Real Estate Investors Work With Agents — How To Split Commission When Selling Investment Property

Real estate investors must work with real estate agents when selling investment property. Working with agents can be difficult without guidance from an expert real estate investor. It is important to know how to split commission between the buyers agent and listing agent. An educated and well informed property investor can save a tremendous amount of time and money…

Hello, this is Marko Rubel with Unlimited Funding Program, the authority in real estate investing. Today I’ve prepared a short tutorial on how to divide the commission between agents when selling investment properties. Here are a few important concepts to keep in mind when working with a real estate agent.

Question —
” Butch is asking Marko, when you sell a property, you pull the financing and you list it on the MLS. He is wanting the know the commission split that he’s saying when you offer 20% of the buyer’s down payment as commission, he’s wanting to know if that get split with his listing agent and the buyer’s agent, or if that just all goes to the buyer’s agent, the 20% of the collected down payment.”

Answer —
” Hey Butch, here’s how this works. The 20% of the commission that you’re offering for the owners financing sale or lease option sale goes all to the buyer’s agent who brings the buyer. The leasing agent doesn’t get anything because you’re listing the house with a discount broker that’s only charging you a couple hundred bucks, 200 bucks. The leasing agent gets paid up front regardless if you sell the house or you don’t sell the house. They get two hundred bucks, they lease the house and that’s it. Then you offer 20% of the buyer’s down payment to the agent who brings the buyer that way you incentivized the agent to talk buyers into putting more down. That way you make more money because you get bigger down payment and the agent makes more money because they extracted a bigger down payment and they’re commission is directly related to their performance, because I like people to get paid based on their performance, so, that lady agent who’s been driving around all these buyer’s and these buyer’s finally couldn’t qualify for the loan, now she knows how much down payment they have. They’re not able to qualify for the conventional loan, but she knows that they have $20,000 down, why not get all $20,000 versus her telling them, just put down $5,000. Because she is incentivized by the percentage you get more down and that’s how you do it. The leasing agent gets nothing…gets only the discount broker fee or 200 bucks or whatever they charge in your area and then the most goes to your buyer’s agent because they are the ones who bring you the buyer’s. That’s how it works butch. Therefore, gets it going man. Yeah your right the key on that is you gets a discount-listing agent just to list it for a few hundred dollars and then all the commission goes to the buyer’s agent.”
– Marko

Hope this bit of info helps you reach your goals investing in real estate!
And if you want to know how I made millions of dollars flipping houses, go to my website right now for your ”Free Success Kit”

http://www.unlimitedfundingprogram.com/?utm_source=YT&utm_medium=Text_Links&utm_content=REI_Work_With_Agents_UFP&utm_campaign=YT_Description_Links

In Conclusion, it is extremely important that commission is properly distributed amongst all parties involved in the transaction. Commission for real estate agents should be clearly outlined ahead of time. The buyers agent commission and sellers agent commission must be determined before you begin the deal. The real estate agent commission structure can also help you make more money as an investor. You can apply these marketing principles to all of your real estate investments.

If you want to learn how to INVEST in Real Estate — and you REALLY want to make money — you need to go to my website right now for your ”Free Success Kit”

http://www.unlimitedfundingprogram.com/?utm_source=YT&utm_medium=Text_Links&utm_content=REI_Work_With_Agents_UFP&utm_campaign=YT_Description_Links

I hope you found the information in this video valuable and informative. Please leave your comments and questions below! Good luck with your next real estate investment!
Thanks for watching,
-Marko

“Share with all of your friends on Facebook !”
http://youtu.be/HeDCOWOfE2o http://markorubel.com
Facebook: https://www.facebook.com/marko.rubel.1
Facebook Page: https://www.facebook.com/pages/Marko-Rubel-Master-Investor-Author-Speaker-Coach/137108739659709
Twitter:https://twitter.com/MarkoRubel
Google+: https://plus.google.com/114021876360314330393
LinkedIn:http://lnkd.in/biAeVA3
Ask me a Question? http://www.realestatemoney.com/contact/