Bird Dogging In TX Legal?

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Is it legal to find info for investors for a fee?
Does it depend on whether your fee is based on the contingency of a deal going through?

Comments(2)

  • JohnLocke8th February, 2004

    infopup,

    Glad to meet you.

    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. I don't believe it would have to come this far, but this is one way to stop all the nonsense from Realtors.

    John $Cash$ Locke

  • infopup8th February, 2004

    Thanks for the generous reply, John!
    I really love to investivate things and tend to think visually so the actual work of bird dogging is actually FUN!
    The last thing I want to do is get tangled up!. I did read another of your posts regarding legal review for investor/birddog agreements...contracts such as your book provides. I don't yet have your book or any of your courses but they are at the top of my must-have list...as soon as I afford. Do you think I could get by starting with the Birddogging book? Any other resources you'd suggest?
    Thanks again, John.
    Infopup

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