Getting paid for birddogging

[Jessica G.]

How do you make sure you get paid for finding a property for someone? I am mostly going to be wholesaling so I get that, but I'm thinking about driving around looking for vacant properties during my lunch break, which is in a different market than my wholesaling market and would make more sense for me to just shoot properties over to buyers rather than going through the wholesale process.

Thanks!

[Christopher Phillips]

@Jessica G.

Technically, getting paid a fee for connecting two parties that leads to a transaction is called brokering. It's illegal to accept compensation for this activity without having a license.

You can have a bird dog sign an option for the property and sell the option to the investor.

Or, you can pay a bird dog per lead like $5-$10 per lead or 100-200 leads for $500.

You can't pay a bird dog a commission or have the pay depend on if the deal closes. That becomes brokering without a license.