Bird Dog Agreement and Compensation
A bird dog agreement is a contract between two parties, usually a real estate investor and a “bird dog”. The bird dog’s job is to find properties suitable for investment and refer them to the investor in exchange for a fee or a percentage of the profits.
How Do Bird Dogs Get Paid?
For flat-rate referrals, a bird dog charges $100 to $500 per closed deal, while for percentage-based referrals, fees range from 2 to 10 percent of profits. The compensation depends on the bird dog’s experience, hours invested in leads, and lead quality.
Finding Properties and Role of Bird Dogs
Bird dogging involves locating properties with investment potential and passing them to investors for a commission. Bird dogs are not licensed agents; they typically earn $500 to $1,000 per referral fee. Their income may fluctuate monthly.
Bird dogs look for off-market, distressed properties to provide to investors for a fee or a percentage. Many blue-collar workers are well-suited to bird dogging due to their exposure to distressed properties daily.
Tools and Strategies in Bird Dogging
Bird dogs make use of technology like digital platforms and analysis tools to enhance their work efficiency. As market dynamics shift, bird dogging remains integral in property investing and homeownership, assisting in finding ideal properties at opportune prices.
The BRRRR real estate investment strategy can be rewarding if executed properly. A wholesaler sells properties to investors who renovate and sell them. Bird dogging primarily involves identifying promising deals and referring them to trusted investors.