Referral Fees - Posted by Kevin (MI)

Real Estate Investing Real Estate Financing
1

Posted by JHyre in Ohio on February 21, 2002 at 13:04:11:

Generally, it’s not a problem- but the true answer is state specific. Some would argue that the one accepting the referral fee is acting as a broker- I don’t worry about it. I see nothing unethical in paying for information…though for some, giving me the information is a conflict of interest For example, some MH park managers are supposed to give leads to the park sales office, not to an outside investor…most of the time that is NOT the case, or the park owner waives the conflict to get the investor to move houses in.

John Hyre

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Referral Fees - Posted by Kevin (MI)

Posted by Kevin (MI) on February 20, 2002 at 16:11:59:

I heard a friend once call a referral fee a “kickback”. Now, I know what a kickback is and in most industries, depending on how they are used, are illegal.

Are referral fees given that lead to a sale or purchase considered a kickback?

When there is a Builder or Mobile Home Park Manager involved and you offer them a referral fee, are there any legal issues surrounding this?

Thanks