Realtors(TM), Wholesalers and Bird Dogs

[David Dachtera]

The original post which inspired this one appeared in a Facebook Group. I wanted to also post this here since others probably have similar questions ...

A Realtor(TM) is a member of the National Association of Realtors. The designation "Realtor" is a trademark owned by the NAR. Not all agents / brokers are Realtors(TM). Being an agent / broker is NOT necessary to become a provisional member of the NAR (at least, it wasn't - that may have changed).

An agent or broker is hired by a seller to sell their property, or hired by a buyer to find a property ("buyer's agent / broker"). The buyer's agent / broker does NOT usually get the property under a P&S contract.

A wholesaler finds properties for sale, usually at the direction of a specific buyer or group of buyers matching a specific set of criteria; that is, a wholesaler is an "order taker". The wholesaler gets the property under a P&S contract, then sells that contract to the end buyer and is paid an assignment fee.

A "bird dog" finds properties matching the buyer's criteria, similar to a wholesaler, but does NOT get the property under contract, similar to a buyer's agent / broker. The "bird dog" usually is paid a "finder's fee". Note that "bird dog"-ing is illegal in some states, including Illinois.

Wholesaling of real estate is considered illegal by the courts in some states where the distinction between marketing a contract and marketing a property has been blurred by the wholesaler's marketing tactics. Two prime examples are OH and FL. Assignment of contract is legal in most - if not all - states, however, to the best of my knowledge.

Hope this helps.