There are a lot of similarities between bird dogging and beginning wholesaling but they are definitely not the same. The largest difference is control over who has the buyers.
Let me explain. Bird dogging basically is finding houses (or buyers) for another investor who buys and then sells or keeps. It is the same as finding a deal and assigning to another buyer (i.e. wholesaling). Beginning wholesalers do a lot of this, but usually the bird dog does not make nearly the kind of money that the wholesaler earns.
I was bird dogging houses for the investors when I started in this business. I became super good at finding deals but had no idea how to sell properties, i.e. how to find buyers. That is where wholesaling becomes different. A wholesaler must become good at all aspects of the business - finding deals as well as and finding buyers.
When I was bird dogging I was making great money (I thought). I was making 500 to 1000 bucks a house and I was finding 5-10 deals a month for the other investors. When I decided to go at it alone and find my own buyers, my income increased dramatically - I was then getting 3-5k on every deal doing the same amount of deals as before.
Also, once I really got to wholesaling houses strong, I am using hard money and I close on all my contracts. I don't assign many contracts anymore, though I still do it sometimes. As your business grows you really begin to see the difference in bird dogging and being a true wholesaler.
Despite the apparent similarities, once you dig deep you see that the bottom line difference is control. I work for myself not depending on the big dog wholesalers and investors. I have a group of buyers that I sell to on a monthly basis, and I have people that want to bird dog for me. I may pay them 500 or 1000 for their work while I make 5k just sending the deal they found to my buyers list. Can you see the difference?
Bird dogging is an excellent way to start. You may want to do it to complement your other income and never go further than that. But if you are planning on get in the real estate business full time (and being able to do it when the market is up or when the market is down), you need to push to become a wholesaler as soon as possible.
Let me explain. Bird dogging basically is finding houses (or buyers) for another investor who buys and then sells or keeps. It is the same as finding a deal and assigning to another buyer (i.e. wholesaling). Beginning wholesalers do a lot of this, but usually the bird dog does not make nearly the kind of money that the wholesaler earns.
I was bird dogging houses for the investors when I started in this business. I became super good at finding deals but had no idea how to sell properties, i.e. how to find buyers. That is where wholesaling becomes different. A wholesaler must become good at all aspects of the business - finding deals as well as and finding buyers.
When I was bird dogging I was making great money (I thought). I was making 500 to 1000 bucks a house and I was finding 5-10 deals a month for the other investors. When I decided to go at it alone and find my own buyers, my income increased dramatically - I was then getting 3-5k on every deal doing the same amount of deals as before.
Also, once I really got to wholesaling houses strong, I am using hard money and I close on all my contracts. I don't assign many contracts anymore, though I still do it sometimes. As your business grows you really begin to see the difference in bird dogging and being a true wholesaler.
Despite the apparent similarities, once you dig deep you see that the bottom line difference is control. I work for myself not depending on the big dog wholesalers and investors. I have a group of buyers that I sell to on a monthly basis, and I have people that want to bird dog for me. I may pay them 500 or 1000 for their work while I make 5k just sending the deal they found to my buyers list. Can you see the difference?
Bird dogging is an excellent way to start. You may want to do it to complement your other income and never go further than that. But if you are planning on get in the real estate business full time (and being able to do it when the market is up or when the market is down), you need to push to become a wholesaler as soon as possible.
About the Author:
The author, Jesse Davis is an experienced wholesaler in the Jackson, Mississippi, Real Estate market. Click here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
Posts
No comments:
Post a Comment