working with investors and residential

1 Reply

Hey bigger pockets I'm a brand new agent and i have a friend that is a investor he is willing to hire me as his listing agent for all of his flips but since he is a investor he obviously is going to be bringing me a high volume of listings to my table . he is offering me a flat rate of 5000 for example and i was wondering how am i going to offer a commission to a buyers agent when i post it on MLS ... also another question is I want to also do residential listings in the future how do i explain to a brokerage that i want to work with a investor for a flat rate and also do residential for whatever the commission for that brokerage is?

@Erick Marcia Please don't agree to this investor's terms until you sign up with a brokerage.  They will have a contract that you will need to sign stipulating the commission split they require.  My concern is that if you agree to the $5000 (or whatever number it may be) per house sale with this investor, that you may end up working for peanuts after paying your brokerage split.  Also, as you stated, you still need to split the commission with the other real estate agent unless you work really hard and find a buyer for the property yourself.  

Personally, I would let the investor know "I work hard and would love to earn your business.  I cannot in good faith accept a flat commission as that would devalue effort I will be bringing to each deal.  You would not accept an offer from a buyer saying they will only pay you $100K for a house you worked hard to renovate and know is worth $150K or more.  As such, I must charge a percentage of the sales price as my commission to cover my expenses and earn my living."

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