I am a newbie learning the ropes. I had some questions that I hope people here will be kind enough to answer. Thanks.
(1) Is bird-dogging illegal in Texas by law or is it just frowned upon by the realtors? Can someone be prosecuted for finding leads for someone else?
(2) What exactly is a lead? Is it just the personal details of someone looking to sell a property irrespective of whether or not it is a good deal?
(3) If I do some research into the leads and find that one or more of the properties may be a good deal and then look for hard money lenders or investors to partner with, is it still mere bird-dogging or does it provide me with more $$ for the work I put in?
My interpretation for Texas is that earning referral fees could violate the statutes. If that’s a concern, I’d suggest learning how to contract the property yourself and sell the contract. I have no clue about prosecution; I would imagine it’s a fine.
Your end user defines what a “lead” is. I’ve sent “thank you’s” after closing on a deal that was initially just a contact number. However, most of those I typically don’t even follow up on anymore. The better job you do the more valuable your services. Just a thought…
See the above answer. The more knowledgeable you become and the better quality work you provide to your end user, the more valuable your service.
thanks tim, for your response. what resources do you suggest i read up on to learn more about contracting? since i am starting in this area and don’t have a corporation or LLC, isn’t it risky to have contracts that have your name on it? also, won’t this method need more upfront cash?
balaji,
I’d suggest learning as much as you can about wholesaling. Don’t worry about entities until you have a full-blown biz up and running strong.
You can go to local club meetings, read some books (check recommended reading page here), buy some courses (some here if you want), hang with others doing it, etc.
If done correctly, it doesn’t involve much risk or cash. It will take a while to learn, build the pipeline, build your buyer list, etc., but it can be done.
It is like Tim said the more you do for an invester the more you should be able to charge. If you have the property that is a great deal and the hard lender why not do it yourself or possibly partner with some one who knows about construction and remodeling. Whatever you can not do yourself you can hire out to subcontractors and even sub out all the work and still make a profit on the deal. With some knowledge and mendoring just do it.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737