Hello everybody this is Don. I am entering the REI Industry as a birddog of some sorts, and I am helping an Investment group find more investors with capital to invest in REI and also find guys with potential deals that are looking to obtain capital.
Everything is in California. But guys I don’t have a license in Real Estate or anything, and this Broker firm said they would pay me money from the leads I bring in.
I just want to know, is this legal? I thought that only people with either a Broker license or REI license could get paid off of the sale of Real Estate in CA?
Please tell me if I am wrong, and if I should gone ahead and get into this agreement. Because they are offering me a good amount of money off of the closed deals.
Hi Don, you’ll find a whole different forum section devoted to bird dogs and wholesales (get it? :biggrin)
As far as being legal, yes it is, its a finders fee and you’re not acting as anyones agent. Just remeber not to negotiate between two parties and you’re fine.
Not everything in this country (yet) is required to overseen by the government.
Actually Don,
Chances are very good that it’s NOT legal. You’d have to check your states laws concerning RE firms, but in most states, a RE firm is NOT legally allowed to give commissions, cash referrals, etc., to a non-licensed indidvidual.
Raj
wow roger, you must live in a very restrictive state. I’ve never heard of it being against the law to accept money from a real estate broker! I know that most states have laws against the fiduciary relationship a broker brings between two parties, but never a regulation between two individuals.
What are other people experiences with non-agent related affairs with real estate agents?
Actually, aletoledo, that is pretty common across the board as far as state’s RE commission’s go. A licensed RE agent cannot pay a referral fee to a non-licensed person.
Raj
why would a broker be suggesting it to donjunior? is it a sting operation? :smile
Because everybody in this world is not as honest, trustworthy and ethical as we are. :smile