I’m not so sure you understand. If you bring a buyer and seller together, without being a principal, and receive a fee, you are practicing agency without a license. Being a principal means that you have first signed a purchase or option contract YOURSELF with the seller, before passing it to a buyer. But that’s not birdogging.
Therefore, if you want to birddog (not as a principal), any birddog agreement you write between you and your investor/buyer WILL NOT BE ENFORCEABLE in a court of law. Since it is illegal for you to receive a fee, no court will see a birddog agreement as valid. You have no guarantees you will get paid. Will you get caught by the licensing authority? Maybe not.
The smart way to do it is to learn how to wholesale properties. It’s just as easy, and you make the big bucks instead of just pennies. Oh, and it’s perfectly legal.
Posted by Pierre(WI) on April 14, 2003 at 22:05:33:
I have decided to begin my investment carrer first by providing local rehabbers and retailers with info on distressed properties in the areas they like to invest in. I have been doing this for the last month. My question is though,
1.)What info should I provide for these people? Some say addresses are enough, yet others would like me to speak to the owner and do some face-to-face negotiating on price and terms, some even want the property under contract.
2.)Also, how am I paid? I called one guy yesterday and gave him some addresses and he didn’t even ask my name. I had to tell him before he hung up. How would he even know who to pay a fee to if he didn’t ask. Am I getting taken for or what?
Any and all help is greatly appreciated and sorry for the lengthy post. Thanks in advance!