How to Bird Dogging Basics
Bird dogging in real estate jargon means to locate low-priced properties for sale that can be bought cheaply, renovated as necessary and flipped for a good profit. The person who hunts for the bargain property is the bird dog, as he points an investor to a bargain property analogously to the way a bird dog points his master to a bird on a hunt. Some bird dogs are looking to invest their own money, but most are bird dogging for other investors. Bird dogging is basically about increasing your chances of being in the right place at the right time and finding a motivated seller. This isn't easy, as everybody is looking for a bargain, but there are a number of things you can do to up your chances.
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Instructions
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Research the local real estate market thoroughly. If you are not already a practicing real estate professional in your community, you probably should spend at least a few months immersing yourself in the ins and outs of the real estate business before diving into bird dogging or flipping, as it can be expensive to learn on the job. Some of the research involved in bird dogging includes daily checking of several real estate and bank foreclosure databases and websites. Many professional bird dogs have contacts at banks and elsewhere that help them get the fast track on foreclosures or other distressed properties.
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Assess the property very carefully and take careful notes about special features and the repairs that will be necessary in order to resell the property. This type of assessment takes experience and careful observation and sometimes requires having a professional contractor come in to make estimates.
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Run the numbers. Sit down and do the math on each specific property. Experienced real estate professionals always at least compare the acquisition cost plus holding cost plus repair cost plus selling cost versus anticipated selling price in making a decision on a property. And whether you are bird dogging for yourself or another investor, doing the math before signing a contract is essential.
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Sign a contract with the seller if the deal is just too good to pass up and you have the resources, or offer the property you have located to an investor by making a basic presentation including photos and the financial analysis mentioned above.
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Collect your fee for bird dogging the property from the investor when the deal closes or buy the property yourself to rehab and flip. You are now an official bird dog.
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Tips & Warnings
Consider partnering or working with a good "rehabber" or general contractor unless you already know a good bit about residential remodeling. Working with someone who really knows what it costs to undertake the many small repairs to rehab a house can can help you avoid "money pit" deals.
