little confused

Bird Dogs, Wholesaling
1

Hi everyone, Im still in the process of building my buyer/seller lists. Spoke to an investor today that told me that bird dogging is illegal and you have to be licensed to be a rei in the state of Michigan. Ive read the state laws but I am still a little confused. can someone from MI. please give me any info. on this matter. Thank you in advance. …housebuyer1… :help

2

housebuyer1,

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)" 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:

  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

3

Thanks John for that great info. I think you have answered my question .

4

Good evening housebuyer1,

I just gave a presentation to a mixed group of Realtors and Invesors. What a hoot when the realtors tried to continue the myth that you can not pay a bird dog. Some even produced state statutes that they Thought prooved it. Less than 10 seconds later I busted the myth…REALTORS cannot pay bird dog fees. The statutes are very very clear that Licencies may not pay and must only do so through agency, (with their Broker) Investors are Not prohibited we are not licensed agents. We are private parties not governed by the state statutes that apply to realtors. So Realtors no Investors yes.

A few Investor h8tn Realtors were really bent to learn the truth.

Darin

5

99% of Realtor think inside the box.