All Forum Posts by: Account Closed

Thanks Richard. I'd be curious in the circumstances about your $16.87 commission. Perhaps another post?

I appreciate EVERYONE who put their advice on this forum and I'm grateful for your kindness. I learn something from each input. I am not going to do anything until I have a chance to mull this over.

At least for now, it's not a crime to "talk" about it, is there? :)

If licensing laws prevent me from paying the "referral" or bird dog fee, would that make me just as bad as he (in terms of going back on my words)?

Thank you for your perspective, Vikram. I have played out the scenarios in my mind of various what-ifs: what if I flatly reneg on my original verbal commitment, what if I go ahead and pay what he asks, what if this and that. Believe me, I've wasted more mental energy on this than the $450 difference is worth, but it is an important lesson and in the end I am better off having learned it now than down the road where the stakes are much higher.

While I see everyone has a valid point, for me I know I probably will just do what I promised to do (in a discreet way), but I will choose to NEVER do business with him again, and in the future will politely refer him to another investor who would pay that high a fee. There is just something about reneging on your agreement, inexperience or not. Look, if he was sincerely feeling it was not enough money, he should have said "let me think about it and get back to you as to a reasonable fee for me." I would not have a problem with that, as opposed to him having "referrer's remorse" and trying to put pressure on me by ganging up on me with the other investors.

I've committed to decisions in the past where outcome did not favor me financially, but I stuck it out because I made the promise, and I would not go back on my word. I figure what I lacked in compensation I made up in the learning experience. I can't expect everyone else to act like I do, but I can choose not to do business with people who are like him. He's cooked his golden goose and sold his integrity for $450, and that is the sad end to this story.

Finance, I hear you. I know as a new investor I have a learning curve, and I do believe in paying my dues. However I should not be the one who's always doing the "sharing" right? I believe in dealing with others with fairness and integrity, so I was somewhat disappointed with this whole thing. Last week I gave the head of my group a stack of returned letters that I mailed out to lis pendens database and I wonder how they would feel if I were to ask a payment of $1,000 for each letter I gave them that led to a closing. Hey that *is* what they said they would do right? Why should I work so hard to make a deal happen when according to their logic I could have just handed out names and addresses and wait to collect my "fair share"? ;)

And remember they said "minimum" $1000. I think I'm going about this real estate investment thing all wrong! I should be in the lead selling business! /sarc

Thanks Will, this is good material.

Jon, I am seriously going to reconsider running with this group. None of them are licensed but they seemed to be pretty successful at investing/wholesaling/short sales. Unfortunately I already paid the membership fee so I just have to cut my losses before getting further entangled with these characters.

Thanks for another perspective, Will, but I distinctively got the vibe from his email that they are... here are his exact quote (names removed to protect the innocent):

"I only work for 15 hrs a week and I asked JB LG, M, JD about the comission, and they all said the same amount to $ 1,000 as minimum referral fee. If it's okay to you just write the check to XYZ. I greatly appreciate it, so far that would be my first little income"

Yep sounds like he was crying poor and they told him to get more.

Just another wrinkle on this whole deal, I just found out there was no closing today because the buyer's bank held up the loan pending some repairs that was entirely unnecessary but the appraised recommended to cover his butt. The seller is now furious and looking for someone to sue. I guess no sale, no commission, no fee, everybody just walk away one big happy! (/sarc)

So... don't do it? Walk away? Keep all the hard earned money to myself? :)

He did nothing on this transaction other than "here's a name and phone number." Places like RealtyTrac and other "lead referral" outfits charge from a few bucks to a couple of hundred $ for information like this. I will approach this carefully. You're right about the RE rules.

Thank you all for your feedback, and for your wise counsel. I will need to take a hard look at my business relationships and how I approach things. I am disheartened that the other more "seasoned" investors in my group is telling him to do this. One thing is for sure, you find out who your "friends" really are really quick in this business! :)

In this case the money is not as important to me as the revelation it brings. Now I know who I'm dealing with, and I will tread carefully.

Well I made a business decision. I will pay him this time the $1000 he asks, but I will think twice before taking any more leads from him. He's a beginner investor like myself, so I want to help him make some money, but I just don't like people who change their minds and when the going gets good they get greedy. If we can't be true to our words and maintain a level of trust what do we have left to do business?

Is it too late for new year resolutions? From now on, no more freebies and everyone gets paid AFTER I do! Go girl! :)

I think it's not legal but then again I have another LLC I could use... I should probably delete this post lest I run afoul of the real estate police.

ANYWAY, my question, Would you pay $1000 if it's agreed upon up front? Or would you base it on the deal size? In all honesty if I had expected to pay $1000 I don't know if I would have done all this work. Then again if I did, I probably would have negotiated harder to get a bigger commission.