Posted by David G (OR) on July 09, 2002 at 13:15:39:
“need a license to receive referral fees” What’s the reason for this law? On the surface it seems Only to justify/protect broker’s commissions/‘rights’ - so that nobody else can profit. This may be a short question to a long answer but I don’t understand.
David G.
getting paid w/o being principal - Posted by Mike Daly (Atlanta)
Posted by Mike Daly (Atlanta) on July 09, 2002 at 08:15:32:
Talked to an investor yesterday who has 7 vacant houses that he is looking for L/O buyers for. He was wanting to pay me a fee for any buyer I find based on the size of their option deposits. I’m not interested in doing sandwich L/O, just want to find the buyers and get paid.
Looking for a way I can get paid without having to be a principal in the transaction – and I’m not an agent either. I’ve heard Claude Diamond teaches a method of being an L/O Consultant where you can make money without being a principal. Please advise.
Re: getting paid w/o being principal - Posted by Shawn J. Dostie
Posted by Shawn J. Dostie on July 09, 2002 at 12:26:34:
What if you get control of the property with say a $100.00 option that stipulates when you assign the option to an unknown entity, the original optionor is automatically due say 75% of the assignment fee for risk management?
In other words Jim Investor buys an option on a house from Joe Seller for $100.00. He assigns that option to Bob Tenant for $5,000.00. Under the agreement, Joe Seller would be due $3750.00 for risk management fee’s and Jim Investor would walk away with the remainder of the assignment fee or $1250.00
I’ve never tried it, but does this sound reasonable?
Shawn(OH)
If you’re not principal, what are you? - Posted by John Merchant,JD
Posted by John Merchant,JD on July 09, 2002 at 09:39:42:
I think the local RE licensees would gladly try to “troublefy and crucify” you, if any were to learn you were doing a RE deal for a commission or
fee-without benefit of license.
And I suspect that state’s license authority would be all over you for illegal practice as RE broker or agent sans license.
I have a WA State Realtor friend who actually spent a night in OR slammer because he went down there and showed a property on which he had a listing. While it’s quite common in the Commercial RE world to take on out-of-state properties, and it’s done all the time, it is a BIG no-no to actually show those properties to prospects, etc.
Certainly the safe way for you to proceed would be to be in the deal as a principal, with a simultaneous, or double escrow/closing-and if you’re not a principal what is your role, if not unlicensed broker or agent?
Just my 2 bits, and if anybody’s got another idea I’d like to see it. I sure learn more from this forum than I contribute, so I’m not being facetious.
Re: Bird-dogs READ THIS - Posted by Joe
Posted by Joe on July 09, 2002 at 12:27:04:
Hey, John, thanks for backing-up what I’ve been trying to get people to understand, several times. I don’t know if it’s denial, or what, but people just don’t want to believe they need a license to receive referral fees, while not a principal in the transaction.
The answer is clear, and I agree with you: get them under contract as a principal, or risk penalties from the licensing authority!
Please, those reading this, don’t bother arguing. Look at your state’s statues. Then ask yourself if a bird-dog doesn’t need a license, who the he11 does?
Crystal clear.