What is bird dogging?

Question

Hello BP members. I cam across a term called "Bird dogging" for REI's. Does anyone on BP do this and how would someone get started? Thanks in advance for the help.

Rachelle Rodavia · Answer

@Philip Williams

So i got curious and searched google since i am also a newbie in REI. The term refers to   someone who spends their time trying to locate properties with  substantial investment potential. Usually, the intent is to find  properties that are distressed and selling at a discount that can be  repaired or remodeled and sold for a sizable profit.

I am sure we have alot in the community who are into this, hope they can give you an insight as to how to get it started.

Glad to have you with us!

Char Prado · Answer

I found this on BP..check out podcasts and also Search "how to get started on BP"

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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!

Updated: 11:16AM, 02/15/2010

Please  do your own due diligence regarding birddogging. Seek legal counsel  from somoene who practices real estate law to ensure you are operating  in accordance with your states law. This is necessary for your own  protection.

I copied this for someone else but lost the page it originated from...dated 2010 but still applies today

Account Closed · Answer

It is a bit like wholesaling, except at the very bottom of the REI food chain. You find good deals and sell information on how to get in contact with the owner of the property for money. Unlike wholesaling, you don't actually have the property under contract or make an offer. This is what I know of it at the moment.

I'm also new, but from what I've heard, bird dogging is looked upon with a bit of disdain.

Philip Williams · Answer

Thank you @Dell Epps this is valuable info!  I will get on this!!!

Philip Williams · Answer

Thank you @Rachelle R. This is very helpful info.

What is bird dogging?

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