Hi,

I have an investor that wants to buy properties in Texas, in particular the I-35 corridor between Dallas and San Antonio.

I want to refer this investor to a friend of mine in Killeen, and a friend of mine in Austin to send him potential investment properties in and around those cities.

My question is with the referral fee, I am thinking that a one time 25% referral fee is not an equitable fee for a referral that may purchase multiple properties over time.

I am thinking about doing the referral with the stipulation that I receive a 25% fee on any transactions from this investor for a set period of time such as 6 months or 12 months.

What do you think?

Thanks

I would accept a referral like that if it were me. This is a client that the Realtor would not have otherwise. Seems fair to both sides.

What if BOTH Referral recipients present the SAME property located in let's say, Salado, Texas . . . . and he likes it ?

Who's going to sort out the confusion ?

Referrals of the same Customer to multiple parties often presents those problems.

I would recommend referring your investor client to just one agent, hopefully one that will cover the majority of the area interested in. If you must refer to 2 different agents in totally different areas, then make a stipulation in the referral agreement that another agent also has this buyer in their area.

In the referral agreements, make sure you write "Referral commission is due to referring broker if said buyer purchases/sells any properties within one year from this dated agreement" or something to that effect.

Everything is negotiable, just talk to your friend. I think 25%of any transaction is the best one.