Is bird dogging legal in the state of Michigan?

Question

:D I havent been able to check out the state laws yet. Does anyone have any idea? If you are representing a buyer/investor (finding him properties) in return for a fee and you are not a realtor or attorney? Residential properties? Commercial properties? Anyone know Michigan law pertaing to this? Thank you

Dan Krause · Answer

:pup: I would not designate myself as the :"introduction agent"-it would have to be something other than that?

Dan Krause · Answer

:pup: Carlton (or anyone): I like your idea best. Bot for tax and income i.d. purposes i would have to designate myself as a "real estate bird dog", "property finder" or anything else anyone can think of?

Bill Gulley · Answer

I agree! Bill

Carlton Ellis · Answer

Don't even be the introduction agent. Just give the information to the investor. That is really all you can do. Let the investor decide to contact the seller and let him or her completely handle all other phases of the transaction. Unless you yourself have an equity interest in the transaction as a buyer or seller that is all you can do.

Carlton Ellis · Answer

It's very interesting you ask this quesiton. I'm currently in Michigan and I've actually been studying a case involving the application of the law. First here is the law: MCL 339.2501(d) provides: â€œReal estate brokerâ€ means an individual . . . [or entity] who with the intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analysis, lists or offers or attempts to list, or negotiates the purchase or sale or exchange or mortgage of real estate, or negotiates for the construction of a building on real estate; who leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; who engages in property management as a whole or partial vocation; who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or who, as owner or otherwise, engages in the sale of real estate as a principal vocation. So here is the deal you can't offer to sell real estate for somebody else. You can't offer to buy or sell real estate market analysis or listings. You can't negotiate the purchase or sale of real estate for another party. You can't negotiate mortgages for another party.You can't negotiate the construction of real estate for another party. You can't rent of offer to rent for another party. You can't negotiate the sale of a real estate business opporutnity. You can't sell real estate as a principal vocation without a license. Now in between that there is nothing to stop you with providing information to an investor about a property. The key is how you choose the structure the business arrangement. Right now I'm exploring Joint Venture Agreements with real estate investors as part of the purchase I am a small equity partner. As part of this agreement I put a buyout provision in the agreement that waives my right of refusal to any buyout offer that meets previously agreed upon value. In the agreement I have given full negotiating, managerial and financial control to the investor. This is very similar to equity for intellectual capital stock options agreements that are common in the high-tech industry where I've work for about 25 years. The agreement is VERY investor friendly in terms of control. Yet when I discuss this with investors so far it has met with tepid response at best. It's almost like they would rather pay a higher price to have a property go through a transaction where it's wholesaled to them at a higher mark up then the fee I'm currently offering. The best answer I've gotten as to why this is has been because this is not a "Traditional" way to do business. If any investor can shed light on why a Joint Venture Agreement structured in this fashion makes them uncomfortable or even not the preferred way of doing business I'd love to get some feedback. If they can offer any alternative to another Joint Venture Agreement that would make them more comfortable and of course is within the bounds of the law. I'm all ears.

Dan Krause · Answer

:D negotiation would be done by buyer and seller-i would only be the introduction agent

Bill Gulley · Answer

Hi, LOL, the names that people come up with to justify what they do that may not comply with a law or regulation. You will not likely to get an answer here unless you spill the beans, the whole pot, as to what you plan to do. Only then could a determination be made. Finding the rules of the road are pretty simple. Search "your state" real estate agent statutues. When you fin it. read what requires a license then don't do that, unless you have one. Good luck, Bill.

Dan Krause · Answer

:D I would not be assigning contracts. The closing would be between the buyer and seller.