Agents: How to Get Compensated for Off-mkt leads I give to Agent?

Question

I have a plethora of leads that will probably end up as a listing and not a fit for my business model as a flipper/landlord/developer. I want to maximize my marketing dollars by bringing value to an agent who gets a very warm lead. But from what I've found:

• The really good ones have plenty of referrals it seems they don't want to pay for any more (at least with my preferred agent that lists my properties).
• I don't want to refer my dear sellers to a sub-par agent
• The agents in the middle by-and-large don't want to itemize paying for leads as a marketing expense. They say they aren't allowed to pay a non-agent (me) for a lead.

So is there a way to do this? Have I just not found the right person yet? I really want it to be a good agent that will take great care of my sellers, not just someone willing to pay for leads.

Shawn Mcenteer · Answer

@Allan Smith Get your RE license.  You can refer and be paid out legally.  You do not have to pay full dues of realtor, you can have a referral status meaning you simply give leads to other realtors and you get a piece of the commission.

Joe Norman · Answer

I'm not sure about Tennessee, but in Maryland a licensed agent can't receive a referral fee for a real estate closing unless the referrer also holds a real estate license. However, don't think just selling a list of names and numbers is necessarily a referral and you may be able to collect compensation for that (or, more accurately, you may find an agent who is willing to do that).

Frankly I'm surprised that you can't find good quality agent who is willing to pay for warm leads - maybe go to Zillow and contact some of their "FEATURED AGENTS" since they are already paying Zillow for just that.

Frankly I'm surprised that you can't find  good quality agent who is willing to pay for warm leads - maybe go to Zillow and contact some of their "FEATURED AGENTS" since they are already paying Zillow for just that.

James Wise · Answer

Get your real estate license and put those off market leads on the market. If you don't want to deal with seller clients then you'll be able to refer them to another agent for a referral fee. Typically you tend to see a referral fee of 25% of the list side commission in situations like this.

Marshall M. · Answer

@Shawn Mcenteer is right about needing a license. The trick here is to constantly follow up with both the agent and the lead. Its so easy for the agent to stop following up or prioritize their own leads. I've had the best results from referring to teams as they tend to have stronger systems and measures for accountability among their agents.

Allan Smith · Answer

Since I do a lot of marketing, I didn't want to deal with the disclosures and legalities of it.

And really most importantly, I don't want to get distracted from my main business model which is buying/renovating/building rentals. If I try to do everything I won't be able to scale up as quickly.

@Shawn Mcenteer What would a referral be like if I was an agent and I "referred" my own flips to another agent to actually do the listing? Would that save me anything? I just don't have the time to scale up an agent business.

Joe Aiola · Answer

@Allan Smith If they're truly good deals but just don't fit your criteria, why wouldn't you just wholesale them to other investors?

Allan Smith · Answer

Great stuff guys, thanks for the ideas!

Shawn Mcenteer · Answer

Typical referral fee in my area is 25% of the buy side or sell side.  Its all negotiable.  Referring your own flip would be no different then selling your primary residence, negotiate the terms with your realtor.

Agents: How to Get Compensated for Off-mkt leads I give to Agent?

Agents: How to Get Compensated for Off-mkt leads I give to Agent?

Most Popular Reply

8 Replies