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!
A bird dog is a person who identifies 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 is when you drive around neighborhoods looking for distressed properties.
The most common "tell" for finding distressed properties and distressed sellers is to look for the following:
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.
Many people get into real estate investing by bird dogging part time as a side hustle while working another primary job.
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.
To bird dog real estate, you simply need to be observant and willing to spend the time researching.
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 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.
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 email@example.com and we will send you our simple Bird Dog Contract template.
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.
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.
OfferMarket works with bird dogs who refer distressed properties and distressed sellers. Learn more about our bird dog affiliate program.
The fee an investor is willing to pay to a bird dog varies on the following:
Some wholesalers pay a percentage of their assignment fee 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, and market supply and demand all influence the fee an investor is willing to pay a bird dog.
Email firstname.lastname@example.org and we will send you our simple Bird Dog Real Estate Contract template.
We will send you our simple Real Estate Bird Dog Agreement template, simply email email@example.com.
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.
Bird dogs send distressed property leads and motivated seller leads to OfferMarket through our referral program. Local real estate investors and wholesalers are generally happy to work with bird dogs.
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.
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.
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.
A bird dog is a scout who finds real estate investing opportunities.