How much to pay for a referral???

[Matt Nico]

Hey BP!!!   Real estate investor and new real estate agent here!!!                    

Referral based Question:

I have a neighbor who got me in contact with a person who was looking to sell 4 properties off market one at a time. I contacted him, and everything worked out great on the first one and I bought it 4 weeks ago and am right in the middle of the rehab. 

How much should I pay my neighbor for giving me this contact information? Do you have a set price, a % of the purchase price, or does it vary based on the kind of deal you got?

Also, when does this referral get paid? After the house is purchased or after the rehab is completed and the home is rented?

Thanks in advance for your input,

-Matt

[Patricia Steiner]

@Matt Nico

Mr. Turner is not a realtor.  If you were not a realtor, you could pay a referral fee for the contract, the referral, for anything.  But as a licensee, you cannot.  You can't pay anything associated with a real estate transaction - not for the lead, not for the contact, nothing.  It's the law and it's there for a reason.  Wholesaling is a whole other legal argument and is not one you can use to justify breaking real estate law.  

You gotta know your business - and in your case, you have several.  I recommend you remove the post.  Congrats again on your acquisitions.