How to make money like a real estate bird dog

January 27, 2023 0 Comments

There are many ways to earn money with Real Estate. In my opinion, one of the easiest ways to make money in this business is to become a real estate bird dog. Stop before you run out the door! You will still have to work on it. However, many of us believe that it is much easier with fewer headaches than many other techniques.

What is a real estate bird dog??

A real estate bird dog is a person, or in some cases a company, who locates investment properties for investors.

Why would investors pay for a service like this? Simple. Many investors are business people who are busy making money. They don’t have time to search for good deals in the major real estate markets. This is where you come into play.

That I have to do?

The most important thing to know to become a successful bird dog is to know your local market. To do this, Bird Dogs seek out relationships with real estate brokers, agents, bankers, lenders, and anyone else who might have knowledge of a good investment.

In most markets, the bird dog will be someone who already works in real estate, for example, an agent or perhaps an assistant to a real estate agent. However, I know Bird Dogs that do nothing more than find investment deals for investors.

How do you make money with this?

Typically, once a bird dog finds several investments or investment leads, it presents them to the investor. When/if they buy the investment, the real estate birddog is paid a service fee which is usually a percentage of the investment price or could be a flat fee, it depends on the birddog.

What are the advantages?

One advantage is that once you turn the property over to the investor, your job is done. You don’t have to worry about setting up financing, inspections, or any of the other headaches that can come with investing in real estate.

How much can a real estate bird dog expect to earn?

Obviously, it depends on what percentage of the deal you decide is worth your time and effort, but some demand a finders fee as high as 10%. I’ve heard of higher fees, but most I know of are in the 3-6% range.

Are there any disadvantages?

Well, for one, in some states, if you find real estate for an investor and then charge a fee, they feel like you need a real estate license. Check with the state you live in before getting into this.

Whatever you do, get everything in writing. At worst, you’ll have to take some night classes and get your real estate license. There are worse things to do! At the very least, you’ll just have to start networking with the industry in your market to start becoming a dog bird real estate.

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