To be clear, Is paying a bird dog $500 for a closed property illegal?
I am a real estate wholesaler in Delaware and I advertise on craigslist: "Investor pays $500 per property lead that closes". So bird dogs bring me a bunch of leads, and if i wholesale one of those, i will pay them since they brought the lead to me. Someone informed me this may not be legal. I have been reading on the web and this forum but surprisingly can't find a clear answer. Is paying a bird dog commission based on the purchase of real estate illegal? And if so, why is it illegal? Also, what to do about it?