I have RE license in referral program....help! - Posted by KateH

Posted by AWWMi. on July 19, 2001 at 18:17:59:

As an agent I have a contract signed with my broker. I can buy/sell one personal property a year outside the brokerage. Anything after that is fair meat for them. Of course I have no desk fees and any agent I get to sign onboard I’m entitled to 10% commision from all of their sales. The commision comes from the broker’s pile. What you can negotiate for. I would talk to the broker’s agent first before you start to buy/sell.
adrian :slight_smile:

I have RE license in referral program…help! - Posted by KateH

Posted by KateH on July 19, 2001 at 17:00:27:

I’ve had a valid RE license in AZ for 7 years and have it hanging with a Coldwell Banker referral program. The license is considered valid but inactive. I cannot write contracts on behalf of the broker and don’t pay annual MLS or board dues. I just got my hands on C. Sheets program (from Aug.99, but shouldn’t have changed much with exception of internet info) and would like to know…

If I make a offer to buy or sell RE, I know I must disclose that I have a real estate license, but do I have to handle the transaction through the CB broker?

Sorry to ramble on and on…

Thanks for any help out there!!!

Re: I have RE license in referral program…help! - Posted by Buddy

Posted by Buddy on July 19, 2001 at 17:35:34:

You do not have to use a broker at all, just because you have a license does not mean that you cannot buy a property without a broker. But, if you do use a broker, why not use the broker that you have your license with, that way you will at least receive your referral fee when the transaction closes. You might as well get part of that Realtors fee for referring yourself to them.

Re: I have RE license in referral program…help! - Posted by Ron (MD)

Posted by Ron (MD) on July 19, 2001 at 17:27:49:


I used to be an active licensee with Coldwell Banker in Maryland (and am now licensed with another broker). I sometimes went through CB (or my current broker), sometimes not. In the case of each broker, my office manager knew I was an investor and that sometimes I’d use the broker, sometimes not. It has never been a problem for me.

However, I think some brokers have specific internal rules that require you to do all transactions through the broker, theoretically because they do have some E&O exposure.

Ron Guy

Re: I have RE license in referral program…help! - Posted by KateH

Posted by KateH on July 19, 2001 at 17:39:53:

Thanks Ron! What parameters would you use to deal with the broker? Like FSBO or listed property? I suppose if I’m the buyer and the property is listed, I may as well use the broker unless I can negotiate a lower sales price…although it does seem a little unethical.

Re: I have RE license in referral program…help! - Posted by Ron (MD)

Posted by Ron (MD) on July 19, 2001 at 18:55:54:


Here’s what I do…

The houses I buy are usually $15k-$25k fixers. Frankly, the commission is peanuts. I go through my broker (i.e., represent myself as an agent) if I’m making an offer on a property that’s been sitting on the market for a while. My logic is that the listing agent will be happy to unload it and doesn’t care if he/she is getting both sides of the commission. However, if I’m making an offer on a new listing, I almost always call the listing agent, identify myself as an agent, but tell them that I would like them to act as both the listing and selling agent. I don’t say it explicitly, but obviously my expectation is that I will have a better shot if the listing agent is getting both sides of the commission.

Also, anytime an agent calls me about a new listing or a potentially good deal on a current listing, I give him/her the entire commission.

When I’m selling my houses, I am usually able to find a buyer before having to resort to listing them. I would estimate that I list (and pay a commission) on about 25% of my rehabs.

I do not generate many commission dollars as an agent. As a result, my split is 50/50. However, I made a very attractive deal with my broker for any transaction where I’m the principal and agent.

I have always been very honest with my office managers. I don’t tell them exactly how many houses I’m buying and selling without going through the broker, but they have known that I do it on a regular basis.

I have always recognized that the low commissions I generate make me somewhat vulnerable to being asked to move my license. (I prefer to hang my license with one of the larger, more reputable brokers. A smaller broker probably wouldn’t care what volume I do…anything is better than nothing.) To help maintain my tenure in the office, I try to fit in as best I can. I try not to go into the office if I’m dressed too casually, I’m friendly with the other agents, and I go to most of the Wednesday sales meetings (I actually think they help keep me up to date on the market and other RE issues.)

Having said all that, if I could get MLS access without a license, I’d drop my license in a minute. I haven’t had any meaningful problems relating to being licensed and an investor, but I know there is some exposure there.

Hope that helps.

Ron Guy