Special Consideration for Realtor Clients

Some of our investor clients are themselves, Realtors. We want to offer all Realtors some form of discount. However, our ability to do so is limited. Unlike most Realtors, we offer a broad range of services to investors. These services are expensive. Some examples:

  • One full-time engineer for applied mathematics, software development, and handling our data mining.
  • Our external software budget for 2021 is approximately $50,000.
  • We have a Realtor who provides closing services, renovation overwatch, and long term client support.

These are just three of our cost overhead, in addition to all the typical costs of being a Realtor. And, the only money we make comes from the buyer's agent commission; we receive no monies from any other source. To break even, we need to receive a 2.5% buyer's agent commission, just to cover our costs. Fortunately, at this time many properties do have a 2.5% commission, some even have 3%.

What we can offer is a 50% split of any commission above 2.5%. So, if the commission we receive is 3%, you would receive a 0.25% of the purchase price credit towards your closing costs. If the commission is 2.5% or less, we cannot offer any credit.

When you refer clients to us, we have a referral program described on this page. We offer a referral fee for all properties your clients buy from us. We can only do this because almost 100% of the investors we work with buy more than one property. While we will lose money on the first property, we will make money on additional purchases due to reduced time requirements.

What happens if the property you choose pays a commission of less than 2.5%:

  • We will state in the offer that the buyer's agent commission is 2.5%. If the seller agrees to pay the 2.5% commission, the transaction will move forward. Note that the seller paying us a 2.5% commission may increase the purchase price.
  • If the seller is unwilling to pay a 2.5% commission, you have the option of paying the difference between the offered commission and 2.5%; or choose another property.
  • If none of the above is acceptable, you are free to purchase the property through another Realtor. However, none of our services will be provided.

I hope the above clarifies what we can provide our Realtor clients. Please contact us with any questions.