Partnering with a Realtor

[Scott Zach]

I have been introduced to a concept where the realtor used leaves some or all of their commission in the deal in exchange for a small piece of the action. Example: $100,000 house, 80% LTV, so I $20,000 required downpayment. I put $19,000 down and realtor leaves $1,000 of their commission in the deal to complete the downpayment. So they would be a 5% partner. Two questions:

1. Is anyone doing this, and what is your experience with it

2. What are the tax implications to the agent?  

[Jack Henry]

@Scott Zach why would you take on a partner for such a small piece of the deal? I mean surely you shouldn't be doing the deal if you need to come up with an extra 1%, so why deal with the headache?