Let’s start by asking the question - what is a bird dog?
At first, you may recognize this as a hunting term referring to a dog that retrieves the birds you shoot. However, this is not the type of bird dog we’re referring to. Instead, we’re talking about individuals who identify promising real estate investments for others and earn a commission while doing so. Generally, this means that bird dogs do not directly invest in any properties themselves.
What kinds of properties do bird dogs look for?
Typically, a bird dog will want to identify properties with the biggest potential for return on investment. This can help them earn better commissions for their efforts. In most cases, these types of deals come in two forms:
Distressed properties: This refers to an opportunity where the seller has a desire to liquidate the property as soon as possible. The added sense of urgency usually translates into discounted prices. Hence, distressed properties can offer an attractive return once some repairs are done.
Underpriced properties: You can never go wrong with underpriced properties. These are typically positioned as ideal income properties, such as rentals. Since less time will be required to recoup one’s initial investment on the property, it offers a much better return than if it was priced at normal levels.
Given that there is more legwork involved in finding these two property types, it makes sense that investors turn to bird dogs. Also, from the bird dog’s point of view, there are better commissions to be earned on these types of deals.
Who is the right type of candidate for this type of work?
For those who are new to real estate, it helps to work for someone with extensive industry experience. This way you can leverage their expertise and learn about what it is that you should be looking for in properties.
However, we do have a word of caution when it comes to becoming a bird dog in the real estate industry. It is common for people to promote the idea of getting involved in real estate without any required capital investment. Instead, they pitch the idea of not requiring any money down and simply collecting money from referral fees. While the allure of this can be quite appealing, it’s important to know that the best bird dogs in the industry are those with extensive real estate experience and knowledge. It is not recommended that beginners get into this as a way of earning a quick dollar.
The benefits of being a bird dog.
There are many benefits of becoming a bird dog in real estate. The fact that you will be spending more time searching for deals than operating properties is unique in its own sense.
Potential for easy repeat business. If you are good at what you do it can lead to repeat business. Once you build a network of ready-to-buy investors, it can be very easy to earn commissions with each new deal you discover. Rather than having to wait and try to find an investor, you can turn to your network of ready-to-buy investors and sell them your discovery.
Hands-off approach to real estate. Being a bird dog is hands-off in the sense that you don’t have to engage in any of the typical work involved with maintaining a property. All you have to do is find the good deals and present them to an investor before earning yourself some money.
Commission rate reflects quality of deals. Depending on the profit potential of various deals, your commission rates will be proportionate to the quality of the deals you identify.
Full control of your earning potential. Since compensation is commission-based, your earning potential is entirely in your hands.
Getting past the learning curve pays off. Over time, you will discover exactly what it is that makes a good investment, as well as new strategies for identifying ideal properties. Eventually, you will be able to develop certain tactics and methods making the process even easier and quicker.
You can become very valuable to real estate investors by becoming a respected bird dog in your market. After all, today's market is filled with many opportunities. Our Elite Legacy Education trainers will introduce you to proven strategies that can help you launch your career as a successful real estate investor.
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