OfflineIf you are a licensed real estate agent and investor, I have a question for you. If you're in a state like Texas, you're required to have a sponsoring broker, and a lot of time that's the owner of the agency where you hang out your shingle. Anyway, I have a couple of investment deals that I'll be doing in the next few weeks, and my broker is wanting a cut of my cut (my profit). He's saying it's because the deal is, "Going through his office." What do you think about that?
I think it's wrong. If I were buying a property for my personal residency, he wouldn't get a cut, and I am buying these properties. The only difference is that I'm assigning the contract.
Have any other agents and/or realtors had this problem?
Also, I'm sure if the situation was reversed, and he was buying an investment property, and he has, that I would not get a share of his profit.
Rick Allison, Realtor
Amarillo, Texas USA
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Are you finding wholesale properties in Reno NV??? I am looking for investment properties to purchase. Help
Rick, what your broker is doing is called BLACKMAIL.
It is ILLEGAL for an employer to demand a portion of your profits from a private real estate investment.
If you are doing this as a real estate investor, they have no claim to your profits. They can only claim their share of commission on any purchase or sale you make as an employee of their firm.
I am a broker in Ga. I have a associate broker licence held with a mid size company. My broker takes zero % on primary residence and normal (agreed to) % of investments purchased. I am doing a assignment now and take contract is mine, I was buying as a individual and I am assigning it to a cash buyer and it is not going through brokerage so no commissions paid. If it is not a primary residence and the transaction is going through a brokerage in Metro Atlanta area it is common to pay your split to the broker. Check other agents and brokers in your area and see if they pay their broker on investments. Hope that helps.
Dan
www.danbuyshomesfast.weebly.com
I am checking with other brokers and agents in the area, and the houses I refer to will not be residences for myself. I'm flipping the houses - assigning the contracts, really.
Thanks,
Rick Allison, Realtor
Amarillo, Texas USA
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Well, that's what I think, too. My broker has a hard time thinking outside the box. I asked him what he thought of assigning contracts and if we could pose the question as to whether or not it's legal for a licensed agent to do so to the appropriate real estate attorneys at the state and the University of Austin, and he said, "I have to pose the question." He really has a problem thinking outside the box; I think.
Rick Allison, Realtor
Amarillo, Texas USA
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Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
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You need to find people that are financing deals in your area (not hard money lenders) and partner with them. The guys that I'm working with here in Texas either pay me $1000 as a finders fee or we split the profits if I do more work - most of the time the latter is the arrangement. I'm working with the guys on A&E's "Flip That House," and other people. It's a matter of seeking those people out, meeting with them, and doing their leg work and marketing for them.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET