Bird dogs at closings?

Question

My bird dog is willing to work with me, but says my bird dog fee is low compared to what he could make doing bird dog for someone else. My price range for the homes I want to buy and in the area I want to buy is not extremely high, so my bird dog fee I am willing to pay is $500. He said most bird dogs doing the same thing he does get paid minimum of $1000. I have no problem doing that depending on how much profit I can make from the deal minus all the expenses including the transactional funding fee I owe. This bird dog has had issues getting his money from other investors and wants to be at closing. Is it even allowed to bring a bird dog to the closing? I never heard of such a thing, but he really wants to make sure he gets his fee when I get paid from the closing. This is the first bird dog that has ever requested to do this.

Dean Letfus · Answer

It's not about what is allowed, anybody can go to a closing.  The point is more that it is none of his business.  I still think your attitude is faulty though. Pay those who make you money well. Never let greed get in the way of a good business model.

Dean Letfus · Answer

Antonio Bodley I understand that but if these houses are so cheap that $500 makes a big difference that is surprising.
The way I look at this is that every deal a bird dogger brings me is one I wouldn't have had otherwise. And buy paying them as little as possible you are actively encouraging them to find other people to find for constantly.
My guys ring me first because they know they get paid well.  You will make a lot more money with some loyal finders bringing you multiple deals. Pay them $1100 so they never want to leave and learn how to get $600 more per deal when you sell them.
Real success in what you are doing requires some volume so get good finders under you and scale up!!

Kanise Kelley · Answer

when i was a bird dog, I was told $500. i don't know what his bird dog contract says but you should get a copy and read it over. a simple contract should say "i will give you this for this". his might say something like he wants a percentage of your proceeds if he's talking about a partnership. draw up your own contract that says "i will give you $500 for ..." and if he signs then he understands that's your price. otherwise he can work for the other investor he says will pay him more. usually when someone says something like that they're trying to test you. he kind of sounds like a new bird dog that wants to appear more experienced. just me, but as a good faith gesture i would let him come to the first closing and have him sit outside until it's done. if he's been burned before he's just making sure he doesn't get burned again. it may take a deal to build a relationship.

best of luck

Antonio Bodley · Answer

Dean Letfus I never been to a closing, so I wouldn't know what is allowed or not. I just spoke with him not long ago and he cleared up what he meant by going to the closing with me, which was not specifically clear the first time he brought that up. All he wants to do is be in the hallway or another room rather than right there in on the closing. The way he said that sounded like he wanted to be right in the same room as the closing. Like I told him I don't mind paying the $1k, but he said he don't want that to eat up my profit because he understands I am trying to make a profit too.

Antonio Bodley · Answer

Dean Letfus He understands my situation where if I am buying low priced homes and pay him a bigger fee that will eat into my profit. He get that part and said he will work me  while at the same time bird dog for someone else who may pay him the $1k fee. He is obviously brand new when he mentioned to me that he is trying to get rich doing his bird dog service. If he only knew, that's not going to happen quite like he expect. At one point I told him I would pay him the $1k fee if that is what he say he can get from other investors. He said the other investors are able to pay larger fees because of the price range of the homes they buy and the larger amount of profit they make from the deal, which will enable them to pay bigger bird dog fee compared to another investor who only stands to gain a much smaller profit. If I was buying say $100k homes and up, I know I could give a large bird dog fee because I know I will make a larger profit. I know everyone is saying there is no need for this bird dog to come to closing, would it hurt to contact the closing attorney to discuss this matter with them anyway just to know for sure what is allowed and not allowed?

Antonio Bodley · Answer

Dean Letfus I only chose $500 because of the price of homes I will be buying at  and my profit will be a lot smaller if I give him the $1k fee. I would like to profit at least $5k minimum from the deal.

Dean Letfus · Answer

Put his fee on your side of the HUD then he knows he will get paid at closing and can go and pick his check up after closing.
As to fees my birddoggers wouldn't get out of bed for $500 but I guess it depends on how easy it is to get deals where you are.

Antonio Bodley · Answer

He is new. He said he has been doing this for about a year.

Antonio Bodley · Answer

Well I am not exactly finding properties.  I only told him what part of town to find these properties. He will be responsible for finding the homes I like in the part of town I like to buy in if he is able to find those homes. You can find vacant homes anywhere, but this particularly area is a maybe.

Kyle J. · Answer

A $1000 seems like a lot to pay someone who is basically just taking pics from what it sounds like, especially considering you are finding the properties and telling him where to go to take the pics. Unless I'm missing something, surely you can find someone cheaper to do that.

Bird dogs at closings?

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