Real estate investor bird dogs are most often independent contractors. So they typically get a flat fee or a percentage of the investor’s profit versus drawing a salary as an employee.

Flat fees often run from $500 to $1,000 for residential deals, although the upper range can be up to $7,000 if it’s luxury or commercial real estate. The percentage averages from 3% to 6%.

Several factors can impact the compensation amount. For example, a seasoned bird dog with a track record of finding quality leads can command higher fees.

The amount tends to go up as the person provides a higher level of services.

The fee may also vary based on the competition in the area. You’re likely to see more competitive fees in localities where real estate bird dogging services are commonly offered.

Investors and bird dogs should draw up a contract detailing services and payment terms to protect both parties and spell out expectations.

Both parties should ensure that terms adhere to regulations that set compensation or commission payment requirements.

Real estate agents sometimes come across properties where owner hardships make them unsuitable for listing.

In such cases, they may pass the lead to an investor and receive a referral fee. When they do, they function similarly to a bird dog.

Some agents regularly work with investors. Part of what they do is pinpointing undervalued properties that are not currently on the market.

These investor-friendly agents typically know what’s happening in the local investment market as well as in specific neighborhoods. They have access to information investors may not have.

They also know how to analyze deals, and what makes an investment work.

All of that makes these agents particularly suited to scout out properties. Plus, they bring added value to the relationship through other services they can provide as licensed agents.

When comparing a bird dog vs a wholesaler, you’ll find that the most significant difference is their level of involvement in the investment deal.

Bird dogs simply spot properties with promising investment potential.

They may also do some back-of-the-envelope analysis to ensure that it’s an attractive opportunity for an investor or wholesaler. Then, they pass that lead along, and they’re done.

Wholesalers take the process further. When they find a good deal, they generally:

- Negotiate with the seller and structure the terms of the offer.
- Put the property under contract with the right to assign it to someone else.
- Find and negotiate with an end buyer for a higher price than they agreed to pay.
- Assign the contract and keep the margin between the sales and contract price.

Another difference relates to money. As a wholesaler, you need to have the capacity to purchase a property. You must also tie up earnest money in the deal.

Real estate bird dogs invest time but are not required to put up any money.

As an investor working with a wholesaler, your deposit could be at risk if you don’t stay within contract deadlines. Working with bird dogs doesn't have that risk.

You can try a myriad approaches when recruiting bird dogs. In addition to getting referrals from your professional network, here are several avenues for populating the candidate list:

- Your social circles: Talk to friends, relatives, and neighbors. They might drive in areas you don’t as they commute or run errands. You may be surprised who’s interested.
- Home service professionals: Ask people who may learn about motivated sellers in their work. Pest control or cleaning companies, lawn or repair services, for example.
- Delivery or ride-share drivers: Those who drive for a living may observe vacant or neglected property on their routes.
- Real estate investment groups: You’ll have competition from other investors. However, you’ll also connect with prospects who know what’s expected of them.
- Online ads: You can post “real estate bird dog wanted” ads on free or paid classified ad sites. You can also add a page to your investor website to advertise and draw people in.

To remove a lot of the legwork from the selection process, use RealEstateBees.com’s free directory to find property scouts most suited for your specific needs.

Specify your location and browse our directory for the best real estate bird dogs in your local area to get a list of professional bird dog service providers.