How is a Bird-Dogger Guaranteed to Get Paid Without Deal Under Contract?

How is a Bird-Dogger Guaranteed to Get Paid Without Deal Under Contract?

Huntsville, AL · Member since 2014 · 36 posts · 3 votes

I am new to REI and I'm thinking about starting off in bird-dogging. How is a bird-dogger guaranteed to get paid if they don't have a property under contract? I would imagine it is easy for a buyer to take the lead and make the deal with the seller behind the bird-doggers back. What do you guys think? Thanks.

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Investor · Salt Lake City, UT · Member since 2013 · 138 posts · 21 votes
12y

@Lawrence Walker - There really is no guarantee that you will not get cut out of the deal. In my opinion, bird dogging is not a great way to learn unless you are working directly with a mentor who will let you in on the negotiations and how to put a deal together. I think you would be better off educating yourself and putting the property under contract yourself.

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  • Investor · Jessup, MD · Member since 2013 · 437 posts · 180 votes
    12y

    @Lawrence Walker

    It is just that easy. You really have no recourse, as in many states this may be seen as brokering requiring a license. You have pro-bird dogs and those against. I would just get the property under contract and then assignment it. That way you know you will get paid.

  • Investor · Nashville, TN · Member since 2009 · 483 posts · 228 votes
    12y
    Originally posted by @Lawrence Walker:
    How is a bird-dogger guaranteed to get paid if they don't have a property under contract? I would imagine it is easy for a buyer to take the lead and make the deal with the seller behind the bird-doggers back. What do you guys think? Thanks.

    To answer this question Always have a property under contract Before you market it! Not only to keep buyers and other wholesalers from stealing your deals but also because it's acting as a broker if you don't have a contract. Having the contract in place is what makes wholesaling legal (in some states). It gives you equitable interest and something that bind the parties or a meeting of the minds.

  • Huntsville, AL · Member since 2014 · 36 posts · 3 votes
    12y

    It seems that bird-dogging is a good option for some or a waste of time to others. I guess it depends on their experience. How a bird-dogger got paid was always a loop hole to me. Thanks for the responses.

  • Investor · Salt Lake City, UT · Member since 2013 · 138 posts · 21 votes
    12y

    @Lawrence Walker - There really is no guarantee that you will not get cut out of the deal. In my opinion, bird dogging is not a great way to learn unless you are working directly with a mentor who will let you in on the negotiations and how to put a deal together. I think you would be better off educating yourself and putting the property under contract yourself.

  • Real Estate Investor · Houston, TX · Member since 2013 · 88 posts · 24 votes
    12y

    @Lawrence Walker

    I have a vacant house program where I pay my birddogs $5.00 per accepted lead. I provide specific criteria of properties I'm looking for and the birddogs submit the requested property info and pics through my website.

    If my birddogs are doing well I will increase the rate per accepted lead and eventually move to paying a % of the sale.

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