Referral fees to Brokers - REO Property Preservation Forum
 
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post #1 of 6 (permalink) Old 02-01-2014, 12:21 PM Thread Starter
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Referral fees to Brokers

Hi all!

We are trying to move out of P&P into more of the private sector this year and are looking for ways to attract more broker direct business. Most of the brokers in this area already have their go-to guys (family/friends, usually) so we're trying to get creative with our methods and move outside of the traditional swag & food arena.

Do any of you offer "referral fees" to brokers? I know the brokers don't care too much about pricing since they're just passing it on to their clients, so we thought maybe some sort of referral fee might be attractive to them to give us a try. Are there any legality issues to this method? I've done a brief google search and am only finding things related to broker to broker referral fees, nothing to do with our scenario.

Thanks!
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post #2 of 6 (permalink) Old 02-01-2014, 03:20 PM
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Nothing says desperate like trying to pay brokers to get work from them. You'd be better off staying in PP.
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post #3 of 6 (permalink) Old 02-01-2014, 04:28 PM
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No but you would be surprised what buying them lunch or just a Christmas card will do.
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post #4 of 6 (permalink) Old 02-01-2014, 08:27 PM Thread Starter
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Quote:
Originally Posted by SRT-Diesel View Post
Nothing says desperate like trying to pay brokers to get work from them. You'd be better off staying in PP.
haha. If desperate is defined as wanting to get off of the hamster wheel that is P&P, then yep, desperate I am.

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No but you would be surprised what buying them lunch or just a Christmas card will do.
Thanks for your response!
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post #5 of 6 (permalink) Old 02-01-2014, 08:47 PM
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Quote:
Originally Posted by S&Kpropertyservices View Post
Hi all!

We are trying to move out of P&P into more of the private sector this year and are looking for ways to attract more broker direct business. Most of the brokers in this area already have their go-to guys (family/friends, usually) so we're trying to get creative with our methods and move outside of the traditional swag & food arena.

Do any of you offer "referral fees" to brokers? I know the brokers don't care too much about pricing since they're just passing it on to their clients, so we thought maybe some sort of referral fee might be attractive to them to give us a try. Are there any legality issues to this method? I've done a brief google search and am only finding things related to broker to broker referral fees, nothing to do with our scenario.

Thanks!
For the brokers I deal with around here, everything is deadline based. The ONLY thing they care about is making sure the closing happens when its supposed to so they get the commission check when they're supposed to.

That is the angle I work. If you have to do a job on Sunday night so it closes on time, on Monday, that will speak volumes. Just charge accordingly for the PITA factor.



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post #6 of 6 (permalink) Old 02-02-2014, 07:03 AM
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We knew a broker or two early on that expected an outside of closing kickback on new listings they would send our way before anyone else. These were for us to buy. I don't go for that. None of the brokers we work with now would accept money in return for work. They are scored on their turnaround times, and that can determine how many listings they receive. If they have to solicit multiple bids and one of the contractor's involved was paying $ to him, it could go from borderline unethical to illegal. That would jeopardize their license minimum.
Yes, cards, emails, being available for emergencies, cookies or pizza to their office would be a much more professional way to draw their attention.
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