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.
In fact, bird-dogging is simply finding houses (or, sometimes, buyers) for an investor who buys to sell or to keep. Beginning wholesalers do a lot of the same: they find a deal and assign it to another buyer. But there is usually a big difference between the money to be made by bird dogging versus wholesaling.
When I started I was bird dogging houses for some investors. It allowed me to become really good at one part of the business. I became super good at finding deals but had no idea how to sell properties, i.e. to find buyers. That is where wholesaling becomes different. A wholesaler must become good at all aspects of the business: finding deals and finding buyers.
I thought I was making great money when I was bird dogging: $500 to $1000 per house, and I was finding 5-10 deals a month. I decided to go at it alone and find my own buyers and my income increased dramatically. I started getting 3-5k on every deal doing as many deals a month 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 the way to start. You may never want to go further than that, but if you are planning on being 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 fast as you can.
In fact, bird-dogging is simply finding houses (or, sometimes, buyers) for an investor who buys to sell or to keep. Beginning wholesalers do a lot of the same: they find a deal and assign it to another buyer. But there is usually a big difference between the money to be made by bird dogging versus wholesaling.
When I started I was bird dogging houses for some investors. It allowed me to become really good at one part of the business. I became super good at finding deals but had no idea how to sell properties, i.e. to find buyers. That is where wholesaling becomes different. A wholesaler must become good at all aspects of the business: finding deals and finding buyers.
I thought I was making great money when I was bird dogging: $500 to $1000 per house, and I was finding 5-10 deals a month. I decided to go at it alone and find my own buyers and my income increased dramatically. I started getting 3-5k on every deal doing as many deals a month 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 the way to start. You may never want to go further than that, but if you are planning on being 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 fast as you can.
About the Author:
About the author: Jesse Davis is an experienced wholesaler in the Jackson, Mississippi, Real Estate market. Go here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
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