A person who is usually paid a referral fee for locating a distressed real estate property deal is known as a bird dog. A bird dog is also known as a dog scout, property finder or a real estate jobber. The referral fee is usually based on an agreement with a real estate investor. The real estate investor pays the bird dog for sharing motivated sellers leads. The bird dog is also paid for distressed property leads.
One should ensure that they get the proper facts and knowledge when starting a flipping houses business. The only question is whether house flipping is illegal or not. Flipping is a practice of buying a house at a lower price and quickly selling it at a higher price. Most of these houses are usually connected to some illegal activities either in the past or currently.
There are several advantages and disadvantages of starting off as a bird dog. An advantage is that one is able to familiarize with house flipping business. It is easy to generate a list of active buyers of income property investment. It contains minimal risks when making money in house flipping transactions. As one gets experience in flipping houses, they are able to know if that line of business suits them. In the process, one is able to make marketing funnels for the discounted properties. One is able to be educated on real world property investment. The disadvantage of being a real estate dog scout is that one is paid less as compared to if they assigned the deal directly to the investor.
The contract deal does not contain the name of the dog scout. A bird dog basically links a seller who needs to sell their property fast with an investor. A bird dog locates that seller who is having difficulty in locating somebody to buy or invest in their property. A bird dog does not sit down to make or sign contracts with the seller. That job is done by the investor and seller only. Negotiation of contract terms is also done by the investor and not the bird dog.
A bird dog is usually paid little as compared to those wholesaling properties. However, it is safe to start that way before getting into handling a lot of money. If a bird dog gets a contract to be successful, they can earn in a very short period of time. An investor who does not have a bird dog in the real estate field rarely do they get as successful as those who use bird dogs. Bird dogs hunt down properties and deals that need to be sold fast. That is why they are also known as property finders.
The bird dog will familiarize in areas such as short sale deals, lease option investing, rental property investing and wholesale real estate. In other words, the education and experience a bird dog gets while being involved in the real estate industry is a lot. A lot of popular and successful real estate investors have their roots as bird dogs. Either way, a successful bird dog has to have a positive attitude and determination to survive in the real estate industry..