So I am very new to the wholesaling scene, or real estate in general. So I decided it would be good to start off with being a bird dog, which would help me learn and network. Although after a couple Google Searches, I found bird dogs are illegal in North Carolina. Is this only if you are using North Carolina properties, or is it applied to anyone who lives in North Carolina, no matter the property location?
@Grayson Johnston Not sure what you read or where but I think you might be getting misinformation. Lets start with what a bird dog is and what they do. A bird dog is simply someone who finds leads for investors. For example, I had a guy who worked for a moving company send me addresses of homes he saw with tall grass and other signs of distress and abandonment. I agreed to pay him a fee for any of these addresses that I purchased. This is not illegal in any state.
Where things start getting hairy is when you are making referrals to real estate agents. They are governed by a different set of rules and they can only pay referral fees to licensed agents. However, I know agents that found creative ways of paying people who bring them leads. But to address your concerns about legality, if you are simply finding distressed looking properties and passing that information to an investor in exchange for a fee then you are not breaking any laws. Bird dogging is a great way to get your feet wet.
Regarding "I found bird dogs are illegal in North Carolina..." it would help to cite references. I doubt you will find it illegal in the NC state statutes. This BP topic, Bird Dog- how to find/what to pay, and many others are out there for answers to your post. My post on June 29, 2014 on that topic has links to case law involving 'bird dogs'. I said then, and it's still applicable, "A 'bird dog' is not a broker." And Lydia correctly points out that licensed brokers live by different rules.