California - Need to hang my license to receive referral fees???

[Stephen Steric]

I haven’t hung my license with a broker for a number of years, and I’m getting back into some wholesaling and referral type deals. I have one wholesaling company that won’t pay a referral fee to an unbrokered licensee, even though the California DRE says it’s OK to receive referral fees as long as you don’t do any licensed activities.

So I need to hang my license with a broker in order to receive my referral fee on this deal that’s in escrow.

I basically just need a broker of record to receive the referral fee and then pay me out, and occasionally take a listing here or there if I get one.

or are they way off base on this one?

any suggestions would be greatly appreciated, thanks

[Kobe Xin]

Usually in most states you would need to hang your license under a broker to receive a referral fee, including California. You would need to check with your state's licensing department and contact them directly to get the most accurate answer. 

I would suggest you use your license as long as it's not too much of a hassle to reactivate it. Even then you should still figure out a way to put your license to use as an investor. There are plenty of opportunities for investors to expand their license with their real estate license, including taking on listings for deals you wouldn't take yourself like you mentioned.