Has anyone heard of this?

Has anyone heard of this?

Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes

I had a Bird Dog call me last week about a property in his area that fit my criteria. I told him to go ahead and have the homeowner give me a call, that I'd be interested in pursuing the property. He calls me back a couple days later and tells me the property is already tied up, but that the individual wanted to talk to me about buying it. So I'm assuming a wholesaler is wanting to move it for a little cash and asked him to verify before I make any calls.

He calls me back the next day and tells me that the individual is a negotiator. He has the property tied up with no intentions to purchase, just to negotiate the deal. And it gets better, he wants $2995.00 to negotiate (no biggy) and 6% of the final sales price! :eyes: He is not a realtor, this is simply his fee for the negotiations and for tying up the property.

I had to pass on it, just wondering if anyone else out there has encountered this?

Thanks,
Kyle

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Real Estate Consultant · Birmingham, AL · Member since 2009 · 69 posts · 22 votes
15y

Hey Kyle,

I pulled up Ohio Real Estate Laws:

Ohio Revised Code Section 4735.01 sets forth those acts which require a real estate license if they are done for another person and for a fee, commission or any valuable consideration. Among these is anyone who "directs or assists in the procuring of prospects or the negotiation of any transaction … which does or is calculated to result in the sale, exchange, leasing or renting of any real estate."

Regardless of the law, finding a solid realtor or investment group as Bryan said is the best way to get the best deal. Building a relationship with either can get you that "hot off the presses" lead you can use to jump on great deals.

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  • Involved In Real Estate · Hollywood, CA · Member since 2010 · 25 posts · 9 votes
    15y

    Never heard of this type of scam but it definitely is one. You must be a licensed real estate agent in order to negotiate deals.

  • Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes
    15y

    Ty,

    Thanks for the reply. I've never heard of type of situation yet and didn't figure it was common.

    As far as negotiating deals, not sure about California laws, but in Ohio and other markets that I'm working in, you do not have to be a liscensed real estate agent to negotiate deals. I could attempt it myself if I were comfortable with it, but I'll leave that up to the professionals.

    Thanks and have a great day!

    Kyle

  • Involved In Real Estate · Hollywood, CA · Member since 2010 · 25 posts · 9 votes
    15y

    I understand... still sounds like a scam or something that about to go wrong.

    You have a great day too!

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    Sounds like a huge waste of your time. Why are you still talking to someone that presented this to you?

    Bird dogs are a COLOSSAL waste of time and energy in my experience. Try to find some real investors to work with so that you don't end up wasting your valuable time.

  • Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes
    15y

    Hello Bryan,

    When it was originally presented to me, I would've been direct to the seller. I was just trying to figure out what was going on with the guy holding the property and if anyone else had ran into this scenario.

    As far as the Bird Dogs go, about 1 in 20-25 seem to be productive to me. Some have certainly used my time with no real results, but those that have a real desire and put a real effort into it, have been really good to me. They've helped me make some great connections that I would have otherwise missed out on. I hope to see some of the fruits of our relationships in the near future.

    Kyle

  • Real Estate Consultant · Birmingham, AL · Member since 2009 · 69 posts · 22 votes
    15y

    Hey Kyle,

    I pulled up Ohio Real Estate Laws:

    Ohio Revised Code Section 4735.01 sets forth those acts which require a real estate license if they are done for another person and for a fee, commission or any valuable consideration. Among these is anyone who "directs or assists in the procuring of prospects or the negotiation of any transaction … which does or is calculated to result in the sale, exchange, leasing or renting of any real estate."

    Regardless of the law, finding a solid realtor or investment group as Bryan said is the best way to get the best deal. Building a relationship with either can get you that "hot off the presses" lead you can use to jump on great deals.

  • Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes
    15y

    Ty,

    I certainly agree......I'll be steering clear of this one for sure.

    Kyle

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    I'm glad to hear 1 in 20 or so are working out for you. They are all time wasters for me b/c they don't know what a deal really is or should look like. Maybe this is a personal shortcoming on my part.

    What is described above sounds like something that would require a license to me...but I'm not an attorney. At best it is a gray area. I would only want to buy a contract...not get someone to goof around with what appears to be a non-motivated seller on my behalf.

  • Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes
    15y

    Curtis,

    We must have been posting at the same time. Thanks for your reply. Many of these folks have helped me build relationships with investor friendly realtors and brokers that have brought me leads. I agree with you and Bryan and these folks have helped me build those quality relationships.

    Have a great day!
    Kyle

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