OfflineWell after reading dean's book, I learned you need to be creative in your own type of ways. And I been studying how Assignment deals work for quite some time now. And I think I found something better to do rather than taking control of a property yourself to assign to another buyer.
So here's what I got in mind. I think it would be alot better if you just lock up a deal, find a buyer to buy the property (of course). Then make an agreement with the seller of the property to pay you a percentage of the house sales (for finding a buyer) after the house is sold, rather than take control over the house yourself to assign to a buyer.
If you think this will work better, then please feel free to speak your mind. I'd loved to hear what you all will suggest. Thanks.
P.S. This is only a suggesting, I'm not actually sure if this will work or not.
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I believe that, in most states, maybe all, that this would be illegal. You need to be a licensed real estate agent to collect a commission for assisting in the sale of real estate for a fee.
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Wouldn't that be acting as a real estate agent without a license? By locking up the property and having the right to purchase the house, you are then selling your right to purchase the house to someone else, you're not acting as an agent. If you connect the seller up with a buyer and ask for a fee then you're acting like a real estate agent without a license. That's illegal. Am I correct in this thinking?
Oh ok, thanks for pointing that out to me. I havent gotten started in real estate myself yet, so I wouldnt've known if that was illegal or not.
Well I guess it's time to think of something new again that isn't illegal.
"Open minds backed by knowledge, wisdom, persistence, and determination equals unstoppable excellence"
- wrecklessKane
Well what about collecting a fee from Bird-dogging? Wouldn't that be illegal too? I mean you are acting as a realtor by researching a property and collecting a fee from it, right?
I'm not trying to argue or nothing. It's just that I need to know what's right and what's wrong.
Thanks by the way for the heads up. I'll be sure not to do that any more.
"Open minds backed by knowledge, wisdom, persistence, and determination equals unstoppable excellence"
- wrecklessKane
The way Dean describes Instant Equity exchanges in his book, you are merely selling the equity that you have locked up in the deal itself, and are pulling that equity out as the deal is finished. Nothing illegal about that and believe this, there is a way around the things that make deals illegal. Worst case scenario use a realtor to make sure everything is correct. 50% of something is better than 100% of nothing.
no, bird-dogging is not illegal. Think of it as being an assistant researcher for a professor. You aren't doing anything but finding deals and doing research. If the property is a fit and the numbers make sense for the investor, then you can refer the deal to him, and HE will do all the rest of the leg work, ie: negotiating, locking up, and funding any deals, then HE will sell the property. All you are doing as a bird dog is looking for POTENTIAL deals and if they close, then he will pay you for your time. what you get paid is alot lower than assigning the contracts, however you gain knowledge and experience without having to invest any money or credibility. Just sweat equity is what you are investing.
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