Commission splits as a Realtor?

General Real Estate Investing
1

I’m a South Carolina licensed RE agent and hopefully i’ve posted this in the correct category…

When I approached my broker (fairly large Brokerage) and mentioned to him that I may come across deals that I put under contract from the MLS and then assign them to another investor (who is also licensed)(~Wholesale~), he said that he doesn’t want to get involved in doing this unless there is a referral fee from one party to another so that he gets his split somehow.

He then asked me “why would you put something under contract and give it to someone else to buy anyway?”

I’m also concentrating on Sandwich Lease Option Deals which is an entirely different animal to tackle with him. (I understand pretty well how to structure SLO contracts being a Realtor)

And also…when I asked him if there any local REIA meetings he knew of (then i had to explain to him what a REIA was…) he said no.

Does anyone else have their own experience structuring a wholesale contract deal like this so that everyone gets their appropriate split? And has any one had to teach their broker about being creative with deals?

I appreciate suggestions or experiences.

Darin
hhiinvesting

2

I was hoping someone would answer because it is an interesting question. I think the fee can be split according to however the parties decide.

As to teaching brokers, my experience with them and real estate agents is that, generally speaking, they don’t understand creative financing or the needs of an investor. They understand to list the property on MLS and hold open houses.

3

The broker split should always be according to the broker’s contribution. If all he is contributing is his supervisory signature (assuming liability for the agent), but you are still doing all the work, then I’d offer him a flat fee for each deal. If he doesn’t want it, then he’s obviously not hurting. There are many brokers these days that are and will willingly take a small fee to stay in the biz.

If you can’t find a new broker that understands, at least try one that is willing to learn.