Birddogging While Working Full-time?
Hello,
I am in the throes of my "learning" stage and I am ready to take the step into finally DOING the CREI thang. My strategy is to birddog first, learn like mad from investors I birddog for, and then move to wholesaling/assigning contracts. I know that in order to successfully birddog you have to have a decent investor list so I want to grow my list, find some good investors, and really go at this. However - here's my situation. I am currently working a full-time job that is easy and pays me a pretty good salary so I am torn over quitting it to pursue birddogging/RE investing full time. Such uncertainties.
I obviously want to line up more investors so that I can have more prospective payoffs from deals, but in order to do all the research that a good birddog does before presenting deals to them - I *think* I need to be more available to do this work than just on the weekends or evenings.
I am naturally a bit trepidatious of just leaping off the ledge and quitting my job to devote full-time to birddogging/RE investing in general, with no for-sure-solid income to replace my salary. (yes - potential big payoffs but when? I know that risk = reward but quitting a decent job in this economy seems unreasonably risky.) Especially since I am in San Diego and I am reading and hearing from other local investors that it is taking up to 200 (!) seller contacts just to get one deal here! (in other words, in this mkt it could be a while till I get paid as a birddog.) 
My question to everybody is - is it feasible to consider bird-dogging with limited "free" time available, then move to full-time birddogging as my income/skills/reputation/investor list/deals done grows? My take - I think it will be a challenge but is possible: I can drive neighborhoods on weekends, take notes on potential props, and research at the courthouse et al. during lunch hour and even if a deal doesn't close for some time, I still have my 9-5. On the other hand, I potentially wouldn't get the hottest leads or be available for daytime phone calls from sellers, and, possibly worse, may find that although I am working for investors I can't find them the props they want b/c of my limited time, so my reputation goes bad. What are your thoughts? Thanks!
Its the same situation in Mass. I was at one time a birddog, but ive moved up. I work full time mon-sat 6-3. I use my evening to go out into the real estate world and do my thing there. I would definatly keep the job until your able to, or else someone might be comming to your door, asking to help out YOUR situation
[addsig]
Elf,
. Make a plan, set goals, and stick to it. If you must predict, then always predict great success out of failure. That is, don't set your expectations so high on any one potential deal that you crash emotionally and give up. Expect a lot of little failures that will eventually lead to great successes.
You really need to answer that question for yourself. Do you have it in you to do everything it takes above and beyond your 40/hr job to make real estate work for you. Yes, it is feasible...and highly recommended. That is, do not quit your day job until you have a steady replacement income. But only you can decide if you have what it takes. Can you face day after day after day of frustration and disappointment while working an "easy" job? Can you resist what will be a frequent temptation to call it quits and just continue on with your "easy" job? If you can then you can succeed.
I doubt that you'll want to become a full-time birddog. Few actually do it full-time, but those that do are exceptionally good and make a lot of money. But to me it's just another job. Once you've been doing it a few months and have improved on your ability to find good candidates for deals you're going to ask yourself, why can't I put this deal-finding knowledge to work for myself?
It would be natural to start wholesaleing at that point. Negotiate deals yourself, tie them up under contract, and then flip the deal to another willing investor at a slightly marked up price (usually 3K to 5K over what you're paying for it). Pay off all of your credit cards and any other short term debt...then save, save, save. Invest some of that money into your further education: buy some courses, attend a boot-camp, etc.
You can still work your "easy" job even while wholesaleing, but as you overcome the hurdles and obstacles of this investing business you will probably begin to despise your "easy" job. Once you're able to consistently bring in big checks, you will hate your job.
Hopefully, at the beginning, you will have set down your goals in writing. For me, one of my goals is to have six months cash reserves and 4K to 5K cash flow. That's my signal to tell me to cut back my job to only 20 hours per week. That gives me 20 more hours in a week to devote to investing. When I have 12 months cash reserves and 8K to 9K cash flow per month, that my signal to quit my job.
Along the way, you will keep reading and learning and by the time you're beginning to be a successful wholesaler you should have a pretty good idea what kind of investing/dealing you want to do. Will you be a landlord? Will you do rehabs? Will you work foreclosures? Will you specialize in abandoned/burned-out properties? Will you buy sub-to? Will you do lease options?
It's a big, big investing arena and no one can master it all. But you'll take a liking to one or more of those and make that your specialty when you become a full-time investor.
My advice to you is...
(1) pick up a bird dogging course or two. They're cheap and sold at this web site. John Locke has one that's short and to the point. And Barry Grimes has one (Real Estate Jobbing) that's quite massive...I like volume 3 as it's a fictional journal of someone like yourself working a full time job and birddogging on the side. Don't forget to write a plan and set goals!!
(2) join your local REI club if one exists (if not, consider starting one). Surround yourself with like-minded people. Network and make friends, and don't forget to ask for referrals (attorney, accountant, contractors, hard money lenders, etc., etc., etc.).
(3) don't focus on the money right now; instead focus on becoming good at finding deals. Get good at the courthouse records. Get good at spotting a potential deal while driving the speed limit. Get good at calling aged listing and talking to people. Get good at selling and marketing yourself. When you get good you can do more in less time and with greater efficiency.
(4) don't predict the future (i.e. "I potentially wouldn't get the hottest leads..."
(5) plan for and find a mentor. The guy/gal that's paying you consistent birddog referral fees is the guy/gal that's able to close deals. Direct more and better leads to them (as you get better) and then approach them about mentorship.
(6) don't blab what you're trying to do to all of your friends and family. You will only invite skepticism and negativity, and have to constantly defend yourself to nonbelievers. Surprise them and savor the look on their faces when you announce that you're quitting your job.
(7) no more advice...take that bull by the horns because you'll have the experience and knowledge to know how to run with it by then.
Hello,
To preface: I am a newbie investor who has be studying for about 1.5 yrs now. I am working full time and looking for a specific area to farm.
In my opinion bird dogging is not something that you aspire to do full time. Bird doggin is a good way to learn the ropes
If you manage your time efficiently I don't think you should have any problems finding properties in the evenings and weekends.
It will depend on your area. Here in the Detroit Metro area there are too many properties on the market. The hard part is retailing to qualified buyers.
I definitely would not quit my job until you have completed a few deals.
peace
Thank you, thank you, for the replies. It has validated what I've decided for myself re: keeping job till I get a solid replacement income. Especially, thanks to wannabe21 - wonderful, meaningful, and well thought out advice.
This site RULES!
So, I'm on my way, been networking and learning... now I just gotta DO - get past the fears /doubts and do it. Next, I'm going to be getting more investors lined up, then it's on to a marketing plan to get those sellers calling me so I can do some referrals and make $$$. Crazy San Diego market - be damned! I gotta give this thing a shot.
p.s. I do have John Locke's book, it is very helpful as an outline in getting started, and have been networking with the local investor's assoc here (SD)... I just have to be more aggressive now. You guys have spurred me on! Next, more learning re: wholesaling and poss sub-to (again with the help of $Cash$)