Friday, May 26th, 2017

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How to Pay Bird Dogs Without Committing a Crime

Back when I was helping Andy Proper put the finishing touches on his Virtual Bird Dog Blueprint, I asked him if I could snag a related tip or two to put out here on the blog for everyone.

He of course obliged.

So I started by asking him to do was to cover a couple of ways you can LEGALLY compensate real estate bird dogs.

(Side Note: You DO realize that what most real estate courses teach about compensating bird dogs is illegal in most states, don’t you? Hint: Most of the time, you CANNOT just pay a “finder’s fee” for deals they refer and you close on.  Realize it or not, it’s flat out against most state real estate codes — unless your bird dog is licensed.)

Having said that, Andy outlined two specific strategies you can use right off the bat to LEGALLY compensate your deal finders.

  1. The option method
  2. Pay-per-lead

Then I took our conversation and made a nifty little video out of it….

Oh, and about half way through the video I decided to offer my own personal option agreement for download at no charge – just as a related freebie to be helpful.

I’m still going to do that, but I’ve actually decided it deserves it’s own full-fledged post, and I want to make a quick video walking through how to fill it out.  I’ll have that done in a few days, so watch for it.

In fact, I may just start giving away free real estate forms from time to time if you guys are interested.  I don’t believe my paperwork’s “magical” but it works fine for me, and I’d gladly share what I can.

Let me know (in the comments) if you’d be interested in this or not.

Thanks, and hope you enjoy the tip from Andy.

PS…If the concept appeals to you, you can find out more about the Virtual Bird Dog Blueprint here.

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About 

JP Moses is a roughly-hewn man-child who first got into REI after reading Rich Dad, Poor Dad back in Y2K and went full time in 2002. He's tinkered in everything from landlording to short sales to rehabs to Realtoring to REOs to notes to owner financing, blah, blah, blah...Till he finally stuck his flag deep into wholesaling and has since flipped somewhere north of a couple hundred deals.

JP's not a “guru” but also doesn't think it's a bad word. Among his core values are authenticity, creativity, big honkin' value, general fun-ness and being unshaven. He's super proud to be chief blogger guy at REItips.com and host of the free REIology podcast. He also thoroughly enjoys sharing his 53 best real estate investing forms with anyone who wants them. You should totally check that out. :-)

  • Kara

    Hey Hubby!

    Is that a picture of you topless in that video? What’s up with that!?

    Love you,
    Wife

  • Kara

    Hey Hubby!

    Is that a picture of you topless in that video? What’s up with that!?

    Love you,
    Wife

  • Thank for the help JP

  • Thank for the help JP

  • JP, good stuff here!

    You are right, most of the compensation methods for bird dogs are illegal. Good to know someone is on the case putting out useful information.

    Cheers!

  • JP, good stuff here!

    You are right, most of the compensation methods for bird dogs are illegal. Good to know someone is on the case putting out useful information.

    Cheers!

  • Craig Diamond

    Great video – I also like your chalkboard skin around the video too?
    Where did you get that?
    Craig D

  • Craig Diamond

    Great video – I also like your chalkboard skin around the video too?
    Where did you get that?
    Craig D

  • @Craig Diamond – Thanks, Craig!

    The “chalkboard skin” is actually just a stock photo from iStockPhoto.com. I inserted it into PowerPoint as my slide background. Then used a handwriting font that looked enough like dry erase marker.

    I did edit the dry erase board stock photo using Snagit…that’s how I added in the “Polaroid” images along the right.

    Frankly I spend way too much time doing dorky stuff like that when I should just be paying others to do it in 1/10th the time. 🙂

    But thanks for the compliment! I like it too!

  • @Craig Diamond – Thanks, Craig!

    The “chalkboard skin” is actually just a stock photo from iStockPhoto.com. I inserted it into PowerPoint as my slide background. Then used a handwriting font that looked enough like dry erase marker.

    I did edit the dry erase board stock photo using Snagit…that’s how I added in the “Polaroid” images along the right.

    Frankly I spend way too much time doing dorky stuff like that when I should just be paying others to do it in 1/10th the time. 🙂

    But thanks for the compliment! I like it too!

  • Video is gone – can you repost or send a different link? Thanks.

    It’s fixed now – thanks for the heads up!

  • Video is gone – can you repost or send a different link? Thanks.

    It’s fixed now – thanks for the heads up!

  • Steve

    Hey JP . . . I see this post is over 5 years old . . . but is this still the case? Is the option method still the best way to pay a bird-dog in TN legally? Or has current law outdated this method? Thanks