Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. 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.
Wholesaling
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 almost 14 years ago on . Most recent reply

User Stats

196
Posts
2
Votes
Jason K.
  • Involved In Real Estate
  • Houston, TX
2
Votes |
196
Posts

Collecting a referral fee -- Advise against??

Jason K.
  • Involved In Real Estate
  • Houston, TX
Posted

How common (or uncommon) is it to refer one of your investors to another wholesale deal that is not your own, and collect a pre-arranged amount from the wholesaler, before or after closing?

Does the business frown upon on this sort of practice if one began to develop a reputation that "he just refers his own buyers to other deals", or does neither party (wholesaler/end buyer) care because ultimately, they are both making money. Are there legal issues here?

Please advise…

Ps. If a licensee engaged in this transaction, would he or she need to disclose to each party that they are licensed, or are they not considered part of the transaction?

Most Popular Reply

User Stats

1,459
Posts
1,843
Votes
Vikram C.#5 Off Topic Contributor
  • Real Estate Investor
  • Phoenix, AZ
1,843
Votes |
1,459
Posts
Vikram C.#5 Off Topic Contributor
  • Real Estate Investor
  • Phoenix, AZ
Replied

I can only speak from my perspective as an investor. I get wholesalers offering properties to me all the time. I only care about my net price and do not really care how the compensation is split between the wholesaler who has my contact information and the wholesaler who identified the opportunity.

Loading replies...