I am very new to real estate and read that birddogging is illegal, with the exception of a broker being able to assign a fee. But that a broker can only legally pay a fee, if that person is in his employment. I do not work for a broker and don’t have a real estate license. But I have a buyer that I want to refer to an investor for a fee. Can I do that legally? Can I write a wholesale contract and open title on it and assign it to the investor for a double closing? If so, is there an appropriate amount for me to charge? I have read that some investors pay birddoggers $500 - $1000 for the referral of a house. What would be appropriate for me to charge the investor to provide a buyer?
Aliens,
You should be able to write up a contract and do an assignment of contact for a fee. You would not have to do a double closing with an assignment.
Your assignment fee will be based on the profit the investor will make. Ex: Investor going to make $75k, nothing wrong with asking for a $5k -$10k fee, don’t be greedy of course, but make as much as you think you can.
Boricua
You should be able to write up a contract and do an assignment of contact for a fee.
Referral fees general require a license. Assigning a contract to which you are a principal does not.
Brokers and other “professionals” often tell you erroneous things, such as, “That’s illegal”. Ask them what specific law makes it so. You’ll usually get a blank stare.
It would be better if you contact a real estate agent in your area.