The world of real estate investing is exactly the same; most investors belong to the herd at the bottom of the pack. They make very little money investing in real estate and are just producing enough money to survive. Conversely, there are a few highly skilled lions in the real estate jungle that are constantly seeking opportunity. These lions look for weak gazelles that can no longer operate and are looking to acquire their properties at a discount.
The jungle can support far less lions than gazelles because even the weak gazelles are hard to catch. The fastest, cheapest and easiest way to get started in Real Estate Investing is to become a bird dog. Becoming a bird dog requires zero dollars to start and your job is to find and build a database of real estate investors. With your real estate database built, you will then generate leads of buyers and sellers and sell the leads to your database.
Some bird dogs create a subscription service where for a monthly fee, they will send other investors lead flow for a flat rate. Wholesalers acquire properties under contract though they are never official owners. Bird dogs simply hand over information to investors without ever securing the property with the potential seller. Both opportunities are great springboards into the real estate industry, as they can help beginners earn income to invest in real estate eventually.
Generally speaking, there is more responsibility involved with wholesaling, and for that reason, this method can be more open to those without any experience.
Learning how to bird dog in real estate will take a lot of initiative on your part, but with dedication, you can turn it into an excellent source of cash flow. The absolute first step you should take is to look up the relevant laws in your area. Familiarize yourself with what you are allowed to do to avoid any problems when you start referring properties to investors. Another great step as you get started is to find a mentor in your area.
Research real estate Facebook groups, LinkedIn pages, or even local events to find other investors who got started by bird dogging. It may take some time to find the right mentor, but their advice will be invaluable. Once you have a solid place to start, put together a sample contract for your future referrals.
The only way to guarantee you are paid for your time and work is to get it down in writing, so make sure you have a contract ready to go when you start searching for properties. From there, you can start looking for potential leads. There are several ways to find distressed properties in your area , and you will likely need to employ a few techniques to find undervalued properties.
As you start your search, remember to build relationships with potential investors in your area simultaneously. This will help make sure you know exactly who to bring each deal to.
Remember, it will take time to build a network and get familiar with the market area. You will learn more with each property you refer and each investor you work with. The most important things to keep in mind throughout this process are staying within the local laws and protecting yourself through contracts.
Include any other terms, conditions and contingencies that you may have negotiated with the investor. There are some great pieces of software, such as Propstream , which aggregates possible and actual properties to target.
It even includes a feature that maps out optimal driving route when driving for dollars. Real estate investing requires capital, and that can be hard to obtain as a beginner. Luckily, there are numerous strategies — such as bird dogging — that provide an excellent way to build up your finances and connections at the same time.
Remember to consult the laws in your local area before doing anything and think about whether this opportunity is right for you. Bird dogging will require time and patience to become successful.
When done right, it can provide you with the funds to eventually purchase your own investment properties. Key Takeaways What is bird dogging? Real Estate Investing Strategies. See All. By Paul Esajian. Join FortuneBuilders Blog! By continuing to use our site, you consent to the placement of our cookies on your browser.
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