BIRD DOG FINDER FEES
Can "bird dog finder fees" or just "finder fees" be legally paid to people who do not have a real estate license?
I am a real estate broker and between licensed agents we offer and received usually 20% of the side that is being referred out (buyer or seller) not the whole transaction amount.
Just would like comments on this subject and it would be interesting to know the difference between each state.
Thanks
Cheryl Lopez
[ Edited by cheryllopez on Date 01/31/2004 ][ Edited by cheryllopez on Date 01/31/2004 ]
First, I didn't really understand this statment, "I am a real estate broker and between licensed agents we offer and received usually 20% of the side that is being referred out (buyer or seller) not the whole transaction amount." My apologizies, but if you could clarify here.
Birddogs don't have to be licensed to collect their fee. The simple reason is that the birddog is not a principle in the transaction, quite unlike a real estate agent.
The agent is taking an active part in the transaction on behalf of the buyer or seller.
The birddog on the other hand is like their namesakes, the simply point out the property. The actual deal negotiation must be between the investor and seller. The birddog has no part of it.
Example: Thru whatever methods he uses to find his deals, the birddog locates a property. The FMV is $100K. The seller wants $80K. The birddog calls up Mr. Investor and relays the info. If Mr. Investor is interested, the birddog calls back the seller and tells them that Mr. Investor would like to meet with them about buying their house. After the meeting, Mr. Investor calls up the birddog and says "good job, a done deal, here's your finder's fee."
As an agent I'm sure that you can see the difference of involvement.
Roger
I agree, the birddog is the person that does the leg work for you. In return they are compesated well for their effort. It is also an excellent way to stay in tune with market.
Hello,
I know that Realtors are not allowed to give those types of fees. In lots of states one can sell real estate that is not his to another w/o a lincense but if you control it with a contract- option or purchase. then you can do such- getting around the rules- if you are only selling your interest what ever that is seems it can be done. only offering a opinion- check facts with state govern and an atty.
Ad
Dear Cheryl Lopez ,
As an 'independent contractor' and as per independent contractor's agreement that you'll sign with investor/s, (it specifies how are you going to be paid), you CAN provide "birddog" type of service without state regualted and issued RE agent licence.
In this case, investor is just a client like in any other profesion that uses the same form.
If you are really interested in making money birddoging for investors, my sugestion ito you is to get John Locke's rei birddog book, which will allow you to start making money as soon as the day after you are done reading and printing your business cards.
Good luck !
I am the original poster.
The reason I started the questions about "bird dog fees" is that another poster asked if $500 fee is ok.
Other posters said they obtain $1,000.
Another said $5,000
Another said 33%
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I just know from my real estate that 20%
$200,000 House Sale
12,000 6% fee
= $12,000
$12,000 is split between agents
$6,000
$6,000 of which the 20% referral fee is provided = $1,200
So from my above explaination of what really happens with licensed professionals ... then bird dogs were obtaining even higher.
So I say congratulations to all those bird dogs for getting finder fees on doing all the "leg work" !!
For now and in the future SORRY for typing (120 wpm) faster than my brain thinks.
I feel I have offered opinions from a real estate professional experience and knowledge rather than moral side of what to do or not do.
However, if some poster's want to attack my grammer or english ... then I am elect to not continue past my 30 free trial period. I see alot of misspelled words that the same posters attack my grammer but say nothing about that.
I read the Forum is to help and professional help is what I would like to offer. I know all posters may not agree or have another opinion than mine. I have closed on over 600 escrow transactions which from that experience should help at least novice "newbie".
i wil reed al post withe al there mispeled wurds. (I know is it suspose to be: I will read all posts with all their misspelled words.) I hope my grammer did not offend the lone star state.
Dear Cheryl,
I do not care what others say, I think you are a good Real Estate Broker and I read what you have to say and I am glad you have come onto this site. I think you have much to add. You have been busy girl, keep it up.
Remember this is the USA, at least last time I looked. Believe me none of us are perfect in this language. I was born here and I still make very large boo boos. The double lll's are difficult.
Anyway. Bird Dogs, I call them Real Estate Analysts and when they are doing business with me I call them that and I insist they have nice business cards and wear shoes.
I have run a Real Estate Office for over 40 years. I receive at least two or three Calls per week from Real Estate Analysts. They never enter into negotiation or agency. They merely supply an introduction to someone who wants to buy, or sell or get saved from foreclosure whatever. We pay the REA a fee which is 10% of what the profit is in the transaction. That is of the funds awarded the office, cause sometimes down here in LaLa land there are multiple brokers involved. It is almost like an expense of an advertisement.
Interesting most of those REA's go on and take the license. The most succesful of them is now a rental agent. She likes that because she does not have to wait for an escrow to close. She gets it now. Her split with the office is 90 for her and 10 for the office. Of course she is the best. Fluent in English, Spanish and Tagalog. She will be retiring some time this year. I guess she will sell her little agency.
I hope this explains this situation somewhat. I do hope you continue to post, you have some very special knowledge. Modular and Manufactured Single Family Housing. I have many questions to ask you.
Respectfully Lucius
What Lufos said is perfectly true. Im a "birddog" in Maryland. I also work in a major grocery store in a town the is very friendly. Im a cashier manager. I "TALK" with my customers and they know what I do on the side ( which happens to be my main income as well). My contacts ARE my customers. I tell them I save people from having thier houses being foreclosed. I only work at this store for 20 hrs a week. I get paid $14 a hr to work there, yet the clinchure is the store pays me to find houses for my investors. Ironically, I have found a baseline of investors this way as well, right at my "employment". People come up to me and tell me a friend, neighbor or famly member is being foreclosed. I look at the house right away AND I KNOW my neighborhood. When I look at a house I also look at surrounding houses nearby. If I see one that needs attention I'll send a letter to them, one that entices them to call me to either sell thier houses OR refianance. Either way I earn about 12% of the investors or loan brokers profits. More than pocket change. The only reason I still work as a cashier manager is the contacts I get AND the GREAT Union Health insurance, which pays 90% of every doc/hosp/prescription bill. Not a bad tradeoff as well. Ohh my DecorbyDee name? I also sew for home interiors, I LOVE to sew, why not get paid WELL for it too, LOL, I will retire NICELY. Blessings DecorDee
When a birddog first contacts me,I generally only pay $500 or $1,000 on the first 3 deals according to how much information the birddog supplies. After this if we feel we can work togeather,I offer to partner with them on a 50/50 profit split. Last year my most productive partner and I split over $3,000,000.00 in profit. She is only 24 years old and previously made less than $20,000.00 per year as a bank teller. When looking for birddogs look for people who feel they are underpaid/underappreciated.
Cheryl;
I like reading your posts. I do not think posters meant to make fun of your posts. I too was a little confused with the way you worded your post. I honestly don't think the clarification request was meant to poke fun at your grammar, but to understand your question a little better.
Anywho I mess up a lot when it comes to grammar or pronunciation.... I grew up in Mexico and did not move to the US until I was 16 (my father is american and wanted to move back.. I guess 16 yrs is a long time to be away from the US.. guess he started missing it. LOL. ) I get tongue tied sometimes and can come up with some pretty good spanglish words. I do have some people make fun of me sometimes because once in a while I mix in english when I am speaking spanish or spanish when I am speaking english.. I shrug it off and move because guess what? More than likely they are just jelous that I can speak english and spanish (and a tad bit of Korean) when most of them do NOT!! Anyways just trying to cheer you up. Hope it at least made you smile and hope to still see you posting!! I still have a lot to learn from you and other TCI memebers.
About the fees I just started B-Dogging a few months ago and fees can change a lot. It depends on how much work I do. When I just provide a name and address about 500 or 2% to 3% of the profit whichever is greater. Now if I get preliminary comps, email pictures, set apt etc then I have gotten up to 2,000. Now as my expertise increases I am sure I will be able to get more for my services. I guess it just depends on customer service. If you keep your clients/partners happy they will take good care of you. It is a very simbiotic relationship.
Carpe Diem,
Veronica