Referral bonuses for rehabs/sales/BRRRRs etc

[Jacob Phillips]

Good morning BP and happy Election Day.

I currently own four cash flowing rental units acquired in two separate sales starting back in February. They are performing well and I have six months in reserves for my personal finances.

I’m already starting to build a reputation in my rural town of someone who buys real estate, and I recently lost my job. Since I have the cushion saved up, and since my grandpa was already willing to fund a flip, I’ve decided to pursue that for now and spend my 80 hour weeks on my own goals and dreams. I can always go get another job.

I’ve also decided to go ahead and get my real estate license. I have a very successful broker in town with properties all over the country that is willing to hold my license, and he obviously stands to be an excellent mentor.

My reputation in town is starting to bring me leads on a semi regular basis, and now that I'll have a handful of ways to handle those leads (buy and hold, flip, send to other investors, list on MLS with my license), I wanted to figure out a way to pay referral bonuses to the people who send them, based on the end result of that lead. I also know that in the coming weeks I'm going to learn more about how that may be complicated as an agent.

What do you guys do? What’re your thoughts? Will having my license hinder my ability to pay referrals to non-license holders? I’m in Missouri