I am relatively new investor mostly interested in flipping houses. I have been to a few courses and have a mentor. I have also been on some of my mentor’s deals to get my feet wet. However though I am looking to bird dog at the recent moment so that I can absorb as much as possible prior to making my first deal solo.
My question is when I bird dog and am looking to “sell” my find to an investor to close do I need a contract between the investor and myself to ensure that I get my fee. If so what should the contract say.
Legally speaking bird dogging is against the rules. Receiving compensation over a certain amount (usually under $100) for finding a property for someone else when you do not have an equitable interest in the property violates most states real estate licensing laws. Now it is doubtful that you will ever be prosecuted for this, but my point is that no contract is going to hold up.
Bird dog fees are gentlemen’s agreements. Now if you wanted to take it one step further where you actually put the property under contract (equitable interest) and then assign or double close to an investor, then you can guarantee your profit even in a court of law.