Why New Real Estate Investors Should Avoid Buying Deals from Realtors, Investors, and Bird-Dogs

As a new real estate investor, you're probably excited to dive into the market, secure great deals, and start building your portfolio. However, one of the most critical lessons you'll learn is where—and where not—to source your deals. While it might seem convenient to purchase properties from realtors, other investors, or bird-dogs, this approach can be fraught with pitfalls, especially for beginners. In this post, we'll explore why it's usually better to avoid these sources and focus on direct dealings with motivated sellers instead.

Why Buying from Other Investors Can Be a Trap:

When you purchase a deal from another investor, you're often paying for their expertise—whether you realize it or not. Experienced investors know how to structure deals to maximize their profit, and as a new investor, you may find yourself on the losing end. Other investors have already assessed, negotiated, and extracted as much value as possible from a deal before offering it to you. In essence, you're buying someone else's leftovers. This approach not only limits your profit potential but also hinders your learning process.

Learning to find and negotiate deals on your own is a critical skill in real estate investing. By dealing directly with motivated sellers, you have the opportunity to craft creative financing options such as seller financing, subject-to investing, or wraparound mortgages. These strategies allow you to take over mortgage payments, secure owner financing, and negotiate terms that work in your favor.

The Drawbacks of Working with Realtors

Realtors play a valuable role in the traditional real estate market, but when it comes to creative investing strategies, they can be more of a hindrance than a help. Realtors are legally obligated to represent the seller's best interests, which means they are often resistant to creative deal structures that might be outside the conventional scope of their training.

For example, strategies like seller financing or subject-to investing require flexibility and a deep understanding of the seller's situation. Realtors, who are focused on securing the best price for their clients, may push back on these non-traditional approaches, making it harder for you to close the deal. Additionally, working through a realtor can add layers of complexity and delays to the process, which is especially frustrating when time is of the essence.

For new investors, it's often better to bypass realtors and connect directly with motivated sellers. This direct approach allows you to have open and honest conversations with sellers about their needs and how you can help them, leading to win-win solutions.

Why Bird-Dogs May Not Deliver the Results You Need:

Bird-dogs are individuals who find potential deals and pass them on to investors for a fee. While this might sound like a great way to save time, the reality is that bird-dogs are often inexperienced and may not have the skills to properly evaluate a deal. As a result, you may end up paying for leads that don’t pan out, wasting both your time and money.

Moreover, relying on bird-dogs means you're dependent on someone else's ability to identify opportunities. This is risky because bird-dogs are often motivated by the prospect of quick money, rather than a deep understanding of the market or your specific investment strategy. Instead of relying on bird-dogs, I recommend that new investors focus on building their own lead generation systems. Techniques such as cold calling, driving for dollars, and direct mail campaigns are proven methods for finding motivated sellers who are ready to make a deal.

The Power of Direct Dealings with Motivated Sellers:

At the heart of successful real estate investing is the ability to connect directly with motivated sellers. These are individuals who are eager to sell their properties due to various personal or financial reasons, making them more open to creative financing options. By dealing directly with motivated sellers, you have the opportunity to negotiate terms that work for both parties without the interference of a middleman.

One of the key advantages of dealing directly with sellers is the ability to implement creative financing strategies such as seller financing, where the seller acts as the lender, or subject-to investing, where you take over the existing mortgage payments. These approaches can be highly beneficial for both you and the seller, allowing you to structure deals that require little to no money down and offer flexible repayment terms.

In contrast, when you work with realtors, investors, or bird-dogs, you lose the ability to have these direct, meaningful conversations with sellers. Instead, you're often left negotiating through intermediaries who may not fully understand your goals or the seller's situation.

Keywords for SEO:

Seller finance, seller financing, owner finance, owner financing, take over payment, take over mortgages payments, wraparound mortgages, assuming a mortgage, subto, subject to investing, rent to own.

Conclusion:

For new real estate investors, avoiding deals from other investors, realtors, and bird-dogs can be one of the smartest decisions you make. By focusing on direct dealings with motivated sellers, you gain control over the negotiation process, enhance your ability to implement creative financing strategies, and ultimately, increase your chances of success. Remember, the skills you develop by finding and negotiating deals on your own will serve you well throughout your investing career.

Call to Action:

Ready to take your real estate investing to the next level? Get your copy of my book at [http://www.TheNewFlip.com](http://www.TheNewFlip.com) and learn how to build a successful real estate business without relying on traditional bank loans. Discover more