Referral Fees From Real Estate Agents?

By getting referral fees from real estate agents, you can make money in real estate without any cash investment. You may not make much. But if you have no cash to invest, this is a way to get an education and make a little money.

Laws vary from state to state, but in most states there is some legal way for a real estate agent to reward you for finding a buyer or a seller. There may be a limit to what the law allows, so find out. It isn't worth your time if it is $50.

This can be a nice sideline if you know a lot of people and are a natural sales person. If you can get an average of $300 for a referral, and find a buyer or seller for an agent or two a few times each month, you can start to build up cash for investing.

You will most likely only get paid when a sale is complete, and the agent has received her commission. That is only fair. Just be clear on what the arrangement is, and whether the agent minds if you also refer buyers and sellers to other agents. This latter point can be important, because you will find that you can be most helpful to people by matching them up with the right agent for their needs (some agents sell mostly houses, other land, and so on).

Get a small stack of cards from each agent that you plan to promote. Keep these handy, and write your name on the back of each. When you hear that a friend, acquaintance or anyone around you is looking to buy or sell real estate, tell them all about the agent that is best for them. Ask them if you want to tell your friend the agent to call them, with no obligation, of course.

If they are interested, call the agent and pass on the name and phone number. Keep a record for yourself as well, so you can later check to see if the person bought or sold something through the agent. You might also distribute the cards with "Tell him that (your name) sent you," written on the back of each.

You may make a little money on those referral fees, and you will help some people out. You will also find that you get educated as to what people are looking for. This can help you with your own investing later.