I Like The Deal - Now What?

[Darrick P.]

For the sake of instruction I searched for the buying process but couldn't find it so I started this thread.

Being a new investor I was trying to explain what a bird dog does to someone else and while I was talking to him I realized that if I had to document the process step by step, I would probably miss a couple of steps. So chime in with your process; if you've used a bird dog in the past.

A bird dog calls me with a property he's found. [Please note that all my numbers are fictitious]

Property Address:

123 Market St.
Philadelphia, PA 19123

Bird dog / Wholesaler has a the property under contract and is looking for a cash buyer. He calls me and says; "I have 123 under contract for 25k" ARV is 100k and it needs 35k in repairs.

So taking a quick glance at the numbers we're looking at between 30K to 40K in profit assuming all goes well. The comps are on point and the repairs are on point. Assuming I've taken a look at the house and is willing to purchase the property my next step would be to?

1) Get an assignment of contract between the bird dog and me for 123 Market Street?
2) Order title?
3) Get an inspection?
4) Close?
5) Pay the bird dog?

The person I was explaining this to asks me how did I know the bird dog would get paid after he assigns the contract to me. I told him that if I didn't pay the bird dog he would never send me another deal and the assignment of contract is a legal document that states the amount of money that I agreed to pay him.

He says he doesn't think 30K can be made in just 5 steps. I told him not necessarily "5" steps but this is the process.

Your thoughts?