How to make sure you get payed with bird dogging

Yonkers, NY · Member since 2017 · 506 posts · 95 votes

Hi everyone, I have a question for all of you today regarding bird dogging. So since I may be nearing a close on some deal, how would I make sure that I actually get payed? Is there anything I should do like a contract? If so, how would I do it if it's online? If not, how do I make sure that I get payed?

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Shiloh LundahlPro Member

Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes

@Account Closed It is difficult to ensure that you will get paid as a bird dog, however, if you have a few different investors that you are working with you can share some information on the deal without sharing the address and ask the investors what they would offer a bird dog for that type of deal. This way the investors can compete against themselves. Also letting them know that you are probably going to get more deals in the future as a bird dog may make them want to take care of the golden goose rather than kill it.

My partner and I are paying a bird dog who found us a really good renter for one of our properties that is going to end up increasing/doubling our profits on that particular property so we are going to be paying her $1000.

On a side note, I would like to apologize for the idiots who keep creating false accounts and commenting on your posts. Most of BiggerPockets is not like that. Unfortunately sometimes it happens, but I have never seen it this bad before. So I’m sorry that it has been happening to you. Keep posting and ignore the stupid comments. It is not rude to not respond to stupidity.

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Michael Gessner
Pomona, NY · Member since 2016 · 375 posts · 217 votes
8y
If you really wanna do good for your self and make a good income at a young age, when your 16 get your self a beat up pickup truck with a mower and go cut grass, I had a lawn business for a long time and did very well. Do this on the weekends and after school you will be surprised how much $$ you will make in a few years.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Michael Gessner I use PayPal with my parents bank account. Would that be fine?
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Mindy Jensen I don't understand what you mean with the PayPal disputing a payment and having a investigation for it, can you elaborate on it, thanks that's an important thing to know for myself!
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Michael Gessner
Pomona, NY · Member since 2016 · 375 posts · 217 votes
8y
meaning when pay pal takes the funds, and the sender decides he or she is not happy pay pal puts the payment on hold and investigates the complaint, usually the send of the payment wins so ur out the money.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Michael Gessner oh that makes sense, also, what would the investor paying me file a case for? There's not much that the person can do to file a claim. So should I make a contract to make sure that I get the funds and they can't take it away if they close? Would I need an attorney for that as well? Or should I just do checks? What are the pros and cons for checks?
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Adrienne Scott
Litchfield Park, AZ · Member since 2017 · 13 posts · 6 votes
8y
@Tom Gimer thanks for clarifying that. BTW since you work for a Title company... I have a home owner whose house I made an offer on and he wants an earnest deposit which is fine. He wants me to meet him and do it thru the title company but my intention is to Wholesale it. Do I just get the purchase and sale agreement signed there at that time?
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8y
I'd obtain and record an exclusive option to buy. That ensures I am compensated.
Do you just have an address or limited info about the house? How much are you expecting to receive?
I pay $400 if someone gave the seller my card or for a FSBO address & number to $1000 for names and details about why they are selling & how much they want, etc.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Steve Vaughan the investor would pay me when I close, we would negotiate how much I wood get payed when he closes. What do you mean by obtain and record an exclusive option to buy?
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
Originally posted by @Adrienne Scott:

@Tom Gimer thanks for clarifying that. BTW since you work for a Title company... I have a home owner whose house I made an offer on and he wants an earnest deposit which is fine. He wants me to meet him and do it thru the title company but my intention is to Wholesale it. Do I just get the purchase and sale agreement signed there at that time?
Yes, you can do that.
Make sure your PSA has terms regarding if/when/how that deposit can be released. I'd actually rather have my deposit with a title company than in the seller's pocket.
If your plan is to flip the contract that deposit would be credited to your buyer so factor that in to your numbers.
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James Boyd
Engineer · Hodgenville, KY · Member since 2017 · 11 posts · 6 votes
8y
I️ have nothing valuable to bring to this post. I️ just wanted to say keep up this drive and determination, you will be going places in life! I’m impressed young man
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
James Boyd thanks for the motivation!
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
Originally posted by @Account Closed:

Tom Gimer so can I make a contract myself, or do I need to get an attorney to do it? If I can do it myself where can I make one? How would all of that work?
If you are buying and selling properties on your own behalf you should certainly have a set of agreements that you use, ideally prepared by a local real estate attorney. These agreements exist already, so you may not need to hire an attorney, just find the right mentor/associate.
But this thread is about something else. Bird dog-type agreements (where someone gets paid for finding properties for another party and earns a fee upon closing of a successful transaction ) may violate local brokerage laws.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Tom Gimer that's a good point so pretty much I can't make a contract and I will just need to trust that I will get payed, right?
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
Originally posted by @Account Closed:

Tom Gimer that's a good point so pretty much I can't make a contract and I will just need to trust that I will get payed, right?
I think it would be much safer (as I've said in prior threads) to find some real estate-related job where you get paid by the hour until you are old enough to get your RE license and earn a commission. Or until you have enough money to invest for yourself. Or both.
Obviously this would be a less glamorous route than some of the "just did my first flip, made $50k" stories you will read on this site... but in the right position you'd gain knowledge to help you succeed in REI.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Tom Gimer I will do this along with my entrepreneurship because I would like to expose myself to different things and see what I like the most.
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Mary K.Pro Member
Investor · Ocala, FL · Member since 2015 · 157 posts · 88 votes
8y
Michael Gessner is right. For example, if you buy something on eBay and use PayPal and the item you receive is broken or never arrives, you can file a dispute with PayPal and get your money back. But unscrupulous people will file a dispute even when they receive everything 100 percent. Not trying to scare you, just letting you know to be cautious who you deal with. You can always ask the investor for references and check them, make sure he/she hasn't ripped off anyone. I've never used the online background check resources, but its an option. I'd recommend you Google them, look for court records, lawsuits related to money or bounced checks. I have a client who is a private investigator and does me favors. Is it someone local that you along with your parents can meet with and "get a vibe" on? If not local, do a Skype video call? I try to always pay attention to my gut. If they rub me wrong, I won't do biz with them. Once had someone do a dispute for $10K on PayPal and get it back from me even with all my approvals, signoffs. PayPal disputes almost always work in the favor of the buyer (your investor) and not you, the seller. Credit cards are safer for sellers in my experience; for my e-commerce store, I get a few of those a year, always from people who "forgot" they ordered the item. VISA will reverse and take the money back from you at first, while it investigates but as long as you have proof of the order, they eventually (1-2 months) give it back to you.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Mary K. So what should I do? Regular checks or stock to PayPal? What are the pros and cons to checks? Would there be taxes or other fees?
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Cody Evans
Wholesaler · Fairfield, CA · Member since 2017 · 472 posts · 145 votes
8y
I doubt you can do a contract unless you have your parents sign it for you. They may not be down for putting their name on the dotted line either.
Your best bet is to find a trustworthy investor. Just a gut feeling but I doubt you will get burned but if you do then simply don't ever help that investor out again; their loss. Also, you may be better off getting paid $10 per qualified lead rather than just per deal closed on.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Cody Evans I don't think the investors I work for would want to do it that way. How should I propose this to them so that they would be open to doing this?
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Austin, TX · Member since 2017 · 145 posts · 24 votes
8y
if you dont like the idea of doing a wholesale deal by yourself for your first time, go on the appointment with him and just get paid a wholesale fee($5,000 fee for a start ). Take it a step rather then just being a bird dog
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Jeff Schwarz
Specialist · TX · Member since 2010 · 64 posts · 29 votes
8y
there is such a thing as being paid with a cashier's check. And that can be written into the bird dog contract. No contract? get one and use it with the investors you represent. be fair to them and yourself, it's a business not a game.
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Yonkers, NY · Member since 2017 · 506 posts · 95 votes
8y
Jeff Schwarz thanks will do!
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