What’s a Bird-dog?

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If you’re thinking about being a bird-dog, you may want to rethink that decision. You see, it’ll take a lot of training and practice for you to be great at it. Even if you say you’re a fast learner, your instincts simply cannot match the pros’ in just a few weeks’ training. You have to know what it really takes to be a bird-dog before you can become one. And of course, you must understand what a bird-dog really is.

A bird-dog is someone who identifies good properties to invest in (usually distressed), place the properties under contract, then reassign them to rehabbers for repairs, renovations, and resale. Bird-dogs earn through fees they collect from rehabbers. So where did the term bird-dog come from? Rehabbers are like hunters while the houses are like the birds hunted. When hunters go out in search of birds, they usually use hunting dogs or bird-dogs. Bird-dogs, therefore, are those who point the investors to the good finds.

So what does it take to be an effective bird-dog?

Build your local network of investors. Go to the Real Estate Investors Association meetings in your area. You’ll meet a lot of investors you can cater to, so talk to them. Find out what they’re really looking for and what types of properties they consider as good investments. Ask on how they compute for the rehabbing outlay and markup so you know how much they’re willing to spend. Jot down notes and learn from what they have to say. You’re working for them and not yourself, so their opinion truly matters.

Know how to hunt. Being a bird-dog doesn’t mean finding any distressed property there is. Given what you’ve learned from your meetings with investors, you need to think like them when hunting. Know what distressed properties are really feasible for rehabbing and reselling for profit. Remember, you only get paid if the rehabber agrees that your find is indeed worth investing in, so don’t waste everybody’s time. Thoroughly screen the properties in your area.

Do the math. Make the necessary computations before assigning a property to a rehabber. Obtain the significant figures – comparables, sold comparables, days on market (DOM), lowest selling price, and holding cost among others. Knowing these things, how to compute them, and how they affect the sale will let you know if a house is worth investing in or not.

Distinguish the real rehabbers from the flippers. You don’t want to assign a house to people who say they can close the deal only to assign it to someone else. Everybody can end up with nothing once this happens.

Being a bird-dog can be a great means of income for you only if really you know how to be one. It can be a superb way of starting your own real estate business, so do take time learning and knowing the proper techniques. If you want more useful tips on how to start your own real estate investing firm, call us at Homevestorsfranchise.com or visit our website today.

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