Beginning Investing: What Is Better Bird Dogging Or Wholesaling?
Hello, we are an investment group getting started in the Columbus, OH area and are seeking advise as to how to approach our first deal. We were interested in finding out was it better to begin bird-dogging or by wholesaling. Which would help us learn the most as well as gain the needed experience as well as generate some initial income? Let us know. All comments will be greatly appreciated?
- EBM Investments
[addsig]
Birddogging is less intensive and you make less per transaction than wholesaling but it is a great place to start.
The difference between a birddog and a wholesaler:
Birddog--you simply find properties and modivated sellers and give the contact information over to an investor who follows up through the leads. I would say that you can make $500 to $1000 on a residential home
Wholesale--you will locate modivated sellers and properties, speak with the homeowner, and sign a contract to purchase the home. You have 3 options to sell the property from here: 1) you can assign your purchase agreement to an investor for a flat fee, 2) you can do a double closing where title transfers into your name only for a few moments, or 3) you can actually take title to the property and sell it how you wish to the investor. Using this approach you can probably make $2000 to $10,000 per transaction. If an investor wants to buy properties at 70% of FMV, you can keep the difference between what you can buy the property at and what you can sell the property at. Sometimes the end investor is not willing to allow you to walk away with such a good deal of his/her profits. In this case a double closing would prevent the investor from knowing what you bought the place for until after it is all completed and the data is public information.
GOOD LUCK
:-D
Thank you very much. We truly appreciate the advise. Could you forward us some typical or standard bird-dogging or wholesaling contracts that we could use as a blueprint we can recreate to use when dealing with investors. Anything you can contribute will be appreciated. Thanks Again!
Also, don't let anyone confuse you on the terms. Some investors I've encountered want to try to get you to do the work of writing contracts, and still refer to you as a "bird dog."
That is not correct, according to any of reliable sources I've come across, so if you get into writing contracts understand that you're a wholesaler, or dealer.
Rambler, have you had any success with the options you have been working on?
I was wondering how you did with some of your previous posts.
Murphy[ Edited by Murphyj2000 on Date 09/14/2004 ]
Thank you again for your help! We want to know what the standard turnaround time is between when we present a property to a investor to the time that the property actually closes? I know there is not set time, but what would you say it would be on an average? Just curious. Thanks.