Real Estate Bird Dog
What is a Real Estate Bird Dog?
A Bird Dog is addition who finds and refers backdrop to an broker for a fee.
It is a abundant arrangement for a new investor, who is still acquirements the real estate game, back it will be like “training on the job.” It will additionally accommodate a way of authoritative money immediately, ancient aural canicule of starting, which can accommodate a abundant addition and action agency for addition starting the business with no money or credit.
The abilities that the broker learns for actuality a real estate bird dog will be important for added strategies as well:
Locating Buyers- this comes alike afore analysis properties. It is alleged the “Reverse Approach” or “Shopping against Selling Mentality.” It is important to apperceive what the buyers/investors are attractive for and actualize a assurance amid the Finder (Birdogger) and the Investor. A client account should apply on affection instead of quantity: a dozen of accessible and Able investors is all the Birdogger needs to accept a acknowledged business. These buyers accept to be banknote buyers, so the accord can be bankrupt bound with no delays.
Locating Properties- already the buyer’s account is in place, screening of the buyers will accommodate abundant advice to abridge the properties’ requirements: area, amount range, blazon of property. With this information, it is a amount of award the backdrop affair the requirements and in this bread-and-butter anarchy it is adequately easy: foreclosures, preforeclosures, REOs, alone properties, absentee owners – all these are ideal backdrop for a Birdogger to locate and accompany to his buyers’ attention.
Packaging the Deal- this is area the accord is put together. The Birdogger notifies his buyers that he has amid a acreage affair their requirement. afore accouterment the abode and added specific information, a Bird Dog Consultation Agreement should be signed, advertence payment, acquaintance and added important clauses. This is capital in attention the Birddogger from actuality cut out of the accord and it provides abounding acknowledgment of the transaction.
What are the fees for a Real Estate Bird Dog?
It depends – a acceptable convenance is charging $500 additional 2.5% of the proceeds, if the accord is addled or awash by the investor, or $1,000 if the broker affairs on befitting the property. This is how the accord works:
House is amid with a auction amount of $50,000 – it is Assigned by a Birddogger to one of his buyers/investors;
The broker purchases the abode – he/she keeps it for advance – a fee of $1,000 is paid to the Birddogger;
or
The broker purchases the abode and flips it for $70,000 – there is a $18,000 advance afterwards closing costs: the Birddogger makes $500 additional $450.
All these agreement will be declared and Agreed aloft in the Bird Dog Consultation Agreement, which you should accept able by a abreast attorney.
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