Is birddogging illegal??

nnarsh · March 10, 2008, 6:52pm

:help :help

I live in Missouri. After reading multiple forum discussions it looks like I am going to start my REI venture in birdogging. Today I joined a local REI club. Is it legal to birdog in Missouri? Also, to any wholesalers…What is the best info a birddog can give you when presenting an investment opportunity?

This is something I would put into an e-mail format. I am told many investors prefer e-mail over telephone.

Thanks in advance for any help!

Nate

Cash1 · March 11, 2008, 12:45pm

nnarsh,

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 be ok, for the following reasons:

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)
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

nnarsh · March 11, 2008, 4:28pm

Thanks for the info John! Selling info the RE, makes sense to me.

JasonG916 · March 12, 2008, 1:04am

$Cash$ post:2:

nnarsh,

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 be ok, for the following reasons:

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)

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

I totally agree with John here. And I’m a licensed member of the board! I think wholesaling/birddogging is a vital option for people who may end up losing a home to foreclosure while their inexperienced listing agent lets the home sit on the MLS until the bank repo’s it. Ethical Investors provide a valuable service, and the good ones help owners avoid foreclosure!

nnarsh · March 12, 2008, 2:23pm

Great point, I just starting listening to a CD from Jason Loucks that touches on retailing homes quickly. Has anyone tried this method or heard of this training material. Its called the 7 Day Sales Guy.

Thanks,
Nate