What is the best way to start? Bird dog? assignments?

Often times when a person is using "no money down" techniques the direction they go depends on the deal. For example: you can act as a bird-dog or property finder on any property including those owned by a bank.

Most people charge 1,000-3,000 depending on the deal, however a friend of mine, Ali Safavi in Los Angele's charges 10,000-15,000 as a finders fee.

Assignment of contract is great for those willing to put property under contract and then sell the contract to their buyer for more money. Unfortunately most banks will not allow this so a regular assignment will not work on short sales and bank owned or REO properties.

You could use transactional lender however and do a double close on these properties because you are in fact buying them with this technique even though it may only be for a few hours.

So, look at the deal and the investors you have lined up and go from there.

Wish you well!

thanks for the advice!

Anyone out there looking to have bird dog? Send me a pm with the details.

I had the same questions when I got started, so I have been Birddogging,this way I build up capital and also confidence.Since doing this I have become very relaxed and able too speak with these Investors like I have been doing this for years.Do some Birddogging then , find a property the same way, then put it under contract and make more money on an assignment.
Hope this helped.

Curtis Fillers
(Charlotte,NC)

What exactly is bird dogging? I have an idea of what it is, but I can't comprehend it exactly and its benefits ? How is it beneficial for a starter like kittylover500 and myself ?

-Gabriel Do Carmo

From my understanding it is finding deals for other investors to jump on and collecting a finders fee, and its beneficial for the fact it requires no money of your own. Your not risking your credit or cash so it is safe and a good way to get familiar with REI without putting yourself into a whole because a deal didn't go through.

I hope this helps

Thanks a lot for the info.
So is it kind of a under the table thing or is it official ? It seems pretty big since there is a unique name dedicated to it. And if you have experience in doing this can you please give me examples/specifics ?

-Gabriel Do Carmo

I personally have not done it yet but I have been reading alot. I'm not sure if its off or on the books thats a good question.

You have heard the saying that talk is cheap. A reminder to anyone who reads this, So far I have had two people I found on this site who have been a lot of hot air. They painted a pretty picture and talked the talk. WATCH OUT! Before you bird dog for someone, always get an agreement, and if they don't come through,... say NEXT!
Since we are online, the other person can tell us anything they want. Just like dating sites or adults that tell kids online that they are also a kid, and to meet them somewhere. Its sad to say, but you can't trust someone just because they are a Graziosi family member. Get an agreement in writting and have your attorney or some one you trust look at it before you give away any info. Most of the people are really helpful and I appreciate them, but be smart.

Charisse is right! Alot of people(I can see them a mile away)are asking for bird dogs and they have not done a deal themselves!! They don't have the ability to close and just want to assign your deal IF they can find a buyer!

On the other hand I work (try to) with bird dogs that have NO idea what a wholesale deal is. They constantly waste my time with LAME deals. So even if you are just bird dogging you need to know how to establish true AVR with sold and currently listed comps(not from some website!)but from a realtor that KNOWS the area. Then you must know how to estimate repairs (costs) correctly! THEN you present your deal to your buyer.
EXAMPLE: True ARV is $150,000
Re hab is $25,000
Your buyer wants to net $25,000
You want to make $1,000 BD fee
Closing costs and commissions when your buyer lists it on the MLS after rehab.
$10,500
Don't bring this house to me for more than $88,500 and be prepared to back up your numbers. If you do this you won't be bird dogging for long!

Hope this helps,
Michael Mangham
MD Home Acquisitions LLC

http://www.mdhomeacquisitions.com Seller site
http://www.mdhacq.com Seller site
http://www.mdhomea.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird dog, door knocker site

This site had offered some great information about birddogging.
http://www.biggerpockets.com/articles/bird-dogging101rb.html
Evaluating properties is simple especially once you develop a system.Develop relationships with realtors and they can lead you to potential deals. Keep learning and asking questions.

Every person that is trying to bird dog or assign contracts or bid on REOs should read that article 10 times. Cash buyers are easier to deal with than re habbers that use hard money.
My realtors give me deals that I usually offer 20% or more under their "good deals". What are you going to do if you are offering on a property directly with a homeowner? Also, most realtors don't give very accurate re hab estimates

Great post Rpaisleyjr!!

Michael Mangham
MD Home Acquisitions LLC

If I'm offering on a property directly with a homeowner, much of the process is still the same. The difference being you would have to contact the home owner and negotiate directly with them. As for my previous post, I meant that a good way to find undervalued properties would be through a realtor. You should always do your due diligence and get your own estimates or have someone qualified to do them for you.

is something I had problems with my birddoger. He was saying I need to go to the courthouse directly and stay away from RE agents. What I am hearing here is a contradiction to what I am being told. I have tried to get properties for them with RE agents and they said it wasn't working. I will try a different strategy. Thanks for all the help.

Am I really unrealistic to think I could actually purchase a property with no money down?After all, that is what I was told time and time again but I have yet to see an actual testimonial where someone actually did that. Everyone says they made money with REI but it always starts by saying how they found a good deal and bought it and made profit or cash flow ect... One student says he sold everything he owned for his first down payment. What if thats not an option?? I just want to know,can this REALLY be done without having any money or is it just a pipe dream?? I have nothing but time and tons of motivation. Can someone help me without telling me to buy some other program,book,cd, or join some club that costs more money?

i did my first deal through a realitor,I made offer on about ten houses,doing homework on the area. The house I bought belong to a family that was moving to Fla. I sent pay to his finance company,he would check if I was making payment. I set it up for 2.5 years,put $1500.00 down. In a year and two months
I refinanced the home...my first rental.

Hi Curtis, I saw and read your post and was wondering
if we could a brief conversation by phone. I wanted to
talk with you about bird dogging.

Thanks,
John

Everyone here has definitely contributed something good here, especially the ones with helpful links. Yes you need to be smart and careful about ur decisions, and yes you need to do your due diligence and other leg work to profit successful with Bird Dogging or Assignment of Contract. I think what everybody seems to understand already is that Bird Dogging and/or Assignments may be a great way to start out in Real Estate Investing, but there is a complex process involved that requires serious focus and effort. If done right, the reward is worth it in the end. AND EVERY ONE OF US CAN DO IT!!!!

x2 here in southeast ohio! i already know of some properties!

Hi Jeff,

As a academy student this is great advice. I would like to know however if the finder fee agreement should be put under contract? Another question is some people I have spoken say they are looking to buy what is not in the MLS. That I assume being FSBO's or preforeclosures. How can we make a finders fee deal for this type of buyer?

Thank you

Hector

Put the property under contract and assign the contract to your buyer for more than you paid. Collect your "assignment fee" at closing. It is so easy when dealing directly with the home owner.
Dive deeper into the studies that are available to you through the academy!! What did the coach say when you asked this question? Also, go to every REI meeting you can find. Talk to real investors (the ones that have properties for sale)ask them questions. Talk to the person running the meeting, ask him who tom talk to etc etc etc.

Good luck,
Michael Mangham
MD Home Acquisitions LLC

Mike

This article is no longer posted. Is there a similar article?

Thanks, Anton

Don't close your mind to either one. They are to a degree similar to a point. Set yourself up so a deal could work out in either form . You will have a back up plan , beside exit stage left, which doing the exit stinks and is costly!! At least the bird dog deal should cover your costs plus some for the pocket.

Hi

I'm living in Germany thanks for the tips on birddogging.

I think this is a good place for me to start. Most of which I can understand I can do from a distance. With little risk.

Is there a checklist of important things to look out for in the birddog agreement so that I do not miss my cut?

Daniel Wood
the Brit in Germany

Looking for investors that want to invest in NW Arkansas. Lot of good deals here. I will help with getting them rented out for you. Eric C.

how do get those investors interested

So birdogging.. Let me know if I'm correct! Find the property! Lock it up on contract! The contract that can be used are in the student resources center on this very website. Does locking it up mean you give the seller earnest money?
And last step passing it to a potential buyer. Its a whole lot in between, but Im not familiar with the steps in between that, I just want to know if I got at least that outer layer part right..

HI ALL,
I have a list of investors ready to buy properties.
Pay cash and close quickly.
We are looking for deals that are at least 30% below market value,any condition .
I'm looking for deals that are OFF THE MLS !!
I will look at anything that is not yet listed.
All you have to do is email me with the lead and I'll do my due diligence.
When escrow close you get paid a finders fee.
Please contact me if interested

Serious inquiries only !

Looking to bird dog for someone in San Diego.

I am working with a buyer that I am going to send his way with a finders fee for me. does any one know of any type of form that can be used like a contract for that finders fee