Bird Dog fees

Can anybody give me some guidance about how Bird Dog fees are figured/ arrvied at? Is it usually a percentage of the profit from the deal, of a flat fee? Do they ever work in a bonus for doing so many deals? Any guidance would be appreciated.

Thanks.

txboy

Edited: 06/26/2010 at 03:19AM

Al Alfaro

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Icon_minipost Jan 15 '07, 11:19 PM

It depends on what your role is in the deal. If you're just passing a contact and nothing else, then a flat fee of $500 to $1000 is the norm. If you're doing lots of leg work and keeping the deal together, you should charge a percentage. Depending on the profit margins and the size of the deal, 1/2 to 2% is the typical consultant fee.

Almost every deal that I've seen with excessive BD fees falls through.

Edited: 06/26/2010 at 03:19AM

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Icon_minipost Jan 17 '07, 01:56 AM

AJ,

Thanks for the info. I've been warned off about charging too much, but didn't want to ask too little when the profit is there.

Thanks.

Edited: 06/26/2010 at 03:19AM

Tom Wood

Residential Real Estate Broker · St. Louis, Missouri

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Icon_minipost Jan 17 '07, 03:15 AM

Also, I know several buyers who advertise their bird dog fees up front. In other words, they tell people, bring me a deal and I'll give you $1,000. They try and set up front what they offer vs. the other way around.

There isn't any harm in calling a few " we buy houses" ads and asking what they offer if your bring them a deal. It would help you get a sense of what they are paying in your area.

Edited: 06/26/2010 at 03:19AM

Al Alfaro

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Icon_minipost Jan 17 '07, 03:57 AM

Originally posted by "gfwproperties"

Also, I know several buyers who advertise their bird dog fees up front. In other words, they tell people, bring me a deal and I'll give you $1,000. They try and set up front what they offer vs. the other way around.

There isn't any harm in calling a few " we buy houses" ads and asking what they offer if your bring them a deal. It would help you get a sense of what they are paying in your area.

Make sure you find out what those " we buy houses" outfits offer sellers in terms of contract details. A lot of them include clauses in their contracts like " and/or assign" that most sellers shy away from. Some also pay almost no earnest money up front, nor do they close in a timely manner. You don't want to waste your time chasing leads that never result in sales.

Remember, the key to successful birddogging is fitting the right buyers with the right sellers.

Edited: 06/26/2010 at 03:19AM

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Icon_minipost Jan 17 '07, 10:41 PM

Thanks Tom and AJ for the info. Somebody mentioned that accepting a fee might require a license from the state? Anybody know about that?

Edited: 06/26/2010 at 03:19AM

Al Alfaro

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Icon_minipost Jan 17 '07, 11:21 PM

If you pass yourself off as a broker, you may need to be licensed- depending on what state you're in.

Edited: 06/26/2010 at 03:19AM

Travis Shaver

Real Estate Investor · Charleston, SC

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Icon_minipost Feb 06 '07, 08:48 AM

When it comes to bird dogging, you make your own rules.

Edited: 06/26/2010 at 03:21AM

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Icon_minipost Feb 22 '07, 01:56 AM

$500-$1000
usual rate but depends on the deal

thanks mike

Edited: 06/26/2010 at 03:23AM

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Don T.

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Icon_minipost Apr 13 '07, 09:20 AM

Marvin, I am currently learning about bird dogging. From talking to different people in REI, I have heard $1000- $3000 (charging more for due diligence that you have to perform on the propety). The max I have heard is $3000.

Edited: 06/26/2010 at 03:29AM

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Icon_minipost Apr 16 '07, 01:43 AM

Passing the contract along? Wouldn't that be considered Wholesaling? IE, going through and locking it down with a contract and then assigning the property to someone? If I'm mistaken then feel free to correct me.

I did see that whole post about Birddog vs. Wholesaler, but doesn't a Birddog just find the deals and never get it under contract?

Edited: 06/26/2010 at 03:30AM

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Account Closed

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Icon_minipost Aug 04 '09, 07:14 AM

If I use a bird dog, I want to be the one that puts the property under contract, because I might want to wholesale it. Depending on the deal, I plan to pay $500 to $1000 for a fee and pay when the deal closes with either myself or my buyer.

Edited: 06/26/2010 at 09:14AM

Joanne Hellwig

Real Estate Investor · Ohio

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Icon_minipost Sep 04 '09, 03:33 AM

Is there a contract a bird dog should sign between the partners? Or how does the bird dog know for sure that
the deal goes thru or they will be getting paid the correct amount off of the deal? (if it is a % of the deal)
Thanks

Edited: 06/26/2010 at 09:36AM