Agreement with realtor

[jesmar424 0]

I have a verbal agreement with a realtor that they will give me any expired listings and I will pay them a "referral fee" if I happen to close one as a CA or SLO. We would like to get something in writing. Has anyone done this before and if so do you have a good agreement that covers all of your bases? Thanks

 

Mark

[Jonathan RexfordFL 8]

Don't tell anyone that I am a Realtor. But what the agent could do is give you a referral agreement on all the expireds that are listed. It is a pain in the A$$ but you could do that. I prefer to just put things in a simple format of who what where and why. That way if something happens that nothing really is legal binding.

[jesmar424 0]

Don't tell anyone that I am a Realtor. But what the agent could do is give you a referral agreement on all the expireds that are listed. It is a pain in the A$$ but you could do that. I prefer to just put things in a simple format of who what where and why. That way if something happens that nothing really is legal binding.

 

What exactly is the referral agreement and why is it a pain?

 

The realtor, whom I just recently met, is also an investor. The plan is for her to give me the expireds, then if I make a deal to pay her via her LLC that she has set up for her real estate deals. Would we still need the referral agreement or could we just draft an agreement saying something like I plan to pay her x% from any leads that she brings me?

 

Thanks for the help.

[Jonathan RexfordFL 8]

A referral agreement is usually set up via a form based on the local realtor association. We have one that is used by FAR Florida Realtors Association. It is a way for realtors to keep track of promises made to other realtors. it is a pain because in most areas you may have 200 expireds per week or month. that is the part that stinks. 200 agreements is something that I would not even consider to do.

 

Now I have an open agreement that is not in writing. That any realtor brings me a renter or lease option buyer that I will pay them 20% of what is collected and max 3% of the purchase price.

 

I don't do expireds for people, but you could just easy write something up and have the address registered as part of the referral if you so do so.

 

As long as real estate services are not created by a brokerage arrangement then it should be ok to pay LLC, if she isn't the broker of the office.

 

HTH

[jesmar424 0]

A referral agreement is usually set up via a form based on the local realtor association. We have one that is used by FAR Florida Realtors Association. It is a way for realtors to keep track of promises made to other realtors. it is a pain because in most areas you may have 200 expireds per week or month. that is the part that stinks. 200 agreements is something that I would not even consider to do.

 

Now I have an open agreement that is not in writing. That any realtor brings me a renter or lease option buyer that I will pay them 20% of what is collected and max 3% of the purchase price.

 

I don't do expireds for people, but you could just easy write something up and have the address registered as part of the referral if you so do so.

 

As long as real estate services are not created by a brokerage arrangement then it should be ok to pay LLC, if she isn't the broker of the office.

 

HTH

 

I just made this up. Would this be sufficient enough? Thanks for the input.

 

JM3 Properties LLC agrees to pay ______________ 15%, with a maximum not to exceed $500, hereinafter referred to as “referral fee”, for any lead that results in a successful transaction to secure the property for the purposes of a lease purchase. Referral fee shall be paid solely from any upfront money that JM3 Properties LLC collects from tenant buyer. Any profits made by JM3 Properties LLC after the initial collection of monies from tenant buyer including, but not limited to, rent, equity, etc., shall not be applied to the referral fee.

 

Additions? Redactions?

[Jonathan RexfordFL 8]

If it works for you then cool. We work off handshakes. But that is cool if you need something in writing.

[jesmar424 0]

If it works for you then cool. We work off handshakes. But that is cool if you need something in writing.

 

I typically work off of handshakes as well but this woman has been burned in the past and wants to cover her bases. Thanks

[Doug Pretorius (ON) 9]

Isn't it against realtor rules to pay a non-realtor a referral fee where you are? I would call it a "marketing fee" instead.

[bwalston 1]

I was about make that same suggestion Doug. We use "marketing fees" here in TN as well.

[-Tony- 0]

Doug,

 

I think jesmar424 is paying the realtor a fee for any signed contrack he gets from the expireds and he (jesmar424 ) is not a realtor

[Doug Pretorius (ON) 9]

Tony, good point. Although it works the other way as well, the realtor can't accept a referral fee from a non-realtor either.

[West Coast Girl 1]

Here is something that I had tucked away safely on my hardrive. I thought that this might could help you out so am passing along the knowledge & wisdom!

 

Real estate agents are insecure. They do not trust buyers or sellers or their fellow agents. I can say that because I am a broker (Realtor). They are concerned about getting paid, they work darn hard on obtaining listings and trying to sell them before another agent horns in on their commission split. The life of an agent is not easy. Deals fall thru, buyers are liars, sellers are liars and no one can be trusted!

 

So, why are they going to trust you, a real estate investor, to get paid? Good questions! Well one of the problems with agents is that they do not understand the mind set of investors (if they knew how much money we make, they wouldn't be agents).

 

We real estate investors are kind, gentle and loving, all we want to do is to make a quick million dollars in a year or so..we think that an agent can help us do that (right!?) Well, agents can be very helpful in our pursuit of wealth in this business, but, we need to train them, and train them well. We need to show them that they will get paid if they refer a FSBO or an EXPIRED LISTING to us to consider purchasing.

 

This is how I work it; I will pay a real estate agent 5% of the sales price if they bring me a FSBO that I buy, but they need to give me comps, hold open houses and do other stuff to facilitate the flip of the deal.

 

You need to make them secure, they need to have the confidence that you will pay them. Here is some information I supply the agent to give them that security.

 

 

 

1 of 3 letters to Realtors

 

Your best Realtor prospect is going to be the agent who is in the market doing business. Look in the newspapers for their listings; find them in real estate magazines that advertise their listings. Find the agent that advertises for business. Call the ones that publish a picture of themselves.

 

You want to find the aggressive and motivated agent. The agent who will best serve your needs are the ones who are hungry and actively trying to find properties to list and buyers to buy their listings.

 

Your letter needs to be personalized. Address it to them by name. Keep a control list of your letters and your follow ups. Follow up with a telephone call. A real estate agent can be your best prospect for finding motivated sellers willing to give up some of their equity for a sale of the property.

 

----------------------------------------------------------------------------------------------------------

 

Ms. Suzie Wantalisting (The letter does not contain the name of her company)

1234 Anywhere Avenue (Home address would be the best place to send the letter)

Beverly Hills, CA 90210

 

[Date]

 

RE: Real Estate Consultant Profit Center for You Within 2 Weeks

 

Dear Suzie,

 

I am a BUYER of real estate. I am writing you today to offer you a profit center that is related to the local real estate business.

 

This method could make you an extra $3,000 - $5,000 a month immediately and will not cost you a penny. Please read on while I set this up for you.

 

1. Have you ever called a FSBO about their real estate and were treated poorly? Most agents have experienced disrespect from FOR SALE BY OWNERS! It really is a shame because YOU are the one who could sell their property and solve their problem.

 

2. Have you ever been approach by a seller with a junk property, a house in disrepair or a non-conforming property with a low sales price where there is very little commission compared to the time you would spend to sell it?

 

3. Do you have hard to sell, old ugly listings? Are you working with sellers who are demanding and disappointment in you and your real estate service?

 

Here is how you can develop a profit center paying you thousands of extra dollars:

 

1. Refer FSBO’s to me. When I buy them, I will pay you a consulting fee.

 

2. Refer Expired Listings to me. When I buy them I will pay you a consulting fee.

 

3. When you are farming your area for listings and you find ugly, junkie, vacant or run-down properties, refer them to me, I will pay you a consulting fee.

 

I know this sounds too good to be true, but it is, I guarantee it! The reason it is true because this is what I do. I am a successful investor. I have a system that works for me. I make an extremely attractive income investing in real estate.

 

Suzie, I look forward to working with you. I will make offers on almost any type of property; Any price from (put your price range in here).

 

I hope you find this offer of interest. I look forward to working with you on this REAL ESTATE PROFIT CENTER. Please call if you have properties to refer or questions.

 

Sincerely,

 

 

West Coast Girl!

[jesmar424 0]

Tony and Doug,

 

I would not be paying the realtor as a realtor. I would be paying her company. But either way it should be ok.

[jesmar424 0]

Here is something that I had tucked away safely on my hardrive. I thought that this might could help you out so am passing along the knowledge & wisdom!

 

Real estate agents are insecure. They do not trust buyers or sellers or their fellow agents. I can say that because I am a broker (Realtor). They are concerned about getting paid, they work darn hard on obtaining listings and trying to sell them before another agent horns in on their commission split. The life of an agent is not easy. Deals fall thru, buyers are liars, sellers are liars and no one can be trusted!

 

So, why are they going to trust you, a real estate investor, to get paid? Good questions! Well one of the problems with agents is that they do not understand the mind set of investors (if they knew how much money we make, they wouldn't be agents).

 

We real estate investors are kind, gentle and loving, all we want to do is to make a quick million dollars in a year or so..we think that an agent can help us do that (right!?) Well, agents can be very helpful in our pursuit of wealth in this business, but, we need to train them, and train them well. We need to show them that they will get paid if they refer a FSBO or an EXPIRED LISTING to us to consider purchasing.

 

This is how I work it; I will pay a real estate agent 5% of the sales price if they bring me a FSBO that I buy, but they need to give me comps, hold open houses and do other stuff to facilitate the flip of the deal.

 

You need to make them secure, they need to have the confidence that you will pay them. Here is some information I supply the agent to give them that security.

 

 

 

1 of 3 letters to Realtors

 

Your best Realtor prospect is going to be the agent who is in the market doing business. Look in the newspapers for their listings; find them in real estate magazines that advertise their listings. Find the agent that advertises for business. Call the ones that publish a picture of themselves.

 

You want to find the aggressive and motivated agent. The agent who will best serve your needs are the ones who are hungry and actively trying to find properties to list and buyers to buy their listings.

 

Your letter needs to be personalized. Address it to them by name. Keep a control list of your letters and your follow ups. Follow up with a telephone call. A real estate agent can be your best prospect for finding motivated sellers willing to give up some of their equity for a sale of the property.

 

----------------------------------------------------------------------------------------------------------

 

Ms. Suzie Wantalisting (The letter does not contain the name of her company)

1234 Anywhere Avenue (Home address would be the best place to send the letter)

Beverly Hills, CA 90210

 

[Date]

 

RE: Real Estate Consultant Profit Center for You Within 2 Weeks

 

Dear Suzie,

 

I am a BUYER of real estate. I am writing you today to offer you a profit center that is related to the local real estate business.

 

This method could make you an extra $3,000 - $5,000 a month immediately and will not cost you a penny. Please read on while I set this up for you.

 

1. Have you ever called a FSBO about their real estate and were treated poorly? Most agents have experienced disrespect from FOR SALE BY OWNERS! It really is a shame because YOU are the one who could sell their property and solve their problem.

 

2. Have you ever been approach by a seller with a junk property, a house in disrepair or a non-conforming property with a low sales price where there is very little commission compared to the time you would spend to sell it?

 

3. Do you have hard to sell, old ugly listings? Are you working with sellers who are demanding and disappointment in you and your real estate service?

 

Here is how you can develop a profit center paying you thousands of extra dollars:

 

1. Refer FSBO’s to me. When I buy them, I will pay you a consulting fee.

 

2. Refer Expired Listings to me. When I buy them I will pay you a consulting fee.

 

3. When you are farming your area for listings and you find ugly, junkie, vacant or run-down properties, refer them to me, I will pay you a consulting fee.

 

I know this sounds too good to be true, but it is, I guarantee it! The reason it is true because this is what I do. I am a successful investor. I have a system that works for me. I make an extremely attractive income investing in real estate.

 

Suzie, I look forward to working with you. I will make offers on almost any type of property; Any price from (put your price range in here).

 

I hope you find this offer of interest. I look forward to working with you on this REAL ESTATE PROFIT CENTER. Please call if you have properties to refer or questions.

 

Sincerely,

 

 

West Coast Girl!

 

 

Are letters 2 and 3 coming or was that just a tease for, "Come to my boot camp this weekend for the rest!"? TAB

[West Coast Girl 1]

Are letters 2 and 3 coming or was that just a tease for, "Come to my boot camp this weekend for the rest!"? TAB

 

Sorry, but that's all I have on THIS author. No more to come!

 

Did you not find this helpful????

 

Although, I DO have a couple more personal scripts that I acquired from my 4-day bootcamp!

 

However, UNLESS you know how to employ them correctly, they can be lethal!

 

So, in order for me to release these weapons, you will need a "little" training in order to use them EFFECTIVELY & EFFICIENTLY!

 

West Coast Girl!