Bird Dog Question
I'm not sure if this is a totally appropriate question to ask, but I'm sure if it is not, I will here about it!
I was wondering if any of you experienced folks out there could give me a ball park figure on what an appropriate bird dog fee would be? Do you pay a flat rate, a percentage or does it strictly depend on the deal at hand?
Also, I ass-u-me a bird dog is just selling leads, and not getting props under contract. Contracting and assigning is actually "wholesaling" correct?
I have decided to continue my REI swimming lessons before I jump into the pool! In the mean time, I would like to make some cash for all the late nights on the computer, and the long drives through the hood!
Please advise!
Thanks!
Sickdog
I was curious about this too. I havent seen any replies to this question and I am curious as to why.
Hey Leatherneck,
I found out that a ballpark bird dog fee is 10% of whatever the buyer puts down or not less than $500. per deal. As for the rest of my question, I think the bird dog is primarily used to "hunt" down the deal, not necessary to put the prop under contract.
If I am wrong I guess someone will post!
Later,
Sickdog
Bird Dog fees, like anything are negotable. I generally pay 5% of the purchase price as a Bird Dog fee.
I have one guy who makes a solid living as a full time Bird Dog. He is very very good at what he does. He knows every property in the areas that he works; can the property be bought and at what price. This guy is a virtual MLS of properties people don't even know they want to sell. In fact, if I locate a property that I want, I get this guy to make the initial contact with the owner. He is just that much better at building a quick relationship with the owner then I am.
One thing that I have learned in business and REI is to focus on what you are really good at and pay other people to cover your weak areas. You will make a lot more money this way as opposed to doing everything yourself.
That sounds like very good advice!
Thanks!
Later!
Sickdog
Bird dog fees can be negotiable. However my experience has been a 500.00 finders fee or 10%. Sometimes if you find a really good deal they are willing to partner or pay more than agreed upon.
As said, fees are negotiable.
The 2 important keys to getting paid as a birddog are: 1) find good deals and 2) work with real investors who will actually close the deal. Sounds simple, but it's not that easy.
In alot of cases, I see new birddogs trying to work for new investors, and it simply isn't a good relationship.
As pspiers pointed out, a good birddog will get paid well, but that birddog has to be working for someone who will actually "pull the trigger," so to speak and close the deal.
A birddog does NOT put anything under contract. They only offer leads. They don't even negotiate a deal (and never should). Negotiating, deal making, and contract signing are up to the investor.
Real life example: Birddog offered to me a 2/3 bed, 1 bath home, FMV $70K, asking $65K, been trying to sell for over a year. Would be willing to accept $55K for a quick, painless sell. She has given me the info, it's then up to me to speak with the sellers and work out the deal.
Roger
Thank you all for the great responces!
I'm going to review as many of the BD posts that I can and put together a marketing plan to get some investors lined up. If anyone knows of any in southwest Ohio, please feel free to PM me. I think I have a real good idea of what a typical investor needs as far as packaging a deal, and I certainly have the resources I need to accomplish that!
Thanks again everyone!
Later
Sickdog
There is some great info in this post ! My question is this, how do you know if the investor closes the deal? I would like to trust everyone but at this point any investor I work with may not be new to the real estate game but they are new to me. Any advice appreciated as I have 2 investors lined up this weekend and have already given them some general info, no details yet.
Lorraine
Im going to extend the q's about being a bird dog.
If you are a bird dog and your job is to just find the deals and info, then foward that info to a real estate investor how do you get paid?
with no written contract between the bd and the rei you (the bd) don't nescessarily get paid right?
or as the bd do you just hope that you are working with a honest person and that the REI pays you after he/she closes the deal? :-o
Thanks
i take a flatt $500 per deal i birddog, i dont use any contracts, i establish relationships and so far i've not gotten paid on one deal....i use birddoggin to gain some real life experience, make some $$$ and build relationships...it's all about the win-win :-D
I currently birddog (Deal Scout) for two real estate investment firms. My fee is 1% of the purchase price when they close on a deal I located for them.
I do not under any circumstances, do any negotiating as I am not a licensed real estate agent.
Another question for this thread:
Can someone with their real estate license legally pay a birddog fee to someone? I am under the impression they could lose their license for doing that (paying a fee directly so someone who is not a licensed real estate agent). Is there some legal way around that?[ Edited by Mark836 on Date 05/24/2005 ]