For those just getting started in real estate, bird dogging offers an exciting way to learn the business. A bird dogger is someone who is paid a fee for finding high quality investment property for other real estate investors. Because bird dogging doesn’t require any capital up front, beginners are given the opportunity to learn the real estate trade without any risks. According to the experts from PMI Coaching, other benefits include not being under contract and never having to worry about renters or repairs.
Make no mistake, bird dogging takes work. You’ll have to cover a lot of ground in order to find the deals that bring good money. And bird doggers put their reputation on the line with every property they refer. While this may sound a little intimidating, you’ll quickly learn to identify lucrative properties for investors.
Prospective bird doggers should consider the various payment methods. Generally, you’ll be paid in one of three ways: flat rate, percent of the purchase price or net profit rate. With flat rate, you’ll receive a pre-determined amount for your services. This amount ranges from a few hundred dollars to several thousand, based on the quality of the property and information. Many real estate investors prefer to pay bird doggers using a percent of the purchase price. In this case, the bird dog receives a payment based on the price of the property. The most common percentage payout used is around one percent. The third method of payment, and least common, is net profit rate. In this case, investors pay the bird dog based on the amount of profit gained from the deal. Regardless of payment method, bird dogging offers exciting opportunities for those interested in learning the real estate business.
Great description and analysis!