Using Bird Dogs in Your Real Estate Investing Business

February 21, 2025 • Estimated Reading Time: 3 minutes

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Bird Dogs

Bird Dog is an affectionate phrase used to refer to people who “point us” to deals. Bird Dogs can be a part of your team and exclusive to you or they can be independent. I prefer the former and it is tough for a Bird Dog to be independent. Here’s why:

A Bird Dog as a deal pointer does not usually take the risk of putting a property under contract. This is the primary distinction between Bird Dogs and Wholesalers. Without that contract the Bird Dog has no protection. They may identify a great deal but there is nothing keeping someone else from seeing it and taking it. This is why Bird Dogs work better when they are captive to one investor.

Anyone can be a Bird Dog. There can be some training but it is certainly not required. Their activities could be incidental, meaning they will send you a deal if they happen upon one, or tactical, meaning they are actively engaged in behaviors that develop leads.  In general, the more front end work they do for you, the more you should pay them. You can recruit as many Bird Dogs as you want, but be aware of two things:

  1. While this is a fine strategy, you should plan on constantly recruiting. The bad ones give up and the good ones move on to their own investing career. Few Bird Dogs last more than a year and most don’t make it six months.

  2. You should have a written agreement between you and the Bird Dog. This will help you both remember your commitments to each other.

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