Jobbing 101 illegal

I am not sure what to do at this point. I am new to the real estate stuff, but am interesting in working towards becoming an investor. I purchased the Jobbing 101 material thinking that would be my best place to start and gain knowledge. However, I heard that it may be illegal, so I contacted the Texas Real Estate Commission adn they confirmed that it is illegal in Texas to make money off of referrals for property if you are not a licensed agent. I am considering requesting a refund for the Jobbing materials or perhaps an exchange if there is something else I could do in Texas that isn’t illegal and would be a good starting point. Any suggestions? I am a little disappointed because researching properties and making a little money from it sounded like the perfect starting point with minimal risk.
Any thoughts?


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.

John $Cash$ Locke

I agree that I “should” be ok, and I cannot belive that passing along information can be illegal. However, according to the information from the Commission it is illegal in Texas. Seems completely unreasonable to me, but I would like to find a way to get into investing without riding that fine line. And without taking on too much initial risk. Does anyone have any suggestions on what I can do to make a little money while I learn how to find properties and evaluate them?


If you are concerned about the legality of birddogging, then take birddogging to the next level. Become a principal in the deal. The only difference between a birddog and a wholesaler is that the wholesaler signs the contract to purchase the property (with a weasel clause in it). They then either assign or do a double close on the property, flipping it to another investor. TREC will have no problem whatsoever with these transactions.