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WHY DO WE NEED TO GET SHOT DOWN FOR THE NEO?

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing WHY DO WE NEED TO GET SHOT DOWN FOR THE NEO?

This topic contains 19 replies, has 0 voices, and was last updated by Avatar of dbhenderson dbhenderson 11 years, 4 months ago.

Viewing 6 posts - 16 through 21 (of 21 total)
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  • #26323
    Avatar of areyes
    areyes
    Member

    okay so how is this different from a bird dog getting a finder’s fee if they’re able to secure a buyer for the FSBO or investor/wholesaler?

    more likely the bird dog doesn’t have a signed NEO, nor a signed purchase agreement, nor a recorded exclusive option with the seller, yet they’re marketing for a buyer for a fee? wouldnt they be practicing real estate without a license?

    i can go to a FSBO, make an offer with the NEO, FSBO says no to my NEO, and then tell the FSBO if i can find a buyer, just pay me a finder’s fee. it’s all verbal and there’s no contract, no NEO, etc. now i would have inventory to leverage.

    of course i prefer using a NEO, i just wanted to get some feedback on the bird dog scenario marketing/advertising a property they don’t have a contract with anyone.

    #26324

    Do “Bird Dogs look for Buyers ?

    I know FSBO franchise folks ( which means there is an OWNER that is doing their OWN selling ) and those that head hunt a suitable Agent.

    I think the WHOLE issue is having them under contract, to solicit “Buyers.”

    Of course, just like folks getting ” around” the Do Not Call Registry, you can call on a FSBO: and if they don’t want to sell for 80% of the taxable amount ( = low ) they ask, “Have you tried a Listing of it ?”, or “Do you want to buy a Vacuum Cleaner ?”, or whatever.

    Having SOMETHING ( ANYTHING ) on Contract means = ( NOW ) Advertise for BUYERS.

    And, when they call, if the ONE you have doesn’t “suit” them, then maybe … dah, dah, dah… “what kind of neighborhood are they looking for their FAMILY to live in ????? ” ( and do they mind if you ended your question in a Preposition ? Are they O.K. with that ??? as Bill said. )

    “If I Find you a Buyer ?” , to ask an FSBO that doesn’t want your Offer is one thing.

    Are you just going to “come across them ( the “Buyer” ) ?” Maybe so.

    I’d keep my license if I were you, Alvin, for this very reason. I think I would. Or, just use Realtors.

    Mathias’ entire programs are based on “ether be Licensed/ use a Realtor/ or go directly to jail/ do not pass go/ do not collect $200/ or $20,000.

    #26325

    @areyes wrote:

    okay so how is this different from a bird dog getting a finder’s fee if they’re able to secure a buyer for the FSBO or investor/wholesaler?

    “Bird Dogs” collecting a “Finders Fee” is exactly what the State Division of RE and the Board of Realtors are trying to stop. Even if you have a Property “Under Contract”, either by a Real Estate Purchase Contract, Option or other, You CANNOT collect a fee for finding a “Buyer”, period.

    You CAN “Sell or Assign Your Contract” but you CANNOT Sell the Property or Market or Advertise for a Buyer or Leasee unless you have a RE License.

    Until last year, most State Divisions of RE only had the power to regulate “Licensed” individuals. The State Attorney General Offices have now given the Div of RE the power to regulate, fine and charge anyone that is acting “as-if” they have a license.

    #26326
    Avatar of areyes
    areyes
    Member

    thanks alan,

    license will be expiring in 2 months which i could care less about. all of my activity has been making offers as a principal. also my main focus is outside of my backyard (california) so i dont need a license to make offers and put them under NEOs as a principal.

    id rather use another agent in different states that’s willing to listen and understand what we do as NARSonians. pay them what they’re worth in regards to showing properties and locating properties for us. besides thats what theyre trained to do full time right?

    i dont ever want to show properties and rather leverage other people to do the work for me while i can control it remotely at home.

    thanks scott,
    i understand that bird dogs would hunt for distressed properties for wholesalers who are putting these properties under contract to assign or sell the contract to a retail buyer or rehab investor. bird dog would get paid a fee at simultaneous closing or double closing.

    anyone can sell a property via FSBO just as long as your a principal. otherwise every homeowner will need to be licensed just to sell their own property.

    i agree that if the bird dog is advertising for a buyer when they dont have a contract in place to assign or sell, then they are acting as an agent.

    how does this differ with us NARS members when other NARS members have a NEO in place without our names on it? the ground partner section is a good example where people are placing their properties under NEO and are willing to split beneficial interest or finder’s fee/marketing fee upon securing a qualified RB with cash. for example i can put my property that i solely have under NEO in the ground partner section, and 20 other new/seasoned go out and start hunting or searching their resources for a qualified RB. aren’t they acting as-if they have a license? none of them are on my NEO and yet they’re marketing/advertising for a buyer or leasee (aka RB)

    i just need clarification

    #26327

    @areyes wrote:

    i understand that bird dogs would hunt for distressed properties for wholesalers who are putting these properties under contract to assign or sell the contract to a retail buyer or rehab investor. bird dog would get paid a fee at simultaneous closing or double closing.

    The Bird Dog must be the one who puts the property “under contract” not the investor. A Bird Dog CANNOT get paid a fee at a closing of any kind.

    @areyes wrote:

    anyone can sell a property via FSBO just as long as your a principal. otherwise every homeowner will need to be licensed just to sell their own property.

    Yes, as long as THEY are a principal, not another investor.

    @areyes wrote:

    how does this differ with us NARS members when other NARS members have a NEO in place without our names on it?

    All Optionees and or Offerors should be on the NEO and Appendix #1 Purchase Offer. However, I know this isn’t always possible at first since you may be using a NARS Member as a Ground Partner. That’s typically why I only use a Licensed Realtor to do the Marketing and Showing of the Property.

    If you have a property that you want to make an offer on, I would first find your Ground Partner and name them on the NEO and Appendix #1 first.

    #26328
    Avatar of scott
    scott
    Member

    Here in Texas not even a real estate lawyer can get paid without an active real estate license. The rumor that won’t die is that if someone brings you a lead you can give a $25 gift certificate if they don’t expect it. One of my instructors (Leonard Thomas) was on the TREC board. He pointed the code that says NO amount of compensation can be paid unless you are a principle in the transaction or both the payor and payee have to have an active license.

    That applies to cunsultants too! :lol:

Viewing 6 posts - 16 through 21 (of 21 total)

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