Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago,

User Stats

32
Posts
0
Votes
Jeremy Resmer
  • Rental Property Investor
  • Nashville, TN
0
Votes |
32
Posts

Legality of a referral fee

Jeremy Resmer
  • Rental Property Investor
  • Nashville, TN
Posted

We come across a lot of deals and can't monetize all of them. Our LLC members are working on RE licensing in house, but wanted to explore other pathways in the mean time.

Anybody know of smart ways to be able to legally charge a referral fee for a property when not licensed?

I don't want to go the "marketing fee" route.  We are located in Tennessee, and I know that wouldn't work.  

The one potential pathway we're exploring is to hire a realtor//broker 1099 or even give them a percentage of our LLC. If that were the case, could our entity charge referral fees for properties? There's important nuance in the question:

1.  Is it even possible?

2.  If so...could it be realtor or would it need to be a broker?

3. If so...would said broker/realtor need to be partner in the LLC or would a 1099 arrangement be sufficient? IF partner...what percentage?

Any advice appreciated!

Loading replies...