Rental Property Investor · Pocatello, ID · Member since 2016 · 37 posts · 6 votes
I am starting to gathering email addresses and contact information for people who are interested in both buying and selling properties in my area. I am trying to find a way to give these leads to local real estate agents and make a commission on it. I have thought about charging a monthly fee for access to the list. I have thought about making a commission when the agent sells or finds a buyer for a property. Any suggestions on how to make this work legally would be greatly appreciated.
Investor · Oceanside, CA · Member since 2017 · 17 posts · 14 votes
9y
@Todd Palmer, each state is different. Here in California, a Real Estate agent cannot (legally) pay a referral fee to any unlicensed individual. So, check your local and state laws.
If you DO have a RE license.... Think about it from the buyer/investors point of view. What are you going to provide that they could not get themselves? Could they not just call the agent themselves? Always bounce your ideas off of the "Devils Advocate"...
Real Estate Investor · Seattle, WA · Member since 2016 · 30 posts · 12 votes
9y
Sounds like your talking about wholesaling, but without actually having anything under contract? Your main competitor would then be other wholesalers, but they have the advantage of having the contacts AND the contract. How would you address that?
Rental Property Investor · Pocatello, ID · Member since 2016 · 37 posts · 6 votes
9y
I am going to be wholesaling just trying to figure out different angles. I talked to a lady in a facebook group I'm in about real estate, she was generating leads on her friends (who is a agent) facebook page. So I thought about doing it with multiple agents. I work with several agents in my area already.
Rental Property Investor · Ocala, FL · Member since 2016 · 226 posts · 140 votes
9y
I think you might do better if you got a list of cash buyers, and talk to each of them individually.
Ask each one what they are looking for, what they don't want, what price range, and what % below ARV they want. Then, knowing that, you look specifically for those properties, because you have buyers wanting them.
If you have a general list going to agents, you may not have much success. Many of the properties won't qualify for a mortgage and some owners don't want to list with an agent. They want to sell right now. Or, they might be interested in leasing their home for 5 years because they just need out right now.
if you want to sell a list, ask yourself if the list is exclusive, or if many people can find the same info themselves on the web.
Investor · Oceanside, CA · Member since 2017 · 17 posts · 14 votes
9y
@Todd Palmer, each state is different. Here in California, a Real Estate agent cannot (legally) pay a referral fee to any unlicensed individual. So, check your local and state laws.
If you DO have a RE license.... Think about it from the buyer/investors point of view. What are you going to provide that they could not get themselves? Could they not just call the agent themselves? Always bounce your ideas off of the "Devils Advocate"...
New to Real Estate · Seattle, WA · Member since 2021 · 14 posts · 7 votes
4y
Great insight on this thread. When trying to find niches and opportunities in leads, I too was curious about selling leads to an agent. This 4-year-old post has helped me understand that this tactic may not be the best use of time or energy.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
4y
As it was stated 4 years ago, licensed agents can not pay any unlicensed person for leads, commission, etc, it is a violation and they could/would lose their license if caught.
Wholesaling, in of itself is not illegal, however, there are several ways to perform the transaction illegally and many do it that way so be sure to get the correct legal info on the legalities and moralities of executing a wholesale transaction.