Recruiting and Legally Paying Bird Dogs

Looking for some advice on how to legally pay bird dogs.

I have seen that it’s ok to pay “per lead” up front ($2-$6 per lead or something like that) or to do some sort of option agreement where they assign their option contract to you and then collect their assignment fee at closing (not 100% sure how that works if someone can explain how to do that). Any other good ways to do it (i’m in TX by the way).

Also, when recruiting bird dogs, what should I ask of them? Pictures, addresses, homeowner contact info, etc?

Do I need to have an up front contract with them?

Trying to stay legal here, so any advice is appreciated!


Most investors don’t pay bird dogs per lead! 95% of the investors I know pay bird dogs once they close on the property and the fee is usually $500-1000 bucks depending on how big the spread is.

You don’t need any contract with a bird dog. Before the closing have an written agreement between you and your bird dog stating how much you plan on paying him at the closing.
Depending on what Title Company you use, they can disperse the funds in the form of a check in your bird dogs name.

Hope this helps!