Being a referral-only agent?

Question

Hello!

I'm 26 years old and live in southern Maine. I have been managing STR and LT rental properties for about 4 years and have a portfolio of about 67 properties. It is my W2. This summer, I decided taking the 55hr sales agent course would be the next step to continue learning about the ins-and-outs of real estate and be able to take advantage of the leads that come across my desk.

But I am at a cross-roads here. The brokerage offers both a sales agent company and a referral company, and I can hang my license at either one. With the crazy rentals workload, I'm worried I won't be able to be successful in sales while maintaining the quality of care I strive for with the rentals. I have a great network in southern Maine for both buyers and sellers.

My question is this: Does anyone have experience with referral agents, and if so - what advice/suggestions do you have to make it a successful route?

John Guy · Answer

Thanks! I think it's worth at least taking a stab at it before committing to being an active sales agent & paying corporate dues, NAR fees, etc. I can always transition over to an active agent with a $100 transition fee. My office is located within a REMAX building (rental agency is owned by REMAX) and we have a bunch of incredible agents that have already taught me a ton. Thanks again for your input!

John Guy · Answer

See, I love the idea of being an agent & being able to carry a sale to the closing table. It would be my preference to do both, but I am also the only person managing all 67 rentals... it's been an uphill battle finding an assistant at the hourly rate ownership approved and I'm just about at capacity for one person.

I'm leaning towards on-boarding as a referral agent - no corporate dues and no dues to NAR. And I can transition down the line if I want - It's only $100 transition fee to become an active agent. Ogunquit (where my office is located) has an average home price of just over $800k. Lets say agent makes 3% ($24k), I'd ask for 25% referral fee ($6k) and walk away with $4,500 after the brokerage takes their piece of the pie. Since I do deal with buyers/sellers in my industry frequently, putting some effort into the referrals could be a profitable side gig.

Sean Delisle · Answer

Hey John,

If you have enough opportunities to refer buy and sell leads to other agents, why wouldn't you?  I would just recommend you find top agents in the areas you serve or plan to refer.  I'm always transparent with the buyer/seller that I will receive a referral fee, but I'm taking the guess work out of finding a top agent.

I'd say the only downside would be continuing education classes required to be active or inactive the referral network.

I think it's a great opportunity for you.  Good luck!!

Bruce Lynn · Answer

That's my dream....just generate leads and refer them out and collect checks.   Be the rainmaker.   With all the PM are you not able to turn some investors into buyers for more/bigger properties.  or the flip side of that, when they get frustrated or just want to move that money to other assets, help them sell?   Ever turn a rental/AirBnB type tenant into a buyer?   With 70-100 I would think you could make a pretty decent $ turning some of those into sales.   If you don't want to do it, then start that referral business.

25% minimum and 30-50% if it is golden.....golden is they're preapproved..you've met them 2-3x a year for last 5 years when they came to rent, and now you've convinced them to buy......Hello--this is James, our team's buyer's agent ready to help you find the perfect vacation home.  BOOM you get 50%.