Help Us Build a Birddog How-To FAQ
Joshua D.Pro Member
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votesEarlier today I had a request that we build a FAQ for birddogs. I'd love to get out and do it, but I'm a bit overwhealmed right now. If anyone can help us put this together, that would be great! Just add on to this thread and we'll get it going!
Thanks in advance for all your help, tips, notes, etc on this!
With that in mind, lets build the BIRD DOG FAQ!
I think you guys might be blowing this whole birddog thing out of proportion. Like who is really aspiring to become a birddog? I think people are aspiring to become REI's. And if they have to use strategies to raise quick capital then sure they are using those techniques. I just think it's the wrong term and it's unfortunate that it's spread. If I had to do that I'd still try and think of myself as a "REI" who's just trying to raise quick capital for my first real deal. NEVER as a birddog. I think people have to be very careful as to what they label themselves or what others label them. Because you're becoming the thing that you think you are. So if you're a birddog that's what you are, basically someone who's not there yet, who doesn't know the industry and is well pretty pathetic. It's not the right perspective to have. If you wanna get somewhere you always have to work in "reverse". So if you're wanting to become a millionaire via REI, and you're just getting started then the most important thing you can possibly do is start to tell yourself everyday over and over again that you are infact a "Millionaire Real Estate Investor". Because what will happen is that your brain cannot interperate that input any differently. It has to act on what it's given. So as you tell yourself you're a "MM REI" you'll more and more start taking the actions that a millionaire would take. And I guarantee if you keep telling yourself that, you will not only build up the believe system that you are one, but you'll also automatically start taking the right actions, eventually leading you to becoming a millionaire. That's how the universe works, it's impossible for that not to happen once you have the believe that you are any certain label. But if you're telling yourself that you're a birddog well gloy-gee that's like telling yourself that you're not very good and that you don't know anything about the industry. It's the absolute wrong label to put on yourself. The perspective that anyone who's a REI should have is that there a multi millionaire. Because like I said you're becoming what you think about and think you are all day long. Once you develop that believe that you are something it can either be your greatest asset or your biggest weakness. So tell yourself that you're a Multi millionaire REI, not a birddog. Because you're becoming what you think of yourself as. Ya, honestly get that term bird dog completely out of your head. It's not who you are. What you are is a multi millionaire REI, who's just raising quick capital in order to fund your first real deal.
Also on a side note to all this...my thought is that I don't know an easier way for someone to reach millionaire status than REI. It's got to be the easiest way out there doesn't it? Like where else can you make six figures even seven per deal. So if you're not thinking in terms of making millions well start too. Because it's not that hard in this industry.
from what i have learned (and i may be wrong) if you make an offer on a property you are bound to purchase the property at the given price or you will lose the $$$ you put up. There are only a few stipulations that i know of that can release you from purchasing the property without penalty, for example finding something wrong with the house within ten days, being unable to gain financing and i think there is one more but i cant remember. My current roomate was looking to buy a house this last month and that was the advice i gave him, make a list off all the house you like and low ball them all, take the lowest counter of the best house, he contacted my brother (RE agent) and he informed us that he could potentially be bound to every offer he made.
there is probably a way around this (perhaps somehow making offers without putting up cash)- which is why i posted the information above, hopefully somebody will shine the light on this subject because i would love to be able to make multiple lowball offers.
I am just starting out, researching my options with bird dogging. I live north of Chicago, and was wondering if anyone knew of reputable investors that I can begin working with. I have spoken to one investor in the area who claims that I will be paid out of closing 500.00 (is that a decent rate?) and when I asked about a contract pertaining to my services, he said there is none. That was a red flag-he has a website that allows you to list as much info as possible, and supposedly will communicate via email on the progress of the deal. I have been in the industry for 15 years as an escrow closer, so I am quite knowledgable in real estate. Any suggestions on how to go about finding the right fit?
Wow great thread. It went from bird dogging to investment psych. I agree however; It's not good to label and limit yourself.
In referring back to the post about not calling people Bird-Dogs.
There are many different terms you can use.
Independent Lead Seller
Property Marketing Consultants
And the one we use here a bunch "Property Scout"
We work with birddogs all the time. Some are re investors, but don't necesarilly have the money to buy each deal so they provide us with leads and if the deal goes through then we pay them a percentage from the profits. Sometimes birddogs are not involved in re at all and just want a finders fee. We all know people that wouldn't mind making a finder's fee for referring someone to us. Most of the time people just never ask them.
The contracts can vary and many times there are no contracts, but there must be trust.
You can have a business card that says "We buy houses, or we give referral fees for finding pre-foreclosures".
Nowadays I have many birddogs that call me up and will tell me of a friend of theirs who is losing their home or about a home on their block that is going into foreclosure and we call that homeowner and see if we can work out a deal. If we do a deal then I pay a referral fee. I'm always looking for birddogs.
It is important to teach a new birddog exactly what you are looking for in terms of properties in order to make sure you're not wasting your time or theirs.
Birddogs are not part of the actual real estate transaction in any part of the paperwork so basically what they make is a referral fee.
Can a birddog become an investor, of course. The best way would be for them to work out the deal with the homeowner and assign the contract. I wouldn't call them a birddog after that as now they are a wholesaler.
The thing with re is that there are plenty of ways to make money in this industry.
If you have enough birddogs you basically have a team out there that is constantly looking for good deals for you.
Depending on the transaction and the deal made with the birddog, I find a referral fee can range from $500 to tens of thousands. We try to be fair with our birddogs as with all business we look for long standing and continuous relationships. Treat people right and they will continually come back to you with more.
Everyone has different goals. Being a birddog is right for some and not right for others. Ultimately, look for the win-win for all and everyone will be happy.
I have attached a contract that I have used for my bird dog endeavors. You may have to change a few things but it is a good start.
I am a little confused on this topic. Am I understanding correctly that a "bird dog" simply finds people selling their homes and gives this information to an investor?? Also with regard to foreclosures, when you mention pre-foreclosure, is that before the announcements are sent to the County Clerk's office? The reason I ask this is because I am at our County Clerk's office every day. I work at a law firm full time and the attorney's I work for are always being appointed referees for the foreclosure sale, and the sale usually does not take place for about three months after they are appointed.
Hi Mary,
A "bird dog" is indeed someone who finds propertys of interest, and hands the info over to an investor. The bird dog gets a "finder's fee".
The usual terminology for real estate investing is the "pre-foreclosure" is the period before the sale. Really, it starts as soon as someone starts having trouble making the payments. It gets public when a notice gets filed, so that's when a lot of investors start their marketing efforts. The sheriff's sale itself is the foreclosure. After that, the house is, many times, back in the hands of the lender, and is a REO (real estate owned) or OREO (other real estate owned.) That's also called post-foreclosure. That may not be the terms you're used to working in a lawyer's office, but its the common terms used in REI.
The exact terminology varies from state to state, as do the details of how the process happens and what happens after the same. Josh put up a state by state listing of some of the relevant info.
Jon
Thank you. That clears it up. Much appreciated.