Your Real Estate Bird Dog Information HQ Online
A real estate bird dog (deal scout or real estate jobber in some circles) is someone who gets paid a referral fee (based on a joint venture agreement with a real estate investor) to locate distressed property deals and prospects.
As a real estate bird dog, you get paid to share motivated seller leads or distressed property leads for which active real estate investors are willing to pay.
I know from personal experience that it's one of the most practical ways to pick up the distressed property investing education you'll need if you plan to get into flipping houses as a business.
It's also especially appropriate when you have very little money to work with and very little market knowledge or confidence with which to get money.
Why Start Out As A Real Estate Bird Dog?
The advantages of starting out with bird dogging properties for investors should be intuitively clear from the information I've shared with you above.
Some of them are:
Could there be any disadvantages to trying your hand out at making money being an investment property deal scout?
Well, you're going to do as much learning, as much prospecting, and as much networking as if you were wholesaling real estate, but you're only going to get paid a smaller fraction of what you could make if you assigned or re-sold the deal yourself to an investor.
What's the difference?
As a real estate bird dog, you don't have to sign your name to a contract. All you have to do is find someone who needs to sell their house fast, or has difficulty selling, and clue a wholesaler or an investor in (you may have the seller contact your wholesaler/investor).
If they're a wholesaler, they'll contact the property seller in question, screen them for motivation, negotiate contract terms and have them sign a real estate purchase and sale agreement.
They have a little more at stake because they get into an agreement with the seller, you don't.
The fact that bird dogging is less lucrative than wholesaling properties, also means that when you do hit a pay day, you may not have as much money to start your wholesaling business with a bang.
However, if you think that having the confidence to put your name (or the name of an LLC you control) on a purchase and sale contract might be too much for you in the short term, being a deal scout is a great way to go.
More on Deal Scouts
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