BirdDog a Cash Buyer?

Question

Hi All,

I am no longer wanting to wholesale.  Every once in a while, I will get a call from seller or buyer needing assistance or looking for an investment.  Typically, I will get their contact info and criteria, then spend a couple of days really trying to help them.  After that, I tend to move on to what I do full-time.  I sort of don't contact them anymore.

I don't think that's cool...

My question is regarding cash-buyers:  How can I refer them to, perhaps, a full-time wholesaler/investor/Realtor and still make money?  I don't want to do any of the work involved in trying to find a property that meets their criteria, fill out agreements, show any properties, etc.  I also want to make sure the refer is legit.

Any suggestions please?

Thanks a bunch!

Nemi W. · Answer

Something to think about...thanks guys for responding!

Account Closed · Answer

Seems silly, just refer them to another realtor and hope they don't mess it up.    As for getting it up front, good luck.    Nobody knows the quality of the lead so it is hard to put a value on it.

Ned Carey · Answer

I have not heard of Bird dogs getting paid up front. Generally referral or Bird dog fees are paid when the deal actually happens. That is because the deal may not happen at all.

Now simply giving someone raw leads, for example a list of vacant houses, an investor may pay up front per lead. This would be significantly less than a fee for bringing a specific deal.

When wholesaling, you have a property under contract and people are legally bound to the terms of the agreement. In this case some wholesalers collect all their fee up front but this is still rare.

Keep in mind even though you are licensed, collecting a fee from an investor that does not go through your broker is probably illegal. Many states do have a simplified system for getting referral fees from other agents.

Good luck  - Ned

Nemi W. · Answer

Thanks Ned.

I happen to be licensed.  I was actually hoping to collect a fee up front.  Is this something that some investors do?  I know when one birddogs they sometimes get upfront pay, no?

Ned Carey · Answer

Lots of people simply refer deals to investors and if the investor does the deal they pay a referral fee. Keep in mind in most states this would constitute providing brokerage services without a license. I have never heard of anyone getting in trouble for this but keep in mind it is illegal.

You can certainly structure such a deal to be perfectly legal but then get into wholesaling  and filling in agreements.

One option is many states allow you to be a referral agent. You can become an agent and get referral fees but you don't shoe or list houses.