What's a good commission split?

Question

Hello Agents,

I am a licensed agent who is interested in flipping properties.  Because I am a dual career agent, I don't have time to dedicate to look for deals.  Since there are full-time agents in my office that are in the community daily and searching on line daily for their clients, I wanted to propose they be a part of my "search team", all they have to do is find the deal, they don't have to show anything, write any contracts, all they have to do is send me properties specific to what I am looking for(that fit my specific formula)...(not an overall MLS search, I can do that).  If I purchase the home they find for me I want to give them a "commission" but don't really know what a good commission offer would be?  Can anyone give any suggestions on what a good commission split would be just for being part of my search team?  Thanks so much!

Crystal Smith · Answer

@Chris Soignier and @Russell Brazil

Hello Gentlemen, thanks so much for your feedback, I like both of those ideas!  Thank you very much!

Russell Brazil · Answer

I work with other agents. I give them a referral fee back. So essentially my brokerage is getting 75% of the commission and they are getting the 25% referral fee back to themselves.

Chris Soignier · Answer

Here's the offer I make to fellow agents.   If they bring me an MLS deal, and I want to make an offer, I'll let them write up the offer and take the buyer's side commission.    I want them to be highly incented to bring me deals.

Crystal Smith · Answer

@Rocky V. One last thing.  I will be in TX next month to do a walk through of my rental property in Desoto to see what I need to do to "spruce it up".  I will be listing it hopefully at the end of the month, can you recommend any contractors to do the walk through with me?  I will not be doing a full rehab only cosmetic touch ups and not looking to sell to investor, I just want to cash out.  Thanks!

Crystal Smith · Answer

You are right!  I think 6% is fair.  I thought 10% was a bit much and 5% was too low.  Thanks for the feedback, I really appreciate it!

Rocky V. · Answer

At least 6%.  Getting deals is the hardest part of this business so treat the people that bring them to you very well.