OfflineAnytime someone uses the term "NEW", they had better be careful, but I think this is a twist to all Ive read about working with realtors. I got the idea from Mangham and his short sale agreement with a realtor. Last week I told my realtor that I would like to run my LO buyers thru her agency. She said they had never done that with unlicensed people, but she would research it and get back to me. I honestly didnt think I would hear back, but she called today and said they had come up with a legal way to utilize me. It is based upon me providing them prescreened buyers, and I dont mean in depth analysis of their credit. It means standard buyer information..house profile, location, time frame, amount they can afford, etc. I told her I wanted them to draft the form and send it to me for review. This form would be submitted on each referral I make, with the agreed on consulting fee. I would also send them an invoice which will be included with the closing documents, and will be a line item on the HUD form. At this point my work is done and I can go on to the next deal, and when my referral closes I get a check. Btw, this would not be limited to lease options.
Now, Im sure I will get questions and some doubts as to whether or not this is legal. And, that is why I insisted that they, who are a high profile Remax broker in Bham, AL draft the document. If this has been posted before I apologize, but I could not find where it had.
I see this as a way to gain access to all of the resources of the agency, and greatly simplify the toughest part of REI. Coming up with qualified buyers. Let me know what you think.
Steve
We seldom get what we want, but we will always get what we expect.
It would appear that you have eliminated (well, probably just reduced) your risk since it is a document they drew up and they are the ones that would have to answer to the RE state board. Good job.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
would receive a comment from you. Thanks for your review.
Steve
We seldom get what we want, but we will always get what we expect.
I like it a lot! peace,
Dana w/ Crossroads Solutions LLC
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I ran this by my Broker. He said "NO WAY". He can't see how this could be legal in Arizona.
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agree with alchristmann. There is no way that would fly in California or with broker at Keller Williams. It is illegal to pay fees to a non-licensed agent for doing licensed agent work. Good luck though.
I think there was a court case in California regarding referral fees to a non licensed person. I'm sure RE agents don't like to point to it, but the Court said that it was legal to pay a non-licensed person for "an introduction" as long as that person didn't do any of the tasks specified under California law reserved for a licensed person. The exact court case is somewhere in one of my other posts but who knows where.
I'm sure it can be likewise structured to work in other states but the immediate response will be "NO" because they don't want to dilute their position. IMHO.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Bills right as far as my activities are concerned. I should have the document late this week or early next and will post it so all can see and comment. Thanks everyone for your comments.
Steve
We seldom get what we want, but we will always get what we expect.
Now that's thinking out of the box! I like the way you think big Steve. Hmmm, makes you wonder...seems everyone's willing to do what it takes to get Buyers?!
Good job!!
John
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that the broker offered it. And, Im not talking about a $50 gift card. My fee will be 25 to 30% of the realtors commissions expressed as a fee. I aint counting my chickens yet, but if they do hatch you and I will have to gang up on em. Home brew time....I hope.
Ill let you know how it goes.
Btw, I spoke to Mary today and she said she talked to you, and you were a nice guy.
Steve
We seldom get what we want, but we will always get what we expect.
In wanting to submit leads to short sales agents, I am facing this problem as well. I talked to two agents in the past couple days, and when the topic of an agreement form comes up, I referred to it as a "Marketing Fee" Agreement form based on what Michael stated. One wrote back saying he looked at doing this once before, and there were some licensing technicalities he had to work around, but that he would try to look into the legal way they decided to do it in that case. I will be sure to post here as to what was done, as soon as I hear back from him. I am like you in thinking he may not even contact me though.
Thanks Steve for offering to post the document once you receive it. It will sure help since it seems I can't find a way to get around this.
Michelle
taking the time to share what you are doing. I wonder if he actually had been approached before or was just avoiding you. I imagine it might be a little more difficult to impress a broker cold turkey. In my case I had worked with the realtor and I think she put in a good word. If it is cold turkey (btw, Im getting hungry cause I like cold turkey) I believe I would do a littl research on the company and the broker and use this information to break the ice. And, have your presentation polished...as Ranger says, dont stammer. Lol
I hope you are moving forward with your REI, and I look forward to hearing how it turns out for you.
Steve
We seldom get what we want, but we will always get what we expect.
HOW DID IT TURN OUT enquiring minds want to know ???
Very creative,
I can see it work, for sure, in NV.
Thank you for sharing.
-Tina
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I would love to know more about it too. Way to go after something!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Sounds like you have a great partner there! They are willing to brainstorm with you and find a solution, rather than just saying no. I like the fact that it is on the HUD so it is fully disclosed. I do not think anything should be hidden when it comes to referral fees, etc...you want repeat business!
Jeri
Tom and Jeri
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