Does your broker require that any pay for BPO work go through them or are you paid directly? I'd prefer direct to me but was wondering what the norm is.
And does your broker take a cut or how is it done? Thanks!

i get paid directly by all, and he gets no cut, the minute he ask for a cut, i will change companies

The state in which you are licensed dictates who gets the check first.

Yes, first check with your state's real estate division to make sure that it is legal to be paid directly. Don't rely on your broker to tell you if it is or isnt. If its legal, I highly recommend you get paid directly. If you are using your broker's resources to complete the work, or if he is mentoring you with your BPOs, you should work out a monthly fee. But don't let someone handle your money for you if you don't have to.

Most states require the check to be sent to the broker first. If they are sent directly to the agent when they shouldn't be those agents will have their troubles once they do their taxes.

isn't that what the w9 is for?

You'll need to check your state laws and your broker's policy. In Ohio, we can be paid directly for BPOs, but if my broker had a policy that didn't allow it, I would have to be paid through the brokerage even though our state law allows us to be paid directly.

No not necessarily, you need to check with your state rules.

In New York, a qualified agent can have a broker license in their own name as well as a Salesperson or Associate Broker license with another agency. If you have a Broker license you can then receive compensation directly. If you go that route check with your sponsoring broker first so it doesn't appear you are trying to hide anything from him. If he doesn't like it then change brokers.

In CA, they come to me directly. Only one BP company issues my check with the company name and my name on the address line, but made payable to the company name. I just hide it within all the other checks when I make my deposit and it never gets kicked back.

Wow you are commiting a felony. You cannot cash a check made out to a company if you are not authorized to do so.

"hiding the check" is unethical and wrong.

Thanks for the responses you guys! I'm in Ohio and have a friend agent who suggested to do some BPO's to generate extra pocket cash and possibly get some reo listings too.
I'm expecting my broker to screw things up for me sad to say. He'll either want a cut or will just slow down the process for me even though he could get the listings downline.

Not only is it unethical and wrong you could risk losing your RE license. In California you are not allowed to receive payment directly for your services if you are not a broker. Even if you may be an associate broker, if your license is under another broker payment must go through the broker. What the brokers portion is, can be neogotiated. I don't have to give a cut to my broker, however all checks go through them.

If you broker will mess things up for you switch brokers.

I never had a Broker ask for a cut of my BPO fees when I was an agent. I think they understood I was trying to build a business that would eventually benefit them as well as myself. If your Broker wants a cut of your measley BPO fee go somewhere else. There are a million co. that would like to hire you, especially right now in this depressed market. GO AFTER IT, PERIOD!!!

My broker did not initially want to allow me to be paid directly. I found the laws, pointed them out and explained that this could mean future business for the company. She agreed to allow me to be paid directly. Also, what a drain on accounts payable for her to get a small cut of each bpo.

My broker takes a 7% fee, just to cover paper, etc. And the truth is, for those of you who get paid direct, your license only operates under your designated broker. You are a representative of him/her. So lucky you if you get paid direct.

7% of your BPOs?? is that a joke?

7% thats lousy! My checks go to my broker but i get all of it, thats out of order!!!

I would switch companies if my broker wanted a cut out of bpo's thats a complete rip off to me..

me too!

My broker pestered me yesterday about the 10% he wants from my BPO work. Fat chance. Ask me for it again and watch me pack my laptop and license and hit it to Remax. And I get paid directly, they come to my house, in my name and there is no way anyone can know exactly how many I do at any given time.

Let me clarify: I USED to give the 10% because I was using office paper, equipment, etc. THEN I decided to do my BPOs at home using my own equipment. I pay my portion of E&O every month so there is no way IN HELL I'm giving anyone a cut of my money. Especially since on some orders I can spend $10 alone in gas.

Haha, you guys think 7-10% is bad?
What if they wanted 40% and then raised office fees (I don't use their office ever and don't get handed any leads) by double and throw in a few hundred dollars on top of that for an office marketing thing that I said I won't be involved in and thus wouldn't get any leads (they would hide leads from me anyway)?

I was caught up with the office bill mid-january and just got an invoice mailed to my home with a BPO check.
The office bill was for $469.

Now I'm in limbo because I'm going away for a week before I can seal the deal with a new company and then it takes a little longer to get the W-9 and so forth.
I'll have to turn down orders and probably be on the crap list just as indication is I've graduated to preferred status with one of the best mills.

I can't believe my Broker even thinks I'm paying that bill.
the whench will just cash my BPO checks when they arrive.

I have read each of your posts and I believe I understand where you are all coming from. I am a broker and employ agents in California. Here's some food for thought:

I pay rent, utilities, E&O Insurance, phone bills, fax bills, credit, pay for computers for the processing staff, salaries for processors and receptionists, taxes for the corporation and on and on. The only way a broker can stay in business is to employ successful agents and pay them a percentage of the business they generate. I pay 80% to my agents.

I'd give up BPO money to a REO agent. Frankly a few grand a month that generates listings that I will get paid on is a small price to pay. If an agent wanted to only do BPOs and get paid 100% I'd tell 'em to pound sand. Go work for the big boys.

In California you have to be a broker to get paid direct. If you are an agent you must "hang" your license with a broker. Don't like it? Do what I did and get your own brokers license, open your own shop and pay a ton of money each month for expenses and have the BPO conversation with some $3K a month agent that wants to keep 100%. No thanks.

Having said all that I really believe the only way to go is to be a broker. Earn 100% of every deal and pay 100% of the costs.

Just my two cents.

I agree with Cali Broker.
The only way that I am in business is because I can hang my license w/ my broker. So I am able to do BPOs, and have E&O insurance (which all REO companies want). Also, remember you are an agent of your broker. They aren't your listings, they are your broker's listings and you, by agreement, are representing your broker. It's the same with BPOs, you are using your professional licensure to offer a professional opinion, and by law your broker is entitled to a cut. 7% ain't so bad.

Well, I picked the wrong office again.
I accepted that Broker takes 30% of BPO pay because of the freedom to run the regular Real Estate work the way I choose with a decent split.

I just saw that there's an adminstrative fee of $49 for every check on top of taking the 30%.

So for 2 separate checks of only $50 that showed up at the office, I OWED $14 for having done them!!!! Actually, total of $28 to my office for doing 2 BPOs.
No joke.

This time I have to take my time and find the right office,
one that takes a monthly office fee, but gives me all the BPO pay.

I guess no one is doing bpos for that office then.

dumb1 check your PM

Mr J I shot a PM reply.
My question is are most of you NOT with the big franchise names
that demand more fees?
I know of a couple offices wherein there's only 1-2 agents under a Broker who doesn't seem to do much of anything except keep a little office and his name on the door.
Oh, and the agent is a mortgage Broker.
I'm sure I could hook up and do BPOs under one of these shady Brokers, but I wonder/worry about lack of E&O for regular sales.
Wouldn't surprise me if they have none.
I might have to look into E&O costs as an individual who doesn't do a lot of sales to see if it's worth it.

I am a broker and work for myself - my days of working for large companies are OVER. My E & O is not that expensive annually - I can pay for it in less than one week of BPO's. Very worth it to me to stay independent. Also keep a great network of people in the business for sound advice.

Just because a broker has no agents or a few doesn't mean they are SHADY. I don't have any agents and don't want any currently.

In my operation I make plenty of money and do things my way.The reality is if you did bpo's all day long the broker makes no money to cover costs.

When you sit on the other side of the fence as a broker you see all the costs involved. The truth is most brokerages go out in the first year in my area about 85 percent. My mls requires an upfront 2k fee because what usually happens is the new startups don't pay the mls fees when they have a closing like there suppose to so the MLS would have to pursue legal judgements and garnishments to get anything back if at all.

That's why they take 2k upfront so if the broker doesn't pay the fees and goes out they still keep the money.

In GA our real estate commission requires multiple reviews during contracts by the broker on negotiations for everything the agent does.So basically even though the agent is doing the transaction you have to watch over the whole thing and correct any mistakes.

One solution for the check processing fee is to turn in all the monthly checks at one time and pay one fee even from different companies. If the checks are from one company and they pay weekly or bi-weekly just ask them to send one check monthly and that way you pay just one fee.

I did this with a company before I got my brokers liscense and paid the admin fee once of just 25.00.

My broker takes over 35% of my BPO money, i didn't know this since he never told me untill i recieved my first check. I can understand if he pays for my mls dues, and realtor fees but he doesn't i have to pay for all that too. It has came to the point where i do not think it is worth it to do any more BPOS. Since most companies now want to pay you 35 to 40 to do a drive by. No thanks..

Wow..that's tough. I give about 1/2 of mine to support my assistants salary. The rest my partner and I split, it keeps us in gas money!

Wow. I didn't realize how good I have it with my broker. They don't want to deal with BPO $. Since agents can be paid directly in OH, that is what they prefer.

I know small Brokerages aren't shady, just a certain one I had in mind.

I don't have a problem with paying the Broker a significant monthly office fee for the hassle of handling the checks.
But how much of a hassle is it really if Broker simply gives me all of my BPO pay when it's only about 1-2 checks coming a week?
I'll gladly pay $150/month if I get all my BPO pay.
I don't ever use the office, their ink, paper...nothing.
And then any regular sales I make, Broker is welcome to a hefty split of that, too.
It's not too much to ask of a Broker when I'm paying an office fee and not bothering them to get my BPO pay.
But I haven't found a Broker yet who is accepting of BPO work without whining even while they basically pocket all of the money.

In New York the law is quite clear (Article 12A, section 442a) that Salespersons may only receive compensation for real estate related services from their sponsoring broker.

Another section (440-2), where "Associate real estate broker" is defined, indicates they are subject to the same provisions of the law as a Salesperson. This same section indicates that an Associate broker may also have their own broker license.

It would appear that even if the sponsoring broker is willing to allow direct payment for BPO services that the agent should not accept payment directly without having their own broker license.

Anyone have the real scoop on the Ohio rules and laws regarding bpo pay direct to agent?
Some brokers want a cut, many don't.
Where to find some docs supporting this? Thanks!

Having owned and managed my own store in the past, I know what a tough nut it can be just to meet monthly overhead. If I were in the same position today, any agent working for me would still have to do a certain number of sales, yearly. Each agent, working under a broker, is a liability. If they're only doing BPO's, I'd have to asked them to leave. Every BPO represents liability to the company and could have some effect on the E&O. Would I ask for a cut?......No....too much paperwork for too little income.

Prior to entering the BPO race, I had a meeting with the broker. He decide that I could keep 100% of the fees. That was, with the understanding, I'd be bringing in REO listings. All my BPO business is conducted out of my own home.....no cost to broker (with the exception of the E&O}. Each year, I bring in enough business to warrant the continued 100% fee for orders.

For those of you who are non-brokers, I would strongly suggest you get your license, especially if your intent is only to do BPO's. Otherwise, one day, your broker will have a wake up call, and realize you've become liability and no longer an asset.

In my state, we're allowed to have the BPO companies pay us direct. The same goes for my commissions. I receive all commissions directly from escrow. The broker gets his check and I get mine. It's a great set up, just as long as you don't get creative with the IRS......"It's not nice to fool Mother Nature".....lol

Checks come directly to me and my broker does not get cut or even want to mess with the paperwork of paying me.

The Ideal situation

In this state, all money goes through the broker. I run the REO dept so I do BPOs as part of managing the REO inventory. And my broker lets me do BPOs for the mills too. All the company holds out is the franchise fee. It all works out pretty well. (I list & sell fmv homes too.)

Don't have my broker's license tho' plan to get it in the second half of this year. Do not plan to do BPOs full-time nor go out and open my own shop . . . I'm happy where I am, doing what I'm doing now.

My broker insists on 20% cut on the BPO money. I also pay for my E&O, a little under $2K every year. The worst part is I have to send her a list of the BPOs done to get paid. It is on me to keep track of my BPOs. She has it good, the paperwork is on me!

I also heard when it comes down to it, E&O would not cover BPOs though BPO companies require agents to have the coverage. E&O supposedly kicks in only after a transaction closes. Don't know if that is true.

Pretty similay here in VA Barb. Most checks go directly to brokerage, some still come to me directly and those are turned into him. I get calls from office admin. "Did you do a bpo on this road from this company?" 18 months ago, there was no question. They were all mine. Now the others have been nibbling at the BPOs so it is not so clear to whom the money belongs. Broker deducts a city business tax and gives me the rest. I never get a normal check. It is always $49.82 or $99.64. End of the year he provides me an accounting of everything. I appreciate my broker so much. He let's me be. In turn, I never cause him problems and I always pay my bill.


My broker does not charge me an admin. fee on check processing, but he has consulted me and a few others about how to help the brokerage control costs or cut expenses. As you have suggested, I have offered to pay a per check fee, and accept weekly or biweekly checks. He runs his business so tightly though. He gets in a check and he processes it and shoots it to the agent, almost always the same day. If the check is for a large amount, he will give me a little post note, saying, please do not deposit until after 2pm. I work for a great broker.

We own the brokerage now, so it's not a big issue, but when I worked at a Re/Max, I had the owner accumulate the checks and pay once a month. Since it was really a 95/5 office, they took their 5%. Never a problem, never a hassle. But I did have every company send the checks to the brokerage address but put my name on the check, along with the company name.

You are lucky you're observant enough to recognize it.

The best training a Broker can provide is a good example. It sounds like you won't learn any bad habits from him.

Whether you stay with that Brokerage or someday move on; once you've seen a good example, you'll forever ask "What would he do under these same circumstances ?"

Without a good example . . . . you're flying blind !

I work on 100% no split. I pay a monthly fee to my broker. He doesn't care what I do - he never hassles me about anything. He is awesome and whenever I need some crazy piece of paperwork or even to have an AMC added to the general liability insurance - its just done. I can ask for anything - and he is right on it. I had a pre-list that was still active in the MLS - could no find the listing agent - still an active member - my broker called MLS - and the next day - the agent called me, met me at the property with his seller - seller got the rest of the junk he wanted - done. He is one of the best brokers out there - been with him since 1999 and I can not image being anywhere else. By the way - all income as an agent here in Ohio - must go through your brokerage - checked on this with the brokerage accountant and a real estate attorney. BPO or not - its gotta go through the books. I get the call from the office manager asking if checks I get are BPOs or reimbursements. BPOs through the books - reimbursements are my headache.

I can get paid directly for BPOs in my state if the broker allows it. I keep 100% of BPOs. He got tired of writing checks every other day, causing accounting work, etc. I prefer it to go to the brokerage, I did not have to track so much, it was provided for me. Now I do it myself.

How about CFK bonus? Does your broker take a cut, mine does.

Wow - takes a cut of your bonus? When I was with a different brokerage many years ago - I was on a split but bonuses were ours to keep - no cut to the broker. My very first sale was a mobile home - yes - I am quite proud - and the lender that held the loan paid me a bonus because my buyer did the loan through them as well. Broker did not take a cut - right then and there I knew I could be a realtor because I sold a mobile home and I got a bonus that was equal to the commission. Total check was $1500. Hey wait - some of my flat fee commissions these days are less with no broker cut. Uh Oh.