Rental Property Investor · Fort Mill, SC · Member since 2016 · 83 posts · 12 votes
This is not an agent bashing question because I'm currently in school to become one myself, but I do have a question. I had an agent tell me that if I pass a lead on to them, they can only give me a referral fee if I'm a licensed agent. I was a little bummed to hear that because I was thinking that if I want to work with other investors when I'm licensed, will I not be able to pay them referral fees for bringing me leads? Maybe we haven't gotten to that portion of my class yet as I'm only in week 2.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
He is correct. Investors aren't going to pass you leads as an agent, they all know a ton of agents. You want to be the investor-friendly agent sourcing deals for them and then getting the flip listings.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
The agent that told you that is correct, however commission is negotiable, you can offer them a lower rate to list a property or use it as a negotiating tool in their next purchase assuming your broker approves, also it incentivizes them to use you again for their next purchase.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
He is correct. Investors aren't going to pass you leads as an agent, they all know a ton of agents. You want to be the investor-friendly agent sourcing deals for them and then getting the flip listings.
Rental Property Investor · Fort Mill, SC · Member since 2016 · 83 posts · 12 votes
6y
Thanks @Jonathan Greene. I passed a lead to this agent because the seller wasn't motivated enough for a discount sale, but was interested in closer to a retail sale. Instead of just putting those leads in followup in hopes that they would change their minds in 2-5 years, I figured I would pass to an agent to facilitate a retail sale and maybe get a "kick back". But I definitely agree that I want to be a great investor friendly agent and bring them deals, but it would be nice to build relationships with wholesalers / non-agents that will pass leads onto me if they can't get the seller to budge on price.
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
@Kelvin Letron Brantley you will see when you get your license that listings are hard enough to get when the sellers are motivated to get top dollar because there are a million agents and everyone knows five agents. But a distressed lead that went to wholesale first is impossible for an average realtor to close because they called on a postcard or went wholesale or FSBO for a reason.