"I made $103,189 on my first bird-dog deal and it only took me 13 days to find the property.
I made more in a couple of weeks of work than I made in the last 3 years at my job!"
From the Desk of Monica Main
Friday, 11:26 AM
Dear Future Real Estate Bird-Dog,
. finally "cracking" the real estate code by actually getting into real estate with NO CASH and NO CREDIT.
. getting experience and becoming a real estate "mover and shaker" before having to take responsibility for even a small stitch of property.
. raking in five- and six-figures per hot real estate deal you find for your investor or investment group. from only doing a couple days worth of work!
One of the newest and hottest real estate opportunities is becoming a bird-dog.
How You Can CASH IN BIG By Simply
FINDING Hot Property Deals for Investors!
Let's face it.
Sometimes it's not realistic for the shyest of people to walk into a deal trying to bend a seller and a broker to take on a "creative financing" or a no-money-down deal.
After all, if either the seller or the listing broker shoots you the slightest look of awkwardness or criticism when you ask about "no money down," are you one to wilt into a corner and wish you could die and blow away?
If you don't feel "right" about going into a deal where you are asking the seller for the down payment or coming to the table with barely 2-cents to rub together then you NEED A "PLAN B."
Right now there is a huge need for people just like you to find properties for investors who are TOO BUSY to be locating properties on their own! There is a huge need for "bird-dogs" who find lucrative cash flow property deals for investors.
What is a "bird-dog"?
A bird-dog is someone who locates property deals for investors and gets paid in one of two ways:
1) A "referral" or "finder's" fee of up to 5% of the final purchase price, or;
2) "Flipping" the property to an "end" or "C" buyer (which I'll explain in a minute).
How to Get a Finder's Fee of Up to 5% of the Final Purchase Price!
The quick and easy way to get involved in this business is to be a "finder" for a specific and designated investor or investment group.
The trick, obviously, is to "hook up" with an investor or investment group (or with many investors) and start locating properties that fit into your investor's criteria.
Plain and simple.
Many investors are actively looking for under performing properties, REOs, and cash flowing properties in specific areas of the country.
What are those areas?
You would have to determine that by asking them directly, as each investor has a different set of criteria to follow. Most investors are just looking for SOLID cash flow properties!
And they would be willing to pay up to 5% of the final purchase price after the close of escrow!
That's up to $50,000 per $1,000,000!
And since I STRONGLY RECOMMEND that you work with COMMERCIAL properties that average around $2,000,000 to $5,000,000, the finder's fee would range from $100,000 to $250,000 for ONE DEAL!
"But Why Wouldn't These Investors Find These Properties On Their Own?
Why Would They Pay Me BIG BUCKS To Find These Properties FOR Them?"
Here is the answer:
They do look for properties on their own. But. they can't scour the entire country looking for deals unless they have a staff exceeding 100 personal assistants to look in every nook and cranny for find every deal available!
Many of these foreign investors don't know how to determine a hot property or area from locations (like Detroit, for instance) that are NOT recommended. They want to entrust their investment decisions with someone who knows the United States and can guide them to making successful and profitable moves.
They need YOU to help them make these critical profit decisions by helping them find profitable property deals here in the United States!
"What Types of Properties are Investors Looking For?"
Investors are mainly looking for a deal on the residential-commercial (apartment building) or commercial (retail strip mall, industrial/warehouse, etc.) side. These huge investors are mostly NOT looking to gather up thousands of single-family homes.
Because multi-millionaire investors don't mess around with a bunch of tiny single-family homes. They pick up apartment buildings, office buildings, retail strip malls, industrial/warehouse space, "big box" buildings, gas station properties and many other types of commercial properties. This is where all the money is. in PASSIVE INCOME CASH FLOW. And you get that by picking up commercial buildings. not a bunch of rinky-dinky houses!
This means that each property will be WELL OVER $1,000,000 in most cases (or about 98% of the time). And generally larger investment groups are looking for properties that are $15,000,000 or higher! One of the largest property deals I was part of recently with my investor partners was a property that was $129 million! Can you imagine getting a 5% "finder's fee" on that deal? That adds up to be $6,450,000!
It's almost like winning the state lottery!
Is it realistic to think that you will get millions of dollars as a finder's fee per deal? No, it's not. Generally for larger property purchases your fee will be around 2% or 3%. Still, on the "low" side of 2%, the fee would have been $2,580,000.
And it's still like winning the lottery!
Now, properties that are $129 million are far and few between. The "average" commercial property that a smaller investor is seeking is anywhere from $1 million to $4 million. Most larger investment companies are seeking deals around $15 million and higher. When dealing with apartment buildings, many will be below $10 million. When dealing with other commercial buildings, you can easily see asking prices that are above $15 million, in most cases!
"I thought this would be too hard for me but it wasn't hard at all once I got the hang of it. Finding properties using a tool like LoopNet.com makes the searches so easy that you can do it from a laptop sitting in bed. I did exactly that, finding properties in bed after recovering from knee-replacement surgery for several weeks. Without ever leaving my house I was able to locate 4 bank-owned properties, call the brokers on the phone, and initiate a bank take-over negotiation. Only 1 of the 4 deals actually ended up closing escrow but having only been at this for 3 1/2 weeks and filling up dead time anyway, I was able to get a small referral fee of $45,298 after the property closed escrow. I made more being 'bed-ridden' than I had the whole year before at my job."
Beverly Thissen, Florida
" How Do I Make Sure I Get PAID?
What If I Find a Property Deal and the Investor RIPS ME OFF By Stealing the Deal from Me?"
I have an IRON-CLAD contract agreement for you to make sure you ALWAYS get paid on your property deals. If you don't, it would be a SLAM DUNK in court to sue for the money and quickly win the amount that is due to you.
Since investors know they will lose in court, many won't bother trying to steal anything from you as long as there is a written contract in place . Make sure you don't reveal the address of the property UNTIL you have it under contract. Do not reveal anything more than the STATE in which the property is located (since you will have to reveal this basic information otherwise the deal may be rejected based on possibly being in an area they don't want to invest in).
Where do you get this "iron-clad" contract? It's located in the complete system that I will be telling you about in one minute!
(Hold your horses for just a tad longer. )
" Is This Legal?
After All, Aren't I Acting As a Real Estate Agent and I'll Need a Real Estate License for This?"
Each state in the U.S. varies greatly in their real estate laws, rules, and regulations. I am not going to pretend like I know everything about each state's individual real estate laws.
But I will tell you this.
As long as you are acting as an "employee" for your investor or investment group, you will not need a license to be a bird-dog.
How do I figure?
Let me tell you how this works:
1) I have an assistant in my
office named Cindy who regularly talks to brokers and sellers on my behalf.
2) As my employee Cindy does not need a real estate license to talk about deals (or even help with the negotiation aspects) because she is "part" of my company as an employee.
If you are going to choose OPTION A as a bird-dog (and getting a finder's or referral fee for transactions) then you need to make sure that that your investor or investment group gives you an annual 1099 as your tax-paying document when you file your taxes on April 15th.
Because this will unofficially put you under their "payroll" as an unofficial employee of their company and disallow you from needing a real estate license to find property deals for your "employer."
It is very important to make sure you are 1099-ed otherwise you could need a real estate license in each state you choose to conduct business. Because you will be finding properties all over the country, it's not realistic to have dozens of real estate licenses for each state you frequently do business in.
Why Settle for Up to 5% of the Final Purchase Price When You Can Make MUCH MORE MONEY Doing a "Double Close" with Your Same Investor?!
Getting a finder's fee or referral fee of up to 5% of the final purchase price is all well and good!
You become the "middleman" between the Seller (A) and the Buyer (C). You are the Bird-Dog (B).
Here are the simple steps:
Step 1: Find a huge potential cash flow property. This can be a short-sale, bank-owned REO, or a straight sale. You are looking for residential-commercial (apartment houses) and commercial properties. I recommend sticking with the apartment buildings because those types of investments are super hot with investors right now.
Step 2: Go to one of TWO of my special transactional funding sources and get an INSTANT pre-approval for a 100% cash transaction. You can get the pre-approval letter within a few minutes just by going online and getting a pre-approval letter. This means that you are showing the seller or the bank (if it's an REO) that you are coming in to purchase their property with 100% cash. They will not have to see proof of funds, your credit, or management experience since you are coming in as an ALL CASH purchaser. (By the way, you will NOT need to have good credit or cash to get the pre-approval letter!)
Step 3: Lock up the property with the seller with an offer. This will DISALLOW anyone else from coming in and "swooping" down on the property you as long as you can close escrow within an agreed time frame (usually not exceeding 90 or 120 days). Even if you present the property deal with an exact address on it to your investor, he or she CANNOT steal it from you since you already have it under contract with the seller or bank!
Step 4: Put together a strong marketing proposal (and I show you how to do it; it's very simple). "Sell" the property to your investor. Get him or her drooling over the current and future potential of the deal; lay it into them about how much money they stand to LOSE if they DON'T do the deal! It's very easy to get any investor salivating over a hot cash flowing property, especially by using my CFE software that does all the "numbers" work for you including getting you a "proforma" of future property cash flow potential!
Step 5: Get the documents needed for the transactional funding source. They will need to see documentation proving that you have a legitimate sale on your hands. This includes getting the contract that you have with the Buyer and validating that they have the funds to purchase the property. The transactional funder will review the proof of funds, pre-approval letter supplied from the bank, and other documents showing that your buyer has the ability and intent to purchase the property.
Step 6: The transactional funder will put the money into escrow the moment the Buyer's funds are deposited into escrow. There will be a simultaneous close. Your "purchase" between you and the Seller will happen and then, shortly thereafter, the "purchase" between you and the "end" Buyer happens within a few moments. These transactions or "double closes" take place within one business day.
Step 7: Collect your money! Choose between whether to take a check from escrow or leave it and do a 1031 Exchange (recommended). By doing a 1031, you are "leaving" the money for your own personal investment property purchase so that you don't have to pay capital gains taxes (which is at the current 25% rip-off rate).
You Are "Pre-Approved" for an ALL CASH Transaction!
The most important piece of this for you to understand is this:
- NO CASH NO CREDIT NO INCOME VERIFICATION
This means that you don't need credit or your own money. There is no income or job verification. There is no need for you to even provide a social security number at any point in time.
This means that when you make an offer on a property, it's an ALL CASH offer. No need for "proof of funds" or those silly management resumes that some banks ask for. You are coming in as an all cash buyer which means you can negotiate on the seller's asking price with FULL CONFIDENCE and MAXIMUM LEVERAGE.
"What is an Example of What Can Be Made in a Single Transaction?"
Here is Just an EXAMPLE of a Transaction That One of Our Bird-Dogs Have Done Recently.
"I tell people that if I can pull this off that anybody can. I do have a college degree but was never able to get more than a $32,000 a year job. I know real estate is where I can make money and it's always been a dream of mine to be a successful millionaire real estate investor. Bird-dogging has definitely helped give me the leg up that I needed to get my real estate investing business rolling and I give all the credit to Monica Main."
Larry Pinellas, Georgia
Larry, one of our bird-dogs, found a 58-unit apartment building in Georgia where it was a bank-owned REO with a 69% occupancy. Surrounding properties in the area of the same size in the neighborhood of this one property were selling for about $40,000 per unit on the high side meaning that the building would technically be worth about $2.3 million when the occupancy is around 95%.
Since it was bank-owned by a smaller lending institution, Larry was able to get the property for $999,000 since he was walking into the deal as an ALL CASH BUYER (which the bank LOVES on REO properties; this allows them to take the "toxic debt" deal directly off their books completely).
Remember, in order to turn around and "flip" the deal, Larry had to have an investor or investment group lined up who was looking for these types of properties. Since the occupancy level is so low on this REO deal, the investor on the "end" would have had to either get bank-direct funding (through the bank holding title to the REO) or come in with all cash since no conventional funding source will fund on a property below an 85% occupancy.
Larry was working with an international investment group from Ireland who was actively looking for REO properties on the east coast and was willing to put in 100% cash on their end.
On a deal like this, here's what the financial breakdown looked like:
Remember what I said about the average property in that area going for about $2.3 million at a 95% occupancy?
This means that the investor knew (based on the marketing plan presented by the bird-dog) that they were getting a deal by purchasing this property from Larry for $1,650,000 (instead of $2.3 million) so it was a steal for them!
Now, just because the gross profit is $661,000 doesn't mean Larry got all that money. There were closing costs and transactional fee costs involved. They total about 8% of the final "sale" price (just as an estimation since fees and closing costs do vary).*
Here's what Larry ended up getting: