kathy fettke real wealth network
Saint Augustine, FL · Member since 2013 · 9 posts · 0 votes
kathy fettke real wealth network
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesJerry w.
The turn key business has been alive and well for 15 years or so now.. There are very few who survived 07 to 09.. So what you have now is a whole new crop of turnkey companies. And or the turnkey companies moved markets changed who they had selling their properties.
However when I started loaning hard money to I would say 7 to 10 Turn key guys here is how it went.
First I would say 80% of the buyers came out of the LA basin.. Mike Harris's radio show.. Jay and Bill down in San Diego, Nick Vertucci in Irvine, Marshall Reddick, You get the drift. These are the marketing companies. they then reached out to the wholesaler rehabber in the markets they wanted to work in.
Or the wholesaler rehabber reached out to them and said I have product. Many Started in Detroit before the melt down. Memphis had always been a hot bed with Memphis invest the Reedys LCS etc etc. North Carolina had Carolina liquidators , Jackson MS had 5 or six different companies.. One guy that sold a bunch was Demetris Mathis, Bob Lucroy, Walter Woofard, Brad Miller, then in Birmingham you had Justin Harrison, Aaron Adams at Alpine in Indy, And Jerry Cohen and his Son Sean who I loaned money to many times, I see Sean has gone into hard money lending. and the list goes on and on. Now other than Memphis invest and the Reedys I loaned hard money to each and everyone of these turn key operators clients and in many cases to them personally.. The clients came from the Radio shows in LA and San Deigo.. And some from SF there was a Doctor somebody I forget his name... So we loaned the turn Key operator short term money to secure the asset.. usually 3o days or so.. Then when they matched the home up with an LA investor through one of the marketing companies mentioned above we then did the 60% to 65% Hard money loan of ARV to the LA investor.. So now the LA investor is MY client. The loan would pay off the short term loan ( Pay me off and I made a fee there) I would escrow rehab funds and The Turn key provider and the Marketing company be it MIke Harris Jay and Bill Nick Vertucci any of these guys they got their profit as well. So now everyone has made there money. And its now me and the turn key company rehabbing with me controlling draws and I had independent inspectors to do draw requests and confirmations. Then the LA buyer would get a RAte and term refi at 75% LTV sometimes 80 and would very often get cash back at closing. So there you had The RAdio promoters promoting not only no money down but up to 8k cash back per closing and we can do 4 at once.. And with the lier loans and such it was one easy sell. So Refi happens I get cashed out and we do it again.. So at my peak ( not to be confused with Peak in KC) I was doing between 60 and 80 of these each and every month. And you can do the math we made 5 points plus junk fees and 15% interest I had credit line with my local banks at 6 to 7% so we were making not only the points but the spread.. BUT WE TOOK ALL THE RISK IF IT cratered.. And this went on for 4 to 5 years... Life was good right.
Everyone was making money.. Well then the excrement hit the fan.. I had about 700 loans out and everything came to a screeching half AUG of 08.. We were like the titanic and once we went into neutral then reverse we did 3 months of loans and got stuck with them. I was in Europe most of October going OH crap what am I going to do.
Well this is when I learned about PM and how hard it is to manage mid western properties. Some work fine but many have problems and major problems. My two hundred loans went under because the owners in LA were newbies did not know what they were really doing they had been sold a passive turn key program the guys on the ground are now doing something different because they are not making any new sales.. And the La investors failed big time.. this is were most of your 08 to 2011 foreclosure inventory comes from in all these markets , Granted it was a lot of sub prime Owner Occ but it was a crap load of investors who just could not keep properties up and running.. they were undercapitalized to start with. they were sold a program that called for positive cash flow,, they were really getting negative cash flow and of course the 8k per house they took out at closing is sitting in the driveway either on wheels a Jet ski or was that fabulous trip they could never afford. IT was a melt down of epic proportions.. I personally lost about 3 million in this down turn.. I paid all my creditors off never defaulted on my underlying bank loans and learned more than just about any person in the country about how turn key works.. I know I saw all the HUDS. I funded well over 2000 of these.. And after all this call me crazy but I went out and bought 350 homes the last 3 years.. And I just sold them all in Oct.
So what you have now is the new turn key guys.. The Cohens are not turn key anymore they are hard money.. Clothier and Memphis invest exploded as there was a huge vacuum in the space.. Atlanta became soup de jour and was hands down on of the best markets.. I bought 50 homes there from 09 to 2010 and sold them last July and made 50% profit. So just getting part of the 3 million I lost when the economy cratered and all the LA turn key investors and owners went pear shaped and turtled up.. NOw you have a whole new crew of turn key. Mike Harris is still on the Radio so is Jay and Bill,,,, Nick Vertucci has rocked it the last few years. Aaron Adams has gone from a great property manager to a great turn key guy in his own right.. Clothiers have such a good reputation as turn key gurus that they have a big following.... then there is me the little engine that "could" that made much of what went on happen I spent 2 years in limbo hell foreclosing on La folks and securing my assets Had to move to the south knocked on doors it was night mare of epic proportions I went from the penthouse on the cruise ship coming into Venice to cruising the Hood in Memphis looking at barred up windows caged Aircondioning units and talking with tenants that knew me to be a lamb to the slaughter.. Everyone paid there rent to someone.. just a night mare... I suspect in certain markets we were defiantly market makers. And the turn key guys that turned and ran and did not help their clients I would not deal with again. Those that stuck it out we are doing things today NOt as big as I was but substantial and fun.... So today I fund not only mezz financing for half a dozen of the guys in the bizz but do 5 year financing for them as well Ala a Peak product. WE fund almost a million a month of that paper and growing. And since I have the outlets and long history with my guys I have this down its me and 2 great gals that run it... I have a new mezz model that just rocks it and makes those deals so streamline its great. And I can tell you I am not by far the cheapest but I am by far the fastest and most reliable once I provide a credit facility for one of my turn key guys.. In addition I have 3 of the best off shore providers in my camp as well.
So there you go no mystery to this.. and other than the big cash out when folks bought the properties the business is really quite simple.. buy a bombed out foreclosure that an investor walked away from because PM was cruddy. And or they tried to do it themselves which is another recipe for disaster in the B and C class of any of these mid western markets... For the first 3 years after the great collapse all the turn key guys went to promoting IRA buyers.. all cash 60 % of all houses are bought with cash.. So other than my mezz financing there was no need for the hard money to put them in title and then do a rate and term refi so that business for now is gone probably for good.
And depending on when and where people are buying there are some really good buys.. BUT it really really comes down to one thing. Anyone can buy a foreclosure and Johnny lunch bucket can do the TIP TOP reno.. its all about PM without it your destined to fail in my Humble opinion and personal experience. further its my sincere belief that C properties are NOT an appropriate investment for anyone who does not live and work in the area. Yes some will work but many are disasters. I just had a lady e mail me from AU a few minutes ago.. She is investing with me in Oregon... And 2 of her 3 rentals are vacant and she paid full pop for them 80k a piece from one of the top Memphis turn key guys.. No matter who's fault it is she is just sick she is sitting over there not knowing what to do.. And for her to come here is 5k plus loss of work time.. Etc etc. Even people from LA or SF its a 1500 round trip if you got to go to one of these markets.. So my point is for arm chair passive and to be very conservative and safe investors need to look at much better properties pay more expect less cash flow but make it up with a true property that can be sold for a profit down the track.. C properties no matter were they are will never sell for more than wholesale value plus rehab plus a few bucks for profit for the rehabber.. Unless you have a highly organized well financed marketing machine that can move them for more than market value.. The turn key guys and marketers can do that YOu as an individual cannot 97% of the time.
Phew that my take on this
78 Replies
- Residential Real Estate Agent, Investor and Mentor · Birmingham, AL · Member since 2013 · 257 posts · 61 votes12y
I don't know nor have I worked with @Kathy Fettke , but she offers a service that is valuable to many people. I sell 10-20 turnkey solutions a month and with out the service from folks like Kathy, I could not do my job as effectively. I do provide discounts to these service companies because they are continuous buyers and I can rely on the relationship and demand. If I sold my properties for full price to the final owners, my hold time and costs would skyrocket.
I understand a lot of real estate investors want the very best deal you can find (so do I). But there are a lot of investors who don't have the patience, time, energy or so many other things and they are willing to pay extra for a solid solution that is backed by a reputation and customer success stories.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes12y
I agree there is enough business to fit many different buyers needs.
My commercial clients are the same way. They are so busy and make so much that they do not have time to do all aspects of finding a quality property and putting it all together.
That's why they come to me as a commercial broker to do it for them and help in the process. People either usually have no money and a lot of time or a bunch of money and need to find more time in the day.
- Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes12y
@Kathy Fettke - rather than doing copy and paste to quote another user's post, use the "Quote" link that you will find to the left of every post, just a bit below the user's avatar.
- Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes12y
dang, this was a good one.
I am sure Kathy is very good at the turnkey biz.
And Mike could probably find a much better deal in Chi-Town than most non local investors.
It's is interesting that most of the turnkey deals are not really deals at all. It apparently does not seem to register that much with LA investors. They hear a radio show and invest 150k out of state based on some slick 30 minute radio commercial. Amazing. What all bpers know is that any turnkey property still needs a driver and maintaince. I am a small business dude. I realize how REI is no different from than any other small business. Perhaps turnkey is not a term that should be used in REI except for triple nets.
If I ever decided to get into a turnkey RE business model, I would definitely make sure the investor understands he/she is buying a small business and not a passive income regardless how great that PM is today. The only constant in business is change and REI is the textbook example.
Thanks again bpers!
Matt
- Specialist · Portland, OR · Member since 2013 · 96 posts · 19 votes12y
Thanks, @Jay Hinrichs.
- 12yKathy FettkePro MemberRental Property Investor · Los Angeles, CA · Member since 2014 · 104 posts · 180 votes
So... I'll keep this short. We did some homework and here's what we found in regards to the Chicago company that supposedly is selling garbage product:
- 47 homes were purchased through our network from 2011-2012
- Those homes are currently 100% occupied
- Average cap rate: 9.2%
- No one has changed property management
- 75% of those purchases (32) were leveraged so the price they paid was verified by independent local appraisers supported by open market comparables.
- Real Wealth Network has not received one complaint about this team.Anyone with more specific questions about those properties, feel free to message me.
Thanks for listening everyone and I really appreciate all the support I've received in private messages. :-)
- Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes12y
I have no dog in this fight, other than to say I have been investing in the Chicago market for over two decades.
It is very easy for people to sit behind a keyboard and make accusations. Sometimes, people can back up their statements with proof on both sides. Other times, it is just a matter of personalities not fitting with each other.
In the end, YOU and only YOU are responsible to do your own due diligence. Would I believe any and everything that people post on a website.. NOT IN A MILLION YEARS.
I have always, as I am sure you would, put more credit in the input of people you meet in person, or going yourself. Think of how many times you saw a movie and thought it was good, but read reviews saying it stunk?
Or you see online reviews about a restaurant you love that were negative, or saw great reviews and you had a bad experience. The point is, you are your own person. What works for you, your investing choices, and risk tolerances, may not work for others.
All that we can ask for is that people are straight forward, honest, and answer then you reach out to them.
You may not like the answer, but at least the person took the time to answer. That to me, shows something about if a person believes in what they do. Not just hide, change e-mails so theirs bounces, or get new phone numbers on you.
Good luck to all investors, and remember, you set and chart your own course. That is why we love doing this and doing something for ourselves!
- Rental Property Investor · Philadelphia, PA · Member since 2015 · 479 posts · 362 votes11y
I am checking out RealWealth Network for making some SFH investments In Pittsburgh, Florida and Kansas City. I am very impressed with Kathy's videos and down to earth presentations. THey definitely target a specific type of audience and not the many do-it-yourselfers here on the forum. For my current situation, this seems to be a potential fit. But I would like to ind someone who has worked with them and hear what they have to say. I am not 100% on their added value. And maybe for now, I am just better off to purchase properties that are tenant-ready rather than trying to rehab remotely. Anyone have an opinon or direct experience?
- 11yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Sheryl Sitman Since your in PA maybe a trip to Pittsburg to meet the team would be a good thing. At the end of the day it is the ground team that will be the one's who make the investment successful its all about property management after you bought it.
Plus making sure you have a good to great rehab to start with and you choose a location or class of property that does not create landlord headaches.
- Realtor · San Francisco, CA · Member since 2015 · 17 posts · 26 votes10y
I honestly have a mixed feeling about RWN. I do support and appreciate their role as a mniddle men to introduce many different markets to investors like me who would not have known about them if it were not RWN. And I have no problem paying for their services and education. On the other hand, I personally had to go through so much trouble with local teams esp regarding the property management, I am honestly still hesitant to purchase more properties from them. It's good to have an "expert" who takes care of properties for you, but this plan only works when you're dealing with a true "EXPERT."
Chicago(bought in 2012) - Very Satisfied
I am pretty satisfied with the return on my Chicaco property which almost never has any maintenance issues. I have to say they indeed do the full rehab and are a good property manager. I honestly don't care if it's a C neighborhood as long as my PMs do a good job of sending me solid checks every month which has been the case for the past 3 years.
Dallas(Bought in 2011) -Not Satisfied
I really can't say many good things about the Dallas vendor that RWN worked with at the time. As Kathy already mentioned and now I know what happend to them, the team didn't perform very well and over-priced(even for a turn key provider) their properties in my opinion. They were not responsive and negligent, so I suffered a lot from vacancy on the property I purchased from them. They just couldn't find the right tenant for the property and some tenants literally flew by night and PMs didn't even notice until I called them to ask about the rent payment. When I switched the property manager, I could finally find a stable tenant within a month and that tenant stayed over a year, no big issues. I realized that it was the property manager who indeed screw things over big time.
Memphis (Bought in 2010, 2011) -Not Satisfied
I bought two properties from Memphis Cashflow introduced by RWN and I ended up selling one of them after a couple of year, since it was in a C neighborhood and I just couldn't handle the drama, constant maintenance and vacancy. I went back to Memphis Cashflow to take it back at the same price I paid for but they refused to do so, which really pissed me off. The original PM on that local team was also very bad so I had to switch the PM a couple of times which was a total pain. The agent with Memphis cashflow at the time though was a total nightmare, and I couldn't believe how rude and not responsive she was during the process of buying the property. I was new so I probably asked many stupid questions but still, it was a horrible experience for me to work with an agent like her so I really didn't want to deal with this particular vendor again.
The other A class property I bough from them though is performing well and I am satisfied with that property till today.
Overall, my experience with RWN itself was wonderful and Kathy was absolutely a fantastic person to work with. She indeed helped me communicate well with the local team when I had issues, but what I found out was that at the end of the day, it's your property afterall, so no matter what Kathy or her team does, it's still your responsibility to handle whatever issues that come with the property. RWN probably is no longer working with the teams that I had troubles with, but there's always a chance that things get sour with any local teams which probably is just one of the risks of investing in general, I guess;)
Hope my experience can be helpful to new investors!
- Rental Property Investor · Santa Clara, CA · Member since 2017 · 59 posts · 12 votes9y
@Hanna J. Thanks for your review. I realize this is over a year ago that you posted but wondering if you still have those properties with RWN?
- Investor · Carlsbad, CA · Member since 2015 · 27 posts · 11 votes9y
Has anyone out there invested in the syndicated Reno project with this company?
- 8yRobert ChurchPro MemberInvestor · Payson, AZ · Member since 2016 · 19 posts · 1 vote
@Drew M, which syndication, the one off of of Hiway 80, in Reno?
- 8yKathy FettkePro MemberRental Property Investor · Los Angeles, CA · Member since 2014 · 104 posts · 180 votes
@Hanna J. Thank you for your feedback! You raise a couple of really important issues.
1. When people buy "turnkey" property, they often have the expectation that the property will somehow perform differently than any other real estate. Unfortunately, that's just not the case. Tenants are tenants. They may lose their job, suffer illness, and/or be messy.
Also, property management in the U.S. is improving but far from perfect. When we refer people to turnkey companies, we do not have any ownership in those companies and cannot control their actions. All we can rely on is their past performance. This does not guarantee future performance, as people are people. Some companies grow too quickly and suddenly are no longer offering the stellar service they once did.
That's why it is absolutely up to the buyer to do their own due diligence. ALWAYS get appraisals and inspections, no matter who refers you. Always pay attention to your property manager's performance because there's no way I or my team can monitor thousands of properties in dozens of states.
So why work with a network? It is not so that you can have someone take care of you for the life of your property (with no payment for such services...). You pay no more $ for the referral than if you bought on your own. It is because that referral company has had a good relationship with the company up to this point. And if there are problems, there's a good chance the referring company can negotiation on your behalf because most likely they want future referrals. If their services start to suffer or change, then the referring company can stop referring - which means anyone on the referral list would have been recommended by others. It's a lot like Yelp - you probably wouldn't blame Yelp for a bad referral, unless they were giving 5 stars to companies with a poor history.
For what it's worth, those companies that you mention above are no longer on our referral list - and for the same reason. They grew too quickly and started "cutting" corners and not knowing how to scale. They may have started off great but got ahead of their skis, so to speak.
2. The second thing I want to point out is that because of the word "turnkey" people often have false expectations. You must follow the rules of investing. Always have 6 months reserves set aside for emergencies or vacancies. Always perform inspections and appraisals before purchasing. Always, review repairs done by management, asking for before and after photos and receipts. If the PM is late with payment, find out why immediately. I've seen too many PM's grow too quickly and then suddenly find themselves out of cash. They then use tenant money to pay staff or overhead. This is illegal, of course, but desperate people do desperate things. I lost 2 months rent and the tenant's deposit on my Cleveland properties for this reason. But I just used my 6 months reserves and moved on.
3. Finally, I just want to wrap up by saying that we have tightened up our vetting and auditing process to make sure the turnkey companies we recommend are truly walking the talk. This does not mean investors should trust blindly, but does mean we've used our years of experience in seeing turnkey providers failed, and helped educate growing companies on what they should be aware of. In fact, we are having our first mastermind in Nov with the 17 turnkey companies we recommend - to share best practices. It's going to step up the game in a big way.
Thanks for listening, if you made it this far. :-)
- 8yIvan BarrattBusiness MemberInvestor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
My company has helped @Kathy Fettke here in Indianapolis when new management is needed. In short, I haven't seen an investor network company come close to time and energy spent on solving problems like RWN does. I got the sense they truly care about their clients.
- Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes8y
My wife and I had the opportunity to go to @Kathy Fettke's RWN event over this past weekend (11/4/17) and we left extremely impressed.
I have researched turn key opportunities for a little over a year and the turn key companies presenting offer a high quality renovation and many potentially have tenants in place inside of a month after closing on average. Some may take a bit longer but they are honest about it and conservative with the time frame not to give a false hope to customers. These companies are offering Class B to A locations with very good returns. Many exceed the 1% rule and others in highly sought after areas get really close.
Most importantly these companies are held to a high standard and are required to maintain a high standard of service and product. To say they are vetted is an understatement. Everyone I spoke to from their affiliates were honest with the good and bad of investing. They all gave great presentations on their markets. We left well informed.
Half of them have been affiliated with RWN for 5-7 years and have sold hundreds of homes each thru their network. I wont get into prices because it's best to leave that to their professionals in those respective markets but my wife and I left very pleased with the options with RWN.
Also RWN doesn't disappear after the introduction or after a purchase. They want to hear from their members and have expressed to me they are there to help in any way possible.
*Also no one gave a hard sell at all. They all know their markets as well as anyone can and were there to answer any questions we had.
My wife and I are realistic. We don't expect perfection but we are looking for quality service, quality product with a good return, solid management and honesty about the good and bad. We left feeling RWN affiliates provide all of the above.
I am looking forward to reaching out to several of their affiliates this week.
It was a pleasure meeting Kathy, her husband and her staff/turn key affiliates.
- Rental Property Investor · Sacramento, CA · Member since 2017 · 36 posts · 22 votes8y
Old thread but still relevant. I have worked with RWN and purchased turnkey property, as a result. I also met Kathy at a showcase event in San Mateo this year.
I'm seeing that the turnkey part of RWN's business is really about education and referral. The education part was very valuable to me and I learned a huge amount.
The referral part is currently working out pretty well. The first affiliate I tried to work with didn't go that well and I didn't buy from them. The house had a huge gap in an exterior wall that I would have walked away from but didn't know about until I paid for an inspection. They were also not responsive so I felt like it was too risky. The next affiliate I worked was was/is amazing. They communicate well with me, are very open and honest about what they do, and currently very happy to have met them. I purchased a property from them 4 months ago and another closing is happening next week. I'm also in contact with another affiliate to purchase a property in 1-2 months who I've flown over to meet and tour.
RWN makes money when I buy from an affiliate, so the price could theoretically be cheaper if I went straight to turnkey providers. However, paying the premium for the affiliation is fine with me because there's another layer of quality control and accountability. If I found and purchased directly from turnkey provider and something went wrong, it would only be between me and them. With RWN, the affiliate has been vetted and also would have to answer to RWN if something were to go wrong.
In the future, I would like to participate in syndications. They seem to start at $50k and I'd like my portfolio to be bigger before I commit to that amount.
- Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes8y
@Ken Calvin please tell me what area did you have a negative experience and what area are you having a positive experience? I don't need the name of the company, just the area they cover. I am also a member and have purchased a couple of properties from them.
- Rental Property Investor · Sacramento, CA · Member since 2017 · 36 posts · 22 votes8y
@Will Zena Cleveland didn't go too well, but would have probably been fine if I stuck with it. Alabama is going very well. I would love to hear your experience!
- Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes8y
@Ken Calvin ok that's great. Yeah I am actually very impressed by the renovations the Cleveland provider does. They have a steller reputation but I never did business with them. I have purchased from Columbus OH which is going well, although usually I don't get my rent on the date it is supposed to arrive. It is supposed to arrive on the 15th but usually I need to send an email to see why I haven't received it on the 18th or even as far as the 20th. Not sure if that is what you experience with Alabama.
I also am closing on one very soon with Detroit and they did a great rehab as well. Inspection next week. All in all I am happy with RWN.
- Rental Property Investor · Sacramento, CA · Member since 2017 · 36 posts · 22 votes8y
@Will Zena Glad you are having a good experience as well. I haven't experienced any issues with my Alabama deposits so far. The property management is great!
- Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes8y
@Ken Calvin it's a minor issue I am experiencing. my last email to them they never responded which annoyed me a bit. I will reach out soon just to make sure we are on the same page. They do great rehabs. I always hear Alabama and Dayton OH are really good. I would certainly recommend RWN and I have already on several occasions. Thanks for sharing!
- Member since 2018 · 1 post · 0 votes8y
I have been to a few real wealth network live events. They never say exactly how they make their money. I have no problem with them earning money. I just want to know exactly how they make it-so that I can decide if I want to pay it or not. Referral fees from the lenders and/or property managers? Commission when they sell a house? Do they get part of the on going property management fee? Do they charge the property managers fees to be a part of their network? Al of the above?
- 7yKathy FettkePro MemberRental Property Investor · Los Angeles, CA · Member since 2014 · 104 posts · 180 votes
Thank you @Will Zena! It was so wonderful to meet you and all the people who flew in for that event.
I am so happy to share that the next day, we held a mastermind for all 15 of the top turnkey income property providers in the country. We asked them to share their best practices with each other so everyone could improve their systems. We also asked that they adopt the same policies - instead of some companies having warranties and others not, and some having rental guarantees and others not, etc. And mostly, to agree on what a "turnkey" renovation should include.
They loved having support and learning from each other - and standardizing their processes. We will do this at least twice a year. Our Director of Affiliates works closely on a regular basis with each company to help them improve their systems. I just went to Detroit to see a turnkey company we recommend - and they have improved dramatically from this coaching.
Sometimes it feels like the wild wild west out there, but we are working hard to get these companies to become the best they can be to better serve investors looking for cash flow. Here's a pic of these "competitors" working together. Very exciting!
- 7yKathy FettkePro MemberRental Property Investor · Los Angeles, CA · Member since 2014 · 104 posts · 180 votes
@Diane Johnson I'm sorry it hasn't been made clear! We earn a broker to broker fee. We are not brokers in those states, but we do have a CA brokerage, so we get paid a referral fee out of the other broker's commission. I hope that helps clarify. It's important to note that referral fees are not legal in some states, and usually only legal from a broker to another broker. Many companies are breaking this law, so beware!
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