working with realtors

[J.j. McGuigan]

I have found what I believe to be a good property that an investor could see a lot of gain with either flipping it or holding it and renting it out. It is a house located right next to a college. Its two story and been completely gutted. it is selling for less than $20,000 with a potential ARV of $100,000. What my question is, is that there is an agent assigned to the house who I've spoken briefly to and told her what I did and that I may have some cash buyers willing to at least look at it, which I do. Should my approach with this be to simply bird dog it for a finders fee since a realtor is involved. She didn't seem put off by me being a new wholesaler, I just don't want to step on any toes or anything like that and want to be and am going to be honest about everything. I'm just wondering should I even try to get it under contract or just go with a finders fee if one of the potential buyers I'm in contact with decides to buy it?

[Chris Martin]

Kansas Real Estate Commission:

Chapter 58.--PERSONAL AND REAL PROPERTY
PART 6.--MISCELLANEOUS PROVISIONS
Article 30.--REAL ESTATE BROKERS AND SALESPERSONS

58-30,105. Compensation.

A broker may:

1. 1. Pay a commission or compensation to any licensee affiliated with the broker for performing services under this act;
2. 2. with the written agreement of the seller, landlord, buyer or tenant share a commission with another broker who acted as a transaction broker, a subagent or an agent of the other party; and
3. 3. pay a referral fee to a person who is licensed as a broker under the real estate brokers' and salespersons' license act or under the law of another jurisdiction, provided that written disclosure is made to the client of any financial interest that the broker has in the brokerage firm receiving the referral fee.

In your state (an most others, but not CA) it sounds like a broker can't compensate an unlicensed person.

http://www.kansas.gov/krec/rules_regs/58-30105.html