Re: Real Estate Business Opportunity (?) - Posted by Craig (IL)
Posted by Craig (IL) on March 24, 2002 at 11:11:57:
It is probably not a skam. There may be laws that you first want to be aware of.
First, this corporation is likley a very small operation, possibly a single investor who makes money by buying distressed properties, making repairs, be it structural distress or legal problems, takes necessary actions and re-sells for profit.
There is nothing illegal about this. That company uses your eyes and legs to locate properties in exchange for a (usually) small fee. You would be known in the field as a “birddog” for that company.
Some people do this, but not so much for the income. Income from birddoging is usually not very much. People do this primarily to get next to person(s) doing real estate investing in order to learn for themselves how to invest and make money from real estate investing.
A possible rub could come if you do several such referrals. While birddoging itself is perfectly legal, if you are not a licensed realtor, doing multiple deals may run afowl of state laws. Check into your state’s laws; if you have a friend that is a broker or agent, he or she could run this down for you.
I understand many birdogs work by never calling the property owner and working only with the persons they birddog for. In such case the existence of the birddog is entirely unknown and not recorded in the real estate transaction.
Real estate can be an exciting adventure. This could be a good way to start for you.