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Feb 23
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Many people consider the options of real estate for future investment, but before jumping ahead into the real estate property market you want to ask yourself a few questions first to ensure you are making an educated decision. One of the first things real estate professionals will recommend to do is become a birddog for other people. So what is birddogging, it is when you look around neighbourhoods you are familiar with looking for abandoned or rundown properties. You then refer this information to an investor who buys it and you will be paid a finder’s fee or what is called the birddog fee.
Birddogging is a good way to introduce yourself into this type of market and understand what investors are looking for, prices and more.
Unfortunately though you will not be the one benefiting from the bargain, it will be the investor buying it. Some investors will pay you such a small amount for finding and really there is no reward in it too as they do not share their trade secrets. There are definitely better ways on getting knowledgeable about the market than birddogging.
Wholesaling is your next option, a step up from birddogging. It is generally the same method of finding abandoned or rundown properties but you are actually involved in negotiating and buying the property at a wholesale price, you then need to find another investor, sell the property to them and make a profit in the exchange.
Another option to picking up a property at an affordable price is buying directly from a bank before the property is foreclosed. Short sales can really be a good way to get a bargain but can also be quite complicated so ensure you know exactly what you are doing.
There are many courses and books available for beginner investors to get into the market, offering helpful tips and also the pitfalls that can occur. They also help you look at what is involved in the whole process, because you want to make sure you have it all covered.
These are just some of the methods available; there are many more that people use in the investment properties market so ensure you do your research so you stay on top.