Is It Illegal For A Real Estate Agent To Use "bird Dogs"?
An associate of mine called a R. E. agent to offer his services as a "bird dog"...... and the agent told him that it is illegal for a realtor to use "bird dogs".........can anyone shed some light on this??? ..............Thank You........Leo 
1) Tell your friend not help a realtor. Tell him to buy John Locke's Book, and find the deals for himself.
There are always investors around. Just find the deal, and hell, put an ad in the paper ( thats where all the realtors hang out anyway )
2) I have personally found that most realtors dont know their **Please See My Profile** from a hole in the groundl.
I once heard there was one good realtor in Utah somewhere, but I think he is dead now. ( it was a long time ago)
Good luck
Jason
I agree with Jason, no reason you cannot bird dog for investors. WIth investors you get paid quick and they appreciate you. Find your own deals, I am sure you can unload them! Good luck!
From a Realtor...
Realtors have a whole slew of laws and codes of ethics that we must know and abide by or we could get fined big bucks, have our license suspended or revoked, or sued - for not crossing our "t's" and dotting our "i's".
I know it sounds crazy, but that Realtor was correct about not allowing "bird dogs".
Each state has different, but similar laws governing licensees. In Ohio, I believe it is Ohio Revised Code Section 4735.20 that says, "no commission can be paid to unlicensed persons."
If a licensee pays a bird dog for referals for listings, this would be paying someone for help in procurring the sale of real estate who does not have a license.
So to a licensee, this is illegal. It is not illegal if a licensed agent is not involved. I know it sounds unfair that one can and another can't, but that is the way it is.
If we (agents) were permitted to "buy" our listings, then it would open the door for many evils (fraud, monopolys, conflicts of interest, etc...). Eventually, the firm who paid the highest money for referals would be the only firm with listings!
I hope this helps to clear this up a little for you.
Also, some FYI... You do not have to be a Realtor to be a licensed real estate agent. A Realtor is an agent that belongs to a strict association with a stricter code of ethics than required by law.
I became a Realtor for the education and experience of it. The more I know, the more comfortable I feel about investing (which was\is my ultimate success goal).
Please know that there are many awesome Realtors out there who do know what they're talking about. Believe me, Realtors know where the bank repos are out there. Banks list their REO's with agents. Contact one of us and we'll let you know where they are. I just bought one and got $500.00 commission for buying it!
I know all the arguements for not dealing with an agent, but we can find investors great deals too. We do it every day.
Good luck in all your dealings...
OHhouse (a Realtor)
[addsig]
Peace,
Instead of using Birdog, try using "FINDER". You see, that changes things. You and the "FINDER" sign a contract for the "FINDER" to locate any property or person for that matter, to help make Real Estate Sales. Check the Legal Dictionary,By: Black's Law; Check out the Public Law Library and go to your State's Juris Prudence, words and phrases. It will provide Federal case.
Whether or not a realtor may use a bird dog (third party) to solicit leads is a state specific issue. Your best bet is to look up the statutes and rules that regulate the real estate sales profession in your state.
Thanks everyone.........for your advice and input!!!
Leo Thanks everyone
ohhouse, no offense meant but, why would one go to a Realtor to buy a bank forecloseure? The only ones that the Realtors get are the leftovers that were not picked up in pre-foreclosure or the ones that the vultures didn't want on the courthouse steps. My experience is that, there are very few good deals to be had in foreclosures from Realtors.
if you take a realtor out to lunch isnt that a bird dog in a sense... tell him to find a realtor who is willing to "work" with him...
You coul have the seller pay you or someone that you flip the deal to as well. Same fee, different source.
Great replies, Guys!!!!!! Thanks!!!!!
IM SURE A REALTOR CAN PAY SOMEONE A "FINDER FEE" OR WHAT ABOUT A "REFFERAL" FEE
Quote: IM SURE A REALTOR CAN PAY SOMEONE A "FINDER FEE" OR WHAT ABOUT A "REFFERAL" FEE
Not allowed in most states as previous posters have said...California also subscribes to the "NO BIRDDOGS" law.
Ok> Realtors can only pay referral fees to other brokers who are licensed. That's how it works. So it is called referral fees.
There are realtors who specialize in foreclosures so don't assume that all realtors know about INVESTMENTs. That's a specialty. Just like there are commercial realtors and residential realtors. Not all realtors have the same brain so do not judge the whole by its individual parts.
Furthermore, most REOs represented by Realtors are targeted to the "consumer" or "retail" market and few and far between may fall into an investors lap. Some are presented to investors BEFORE they give them to the realtor...(smart eh?) But you gotta figure out that if they've on the market for 6 months and now you can buy it at discount, they are only good for refinance (equity cash out) or to rent out. Otherwise the banks would simply lower th price themselves.
Banks are into real estate sales now in the form of REOS. They are mostly expensive, based on market value and with few exceptions here and there, they are mostly useless. Utah.
Most foreclosures on the MLS have a history so you can follow the listing from the time it was listed, then offered short sale, then off the market, the back on the market, then off again, and finally, when the bank takes over and puts it back on the market again. That way, before you buy it, you know how hard it was to sell the dog in the first place. If you buy it thinking that you are going to resell it easier, will you be surprised. Most retail buyers have no clue about that since that history is NEVER shown to them. I have seen homes marketed with 4 different agents at 3-6 months each before they show up on the MLS as "foreclosure" and guess what, around the SAME price as before! The word foreclosure in the newspaper ad seems to attract the brain dead who think they are getting a "deal" when in reality they are paying market value or slightly less but not enough to really make a profit. It's a sad thing that's happening right under Realtors noses and the public. Nobody seems to notice or care but they will when it's time to resell. They will likely turn into foreclosures all over again.
<IMG SRC="images/forum/smilies/icon_cool.gif"> [ Edited by roiclicks on Date 09/16/2003 ]
The finders fee is endemic in California. It is really not a sharing of a commission and you may contract with a person to supply you with leads. These may consist merely of a list of properties seen from the street in bad condition. You can also buy lists from all kinds of Finder Organizations. Of course if you are desperate you can also on occasion be given a lead by your friendly Attorney. He is merely another source generating an introduction to obtain future business. I built a house on Bel Air Rd. and I sent a flyer around to all of the home owners in Bel Air I offered to pay to a charity of their choice $10,000 if anyone they introduced to me bought the house. I latter extended the offer to pay off their Booky or make a payment on their child support. The mailing return was 4%!!! Unheard of but it happened. I even got telephone calls giving me names of people who wanted to live in this haven of bad taste, new money and strange personal habits.
In the matter of pre foreclosures, I have acted on behalf of investors who could not close a door without instructions, much less a buy. I have delt with REO's who refused to short pay the loan even after we told them the house had been reduced to sticks with a few hunks of stucco attached. After the sale they examined the house and then called us. We made a deal on behalf of a young contractor addicted to heavy work. He even had to install new electrical cable that had been removed and the squashed beer cans in the main 4" waste line. As your friendly broker we have taken over your Transaction with the REO officer and had him properly account the costs involved in the foreclosure. Like charging for tax advances never made. Utilization of an attorney charges in a Trustee Foreclosure. Boring I will stop. Suffice it to say a good properly educated slightly experienced Real Estate Broker can be helpfull. I know they are not a perfect person. They have not taken a vow of poverty but god knows they hear enough confessions.
Bird doggers fear not you can be a lead source in California no you cannot participate in commission. Finders fees like other Lead Sources are defendable under the cost of doing business. Jason Dooley creates leads and sells a list. Retran sells a service you download lists on your computer. There are about five others. The attorney services also contribute. dunt esk. There, I hope it is helpful. As I have said of every ten real estate events I call on. 7 are Pro Bono, damn and the other 3 it is possible to make money. Cheers. Lucius