Hard working New guy needs help!

[mcrump]

I have what may seem like a trivial question.  Is it customary for bird doggers to actually get a house under contract before going to a potential buyer?  I know I need several things in order before approaching another investor, i.e. comps, ARV, holding costs...  Also do bird dogs deal much with real estate agents or do they focus more on FSBO?  Any information you can offer is greatly appreciated.

Thanks,
Mike

[tedjr]

Howdy Mike:

Most investors know the market and look at MLS deals all the time. A lot of the super deals do not even make it to the computer. Foreclosures and preforeclosures and estates etc are where the good deals are. I bought a MLS deal that had just fallen out of contract. Deals are everywhere but there are a lot of investors looking too. A lot of tire kickers too just like yourself that are new and looking to learn. Nothing wrong with that but some sellers want documents proof that you have the funds to close before they will even consider an offer.  Makes it a little harder to flip a contract.

You may be better off to find an investor and find hat they are looking for and then go find it. Try to find what they want and then find the deals maybe even for several at a time.  Some do fix ups on one side of town or the other  and under a certain price etc.

As far as getting it under contract that would be best. Like I said you may have trouble with certain sellers and Realtors having to be preapproved or show a bank statement showing the cash in the bank. Keep us informed how it is going

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[$Cash$]

mcrump,

Glad to meet you.

As a Bird Dog you find the deal, it can be any type that a creative or conventional investor is looking for.  Such as Subject To, Re-Hab, Short Sale, etc.

The pro investors will tell you what they are looking for in properties, then it is up to you to become proficient in finding those deals.

I will give you an example that happened a short time ago.

I was with a student of mine who I was visiting in CN, he was looking for a new computer so I went with him to the Best Buy store to find one.

While we were there I noticed a young lady who was selling Yahoo internet time.  She was in the age group that was what I consider to be divorce prone, since the divorce rate is 40% I guess maybe anyone can be in that group.

However, I struck up a conversation with her, how do you like your job etc.  Then I started the bird dog presentation, here goes.

Is that computer on line, she replied "No it is only for demonstration purposes only".  "Darn I wanted to look at my web site".  Then she said "What is your web site about?"  I replied "Have you seen those late night infomericials where you buy a creative real estate course and make a million dollars in 30 days, I am one of those guys."

She replied "Oh isn't that one of those MLM scams?"  At this point she was going exactly where I was leading her.  I said let me give you a senerio "You have a couple getting a divorce, it takes two incomes to make the house payments, one spouse moves out and the one staying can no longer afford the payments."  "This is where I come in, rather than losing the house and screwing up thier credit, I purchase the house creatively and make the payments so it is a win/win for everyone."

Music to my ears but I knew it was coming she says "I have a girlfriend in that exact position can you help her?"  At this point I hand her my business card and reply "Yes, I can, if you give me her name and number I will call her and provide the help she needs."

I gave the deal to my student, but this just goes to show armed only with a business card and some friendly talk with a total stranger, you can find deals, as they are everywhere.  I find some of the best deals are from people just like the girl at Best Buy, no realtors involved, FSBO's, etc.

Now, in this situation a Bird Dog would turn over this lead for a fee to an investor.

John $Cash$ Locke

[mcrump]

Thank you to you both.  You are very helpful.

Mike

[rejobber]

Mike,

Bird-dogging is a great way to get started. I would not worry about getting properties under contract at this stage. Just find the leads that your pro Investors are looking for, and let them do the rest. Be sure to learn from the local pros, and before long you will be able to confidently put properties under contract.

John,

I like your style! Your Sub2 Workbook is excellent.

Barry