When You Get a Referral, and You Agree to Pay a Percentage... Is it Forever?
Kathy has asked a great question and I hope it gets a much better discussion going because the answer is probably difficult.
I always disable comments on reblogs out of respect for the original author who did all the work. If you would like to leave a comment, click on the link below and leave your comment with Kathy who deserves your support with your comments.
I was recently given a referral for an investor from my Transaction Coordinator. Their kids go to school together and the investor knows that my TC works in Real Estate. My TC, who is a licensed agent, has been very busy by the work I have been doing with other investors...and I am pleased that he is confident in my abilities and skills that I have working with investors.
Today I received a detailed list of criteria from this investor-- who has gathered other buyers to form an LLC-- regarding their search for properties. They are seeking REO's, distressed, fixers, to rehab-- some to rent out, some to resell.
I agreed to pay a 25% referral fee to my TC on transaction(s) from this client-- and although we have not
consumated the deal, and I have only begun to do research on finding homes for him... and it will be a considerable amount of work, but I'm seeing that this could turn into a "multiple deal" client.
I realize that I would not have this opportunity without the referral-- but is he a referral forever?
I want to be fair and do the right thing-- my TC will also be getting paid a transaction fee for every deal we close together as well.
My QUESTION is... do you put a LIMIT on how many homes you pay a referral fee on?
If you are looking for a great real estate agent in the Palm Springs area... let me
one for you!
Kathy Schowe 760.333.8886
Intero Real Estate Services in Old Town La Quinta
SchoweProperties.com☼ KathySchowe.com☼LivetheDesertlife.com
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