Find Best Real Estate Bird Dogs Near You

Similar to hunting bird dogs, real estate bird dogs find the quarry (property investment opportunities) and point it out to the hunters (real estate investors). Their job definition can be as simple as being property locators for investors. Sometimes a real estate bird dog is wanted so that the client can spend more time growing their business. They may ask the bird dog to do some level of analysis of the properties being submitted. Occasionally the bird dog will go farther and contact the seller to determine their disposition to a sale. Wholesale real estate bird dogs deal with real estate wholesalers who take the referral and negotiate a contract with the seller. Whether the bird dog’s client is an investor or a wholesaler, they are looking for undervalued properties and sellers who are motivated to sell quickly. In many states, broker licensing laws focus on interaction with the public, meaning buyers and sellers. Real estate bird dogs need to be aware of their state laws when contacting sellers so that they do not put themselves or their clients in a difficult position.

A real estate bird dog’s time is split between finding clients and learning all they can about the real estate markets in their area. Bird dog’s knowledge of real estate activities in your local area is key if you are going to hire a real estate bird dog. The investors and wholesalers who bird dogs work for are looking for properties that are undervalued so that they can achieve good profit margins. The undervaluation could be caused by property values declining in that neighborhood, or by the individual owner’s financial circumstances. If someone has to sell quickly then they aren’t likely to get a good price for the property. Real estate bird dogging involves researching areas where property values have dropped. Areas of high unemployment or recent layoffs will also be noted. These factors often create motivated sellers. The bird dog will target neighborhoods like these with marketing signs and direct mailings to find prospects. Some will specialize in a particular kind of investment property: there are multifamily real estate bird dogs, single family home bird dogs, the ones specializing in commercial property, and others. This will dictate where and how they spend their time. Having their own referral sources like lenders and property inspectors can help a real estate bird dog to meet their clients’ needs more effectively.

When an investor or wholesaler uses a real estate bird dog, they are basically outsourcing their research to a third party services provider. A real estate investment company could hire someone to be an in-house bird dog and pay them a salary, but most real estate bird dogs are independent contractors receiving commission income for each separate deal. An experienced client will only pay based on a successful closing of their purchase of the property. Bird dogs’ fees are either paid with a flat fee or sometimes with a percentage of the transaction. Fees can run from $1,000 to $7,000 or from 3% to 6%. The size of the flat fee or percentage amount will depend on the level of service provided by the bird dog. If an experienced bird dog performs valuable analysis that helps the investor, they can charge more than if they just point out lucrative deals. Top house flippers will sometimes negotiate a percentage fee based on the amount of profit that they realize. The bird dog and their client should protect themselves with a written contract that specifies the terms of payment.

A real estate agent has obligations that go far beyond those of a real estate bird dog. A licensed agent has responsibilities to the buyer and seller that require that they be actively involved in the transaction from start to finish. Most states require that approved documentation and disclosures be used and that all records of the sale be maintained for a certain period of time. Agents can, however, receive referral fees for transactions where their obligations are less. If they wish, they are uniquely positioned to perform the function of a bird dog. Sometimes agents become aware of homes that cannot be listed. Perhaps the mortgage balance is less than the value of the home, or foreclosure is imminent and there isn’t enough time to market and sell the property. In these circumstances, it would make sense for them to pass on potential investment properties to knowledgeable investors for a fee. A good agent is active in the market and has relationships with other real estate professionals. This may give them knowledge of other properties that are not prospects for listing but which would be desirable to investors. They also have access to the Multiple Listing Service (MLS) and could search for properties that would fit an investor’s property profile.

The major difference between a real estate bird dog vs a wholesaler is that the bird dog hands off a potential deal to their client, while the wholesaler packages that deal for their client. A real estate bird dog will locate a potential property, analyze it at least enough to make sure that it meets the investor or wholesaler’s needs, and then pass it on to their client. Some bird dogs will do a more in-depth analysis of the property and seller, but they let the client handle any negotiations. Once a wholesaler has located a suitable property, they will negotiate a price with the seller that is lower than what an investor will pay. Next, they enter into a contract with the seller that allows them to assign that contract to another person. Then the wholesaler sells the contract, or the right to buy the property for an amount that is higher than the seller’s price, and the difference is their compensation. A real estate wholesaler’s only investment may be an escrow deposit and they face low risk. A real estate bird dog’s only investment is their time and they take on no risk.

Sometimes “informal” bird dogs can be found by talking to people that you know. Landscapers, delivery people, home repair professionals, and others may occasionally learn about vacancies or distressed property situations. If you are a buy-and-hold investor, your existing tenants could be a source of information about neighborhood properties that might be available for below-market prices. Active real estate bird dogs are a more consistent source of referrals and should be part of your networking sphere of influence. Real estate professionals that you regularly deal with such as attorneys, home inspectors, and mortgage lenders might be able to connect you with a bird dog. It would be a great use of your time if you could access a list of the best real estate bird dogs who are active in your local area. You can, at HouseCashin. Our directory of real estate investor bird dogs will guide you to the top-rated professionals you are looking for to expand your market reach. Choose your location on this very page and see the list of the best real estate bird dogs in your area.