How To Find Wholesale Real Estate Properties

Finding Deals for the Smart Investor-The Basics : How to train bird dogs real estate

One of the most effective ways to find wholesale deals is called "driving for dollars." That is, you simply drive around targeted neighborhoods to locate ideal properties, or you have someone drive for you-a "bird dog" or a "property scout." Either way will work. It all depends upon how much time and money you have. For example, if you're employed full-time, it's most likely difficult for you to drive for dollars. In that case, you can hire a bird dog to do the job for you. On the other hand, if you're full time, then you can do the search yourself and forgo the expense of paying a bird dog. Below, I tell you how to find bird dogs, how to pay them, and methods to train them.

Bird Dogs - How To Pay Them

You can use several different methods to pay bird dogs. You can pay them anywhere from $1.00 to $5.00 per address or $5.00 to $10.00 per lead, or $250 to $1,000 per deal. In order to make the job worthwhile, you have to direct birddogs to neighborhoods where they'll find a good supply of vacant properties. Otherwise, it won't make financial sense for them. For example, if you direct them to a neighborhood where they find only two houses per hour of driving, that's only a $2.00 per hour rate, plus they have to pay for their gas. Nobody's going to work for that rate! On other hand, if you direct them to an area where they'll find, say, 30 houses in an hour, then it will pay for a birddog to do the job-30 houses X $1.00 = $30 per hour.

Necessary Bird Dog Services

When you hire bird dogs, you can't just send them untrained. You have to tell them exactly what you expect of them. One method I use is called "per address." With this method, I want the bird dog to take photographs of the properties. Another method is called "per lead." In this case, the bird dog not only takes the photograph but fills out a form about the property. The form details what's wrong with the house and what kind of repairs are required. In regard to photographs, be sure to have the bird dog snap photos of both the front and the back of houses. This is necessary because the front of a house may look great while there's damage in the back from fire or from other causes. Basically, the more a bird dog does, the more I pay him or her.