Question about getting FINDER fees in California from out-of-state realtors

[Jyotin Gautam]

I want to work as a Finder in California but do not have a DRE license.  I am able to find clients who would be interested in buying properties in other states -  for example New York, Florida, Texas or Ohio. I'm pretty sure this is allowed within California based on articles by CRES Insurance, but unsure about how to send clients to other state realtors as a finder.

My question is: If I make agreements with realtors in various states outside California, can I send them clients and collect finder fees? To clarify I will not participate in negotiations or other activities needing a license. Is such a Finder business model common? Are there any gotchas that I need to be aware of?

I'd greatly appreciate guidance and pointers!

Regards - Jyotin 

[Charles Carillo]

@Jyotin Gautam

You might be able to do it as you have explained it without being licensed, but if you are going to start a business of making referrals/finders fees, why limit yourself? Just go through the licensing process to maximize what you can do and what you can make.  Additionally, many licensed people (myself included) will never agree to pay "finders fees," "referrals," "commissions," or whatever else the same fee can be called to an unlicensed individual. 

[Remington Lyman]

Quote from @Jyotin Gautam:

I want to work as a Finder in California but do not have a DRE license.  I am able to find clients who would be interested in buying properties in other states -  for example New York, Florida, Texas or Ohio. I'm pretty sure this is allowed within California based on articles by CRES Insurance, but unsure about how to send clients to other state realtors as a finder.

My question is: If I make agreements with realtors in various states outside California, can I send them clients and collect finder fees? To clarify I will not participate in negotiations or other activities needing a license. Is such a Finder business model common? Are there any gotchas that I need to be aware of?

I'd greatly appreciate guidance and pointers!

Regards - Jyotin 

In Ohio, you need a license to collect a commission referral.

[Preston Dean]

HI @Jyotin Gautam

Short answer is no in Texas 

Long answer according to the Texas Real Estate Commission " Under the amended rule, a broker could give an unlicensed person a gift of merchandise having a value of no more than $50 and this would not subject the unlicensed recipient to a charge of unauthorized practice as a broker, nor result in a violation of TREC rules by the broker giving the nominal gift."

If you have that much business you are sending agents i'd get licensed and then just place your license with a referral agency so you don't have to pay the regular dues and can still collect a referral fee

[Alfath Ahmed]

Quote from @Jyotin Gautam:

I want to work as a Finder in California but do not have a DRE license.  I am able to find clients who would be interested in buying properties in other states -  for example New York, Florida, Texas or Ohio. I'm pretty sure this is allowed within California based on articles by CRES Insurance, but unsure about how to send clients to other state realtors as a finder.

My question is: If I make agreements with realtors in various states outside California, can I send them clients and collect finder fees? To clarify I will not participate in negotiations or other activities needing a license. Is such a Finder business model common? Are there any gotchas that I need to be aware of?

I'd greatly appreciate guidance and pointers!

Regards - Jyotin 

 It is always better to get a real estate license and practice real estate. Adhering to the board of realtors law is going to be the best way to advise and work with clients. 

I work with a ton of OOS investors in my market. They trust me because I find them good deals and am bound by the ethics of law.