Agent Referrals Agreement

[Dennis Kelly]

Does anyone have a process they follow in regards to referring listings to agents? Not so much Property Management but leads for Wholesaling and Flipping. I’ve been getting leads that are in good shape and more geared towards end users that I want to refer to agents.

What’s a reasonable % or fee you would ask from their commission split? And what would be the best way to be paid out since kick backs are technically illegal?

I was thinking handing them the lead and if they close it then they'll send me a % of their commission split after the sale for “marketing efforts”. Do you think an actual contract needs to be put in place when handing them the deal or trust your relationship with the Realtor?

Let me know what you think or practice.

[Payton Haight]

Hey Dennis, Where are you finding deals? In NY only or out of state as well? If you are getting enough leads, the 'easiest' option may be to get your real estate license. Not sure NY (or other states you may be working in), but in Ohio brokers/Realtors cannot pay a commission to unlicensed individuals. Perhaps someone else has a legal way of setting this up so you can be compensated for providing good leads.