10 Ways to Struggle as a Bird Dog/Wholesaler - NEWBIES READ!

[4R Management]

1. Strip all the profits from the deal
2. Push "deals" you wouldn't do yourself
3. Overestimate the property's retail value
4. Underestimate the repair costs
5. Fail to negotiate terms
6. Ignore the business case
7. Force Last-Minute Decisions
8. Don't qualify your investors
9. Chase just one deal at a time
10. Chase one investor at a time



The best Bird Dogs make their money by facilitating deals and do more than just provide pictures and addresses of properties. They provide information and resources necessary for making deals work. They know their market, they know their customers and they know the value they create. This value drives the money an Investor is willing to pay.

[sigmamason]

Thank you for that advice.

Haven't done a deal, yet. Just getting started in this business, but advice like that is invaluable to me.

[cherdwelth]

I think it depends on what this bird dog is getting as a fee. For $500 - I'm not doing much if the investor is going to make $40,000 + or more. If I do most of the deal, I'm going to want at least $5,000 + or more. If you are a young college student $500 may be big bucks, but it isn't to me if I am doing all the work to make this deal work. I might as well just finish it and wholesale it to the investor.

[4R Management]

They key here is business case Cherdwelth. If I have a birddog that wants to take a high fee each and every time, then I will eventually not answer their calls.

The key for wholesalers and birddogs is to have the end buyer in place prior to finding the property. It is always, let me say that again, IT IS ALWAYS easier to find a property for a buyer than a buyer for a property.

With that said, when it comes to bird dogs. The more the create the value, the more I will pay them. Please note I said "CREATE" value.

[cherdwelth]

I guess it depends how hungry someone is. For $500 a pop, there's no way I'd find and close a deal for that. No WAY! I'd just go sell real estate for 6%. Break that down to hourly wages and what is it? say ... 20 hours of work or more? for $25 an hour. Ut uh, not me.  If you had to go out and do all the leg and paper work yourself, I'd bet you'd want more too. So I guess if you are hungry and need the $$, $500 isn't bad. But you'd need to do a lot of deals to make some real money.

What do you mean by - the more they create the value? ... more profit they give you?

If I had a bird dog come to me with a deal that I saw a real nice profit in - I'd give him a great fee. Those who give best in business - get more business.  

[4R Management]

So you would pay someone the same amount that gave you a phone number and address as someone that gave you that info plus maybe the names of contractors in the area, area rent valuations, comps, background on the property, etc Maybe told you if there was a mortgage or not so you could negotiate seller financing, etc.

Again, follow the rules and the money will follow. The more you assist your end buyer, the more grateful they will be. The more you will learn and the quicker you can move from Wholesaling/Birddogging to being a true end investor.

[cherdwelth]

No, I didn't say that. I said "If I had a bird dog comes to me with a deal that I saw a real nice profit in - I'd give him a great fee. Those who give best in business - get more business. "

I wouldn't use a bird dog for names and addresses. I have tons of those - want to buy some? I would want a pretty firm deal going where I could step in and close it.

Who are you quoting here, your words or some course, possibly yours. We all do things differently, I don't say you are wrong ....just that I'd do it differently. Gosh, if there was only one way to do REI -- where would all these hawkers of course be? Hmmm....

[househunters]

i find tons of properties in tarrant county tx
and no investor tells me what my fee is going to be.
when i find a property i close it myself and then flip
and you dont know what i make on a deal which none of your business anyway

[cherdwelth]

I had an investor tell me he would only give me $2000 for an assignment. That was all he paid anyone. I told him forget it - I'll rehab it and make the $40,000 profit I was going to hand him. They think they are doing you a favor.

[househunters]

yep

[Infowell]

"It is always, let me say that again, IT IS ALWAYS easier to find a property for a buyer than a buyer for a property."

BOY! I'm going to have to STRONGLY disagree with that sentiment.

Buyer's ALMOST NEVER buy the first property they look at. Some Buyer's take months to find a home that's just right for them.

However, if I get a listing, and the Seller decides to listen to my expert advice (even though they're paying me...they don't always choose to listen) - their property will probably sell in a matter of days w/multiple offers.

In this market...it's far easier to find a buyer for a property than a property for a buyer (that's why everybody wants to be a listing agent).

"So you would pay someone the same amount that gave you a phone number and address as someone that gave you that info plus maybe the names of contractors in the area, area rent valuations, comps, background on the property, etc Maybe told you if there was a mortgage or not so you could negotiate seller financing, etc."

I'm sorry, but again I'm going to STRONGLY disagree with those implications as well!

You say, "The more you will learn and the quicker you can move from Wholesaling/Birddogging to being a true end investor."

But ya know what Pard?...I don't want somebody learning doing market analysis, rent schedules, and amatuer appraisals on a property I'm considering investing in.

I do my own homework or hire a pro.

You get what you pay for.

-Infowell