Bird dog rules in GA

[Joe Cassandra]

My brother's landlord is looking to sell a distressed property. I want to give my brother a $2,500 referral fee for recommending and making the introduction. (I am not an agent, nor is my brother). 

What is the legal process here?

Is it ok to market for bird dogs? 

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If it's illegal, my thought is my brother puts the house under contract, then assigns it over to me (i.e. wholesale it) if it's too sticky to just write him a check after closing.

What do you do?

[Curt Smith]

This is a standard wholesale transaction.  Legal if you avoid what is illegal.

Illegal activities

- when talking to a seller you say "I find buyers..." .  As an unlicensed person you can only be a principal "I buy houses".

- When marketing for buyers you advertise in craigslist / email lists the address and pictures of the house.  You can't not sell a property you don't own.  You can say you are selling an assignment of a contract on a 3/2 in zip 12345, approx rehab, arv blabla.  No pictures or address.  You are selling the contract. FWIW virtually 100% of wholsalers violate this aspect of real estate law.  ;(   Some even say they "find buyers" to sellers....   States like Ohio, now FL, also OR, WA are prosecuting wholesalers!!   Their foot prints are in craigslist in plain site.

This deal;

- get a std wholesallers contract. Join your local REIA in ga I tested many and chose GaREIA, someone local will give / share their contract. I share mine. Have seller sign at what ever agreed to price, your brother signs as buyer, give some earnest money amount and choose the closing attorney where earnest will be placed in escrow.

- Get a separate assignment contract, that states 2500 assignment fee, you sign.

- take purchsae conttract, assignment contract to the closing attorney and open escrow.

- The purchaser has to use cash or hard money.  Bank loan is not usable on an unlicensed wholesaler purchase.   

- The settlement statement shows your brother getting a check for $2500, you pay the purchas price plus 2500 plus closing costs.

- always buy title insurnace.

Thats a wholesale transaction.