So I am a newbie and have a newbie question that I did not see covered in the "Newbie Forum"……

If I drop-off a dozen donuts and a stack of my cards with a bellmen at a hotel, is this okay?

I understand I cannot pay or compensate for referrals but can I introduce myself with a dozen donuts and a handshake?

Actually, I was thinking of doing something similar with a nursing home where a relationship has already been established. Not a bad idea.

Im not sure that a hotel would be the best place. The employees would likely appreciate the free food.

A good place to do it would be the garage / car dealership where you have your car worked on. Repeat every so often.

Guys don't care about fat and calories like ladies do.

And a dozen in not going to go very far. Most will want at least two donuts.

Perky- Ladies act like they are watching their weight but they are good for 3 donuts HAHA!!! TELL ME I AM WRONG??

It won't hurt to try:-).

No, you're not wrong, but they'll #$@~! and moan about them the whole time and be mad at whoever brought them in to send their diets crashing down.

(Not speaking from experience of course... )

So to just inquire a little further....

When do you cross the line on giving something in return for "business" or the hope for "future business". Cash bad and donuts okay? Just trying to find that magic line!!!

They would spend the cash and forget about you. They will eat the donuts gain alot of weight and think of you everytime they look in the mirror or try to squeeze in that dress they bought last month.

I think the "Magic Line" might be at the Point of Sale. PRIOR to a Sale, money spent is for Advertising, Good Will, or Buying a Lead, et cetera; and does not relate to a specific Transaction. AFTER a Sale, it may be considered a "Kick Back", and is disallowed by most Real Estate Regulators when paid to Non-Licensees (except Closing Gifts of Nominal Value). Even the name "Kick Back" denotes a retrospective orientation.

I'm guessing for the purpose of simplifying the issue. Someone else, who has studied the matter longer, can probably explain it better.

P.S. Thinking about this Donut Subject has also causes me to question the Legitimacy of the Referral Fees which some of us pay to the Asset Management Companies on REOs, when no one there is a Licensee anywhere. Vermont prohibits sharing a Commission with Non-Licensees.

VERMONT...Thanks for the info!

And for you others worried about the calories. It's the holidays so .....be fat, happy and jolly!!!! Works for Santa! : )))

Teacher's lounges and car dealerships (service waiting area) are great places to leave them, too. Or fire stations, EMS stations, police substations - anywhere that working people who have the means to purchase a home are. And it wouldn't hurt to leave information about special programs that apply to them, like the Good Neighbor Next Door Program, or a flyer with your listings (or listings that would be appropriate for their income range).

I always put a sticker with my information on the top of the box.
Something like "______ is happy to provide these donuts to the great teachers at ______school." and all my contact info below.

They sit there all day, and even if they don't take a donut, they read your information. And once is not enough. Make it a habit - every Tuesday, once a month, something regular where you subliminally convince them that you are dependable.

Vermont:

I agree that the fee back to an asset management company is probably illegal in most states but I have no idea how to avoid that. I sometimes see it called by other names (one that comes to mind is "shared commission") but how do we get anyone to actually take on the task of getting a judicial decision? In most cases, even though the documentation indicates it is paid from the listing side commission, there is no actual payment from the listing broker to the asset management company as it is deducted before we ever see it! Effectively we are paid a commission that has already been reduced by that amount.

Mr. Foreclosure

In my jurisdiction we are prohibited from giving cash gifts, or any gifts greater than $50 in value in exchange for referrals.

I don't know of any prohibitions on being liberal with donuts. Or with general 'networking' activities such as taking friends and associates out to lunch on a regular basis. This is a part of any business and shouldn't be viewed by anyone as 'referral fees' IMHO.

I'd say give out as many donuts as you like and not worry about it.

The asset management companies call their share a "discount" when they render payment to preservation vendors.

But I have a silly question.

Why is it that non-real estate companies [I guess you'd call them private enterprises] can accept boxes of chocolates and cookies with vendor's labels on them as a way of introducing themselves or for special occasions, such as Christmas, while agents and brokers can't do this?

Wouldn't you think that, if an acceptable value of say, no more than $10, were put on the items they wouldn't be considered enticement?

Besides, the box containing the donuts will most likely end up in the trash, not prominently displayed forever.

I've heard it's acceptable to give away cars and TV's when closing a sale. Unless, of course, that's been banned as well. I don't understand why the high ticket items are okay and a box of donuts is not.

Sometimes things just don't compute in my world.

Linda