Kevin,
Foremost, clarify what you mean by “bird dog client?†A bird dog should simply bring you deals that you’ll decide whether or not to pursue. Thus, a bird dog is not a client…more of an independent contractor. You don’t work for him or her.
1. Whatever you send, (letter, postcard, handwritten note), it doesn’t mean the seller will give it a second look, and it could very well end up in the trash. In fact, most will. You always want to let sellers know that “YOU BUY HOUSES.†The average seller will have no clue what you mean by putting their house under contract or what a wholesale deal is. You should be up front and let them know you may bring in an investor partner to close the deal, and make sure your contract is assignable.
2. MLS Permission? For what? Not necessary in a contract. The purchase contract gives you equitable interest in the property and you can advertise it as you see fit. Do you plan on listing it with a Realtor? That’s not what wholesaling is about. Some wholesalers will use a MLS Flat fee service for their deals but that’s roughly a couple hundred bucks for a Realtor to place your FSBO in the MLS and you pay them 2-3% commission if they bring you a buyer. If the property works and the numbers are right, end-buyer investors will ring your phone off the hook, and that’s how you start to build your buyer’s list.
3. Just do a Google search for transactional funding and you’ll find out those companies' requirements. You’ll most likely find that you need a legal entity and an end-buyer in place…and of course the numbers have to work! Not sure why you’d need transactional funding though unless you’re doing simultaneous or back to back closings. As a wholesaler, you really don’t want to have to close on a property, unless necessary. It’s best to just assign your contract to your end-buyer and collect your assignment fee at closing. REO and short sale deals typically require the use of transactional funds for reasons too long to explain here.
4. Good idea. Look for a mentor in your area, or partner with another experienced wholesaler. Try to connect with a local real estate investment club if you have one.
5. Home inspection? A few contractor estimates? Price opinion before you put it under contract? Kevin, you’ve got a lot more to learn, so don’t be afraid to take your time to learn the business and what a real estate deal entails from start to finish. As a wholesaler you don’t want to pay a few hundred bucks for an inspection. You want to get in and out of the deal ASAP. As for the price opinion you don’t need that either. Most Realtors will charge you for that. Run your comps yourself so that you know the numbers work. A more experienced investor can teach you how to do comps. (It’s basically averaging, which we all learned in elementary math) Do a visual inspection and estimate repairs yourself. This is where experience comes in. Interested investors (your end-buyers) will want to see the house too and can determine what repairs will cost more accurately.
Good luck
