The world of being a bird dog
This is one way to get in to real estate investing without any money and you will get paid 2 different ways. Bird dogs make money by finding deals and by getting a free education.
What do bird dogs do?
Bird dogs go out and find good deals for investors and turn over this information for a fee. They are not involved in the actual transaction at all, once they find a potential deal they let their list of investors know about it and if the investor buys the house they write the bird dog a check. There are a thousand different ways to find deals and it is up to the bird dog to figure out how to find the deals. They can call for sale by owners, they can call vacant rental properties, word of mouth and by driving around looking for vacant or run down houses.
How much do bird dogs make?
How much the bird dog can make depends on the deal, the investor and how much work the bird dog actually does. Some investors want just the address and they will take it from there, while others want to see comps, asking price and all available information. Obviously the more work and investigation you can do the more you should be paid. Most bird dogs make between $500 and $1,000. One or two deals a week should pay the bills.
The benefits of starting as a bird dog?
While you are out finding deals and running them by investors you will learn to tell the good deals from the ok or the bad. This is huge because if you find a bad deal, who cares? You just move on to the next one. If you jump in as an investor and purchase a bad deal you could be out thousands of dollars. As investors get to know and trust you, then you can ask if they will let you sit in on the negotiations and closing process. This is all a free education, well actually you are getting paid to learn.
Bird dogging can be done part or full time and takes no investment from you other than hard work and time. Treat it like a business and keep it professional. Remember everyone you meet may be a future partner and first impressions are huge.