Is birddogging a good way to start to make money for future investments?

Question

Hello.  I have been trying to research as much information as I can on this site over the last week that I've been a member.

I am starting to get discouraged though because I honestly do not have any money that I can use to start.  I know that this is what I want to do.  I know that I will be successful at it.  I know that investing in real estate is the way to ensure long term financial stability for my family.

But, I also know that I don't have any money.  I understand that I need to network more in my area and I plan on doing that.  I am attending a local meeting next week where I hope to meet some new people and learn some new things.

My question is, has anyone started off their career in investing by birddogging to gain income to then use to start buying more investments?

Kyle Weimer · Answer

The quickest way to make a paycheck, hands down, is to call all the local Wholesalers you can and ask if they will be willing to co-wholesale any of their deals. If they say yes, you can put their property under contract that still allows them to market it, but if you bring the buyer you get paid. That is the simple version. Look up and read more about it. Definitely the easiest way to get paid.

Steven J. · Answer

Melissa,

I'm still a newbie so take what I have to say with a grain of salt, but birddogging is essentially wholesaling, just to a lesser degree. Wholesaling, where you located good deals, put the property under contract, then sell the contract for a profit is very similar to bird dogging. I was very much the same train of thought when I was first starting, I went so far as to offer bird dogging services to others, but you're spending a lot of time, making a little bit of money and learning a little bit because you're just dipping you're toes in the water... barely. It hit me that if I went to wholesaling I can make more money and learn much more faster if I'm out there doing some of the more complex work.

I understand the no money situation, which is why I've started wholesaling. And you do need some money for marketing, driving for dollars, and putting down earnest money, which if you're working with motivated sellers can be $10. Its finding the deals that is the hard part and I'm having to stick with my marketing and be persistent.  I've spent what feels like a good chunk of money but if I were to get one wholesale transaction it would cover those costs and then some.

As you network, perhaps you can partner with a more experienced wholesaler who you can bird dog for and will also teach you the ropes rather than pay you per successful lead.

And when bird dogging I'm under the assumption you're really only looking for vacant houses, boarded up houses, etc and usually wholesalers will only pay you per successful lead. If you took the time to run the numbers and get it under contract then you can make your first little fortune rather than pass it along to someone else for a really small fee. Plus, you're limiting yourself to only that type of property. There are plenty of people who have nice homes in nice neighborhoods that are motivated to sell.

That's my two cents, and as for networking... keep doing it. It helps to know others, sit down and have chats and perhaps partner with other new wholesalers.

Bill Gulley · Answer

I know it falls on deaf ears when it is said that most birddogs are acting illegally. I know too that saying almost every Realtor in your area will be gunning for you if the see what you're doing. And, seems most are ignoring such issues to accept the consequences, that will follow them for a long time, that may just be a warning as a tug on your choke collar, the next violation will probably have you affording dry food for awhile and the next time could send you to the pound, but you won't be put to sleep.

Try dealing with Realtors and brokers in the future with a reputation of carrying on shady practicies and see how that works for you in the long term. :)

Susan Mhone · Answer

Welcome Melissa!

Im a new in this business as well and l would say yes to birddogging, l have done it and will still do it if the opportunity presents it self.  This helps with money for marketing...gas is not cheap when driving for $$ or doing direct mailing.

Good luck!!

Bill Gulley · Answer

Yes, did out the old books, the basics don't really change but there are tons of new issues that are probably all or at least most are here on BP. Fall back on what sounds right, you remember more than you think I'd bet. :)

Melissa Lapinski · Answer

Bill Gulley you make me laugh.  I like you.  I have indeed been to re school, but that was almost 10 long years ago.  The whole reason that I went to real estate school was to become an agent, learn the ropes, and eventually start investing...good plan, right?  Well, things didn't work out the way I planned and I did not get a lot of experience once I did get my license.  I was involved in maybe 5 sales, but all of them were with people that I knew, etc so I didn't really learn too much about what it woul really be like out on my own.  I was also under the wing of a broker placed mentor for all those transactions.

I am sorry if it seemed like I may have mislead you, but to me, this is just like starting out fresh again.  Unfortunately my memory is not what it used to be, so I am not sure if I remember the laws correctly, or if they have changed (which I'm sure many have).

I'm thankful to all of you on this site for keeping me on track.  Based on some of the replies, I think my best course of action would probably be to actually re-educate myself on the laws of real estate.  In the meantime, since the market is so different and where I live is a totally different market as well, I will continue to network and take in as much advice as I can as I go.  :)

Bill Gulley · Answer

Yes Ben, if you wife is in Texas, I suggest you look to the RE License requirements and see what constitutes needing a license, something like facilitating any sale or lease for others.

LOL, par for the course, now we learn Melissa has already been to RE school...not as new as she lead me to believe....LOL!  :)

Ben Hughes · Answer

I've never heard a realator or anyone for that matter say birddogging is illegal.  My wife has been doing this for a few months so I'm going to have to research this now.

Melissa Lapinski · Answer

Jeff  S. - That is a really good idea.  I will be looking into that.  Thank you.

Ron Climer - I do appreciate your idea, however I had my license about 10 years ago and had to let it expire.  I have done some research and spoke to some brokers and I would need about $1000 just to get back on track (including continuing education and fees to reinstate th license and then broker fees).  I know $1000 may not sound like much, but even cutting down on anything extra, it would still take months, to possibly over a year for me to save that.

Bill Gulley · Answer

Yes, I know you're new and you asked because you didn't know, good you asked.

As Jef Mentioned, starting out as a Realtor is probably the best way to start, it's the best education for the money I know of.

Probably the best book you could read on RE would be your State Realtor's Text and work book, even if you were not going to be a Realtor as that will give you the basics you need in your state. Had our resident birddogs done that they would know what they could do.

I'm pretty sure that in any state, if you are a member in an LLC with another or others that your job function could be do locate deals, let the LLC buy them and you could get paid as a member. Doing this makes you a principle or partner in the deal, you could be paid or compensated for stacking the paperwork. But anytime you are acting on your own and facilitating deals between others you take on the role of an agent.

I have "wholesaled" tons of deals, but I started doing it before it was known as such and turned into a guru business strategy, really....if you can flip a junker to a landlord or a rehabber, you should be able to flip a nice home to a real end buyer. Look up Will B.'s thread on "the truth about wholesaling".

You might get a job as an assistant with a good Realtor or, apply at a Real Estate office, go work at a title company/plant, working for an insurance claims office will expose to to RE as well. Heck, you might volunteer at a real estate school to help out just to hear the classes!

I'd be very careful about hooking up with a non-agent mentor, while many have made a living in RE for many years, that doesn't mean they really know RE. If they are doing anything wrong and just haven't been caught, it means you will lear someting wrong and your luck may nor be as good as thiers. While there are old agents out there that are clueless, they should at least know what the laws are.

How you begin will follow you a long time. RE is a social business, you succeed by knowing people and working with people, especially those who work in the support areas, like Realtors, closing agents, title folks, RE attorneys, surveyors, appraisers and those in the skilled trades. In every community, no matter how big or small it may be, you will be establishing your reputation. If you start out badly, that starts who you are and it can take a long time to shake a bad reputation and get into good graces, if you ever can, with others in the industry....and they can kill you in business!

But really, the very best advice I can give anyone starting out is to go into RE as you would any other profession, from the ground up learning the basics, the principals of real estate and absolutely not jumpping in the middle of some strategy invented by some guru. When you can understand the way a RE deal flows, from meeting a buyer or seller and understand which course of action to take to ultimately end up at a closing, you'll be ready to do almost anything in residential RE. You will know what is legal and ethical and what is acceptable in your local area and I gurantee you that following this path, with just about a month of real study, asking questions here and meeting people in your area, you will be years ahead of those who don't follow this advice!  Good luck!  :)

Jef, LOL, there are plenty of ways to conduct business in RE without breaking the laws or pulling unethical shams, it just takes a little more effort to do things right. :)

Is birddogging a good way to start to make money for future investments?

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