Add an important revenue stream without increasing your expenses or infrastructure.

Capitalize from you relationships and get referral fees from other real estate agents from different cities. You can considerably increase your income without any cash investment. You can never go wrong by helping one of your clients and making a few extra bucks on the side. That's the nature of the business right?

Sometimes it is not only a "few extra bucks", depending on the city and the location of the property the referral fee could be large. For example, the average price of a Penthouse in Acqualina, Sunny Isles (Miami-Dade) on the 45th floor, with decadent finishes and terraces that include the most magnificent views of Miami including a pool, is about $6,9000,000 Million Dollars. The referral fee for such a mansion in the sky exceeds $50,000 Dollars and all for registering and helping one of your clients that will certainly appreciate the tip. After all, we are the professionals, the ones that are in the business 24/7 and have the contacts, relationships and information at out fingertips. So, let's make it happen.

The worst case-scenario, if the transaction doesn't occur would be that you gained a new friend in Miami and maybe a free weekend stay (hotel and expenses included please) next time you decide to get a sunburn. The best cities to send referrals to are of course destination cities like Miami and... Did I mention Miami?. Referral fee laws can vary from state from state, so make sure to check on the legalities of it.

It is legal among real estate practitioners from Miami (for example) to share the pie and send out a well deserved referral fee for simply registering the client and letting the other professional take charge and close on the transaction. After all you are too far away to physically get involved in the transaction.

Forget about the traditional $300 referral fees to send a client! You want the big bucks! Make sure you work with an agent that specializes in the high-end type of properties, but is also knowledgeable about the opportunities and best property values in the area. Capitalize on referral fees by treating this as one more of your business revenue streams. Think about it. You are increasing you bottom line profits without increasing your expenses or infrastructure, it cannot get much better that this.

How much should you receive for a referral fee?

Well it varies by agent and city. But, the rule of thumb is 25% of the commission. In Miami commissions range from 3% to 6% of the purchase price, making it even more attractive to start a business relationship and regularly get information from the best properties and prices in that area. Tip: Make sure to ask if they have special bonus or promotions programs (usually happens when the seller is very motivated to sell).

Of course you will get paid immediately after closing, when the transaction is completed but then again, we are looking at a turnaround of 30 to 45 days after the contract is executed, on average.

One more thing, by getting acquainted with the market place you will also become knowledgeable with the product that you are referring, which by the way could come very handy at the time you decide to buy your dream beach home in Miami.

Questions, comments? Gustavo Farfan is a Miami Real Estate specialist with Marka-Tech Associates.

He can be reach via e-mail gfarfan1@aol.com or via cell at 786-200-8700

www.immobel.com/miamicondo