What is a Real Estate Bird Dog & Should You Try It?

Share on Facebook0Tweet about this on TwitterPin on Pinterest1Share on LinkedIn0Digg thisEmail this to someone
real estate bird dog

Anyone who has considered real estate investing when they are cash-challenged has probably read about becoming a “bird dog.” This activity is said to be both a great learning tool to get your feet wet in real estate and it’s something you can do at the basic level without investing any cash of your own. Let’s take a look at how bird dogging works first.

Basic Low Involvement Low Return: At this level you’re simply locating possible deals for real estate investors. You’re not doing any deep research into the viability of the investment, instead simply giving them an address of a property that seems to be either vacant, in pre-foreclosure, or a bargain buy because the homeowner is in a distressed situation. At this level you’re basically just providing addresses and they’re just leads to the investor. They will give them a quick look, toss most of them, research a few, and maybe even act on one or more.

Of course, you’re not going to get paid a lot for this, but you’re not really spending any money, other than the vehicle cost to drive around and look for these opportunities. You may find an investor willing to pay you $25 or $50 each for these leads, but if you don’t deliver a good one now and then, your income stream will dry up. There is probably more hype about the opportunity for you at this level than there is true income, but there are investors willing to pay for leads like this.

Do More Research – Earn More Money: There are partnerships between property locators and very active investors that could be called a bird dog relationship, but they’re much more than the basic lead-locator level activity. If you can become a really effective resource for investment opportunities that aren’t yet discovered by the competition, you could enter this more elite group. The other requirement is that you do more research, and even do some basic qualification of the property as a good candidate for a flip or long term rental investment.

One very effective team consists of an extremely active and well-capitalized investor who pays his property locator $1000 per deal! Of course, the investor has clearly outlined their criteria for properties, locations, and their desired profit margin. The locator person understands the math and valuation information required to determine what makes a good deal, and they do the research necessary to bring only really good opportunities to the investor. Two out of three or more of these deals get done, and the investor pays when they close.

In reality, you can probably count on a few hundred dollars in most cases, but it’s all about the requirements of the investor and your ability to bring them deals that their competition hasn’t discovered, allowing them to cut a great purchase deal and realize their profit goals.

So, the answer to the first part of the question in the title is that there is indeed a viable opportunity in becoming a bird dog for one or more active real estate investors. As for the second part, should you do it, that’s up to you? It’s a low level investment in dollars, but it will take some time and study to get involved.

Share on Facebook0Tweet about this on TwitterPin on Pinterest1Share on LinkedIn0Digg thisEmail this to someone
About the author

Doug Clark

Star of Spike TV's FLIP MEN. RealtyTrac.com Training Partner. #1 Real Estate Trainer Worldwide

More articles by

No Responses

Leave A Response

Your email address will not be published. Required fields are marked *

Connect With Us

Recent Posts

Pragmatics and Learning Disabilities

If you are going to follow the preceding told composition writing structure, I’m confident you’ll be capable enough to impress your teacher. The author must have a exceptional composition composing skills and capacities. What this… read more

How-to Compose Investigation a Synopsis, and Result Essay Document with Instances

The aim of writing this kind of composition may be to inquire and investigate. A good deal of preparation ought to enter your article before beginning writing it. What you find yourself performing here greatly… read more

While Composing That Draws

Academic essays ought to be composed in a official type. It is possible to get essays only at that time on our site Questions to inquire of your own essay articles could be beneficial. Standard… read more

The 50 greatest author vs. writer put downs of them all

Firstly, I d desire to reply my own question, cooking is essential for females for their specific great, the craft of cooking is among the primary skills on earth. It truly is innovative but actually… read more

How to Publish a Novel that is Quick

You’ll be working with the top educational writing team within the business as well as your documents will probably be top-quality. The purpose of the business alone makes this among the greatest composition services. On… read more