contract assignment

General Real Estate Investing
1

What is the going rate to pay a real estate agent if they bring you someone who is willing to have a contract assigned to them???

2

is the property being sold thru a realtor or is it FSBO?

3

I got the contract from a FSBO, however a few realtors caught wind of my deal and have investors needing to roll 1031 money. What is the typical amount to “Tip” the realtor for bringing the deal to you.

4

Their commission.

5

Let me explain my last post:
An agent only gets paid after their client finds a sale and it closes… Okay so what exactly is my job? Find a house, find a buyer, sometimes both. How do I do that? I bring people together… I introduce them to each other. In Texas both agents’ commisions are paid by the seller… So when I as an agent bring you a purchaser and you to wheel, deal, and close? What do I want? What I’ve rightfully earned. My paycheck. My full commission not a tip instead of my commission etc. That’s how you get agents to KEEP bring you the deals.

Here’s a scary but true example of what I as an agent can expect to have happen to my commission on a sale:

House sells for 200k (avg sales price in the Austin area) at a 6% commission.
200k*.06= 12k
Well 3% of that 6% is the other broker/agent’s commsion so right off the top lose half.
12k-6k= 6k
Then I have to pay my brokerage. I’m at a 70/30 split with mine which means I get 70% of my 3%.
Okay so:
6k*.7= 4200
Still looking good right?
Well wait a minute…
I then have misc fees that I have to pay:
E&O = $50.00
Advertising = $100.00
Okay so now we’re down to 4050
Well then I have to pay my self-employment tax and all the other taxes associated which is roughly 30% of the 4200
4200*.3= 2940
And that’s cutting it on the cheap side to be honest. Which is to say that I’m underestimating a lot of my costs. Granted that’s the cost of doing business, BUT so is paying an RE agent’s commission for an investor that uses them.

So when I take an investor one of my clients all I ask from the two of them is that SOMEONE cuts me a check for my 6k to be taken to my broker so my broker can pay me.