Finding hot leads is the main challenge for any real estate investor. One of the most popular and effective ways to find wholesale deals is called “driving for dollars,” which simply means driving around targeted neighborhoods to locate ideal wholesale properties. Another option you can resort to is to have someone drive for you—a bird dog or a property scout. Good thing is that either way will work out depending on your resources or in other words how much time and money you have.
Gaining success in finding the right deals also depends upon how willing you are to go all the way in real estate investing. Also, you need to consider your situation. Let us say if you’re a full time realtor, you can do the search yourself, find the deals on your own and discard the idea of paying a bird dog. On the other hand, if you are employed full-time, it would be difficult for you to drive for dollars and in this case you may have to hire a bird dog to do that job for you. But what really are Real Estate Bird Dogs and how can you find one?
In the real estate domain, a “bird dog” is someone who identifies a good quality real estate investment opportunity. He puts the property under contract with the sole intent of assigning that contract for a fee to a rehabber to repair and resell it. The primary goal for the real estate bird dog is to help the investors save time, effort and money- undeniably a crucial part of success in any business. A bird dog’s valuable efforts in finding the quality deals will one way or another result in earning many excellent referral fees. Most of the successful real estate bird dogs are making good money by locating deals for their investors regardless of good or bad times.
At this point you may want to know how to find a bird dog. Bird dogs can range from casual contacts to professionals. A casual contact is someone to whom you simply say, “Hey, I’m looking for vacant houses to buy etc etc. If you find any, please let me know.” Depending on your area, it could be a pizza delivery person, pest control operators, meter-readers, delivery drivers, mail carriers, service people (plumbers, HVAC specialists), etc. Let them know you’ll pay them a fee. It could be a referral fee or a per-lead fee. An effective method of finding bird dogs is to advertise in the newspaper. You can write a simple classified ad for this one. Professional bird dogs on the other hand are people who are trained to scout for properties. One source for this is high school or college students who want to earn extra income. Another way is to look for new investors who are trying to break into the business.
You may wonder why would investors hire and pay a real estate bird dog for leads. The truth is that a lot of real estate investors count on the contributions from real estate bird dogs since finding qualified property leads is a very valuable service, that most investors would love to have giving them many benefits aside from the great amount of time and effort they can save once the bird dog finds qualified deals.