Introduction and Question!

[TimH]

Greetings Everyone:

I have been looking into different aspects of REI and realize in my situation, bad credit and not much money to invest  , that bird dogging will be the best thing for me. Even still it seems like a good starting point. The last thing I want to do, at 24yrs old, is jump into something without the proper knowledge and make a huge mistake. Birdogging, will help me to gain experience and make a little money in the process, which is always a good thing  .

I do have some questions that I am sure you guys can help me with:

• When it comes to deals, is a deal a deal, just as long as the numbers make
  sense to the potential investor? (Doesn't matter if it’s pre-foreclosure,  
  forclosure,  REO, FSBO)

• When I deal with investors are there any contracts that need to be drafted to
  ensure that I will get a "finders fee" for the deal?

• Also would it be unorthodox for me to run an ad to saying "Buy Ugly House?,
  call XXXXXXXX" in order to obtain a list of investors to birddogg for in my area?
  (I feel that honest is very important in business and I don't want to anything
  to jeopardize that)

I am going to start attending REI meetings in my area to primarily learn and do some networking as well. I am looking forward to starting, however, I want to be sure that I know what I am doing beforehand.


Also, I am very impressed with this site and the amount of knowledge that is in this forum. Thanks in advance for your help.

Respectfully,
Tim H.

[tedjr]

Howdy Tim:

Question 1: A deal is a deal as long as it is a win/win for all. Keep in mind that some REO sellers want proof that you can close the deal, either cash in bank or preapproval letter from lender.

Question 2: You shouls get something in writing. If you have property under contract you can use assignment of contract form from title company. If just a birddog fee just something on paper with the address or legal would work. Nothing really fancy. Most investors will pay you because they want more deals.

Question 3 : I would not be upset if I called and you were building a list. A lot may be however. If you decide to do it I would suggest that you tell them up front thatyou are trying to get a feel for what they are looking for and are trying to help them find deals.

The meeting and networking idea sounds good. You may also call on ads where investors are looking to buy houses and see what they are looking for.

Hope this helps some.

[TimH]

Hey Ted thanks for your reply it helps a lot. I do have another question while i was looking through the court records at forclosures I notied some were tax liens and some weren't.

For Bird dogging purposes I should only be interested in the ones that are being foreclosed by lenders correct?

Also, do i need any specail contract to obtain information from the lender about the property to show to potential investors?

Thanks again for you time, have a greet evening.

Tim

[tedjr]

Howdy Tim:

Glad I could help with the other questions.

You should go any any deals where you see there may be some equity, including tax foreclosures, lenders, sheriff sales, you name it. All are open season for birddogs and investors alike. You may be trying to sell  a property to an investor that he has already seen but that is part of the business. A few months ago I was asked to look at a duplex on east 12th for $70,000. Turns out I was the owner facing foreclosure at $60,000.

On preforeclosures you will eventually need written authorization from the seller giving you permission to obtain the loan balance and amount to cure etc. from the lender. I have gotten this info before over the phone with just ss# and other personal info but the rules have changed and it is better to have it written.

Again, hope I helped some.

[TimH]

Ted,

12th st, I see you live in my home away from home Austin, Tx! I find myself going there about once every 8wks. lol

You are the man two more questions and then I will leave you alone. (if you don't mind)!

I am looking through some ads and have found a few deals on the internet REO that are listed through and agent. Would it best to find out what a few investors will pay for this property and then try to negotate with the REO agent???

Also, is the appraiser value and decent guesstimate as to what the FMV?

Thank you for your time and have a blessed evening!

TimH

[tedjr]

Howdy Tim:

When you say REO agent I assume you mean a Realtor has a listing in the MLS for sale. If you talk to several investors and get their opinion about what they would pay for the property you will then know how much to offer so you can make some money.

Most deals I have looked at from wholesalers are where the property is already under contract and the Realtor is out of the picture. If you show someone a house and they see the Realtor sign they may say why should I buy from you when I can get it from the Realtor for less money.

Here again I am assuming you mean Realtor listed property and not a Bank REO asset manager. If this is the situtation then by all means show it to lots of investors or  mom and pop to live in.

Tax Appraised value  is sometimes a good indication of the value. I get a list of HUD foreclosures and most are priced near or slightly above the county appraised value. I have seen some that were in horrible condition and were selling for less. It is quick and easy but you should still check comps especially if you plan on doing a lot of rehab to the property.