What should I pay agent

[Caleb Jordan]

If I decide to have an agent help do comps on a potential wholesale   should I pay them? I was thinking offering a % of the assignment fee, like 10%. That also means they could look at comps and then I decide it is not a god deal and they don't make anything. Is there any industry standard or courtesy or does it just vary.

[Matthew Teter]

Caleb and Sharon make great points. There are additional restrictions to consider in the brokerage world and in the wholesaling world. Two concerns in wholesaling are the unlicensed practice of law and the unlicensed practice of real estate. These have to do with creating or editing contracts as well as how a state treats wholesaling, mentioned by Caleb above. Outside of those concerns, an agent cannot take a payment for a real estate transaction or service from anyone other than their broker in the majority of states. Side payments, under the table payments, net proceed agreements, net commissions, kick backs, or services are all disallowed under the real estate commission in a majority of states and can cost an agent as little as a fine and as much as their license. It really is that serious and there really is that much at stake. Before you move forward with wholesaling or these questions, my suggestion would be to contact a licensed agent in your area that does wholesale transactions. Most states have a process that allows agents to do so while holding a real estate license in compliance with the real estate commission. They can offer step by step guidance for this. Also, another way of looking at this is if you were willing to pay 10% a deal and most states the cost of maintaining a license is between $1500-$3000 (including joining the board and the MLS) per year how many deals would you have to do to justify just getting the license and learning to do it yourself?