No way to birddog in Texas?

Question

So from the research I've been doing it seems that being a birddog in Texas is illegal.  I'm a newbie and was hoping to give this route a try as it seems to be a great entryway into REI investing.

Any other Texans who can confirm that birddogging is a no/no?  I know wholesaling is an option and I'm definitely open to that, but being a birddog made sense as a better way to begin.

Sean McCrory · Answer

Not always Fred.

Some investors pay a fee + a percentage of closing which could lead to over a thousand and in some cases a couple thousand dollars. I dont think it would be the route to stick with but starting out to gain some marketing money and exposure to the transactions could be a huge benefit. Then that person could progress into a wholesaler or save enough money to fund their own flip/rental.

Fred Heller · Answer

As long as the person you are birddogging for is not a real estate licensee, it shouldn't be a problem.

Under Texas real estate law, licensees are not allowed to pay consideration for referrals, defined as anything of value, to someone who is not a real estate licensee. But a real estate licensee would know that. And that rule doesn't apply to someone who is not a real estate licensee. (Many wholesalers and flippers are not licensed by TREC).

The bigger question to me is why would you want to do that? As a birddogger you'll make a couple of hundred bucks, maybe $500 tops, IF the person you're birddogging for actually closes on a property you bring to their attention.

If, in the course of your daily activities, you happen to come across a property that you think may be of interest to an investor, that's one thing. But I certainly wouldn't go out of my way to birddog for anyone. You'll be spinning your wheels for very little money.

Valivia McJunkins · Answer

I was told that was the best route when you have no money, no experience, and poor credit. It is finding honest investors who are willing to work with newbies.

Jerry Weber · Answer

Thanks Fred!  Reason I have interest in it is mainly for the short term experience/education along with a little bit of side income.  I work full time now so it fits perfect as a start and then after some time at it I could begin wholesaling, and so on.

I appreciate your helpful info!

No way to birddog in Texas?

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