I am looking to begin birddogging in San Diego CA. I am a flyer distributor walking door 2 door all over San Diego county. I find distressed properties all the time and am looking for buyers. My question is if there is any illegality on my part. Do I NEED to have some kind of licensing to do this for a finders fee? i am not yet ready to get into the paperwork/hassle of wholesaling etc.
you have to have an interest in a property to market it. You can simply take out an option to buy and sell your option.
Best to check with your state and city laws...
That said, I know several bird-doggers that find investor/buyers through local REIA groups or simply post an add that they want a finder's fee to locate deals. Investors gladly pay for great leads whether they are true wholesale deals where you have the property under contract or if you have simply located a motivated seller and negotiated a great potential selling price. You will probably only get paid when deals close so keep track of all your leads and find investors you can trust not to go around you.
Real estate agents would have to abide by different rules which tie all compensation related to real estate through their broker.
Hope that helps.
Have Fun and Make Your Own Luck!
Originally posted by @Curtis Williams :
I don't know what all that is about....
Bird dogging isn't illegal. It is a great way to sniff out deals for your investor buyers. I am in escrow now on a deal a bird dog found and I paid him $5K. Owner occupied, beat up house, but she's letting me take the property subject to her loans so it is going to be a great rental for me.
Thank you Jeremy, Douglass and Aaron for your help. @Aaron Mazzrillo, those are my attempt at using keywords to attract respondents; did I do it right?
If you find anything near SDSU let me know, I am a buy/hold investor close to San Diego State campus.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing