#THECLOSERSDAILY : EPISODE 189: REFERRAL DANGER

So, word of caution for people looking for real estate agents, be very wary of referrals. You gotta be aware, kind of behind the curtain in real estate how referrals actually work. So what will happen is an agent will call an agent in another market and say, "Hey, I got a client for you", get a percentage referral fee from that agent, I've seen as low as 15, I've seen as high as 35, if not a little bit more in some cases. But what's really important is who are they calling? Are they just calling a random broker and saying "Hey, I got a referral, I want 35%, "give it to whoever you want."? Or is it somebody that they actually know and they vetted and they know what type of business they run, are they a top producer, do they know what they're dealing with? If you're looking for investment properties, and that agent gets a call, sometimes people will just fake and say, "Yep, I do investment properties, "I totally specialized in that." and then they might be learning on the fly at your expense. Just make sure you know who you're dealing with, make sure you know how they got vetted. Like Hamilton, for example, Mike Kettle, I've known the guy for three, four years, I know exactly how his business runs, and I know he would be treating my clients like family. So you just gotta be aware of the situations that you're getting yourself into.

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