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### What is an ADU?

 

ADU stands for "accessory dwelling unit". An ADU is a smaller residential dwelling unit - commonly referred to as a "granny flat", "secondary suite", "accessory apartment" - located on the same lot as a larger detached single-family home.

 

### Related concepts:

 

- [SFR](https://www.offermarket.us/real-estate-glossary/sfr)
- [Duplex](https://www.offermarket.us/real-estate-glossary/duplex)

An ADU is an Accessory Dwelling Unit, which is also referred to as a "granny flat". There's more to learn at OfferMarket.

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"ADU" is an Accessory Dwelling Unit - OfferMarket Real Estate Glossary

What is ADU in real estate?

#### What is an assignment of contract?

 

An assignment of contract is when the Buyer in a real estate transaction assigns their role to another Buyer in exchange for a fee.

 

The act of one buyer selling a contract to another buyer is commonly referred to as real estate "wholesaling".

 

#### Let's review an example of an assignment of contract

 

Joe is a real estate wholesaler and he notices 123 Main St is badly in need of landscaping and renovation. He does some research and finds that the property was inherited by Greg who lives out of state and has no interest in dealing with the property. 

 

Joe knows several local [fix and flip](https://www.offermarket.us/real-estate-glossary/fix-and-flip) and rental property investors who would buy this property for the right price. He tours the property and conservatively estimates the rehab budget necessary to get 123 Main St to an [after-repair value (ARV)](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value) of similar houses in good condition in the neighborhood. Joe runs some numbers to determine the range that his investors would be willing to pay and makes an offer to Greg for $25,000. 

 

Greg accepts the offer and Joe markets the contract to his buyer's list at $30,000 which is the $25,000 purchase price plus a $5,000 assignment fee. Sure enough Stan, one of Joe's most reliable buyers, offers to pay Joe's asking price. Stan signs Joe's Assignment Agreement where he promises to take over the role as Buyer of 123 Main St and pay Joe $5,000 at closing.

An assignment of contract is when the Buyer in a real estate transaction assigns their role to another Buyer in exchange for a fee. There's more to learn about assignable contracts at OfferMarket.

Assignment Of Contract - Real Estate Glossary

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Assignment Of Contract - Real Estate Glossary - OfferMarket

What is Assignment Of Contract in real estate?

**Step 1:** Buy 
**Step 2:** [Rehab](https://offermarket.us/real-estate-glossary/rehab) 
**Step 3:** Rent 
**Step 4:** Refinance

 

## BRRR Method

 

Buy, [Rehab](https://offermarket.us/real-estate-glossary/rehab), Rent, Refinance. This is a methodology of buying properties in cash or with a [fix and flip loan](), renovating them to increase their value, and then taking out a mortgage in hopes of recouping most, all or even more than your initial investment in the property.

 

## BRRR Meaning

Let's say you buy a property for $100,000 and [rehab](https://offermarket.us/real-estate-glossary/rehab) it for $50,000. Your investment is $150,000. You then rent it out for $1,500/month. You go to a bank or [private lender](https://offermarket.us/real-estate-glossary/private-lender) to refinance the property. The property appraises for $200,000 because of the comparable home sales in the area and the monthly rental income you were able to demonstrate. You refinance into a mortgage loan with a 75% loan-to-value ([LTV](https://offermarket.us/real-estate-glossary/ltv)) ratio. This means the lender gives you $150,000 back which you can use for your next deal. You now have $50,000 in equity remaining in the property. Your outstanding loan principal is $150,000 which you will be paying down with interest on a monthly basis.

 

Keep in mind, you were able to buy off-market for a discount, and renovate cost effectively. This is the primary contributing factor to the $50,000 spread between your investment of $150,000 and the appraised value of $200,000.

Buy, Rehab, Rent, Refinance.  This is a highly effective methodology for high ROI rental property investing.

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BRRR - Buy, Rehab, Rent, Refinance - Real Estate Glossary

BRRR

## Bird Dog Real Estate

 

The bird dog is an important member of the the real estate investing team. In this overview, you will learn about real estate bird dogging. Let's get started!

 

## What is a Bird Dog in real estate?

 

A bird dog is a person who identifies [off market real estate](https://www.offermarket.us/real-estate-glossary/off-market-real-estate) for investors to purchase. In return, the bird dog is paid a fee by the investor.

 

Bird dogs focus on all types of real estate including single family residential real estate (1 - 4 units), multifamily residential, and commercial real estate. The only thing that matters is that the property and/or the owner is in distress or motivated to sell.

 

## Driving for dollars

 

Driving for dollars is when you drive around neighborhoods looking for distressed properties. 

 

## How to find distressed properties

 

The most common "tell" for finding distressed properties and distressed sellers is to look for the following:

 

- Overgrown grass and hedges
- Gutter plants
- Tarp(s) on the roof
- Broken down cars on the driveway or yard
- Worn paint
- Rotted wood (door, trim
- Broken window(s)
- Mail piling up at the doorstep
- Trash accumulating
- Lights are off at night (vacant property)

 

## Who does a bird dog work for?

 

Technically, a bird dog works for themself and provides their services to real estate wholesalers and real estate investors -- fix and flip and rental property investors.

 

## Can I bird dog part time?

 

Many people get into real estate investing by bird dogging part time as a side hustle while working another primary job.

 

## What does Bird Dogging mean?

 

Bird dogging means finding off market properties owned by motivated sellers. A bird dog looks for distressed properties in poor condition, or distressed sellers who need to sell fast.

 

Many blue collar professionals are well-positioned to bird dog. Mailmen, contractors, landscapers, municipal construction workers, cable repair technicians, roofers, truckers and delivery drivers are all exposed to distressed properties on a daily basis.

 

## How to Bird Dog real estate

 

To bird dog real estate, you simply need to be observant and willing to spend the time researching.

 

## How to be a Bird Dog real estate

 

1. Identify distressed properties
2. Identify real estate investors and wholesalers
3. Establish a Bird Dog Agreement with your network of real estate investors and wholesalers
4. Refer distressed properties to your network of real estate investors and wholesalers

 

## Real estate Bird Dog PDF

 

You can make a PDF of your bird dog services and email it, mail it and hand it out to real estate investors and wholesalers that you network with.

 

## Real estate investors looking for Bird Dogs

 

Real estate investors are always looking for distressed properties and are therefore generally happy to collaborate with bird dogs who provide timely and actionable insights that allow them a first mover advantage to submit an offer and place a property under contract.

 

1. Submit properties to OfferMarket and receive [referral rewards](https://www.offermarket.us/referral-program)
2. Network with real estate investors on local Facebook real estate groups
3. Network with real estate investors through your local [REIA](https://www.offermarket.us/real-estate-glossary/reia)

 

## How to become a Bird dog in real estate

 

1. Find distressed properties
2. Do research to ensure the owners are motivated sellers
3. Find real estate investors and wholesalers
4. Set clear terms and expectations for how you will provide your service and be paid
5. Refer distressed properties to your network of real estate investors and wholesalers

 

## Real estate Bird Dog contract

 

You can create a simple 1-page Bird Dog Contract that sets clear expectations for service and payment. Ideally, your bird dog contract will include a non-circumvention agreement so investors do not go around you after you provide the distressed property lead. To be most thorough, you can contact a lawyer and have them draft a contract for you.

 

Email hello@offermarket.us and we will send you our simple Bird Dog Contract template.

 

## Bird Dog for real estate investors

 

Being a bird dog for real estate investors is a great way to learn about real estate investing and make money. Build relationships with real estate investors and members of your community and opportunities will surely open up for you.

 

## Bird Dog real estate software

 

While Propstream and Deal Machine are well-known bird dog real estate software programs, you do not need to pay for software to be a successful bird dog. The most important thing is to train yourself to identify distressed properties and talk to the owners.

 

## Real estate Bird Dog affiliate program

 

OfferMarket works with bird dogs who refer distressed properties and distressed sellers. Learn more about our [bird dog affiliate program](https://www.offermarket.us/referral-program).

 

## Bird Dog fee real estate

 

The fee an investor is willing to pay to a bird dog varies on the following:

 

- value of the property
- status of the distressed property lead
- expected profit or fees the investor or wholesaler will earn

 

Some wholesalers pay a percentage of their [assignment fee](https://www.offermarket.us/real-estate-glossary/assignment-of-contract) for sourcing qualified distressed seller leads. In this case, 25% is a reasonable amount. For an assignment fee of $5,000, that's $1,250. Payment is made at closing (when the wholesaler is paid by the end buyer).

 

Fix and flip and rental property investors typically pay a fixed fee that can vary based on the characteristics of the opportunity. Lead quality, property [ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value), and market supply and demand all influence the fee an investor is willing to pay a bird dog.

 

## Bird Dog real estate contract

 

Email hello@offermarket.us and we will send you our simple Bird Dog Real Estate Contract template.

 

## How to be a bird dog in real estate

 

1. Find distressed properties and motivated sellers
2. Talk to motivated sellers
3. Build relationships with investors and wholesalers
4. Relay distressed property leads to investors and wholesalers

 

## Real estate bird dog agreement

 

We will send you our simple Real Estate Bird Dog Agreement template, simply email hello@offermarket.us.

 

## Real estate bird dog opportunities

 

If a property is visibly distressed or a seller is clearly motivated to sell and willing to sell to an investor, then there is an opportunity for you to make money as a real estate bird dog.

 

Be on the lookout for distressed properties and distressed sellers and build your network of cash buyers.

 

## Real estate bird dogs needed

 

Bird dogs send distressed property leads and motivated seller leads to OfferMarket through our [referral program](https://www.offermarket.us/referral-program). Local real estate investors and wholesalers are generally happy to work with bird dogs.

 

## Bird dog real estate app

 

Deal Machine is bird dog real estate app that you can use while driving for dollars to send postcards and keep track of distressed properties in your market.

 

## Bird dog real estate group

 

Many bird dogs work with a group of real estate investors and wholesalers who agree to pay a fair fee in exchange for distressed property and motivated seller leads.

 

## Bird dog wholesale real estate

 

The skills you will learn and relationships you will build as a real estate bird dog will help you to become successful as a real estate wholesaler and working with real estate wholesalers.

 

## Bird dog meaning real estate

 

A bird dog is a scout who finds real estate investing opportunities.

 

### Related concepts

 

- [Wholesale real estate](https://www.offermarket.us/guides/wholesale-real-estate-101)
- [Off-market real estate](https://www.offermarket.us/real-estate-glossary/off-market-real-estate)

A real estate bird dog is someone to finds distressed properties and sellers of distressed properties for investors.