So you’re interested in real estate investing? Great! There are many different ways to get involved in this exciting industry. One popular method is bird dogging. What is bird dogging, and what does it involve? Keep reading to find out!
What Is Bird Dogging in Real Estate?
It’s a term used in the real estate industry to describe the practice of finding and then reporting on properties that may be suitable for development or renovation. Bird dogging can be done by individuals or companies specializing in this type of work.
Either way, the goal is to identify properties that have potential and then provide information about those properties to developers or investors.
How Does Bird-Dogging A House Work?
Bird dogging generally involves four main steps: research, scouting, marketing, and closing. The first step is to research a particular market or area to find properties that fit the criteria set by the developer or investor. Once potential properties have been identified, the bird dog will then visit those properties to assess their condition and confirm their suitability.
The next step is to market the property to potential developers or investors, often through listing services or personal networking. Finally, once a buyer has been found, the bird dog will help facilitate the sale and collect their fee.
Bird dogging can be lucrative, but it requires dedication and hard work. Those who are successful in this field tend to be good at research, have keen eyes for spotting potential, and are skilled at marketing and networking. If you’ve got these qualities and are interested in real estate investing, bird dogging may be the perfect fit for you!
How much can one make?
These agents typically work on commission, so they only get paid if they successfully find a property that meets the investor’s criteria. The commission varies depending on the type and location of the property, but it typically ranges from 2-5% of the purchase price.
For example, if an investor buys a $200,000 rental property, the bird dog would earn a commission of $4,000-$10,000. While this may not seem like a lot of money, it can add up quickly if the agent can find multiple properties for investors.
In addition, many bird dogs also receive referral fees from investors when they successfully close a deal. These referral fees can be significant, often equal to or exceeding the commission earned on the original sale. As a result, bird dogs can potentially earn very good money if they can build up a clientele of successful investors.
Pros and cons of bird dogging
- Requires little or start-up cost
One of the main benefits of bird dogging is that it requires minimal start-up cost. In most cases, you only need a vehicle to get around and some basic office supplies.
- Can be done part-time or full-time
Another advantage of bird dogging is that it can be done part-time or full-time, depending on your schedule and preferences. This flexibility makes it an ideal side hustle for those with a full-time job or other commitments.
- Creates networking opportunity
Also, bird dogging can provide an excellent opportunity to network with other professionals in the real estate industry. As you meet new people and work on deals, you’ll expand your network and potentially open up new doors for future business opportunities.
- Requires time and effort to be successful
Although there are many benefits to bird dogging, it’s essential to remember that it requires time and effort to succeed. You won’t see results overnight; it will take hard work and dedication to find properties and close deals.
- The income can be sporadic
Another downside of bird dogging is that the income can be sporadic. Since you only get paid when a deal is closed, there will likely be times when you go several weeks or even months without earning any money.
Bird dogging vs. wholesaling: Which is better?
Now that you understand the basics of bird dogging, you may be wondering how it compares to other real estate investing strategies. In particular, you may be wondering if wholesaling is a better option than bird dogging.
While both strategies can be profitable, there are some key differences that you should keep in mind.
- Wholesaling requires more capital
One of the most significant differences between bird dogging and wholesaling is the capital required to get started. Wholesaling generally requires more money because you need to have the funds available to purchase the property outright. This is not typically an issue with bird dogging since you are not buying the property yourself but simply finding it for the investor.
- Wholesaling takes more time
Another difference is the amount of time required to be successful. Wholesaling generally takes more time than bird dogging since you need to find a property, negotiate the purchase price, and then find a buyer for the property. This can often be done relatively quickly with bird dogging since you are simply finding properties that meet the investor’s criteria rather than negotiating the purchase price and finding a buyer.
So, which is better – bird dogging or wholesaling? The answer depends on your circumstances. If you have more capital available, wholesaling may be a better option. However, if you have less money to invest and are looking for a quicker way to make money in real estate, bird dogging may be the better choice.
No matter which strategy you choose, remember that success in real estate investing requires time, effort, and perseverance. You can succeed with bird dogging or wholesaling if you’ve got the effort.
There you go – everything you need to know about bird dogging. This real estate investing strategy can be a great way to make money, but it requires time and effort to succeed. If you’re willing to do the work, bird dogging could be an excellent option.