Bird-Dogging


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A "bird-dog" is a term used to describe a party, usually a new investor, who identifies a good real estate investment property or opportunity to assign to another investor without actually closing on the property. Some birddoggers just identify the property and determines the property could be a good investment and passes that property info to another investor for a fee. Other birddoggers actually put the property under contract and then assigns it to another investor. Those who usually put the property under contract make a bit more.

Benefits of being a birddog is that it requires no capital to get started. All you really need is to be able to find properties that can be purchased at below fair market value. Most season investors won't touch a property unless it is under 70% of fair market value. Some birddoggers also can find homes that may be good candidates for short sales.

If you plan to be a birddog without putting properties under contract, you need to be careful of shady real estate investors who will go behind your back and do the deal direct with the owner.

The most common problems with new birddoggers are that they find deals that aren't deals. Don't waste an investor's time by bringing deals that are a few thousand below fair market value. The investor will start ignoring the deals you send him or her. Remember, the more info you can bring to the investor, the more easily he or she can make a quick decision. Useful information include:
  • DOM - Days on the market for properties in the same area.
  • Property Condition
  • Accurate Cost to Rehab - The estimated cost should be within 20% of the actual cost.
  • Fair Market Value - Investors need a high enough margin to be interested in a property.
Birddoggers can get paid as little as a few hundred while some a percentage of the profit when the flip is completed; typically at least a few thousand. Again, the more info you bring, the more you can potentially make. If you just identify a property, don't expect more than a few hundred while if you provide comps, info on the condition of the property and more useful, you may be able to commend $1,000 or a little bit more.