taking any type of commission on a real estate transaction requires a license.

Is this true? Do you need a brokers license to be involved in this type of transaction? Does this vary state to state?

What kind of contracts/agreements are used by bird doggers to be able to transfer to the wholesaler at the closing?

Thanks

Edited: 06/26/2010 at 05:40AM

Caesar Valle

Homeowner · Orange, Texas

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Aug 14 '08, 12:50 AM

From what I understand, and I'm still learning as well so correct me if I'm wrong. A bird dog is someone who like you said finds profitable properties for wholesaler/investors and they are paid if the buyer closes on the deal. Typically a flat-rate that they have already aggreed upon somewhere between 500-whatever reasonable. Theres always that question how do I know if I will get paid. I'm sure theres forms for that type of stuff that an attorney can draw you up and I'm pretty sure theres a form on this website too. Your check doesn't come out of closing it comes from the investor/buyer. And no you do not need a license. You are not involved in the closing as a birddog. The idea is that if the investor values your relationship in providing him profitable properties than he'll defianately want to pay you to keep you bringing him deals.

Here's a contract on BP for birddogging. Remember to get it reviewed by an attorney in your state before using it.

http://www.biggerpockets.com/forms/bird-dog-agreement.pdf

Heres a link that I was checking out a while ago it really helped me.

http://forums.biggerpockets.com/viewtopic.php?t=3810

-Caesar

Edited: 06/26/2010 at 05:41AM

Chris Coughlan

Real Estate Investor · Marblehead, Massachusetts

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Aug 14 '08, 12:53 AM

Thanks. I've received some great info in this other thread I started as well.

http://www.biggerpockets.com/forums/12/topics/21207-best-area-to-get-started-in-?highlight=

Edited: 06/26/2010 at 05:41AM

Account Closed

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Aug 16 '08, 07:03 PM

cmc22,

I consider bird-dogging personally as scouring forums to see attractive projects, then flying to that location and buying up all the property around it. That's my personal definition though.

Edited: 06/26/2010 at 05:42AM

Ed Richard

Residential Real Estate Agent · vero beach, FL

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Aug 23 '08, 07:19 PM

what i look at as bird- dogging is working the streets and finding the best of the best deals out there. and then trying to find a backer/buyer to take the deals down !

Edited: 06/26/2010 at 05:45AM

Ethan Vegas

Real Estate Investor · Los Angeles, CA

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Aug 25 '08, 02:36 AM

Also, a bird dog may be considered ANYONE who happens to know of a property that will sell for a discount, and forwards this info to an investor. This is usually an informal relationship........the bird dogger may in reality be a pool cleaner, postal worker, gardener, etc.

Edited: 06/26/2010 at 05:45AM

Michael Aho

Handyman · Duluth, MN

12 posts
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Aug 25 '08, 02:01 PM

I read about bird dogs and thought they were people that went out and found deals for investors for some type of compensation. I haven't even started REI and already have two delivery carriers out looking for prospects for me.

Edited: 06/26/2010 at 05:46AM