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This Form Provided By: http://www.biggerpockets.com Bird Dog Agreement This Agreement is made effective as of, 20, by and between (hereinafter Buyer or Seller circle one), of, and, of. In this Agreement,
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Hi this is JP with REI Jeff's calm and dandy Pro I have a request to be my friend I want to put out a tip to my REI Jeff's community, and it has to do with something you and I have chatted about a couple of times in the past and I think it would help a lot of people to illuminate it further it comes right out of your course the virtual Bert dog blueprint if anybody wants to check that out there's a link here on the page but here's the question I've got for you and I just want you to tell me exactly what you recommend to people when this question comes up how the heck can you legally compensate bird dogs okay that's the question but here's the reason I'm asking that question some investors would hear that question and go well you just pay them a commission you know a bird dog is somebody who you pay to go out and find leads, and you're paying them for the service of finding those leads well the fact is in a lot of states at least in Tennessee and I would say most states it's not all that is in its rawest simplest form practicing real estate without a license by most state real estate codes so that being the problem you've heard the question of how do you address it this is a question that I certainly get on occasion and like you said it definitely varies on a state-by-state basis, but I outlined seven different bird dog payment structures or payment models that I have either used or observed others used I've helped nearly 500 investors over the course of the past year in 44 different states implementing these virtual bird dog networks, so I've seen a lot of what works and what hasn't worked, and I've kind of had a unique perspective on this question here but let me just overview — right now probably the two most common structures that you may be able to use number one is to simply write the bird dog into the transaction using an option agreement, so basically they would sign an option agreement with the seller and then assign that option to you for the amount of the bird dog conversation whether it's 500 or a thousand then they simply receive their not commission but their assignment fee at closing, and you know a lot of bird dogs they won't even Henderson know how this exactly works you know so some of them will some of them will not, but that's one way that you may be able to make it work another way is to pay on a per-lead basis up front for all the leads that are coming in and what I mean by that is depending on how much information they bring you pay them a different amount so, so maybe they referral heed to you, and you give the address to the property the owner's name and the owners phone number okay and that might be a 200 lead maybe they include the bedrooms' bathroom square for this year built you know some other information and that's a 3 lead maybe they give you the owners reason for selling and his loan balance and that that's a little more important information when it comes to your analysis of this lead, so that might be a five or...