Can Someone Tell Me What Birddogging Is???
Hey guys. I keep hearing about bird dogging. I think it means finding properties for investors? Is that correct? Someone said that its not legal in ever state. Is that true. I live in NY.
Do you also present the deal to the person selling the property or do you just pass all the specs to the investor and let them dictate the deal.
can you work with foreclosure deals or real estate or is it only for FSBO's
As you can see im confused, excited and anxious!!!
Please explain this to me. This is something Im very interested in doing
Thanks
TVA
"Bird Dogging" or "Scouting" is perfectly legal in every state if you follow the rules. You are basically acting as a research consultant for another investor.
The trouble comes in sometimes when you actually earn a commission for the sale of the property. That's a no no. (Requires a broker’s license.)
Anyway, there are lots of resources out there to learn about bird dogging. Also check out the term "Scouting".
Good Luck.
Rik
TVA,
Glad to meet you.
Once in a while this question comes up, if you ask a real estate agent you will get a stern look, if you ask all the Bird Dogs out there making $, you will get a different answer.
The local Real Estate Boards impose regulation relevant to the distribution or aid in distribution of a homestead with the intent to protect the consumer (and in some rare cases monopolize the marketplace).
Whether or not this legislation is put into place in a criminal or a civil context, it does appear fairly evident that the enforcement of this legislation would be limited to that of:
a) When a consumer is being blind-sided (ie: you are acting on his or her behalf without proper licensing and steering him/her wrong)
b) You are continuously taking a "fee" for selling real estate.
If you are working with an investor, and you are paid by the investor, who has experience in real estate transactions, and you are not party to that transaction (ie: a consultant) you should, (this is not to be construed as legal advice) be ok, for the following reasons:
1) You are taking a fee for selling information, not real estate (nobody can prevent you from charging $5.00 to tell him or her were the nearest gas station is, or where the nearest "deal" is)
2) Even if legislation was in place to protect the consumer, you have conducted no harm to the consumer....so in a semi-perfect world, you can indeed pay for a lead on a house!
I think it is important to know, most investors are opposed to the local Real Estate Boards attempting to corner the market on Buying/Selling properties, I am certainly of the opinion that the local Boards would like to see no investors/creative RE at all so that they can continue to take a small chunk out of every property sold and have the properties sold according to their "rules & regulations".
There is also such a thing as a simple Partnership Agreement, thereby making you and the investor "principals" in the transaction. The Bird Dog is bought out of the Partnership by the investor, thereby violating no State Statute.
John $Cash$ Locke
John,
So when we are writting up a contract is that why we put "...and or assigns" into the contract? Or do we just relay the information to the investor somehow tying up the property?
From what I understand, from my lwaer in CT. Or assigns is the sale of a document not a property.