Use Bird-Dogs to Find Properties That Aren’t Advertised
What’s a bird-dog? It’s usually someone who comes into frequent contact with problem property owners within a specific neighborhood or area, and is in a position to learn about non-advertised rental properties that are for sale there. These types of hidden properties are never formally advertised as being for sale; their availability is only made known by word-of-mouth. A neighbor, a relative, or an acquaintance may be the only one who knows of a property owner’s willingness or need to sell a small rental property.
Once you recruit these type of people into your bird-dog spy network of paid informants, you’ll be in a position to receive valuable insider information on non-advertised rental properties without the general public, your competitors, ever knowing of their availability.
How to Recruit Bird-Dogs into Your Spy Network of Paid Informants
The best way to find bird-dogs to join your spy network of paid informants is to tell everyone that you come into frequent contact with, that you’re looking to buy small, residential rental properties, and that you’re willing to pay your bird-dogs a finder’s fee when you buy a property that they’ve told you about. Here’s a listing of the type of people you want to recruit into your network as bird-dogs:
- Mail carriers
- Trash collectors
- Fellow club members
- Fellow church members
- Door-to-door salespeople
- Delivery truck drivers
- Business colleagues
- Taxicab drivers
- Utility meter readers
Offer to Pay a Finder’s Fee
The best way I’ve found to motivate people to contact me with valuable information on non-advertised rental properties, is to offer to pay a finder’s fee to anyone who tells me about a property that I buy. For example, my standard finder’s fee is $500 cash, payable on the day that I buy the property. Why $500? That’s because $500 seems to be the figure that gets the attention of most people.
I use to offer $300, but since I’ve upped the ante to $500, I’ve more than doubled the number of leads I get monthly from people calling to tell me about small rental properties. The thing I like best about using finder’s fees is that I only have to pay them when I buy a rental property. In the meantime, I’ve got the benefit of a lot of people looking for small rental properties for me without the cost of a weekly payroll.
Use the Internet to Advertise Your Finder Fee Online
On my real estate investment company’s web site, I have a Property Wanted Web page. There’s a 500 Cash Reward button that visitors can click on to learn about how they can earn a finder’s fee of $500 in cash by simply contacting me with information that results in the purchase of a dirty, neglected, run-down two to twelve-unit residential rental property in the Tampa Bay Area. I also have my $500 cash reward printed on the backside of my business cards.