I have been a wholesaler since 2008 and have recently became an agent. How can I hire bird-dogs to get leads for me as an Agent legally. I don't want to do anything under the table as the whole reason I got into RE was to get out of doing "shady" things. I was told I would told I would have to pay an hourly wage if I did and I was told by someone else that I couldn't hire anyone and my broker would have to do it. I was also told it was illegal too. Any suggestions?
Are you looking for them to bring you leads for your wholesaling business or your RE Agent business? They need to be separate. If you are looking at the RE angle I would think hiring them as an hourly employee would work. Otherwise it's a simple bird dog agreement with your wholesaling company if the leads are for that side. The issue comes in when you mix the two businesses together, you have to make sure they are completely separate.
Yes all the leads I get from now on will be separate. I will probably do the hourly employee angle. What would be a fair rate to pay them?
If you want to stay legal, your bird dogs have to have a real estate license in Florida. I suppose that is true in your state also. If Mr. Birdog Wannabe went to real estate school and got his real estate license, he could place his salesman license with a broker that is not a member of the Assn of Realtors. This would cost no money to Mr. Birdog Wannabe. If you work for a big Realtor , they probably have a company that is not a member of the Assn of Realtors. When Mr. Birdog Wannabe finds a buyer or seller, he refers them to you. You pay him whatever you agreed to pay him.
http://www.biggerpockets.com/blogs/3840/blog_posts/33767-the-difference-between-a-realtor-and-a-real-estate-licensee If you understand the difference between a Realtor and a real estate licensee as described in my article, Mr. Birdog Wannabe would be wise to continue with his education, get to be a real estate broker. When he sent you a referral, he could keep all the money. It would cost him nothing to maintain his broker's license once he finished school.
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