Real Estate Bird Dogs
(TRandle) Well, I'm going to go ahead and get started. I'm going to shut everyone down and ask John a few basic questions and then I'll open it back up for Q&A.
(Cash) Tim, thank you for inviting me here this evening.
(TRandle) We're glad to have you. Can you please provide your definition of a real estate bird dog?
(Cash) a bird dog is an investors best friend they find a deal's then turn them over to the investor the great thing is they get paid for learning the creative real estate business
(Cash) there is no age restriction no education restriction no fear no liability and no money needed
(TRandle) How would one go about finding these investors?
(Cash) let's talk about how you find these investors at your local REI club in the newspaper calling on bandits signs
(TRandle) Sorry, I was waiting for you to expand on that a bit, please.
(Cash) I think the bird dog wil realize who the real investors are as soon as they start to interview them, most of the people advertising in the newspaper under I buy houses do not really buy houses they are really bird dogs so contact them what they might not see as a deal you may
(Cash) I would also run an ad in the newspaper offering your services
(TRandle) So, what sort of questions should I ask the potential investors?
(Cash) what typ of investing they do and how can you help them with their needs
(Cash) what type of properties they are looking for
(Cash) do you have buyers for your properties or are you looking for buyers also
(TRandle) One question that always comes up that we should likely get out of the way is brokering. In many states providing leads for a referral fee is not legal. How would you address this?
(Cash) Brokering has to do with the transferring of real estate, no bird dog is buying or selling property for another person or representing a property to another person only providing a name to the investor
(Cash) If i sell directions to a gas station to someone who is out of gas am I brokering for that gas station no I am not
(TRandle) for those that are not comfortable with that response, what other solutions would you suggest?
(Cash) I would have to see the state statutes in a state to know what this state considers brokering
(TRandle) I was leading you toward the independent contractor agreement you have in your course? That would resolve the issue, would it not?
(Cash) A simple partnership agreement making the bird dog and investor both principals in a deal whereby the investor buys the bird dog out ot the deal upon completion would not violate any state laws I am aware of if it comes to doing it this way
(TRandle) Okay, any final comments on any of these questions before I open it up to Q&A?
(Cash) pricipals in any real estate deal are principals and are not brokering
(Cash) Open it up
(TRandle) Okay, folks, I will open it up. Please show courtesy and allow John to answer one question at a time. Thanks.
(KeithMRansom) I see many ad for I buy houses how do you differenriate yourself from the others
(Cash) You will find the great majority of those people will advertise are not what I consider investors
(Cash) you differentiate yourself by your marketing and advertising efforts
(John_NY) The question I have is based on how much information for how much of a fee?
(Cash) I would think the minimum would be $500 depending on how much effort you put in appointment setting etc. in other words the more you do the more you will make
(Cash) as you become more experienced and doing more for your investors the greater the return dollarwise
(Cash) next question
(John_NY) Lets say I locate the property, research it, open dialogue with the owners and present a solution to them before introducing it to my investor...?
(Cash) this would be determined by what your investor and you have agreed to
(John_NY) what should I ask for... I don't know...!
(Cash) there is no bird dog union controlling pricing or payments for your leads $500 minimum as you become expierence then a percentage of the deal
(Cash) if you do 10% of the work then you should get 10% of the deal
(Cash) John does this help you
(John_NY) I am afraid it is vague
(Shawn) John it would help me a lot if you can be more specific with your answers....thanks
(Gary-TX) Would it be a good idea for the investor to guide the bird dog by giving him a property information sheet/seller questionnaire to help the bird dog understand what information is needed?
(Cash) Ok the minimum you charge is $500 let's say you find a deal that your investor will make $10K you should ask for $1K if you did your share of the work to bring the deal to the table
(Cash) you could establish an hourly basis just like a consultant figure out what your hourly fee would be to research the property opening dialogue with the owners and present a solution to them then charge accordingly
(Cash) Gary the more information you supply in helping your bird dog the better trained he will be and the more money you will make
(John_NY) I know an investor that gives a bird dog $20 for addresses and then pays them a premium if the go through on the deal. Let's say your the investor, and I am doing everything up to the point of taking control of the property. What is that worth....do you go on a percentage or a fixed fee? I've heard so many different answers to this question, that is why I am pursuing it with you. What do you think is the best arrangement under these circ
(Cash) if you pay your bird dogs and be fair you will definitely have loyal people looking for deals for you
(Cash) John nothing is etched in concrete like I said figure out what your consultant the would-be then charge accordingly
(Cash) next question
(TOIYEUDOI) what is the best effective way to find the properties
(Cash) one you know what your investors looking for then you can farm in the areas a rehabber would want older run down properties or just run down properties so market the area the investor is looking to invest in
(Gary-TX) John, what marketing tool brings the most responses for you and the most bang for your buck?
(Cash) Bandit signs followed up with direct mail has worked extremely well
(Shawn) John, where do you have your bird dogs spend most of their time looking for deals?
(Cash) As a subject to investor I have them in newer areas 1-2 year old houses as this is what I am looking for
(Cash) bird does usually have a full-time job and are also in the community so they should network with everyone they meet
(Cash) next question
(Cash) Remember no one in this business is so good at it that they can't use a bird dog
(TRandle) How do you keep the bird dogs interested until that first paycheck?
(John_NY) How do you protect yourself from stealing the deal from under you and
(John_NY) "neglecting" to pay you
(Cash) I meet with them at an I Hop and hold training buy them lunch etc. they will appreciate it
(John_NY) and should you expect payment upfront or at closing
(DonaldB) 01Where do you find investors looking for bird dogs
(Cash) You are not going to tell anyone everything about how you do deals, or how you go about completing them only tell them enough to find you deals if you fell that you want to train them then that is your business
(Cash) You get paid when the investor gets paid unless you make other arrangements
(Cash) I have developed a site for bird dogs and investors to get together this is one of the reasons why I did it also you can post here at this site
(Shawn) How did starting as a bird dog help you in your investing career?
(Cash) I don't think it will break any rules by saying you are looking for bird dogs or investors if I am wrong Tim will correct me
(Gary-TX) So, you should tell your bird dogs to talk to everyone they meet and give out their business cards like candy, right? And what do you think about the bird dogs giving themselves the title of property locator on their business cards?
(Cash) I will speak of some of the bird dogs I trained they are now full time investors I choose to train some of them that wanted to be trained as investors
(Cash) I would not use property locater, just bird dog people will ask what that is and you can tell them
(Cash) next question
(Cash) Lot's of folks on here someone must have something they feel is important
(John_NY) What if you supply an investor with a legitimate lead and for some reason or other the deal falls through, should you expect payment on that?
(Cash) You will quickly learn who the real investors areand who you want to deal with deals fall through so I would not look to get paid
(Gary-TX) Just as it is good to work with trustworthy investors with integrity, the same goes for bird dogs. Some bird dogs may decice to fininsh the transaction themselves without the investor. Any ideas on how to protect yourself, or is that just the risk of doing business?
(Cash) Real estate agents don't get paid until there listing sells and deals fall out of excrow all the time
(kbergland) Are there online sites you would recommend for looking for potential leads?
(mpiper) What if you find a property that is perfect numbers-wise, but it doesn't match the profile your investor is looking for? If you only have a day or three??
(Cash) This is the risk of doing business if the Bird Dog decides to spread his wing or paws as the case may be God love him let him go
(Cash) This is one reason we need as many investors as we can find also network with other bird dogs half a loaf is better than none
(John_NY) Should you offer your deal to more than one investor and do on a first come first serve basis
(Cash) I don't know of any sites that would have leads I think you have to develop leads with marketing and advertising even if it is just passing out business cards everywhere you go
(Cash) John loyalty is very important one at a time if one passes then on to the next
(Gary-TX) Do you think an investor should hold monthly meetings with his bird dogs, to answer questions and give some training?
(Cash) Yes absolutely hold meeting plan on keeping them motivated
(Gary-TX) Are your bird dogs only in Las Vegas, or can you work effectively in out lyingt towns or states?
(Cash) Vie no problem just wanted to know
(mpiper) gotta hop off. Cash, thank you for your time. Greatly appreciated.
(Cash) Bird dogs are everywhere it depends on what type of investing you are looking to do
(John_NY) How do handle the transition from you to your investor to the homeowner.
(Cash) mpiper my pleasure
(DonaldB) what would be the potential out could, if you found a deal, got it under contract then the investor backed out?
(Cash) John are you saying how do you tell the home owner someone will call them, if so then tell the home owner someone who is looking for a house like theirs will call them
(Cash) This is why you network one investor drops out another one drops in
(John_NY) Well I guess what I am saying is do you present this relationship up front or establish what is needed with the homeowner to solve their situation and then introduce the idea that someone else will be taking the deal from here
(Cash) Tim you didn't go outside for another one did you I am dying for one
(Douglas) Cash, nah, he got distracted by somethin' I sent to him (TRandle) no, sorry, multi-tasking here and messed up, lol
(Cash) John if you are good enough to handle the negotiation phase then you are probably going to want to do your own deals
(Cash) Now you can hire your own bird dogs and train them
(Cash) What I have found is that investors will train their own bird dogs and are looking for them it will not take long to have investors calling you onece the word gets out
(John_NY) Well I want to learn how to negotiate.... otherwise how do I make that transition. I am a beginner who is very eager to succeed in this business...!
(Gary-TX) As an investor , do you feel that you are more effective working with bird dogs in the local area, or would Reno work for you? Or LA? Do you feel that you have a loss of teamwork if the team of bird dogs are too remote?
(Cash) John I can tell you are eager to learn you however must start at the beginning by being here tonight shows me you have already started
(Cash) If your investing is something that takes you to any area then so be it, I prefer to stay local
(John_NY) Actually I purchased your e-book today I just haven't had the opportunity to read through it yet.
(Cash) I knew you were one of the good guys you will have access to a password protected web site there you will make contact with other bird dogs and investors
(Cash) Brett glad to see you here we need to find you some bird dogs in Las Vegas
(Gary-TX) John, what is the easiest way to tell a bird dog what to look for? A lot of bird dogs seem to think that they should look on for sale by owner websites, and can't understand what an anxious seller is. Some sellers get them self into binds that no investor can get them out of.
(TRandle) John, you're welcome to wind this down whenever you're ready, no pressure here, but you've been going a while, up to you
(John_NY) Can we give web sites here?
(Cash) I will answer Garys question first
(Cash) You train them what you are looking for if you don't then they will keep looking in the for sale by owner web sites train them to your needs
(Cash) It is all about networking people who know people who know people, etc
(Cash) This has been a pleasure lot's of great folks on your site Tim you are to be commended
(KeithMRansom) thanks for your time Mr Cash
(Cash) Thank you all for taking time to chat with me, did I say you all right?
(TRandle) John, thank you very much for your time, and no, it's " y'all "
(Vie) Thank you!
(Douglas) It's always ya'll
(DonaldB) This was my first time in a chat room and I enjoyed it. You seem to know your stuff. I will have more question next time.
(Vie) Yes, but remember -- ya'll is plural.
(Gary-TX) Hey, John, Thank You for breaking away from your fishing.
(TRandle) And thanks to the rest of you for stopping in and participating....
(jac1mill) thanks for the information!
(Cash) Good nite all and thank you for your time my pleasure.
TRandle) Guess that's all folks! Good night...
|John Cash Locke|
|John "Cash" Locke is a private real estate investor specializing in Subject To investing; which lead to his authoring the training manual, Subject To "that's what I do", as well as his e-book, Big Bucks Bird Dogging.|
His background ranges from co-ownership of radio and television stations, which encompassed advertising, marketing and sales as well as many avenues in between.
Real estate investing has allowed John "Cash" Locke to spend more time with his family and friends not allowed in the daily grind while working for someone else. He feels any person with the correct knowledge and willing to apply this knowledge can become a successful creative real estate investor.
His personal commitment to each of his students is to see them become successful as well. This is why he feels it is important that they can contact him via e-mail, fax or personal phone call in order to advise and direct them. No question is unimportant to him.
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