Birddog?
I am reading everything I can and soaking it up like a sponge (or maybe a brick, I am forgetful). I just appreciate BP so very much. I describe myself as an unborn newbie as I want to know what I am doing before I get started. Looking at wholesaling. So I think I have found some descent places in good neighborhoods for low prices. I read on one of the banners about http://www.reiwholesaleguy.com/. Is he legit? How can I be someone's bird dog so that I can get my feet wet or are these just scams? Thanks in advance. Reggie
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I never heard of the guy. Of course there are lots of new gurus popping up every day claiming to teach REI. Note that his blog hasn't even been updated in a over a year.
While he might be a good instructor and will help you in your investing. He doesn't have any secrets that you can't learn here.
To be a bird dog, go to your local investor groups and find buyers and ask what they want. At the same time go looking for deals and see if you can match up some buyers and sellers.
Keep in mind in most states being a bird dog ie; putting together a buyer and seller, without a real estate license is illegal. It is considered acting as a real estate broker without a license. When you wholesale, ie; get the property under contract first, you avoid that pitfall. There are lots of thread on the issue here.
I never heard of the guy. Of course there are lots of new gurus popping up every day claiming to teach REI. Note that his blog hasn't even been updated in a over a year.
While he might be a good instructor and will help you in your investing. He doesn't have any secrets that you can't learn here.
To be a bird dog, go to your local investor groups and find buyers and ask what they want. At the same time go looking for deals and see if you can match up some buyers and sellers.
Keep in mind in most states being a bird dog ie; putting together a buyer and seller, without a real estate license is illegal. It is considered acting as a real estate broker without a license. When you wholesale, ie; get the property under contract first, you avoid that pitfall. There are lots of thread on the issue here.
Ned Carey - Thanks for pointing this out! I had no idea and this is definitely something that is good to know.
Yes Christina R. this is something the gurus tend to leave out. If I am working with a bird dog I can structure it so it is legal. But to do it blindly could be a risk. However realistically there is no bird dog police. The risk of it being an issue is small.
Thank you Ned Carey, you are always so helpful what I read from you when you post on these forums. I wasn't thinking of this guy as much as he made me think about it.
Ned Carey, How do you structure it?
Jesse Rivera I would structure it as a joint venture, that way the bird dog is entitled to part of the profits of the partnership. I think it is better to put the bird dogs name in addition to mine on the contract. - Ned
This is not legal advice but simply how I would do it.
Hi @Ned Carey
Rehashing an old thread here, here's the process I have in mind:
1) Find interested investors
2) Seek out deals for them
3) Make offers as normal
4) While the property is in contract, sell the contract / property to your investors
Is this correct?
Thanks,
@Andrew Whicker That is what wholesaling is. Yes that is an appropriate process.
Generally the difference between a wholesaler and a bird dog is the wholesaler gets it under contract as you have said. A bird dog just feeds a lead to the investor and the investor writes the contract.
Ned Carey
If a birddog/wholesaler gets it under contract, doesn't that mean he has to buy the property if no buyer can be found in a specified amount of time?
@Curtis Williams You ought to post a picture. There are several Curtis Williams that are members here. I am not sure if I tagged the right one.
In general yes. However most contracts will say what happens if you default as a buyer. Most say the seller gets to keep your deposit. If your deposit is small you only have a small risk. Also many contracts have contingencies. This means if a contingency is not met you get out of the contract and you get your deposit back.
The key is, if it is a truly good deal you will likely be able to find a buyer. Most new wholesalers have trouble finding buyers becuase they have lousy deals.
@Ned Carey Thanks
I was about to make a thread asking the difference between a bird dog and a wholesaler. Thanks for answering my question. You mentioned bird dogging is illegal in certain states. Is it illegal in Maryland?
Bird dogging essentially violates licensing laws restricting what activities some one can do without being licensed as an agent, and most states have these laws in place.
With all that said, and what you do is completely up to you, but I wouldn't be concerned about being fined or persecuted for telling somebody you found a house they might be interested in.
I have numerous bird dogs i work with and they get paid from my proceeds as a JV
@David White Yes the MD real estate commission has said that bird dogging is acting as a broker without a license. This makes it illegal. I am not suggesting you break the law but I don't know of anyone who has been prosecuted for doing this.
Great advice as always @Ned Carey !
I had no idea if handled wrong bird dogging was illegal. Thanks for the information!