The Legality of REIs Paying a Finders Fee to a Realtors, etc. ???
Hello BPers,
I recently met with an experienced realtor who worked for a larger RE brokerage in Arizona that after a decade or more experience remains under the impression that a (non- licensed) investor cannot pay a realtor, etc. (I'm uncertain if that also included mortgage professionals, insurance agents, title company people, etc.?) a "finder's fee" for referring clients, or providing 'leads' or 'lists' compiled from the MLS. It seems (in my limited experience) that every time one approaches a 'realtor...' they either consider an REI a "competitor?" Or they think the NAR and MLS run the industry, and their 'brokerage' (and by extension, they...) are to "report all earnings," and somehow a PROSPECT (vs. a CLIENT) is somehow "brokerage property." If for instance wholesalers had this ATTITUDE, then I wouldn't be working with their 'dead leads' and paying them a 'finder's fee' for referrals they otherwise can do a NOTHING WITH.
Has anyone else had any 'luck' approaching realtors, lenders, credit repair specialists, et al for a mutual "win- win" when they provide contacts that YOU CAN HELP, when they CANNOT? I find this particularly 'aggravating' with RE agents, to date, because they think their employer and/ or peers are going to 'black list' them and/ or you. (Peer pressure?) Or is "taxable compensation" as well as the "treat of loosing one's license" the crux of the matter, here?! And thank you for your input, in advance! WST