Long time reader/follower, first time poster. I'm going to get my profile together soon, but I wanted to get this question out there real quick and see what you guys think. I have a pretty complex question.. I tried searching forums and Google with no success, so hopefully you guys can help me out.

I currently have a team of bird dogs in Fort Worth bringing 2-5 leads daily, but for each property I put under contract too much time is spent finding a buyer. Which is taking time away from analyzing leads and making offers in a timely manner. I have yet to have a repeat buyer out of the 5 deals I've taken all the way through closing. Currently, my bird dogs bring me the lead after initially gathering information, I decide whether or not to make the offer, and negotiate the deal. The bird dog then gets the property under contract and assigns it to me with a $1,000 assignment fee tacked on, making him a principal in the transaction. From my understanding, this is the only way bird dogs can legally be paid in Texas.

Now, my idea is to get my bird dogs bringing me cash buyers, and start taking the reverse wholesaling approach. The compensation will be $150 per deal their buyers buy from me. So if they find a buyer that buys 5 properties a month from me, they'd be a principal in each transaction and would assign it to me with $150 tacked on, making them $750 in essentially passive income that month. So they know that they are looking for buyers wanting to buy several properties a month, not just one every now and then.

This idea came to me when a bird dog said her uncle lives in Fort Worth and is currently buying 20+ properties per year, and wants to continue growing. She said she "sold" him on working with my company, but of course, wanted to be compensated.

So my question: Is this illegal in any way? Is there another way to compensate them for this service?

Cash Buyer Bird Dog

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