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What is a Bird Dog in Real Estate?

Jerry Norton

Dec 20, 2023

white and brown wooden house near green trees during daytime

Finding real estate leads can be one of the most challenging aspects of real estate investing, whether you’re a beginner investor or a seasoned pro. 

That’s where bird dogs in real estate come in. 

Bird dogs will help you find your next real estate investment opportunity — for a fee. 

So are bird dogs worth it for you?

How can you find a bird dog?

In this article, we’ll break down everything you need to know about bird dogs so that you can make the best decision for your real estate business now and in the future. 

What is a Bird Dog?

A bird dog is someone who connects interested buyers to off-market properties that are ideally below market deals — and full of ROI potential. 

Bird dogs specialize in being experts with real estate data, and they’re always in the know about price information. 

They’re highly skilled at finding properties that are prime for flipping or becoming residential rentals or income properties.

How A Bird Dog Works

Bird dogs find leads through using public databases, offering cash for homes, generating leads online, and cross-referencing existing databases.

Once a bird dog finds a good property, they then search for an interested investor. 

The bird dog sells the property and collects a fee — anywhere between $500-$1,000 — for their role in facilitating the successful sale.

Advantages of a Bird Dog

Utilizing a bird dog in your real estate exchange will be beneficial in many ways. 

For one, you’ll get access to information about properties with high investment potential. 

For another, you can network with other real estate experts in your area. 

If you plan on flipping more homes in the future, then having a working relationship with bird dogs in your area could be a huge advantage for your real estate lead generation. 

Disadvantages of a Bird Dog

The primary disadvantage is that a bird dog’s services will come at a fee. 

You’ll spend more money using a bird dog than you would finding a property on your own or through other channels.

While it can be an effective form of lead generation, it is not the cheapest, which is a downside for many real estate investors looking to get their first deal. 

How to Find a Bird Dog

Networking is key for real estate investors — and this includes finding a bird dog. 

One of the best places to find a bird dog is at your local REIA meetings.

Have you ever seen an advertisement telling consumers that the company will buy their home for cash? 

If so, then you’ve likely found another local bird dog. 

Alternatives to a Bird Dog

When it comes to real estate lead generation, there are many alternatives to using a bird dog — options that are cheaper as well. 

You can pursue the classifieds, drive neighborhoods you’re interested in, do a direct mail campaign, and/or put up bandit signs. 

Or, you can utilize Propwire’s robust MLS tool where you can search 157+ million MLS & off-market properties 100% free. 

You can explore 21 valuable lead types, including:

Learn more about Propwire’s up to date database — which also provides the ability to skip trace to find and contact the owner of a property — by clicking here. 

Frequently Asked Questions: Bird Dog 

Q. Bird Dog vs Wholesaling: What’s the Difference?

With wholesaling, the investor acts as a specific middleman between the home seller and the buyer. 

While going through the process, the wholesaler will hold the exclusive right to buy the property. 

Once that deal is secured, the wholesaler reassigns the contract and rights to another buyer at a slightly higher price.

With this process, the seller retains the home title, but the wholesaler does have the right to transfer the contract for a profit.

With a bird dog, the investor never keeps the property or secures the exclusive right to buy it. 

Instead, they simply facilitate the deal by matching interested buyers and sellers for a fee.

Q. What is in a Bird Dog Real Estate Contract?

A bird dog contract in your real estate dealings should include the full names of all parties involved as well as a specific percentage or flat rate fee that the investor will pay during the closing of the home sale. 

The bird dog contract might outline other details like how soon the payment needs to be made or how the payment can be arranged.

Q. Is Bird Dogging Legal?

Yes. A bird dog deal is completely legal so long as the agent that’s identifying the deals isn’t facilitating the actual transaction or sale of the property in addition to the finder’s fee.

Q. How Much Does a Bird Dog Cost?

On average, you can expect to pay somewhere between $500 and $1,000 when you close on your home towards the bird dog.

The Bottom Line: Bird Dog in Real Estate

A bird dog can help connect you to quality leads if you’re looking to invest in real estate. 

There are pros and cons to utilizing a bird dogging strategy, so you’ll want to weigh out your options to determine what will work best in your situation.

Are you currently looking for free property data? If you want to search through millions of off-market and MLS properties, check out Propwire’s free search tool today to get started.