so i have a partner.
the deals that work i wholesale to him. the deals that dont work i give to my partner for a finders fee and he can list them with mls or whatever agents do...
how much should i be asking for a finders fee
I'm sorry I'm a little confused. Is your partner the agent? You wholesale deals that work to this agent, and if it doesn't work for wholesaling then he still accepts them to work with as an agent. Is this correct?
If I were in your position, and were able to make money off of all deals, good or bad, I would wholesale the deals to him that work, and for the ones that don't I wouldn't ask for more than $100 per lead. I say this because you are going to make money regardless. If you come up with 10 leads a week and wholesale 3, you still make $700 dollars that week off of almost no additional work. I guess it depends on how you are determining if it doesn't work too. How far along are you into the deal before you realize it doesn't work? If you're at the end of the process and spent a good amount of time on it then maybe $100 is not enough, but if (somehow) you know right off the back that it won't work I wouldn't ask more than $100...
Is there any kind of written agreement? How much do you trust this partner? How was this partnership formed?
no written agreement yet.. i trust him.
yes my partner is also an agent. and ya i was thinking about $100. most of the leads i can tell right off the bat if they are motivated sellers or not, so i would just hand them over to my partner. some may take a little bit longer but it isnt tha tmuch work. $100 sounds good to me
Like I said I didn't know if a precedent had been set on that kind of situation. I was just putting myself in your position and saying what I would do. Sounds like if your getting paid for good and bad deals you have a pretty good partner and system. I wish I could get paid for both lol.
This is one of the reasons that I advocate for investors to also be Realtors. When you can't make a deal work because there's not enough equity, you can often turn it into a listing and make some money that way. I've done it many times.
Which career do you emphasize more, your investor side or your license side?
@Damon Armstrong - Investor first. But I know some Realtors who are Realtors first, but who also flip houses secondarily.
I'm asking because I don't know the answer - is it legal for an agent to pay a non-agent for leads?
It depends on the method used by the non-agent in order to sell the agent those leads...it's a very controversial topic it seems like. I believe it's so controversial because the non-agent must be sure he is obeying all local, state, and federal laws. So it really depends on how and where it is done...
The non-agent would be considered a "bird-dog" if you've ever heard of that...if not you can find plenty info about it here on BP. @Christina R.
Yes, I've heard of that. I asked because I had an agent tell me he couldn't pay me for leads because I was not also a licensed agent. That appeared, to me, that the agent was the one who had to make sure he was obeying all laws at all levels pertaining to being a licensed agent.
I suggest you just familiarize yourself with the laws that pertain to your area, or the area the agent wants leads in. Also if this is something you are interested do a bit of research here on BP about bird-dogs. Best of luck to you, @Christina R.
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