Do you know that Asset Management companies charge 25%-33% “Referral Fee” to REO realtors for the privilege of them getting the listing from them. I love it when Corporate America comes out with these really nice legal names for what is technically a charge back. I made an offer on a foreclosure today and Nora pointed out the lingo in the Addendum which states paragraph after paragraph about this.

Apparently if the listing is less than $60,000 then it is 25% otherwise it is 33%.

No wonder realtors are crabby all the time. It also underscores what I think about hiring buying agents for buying REO’s. It is pretty much a recipe for getting your deals sabotaged.

On the other hand, if you are licensed Realtor / investor who wants to get his or her own listing, I would suggest calling the Asset Management firms and offering them a little more than the requisite $33% of the net 6%.

It also proves my broken record theme about REO realtors reluctant to upload every listing into MLS immediately without trying to sell the house to their list first.

Here is some thing on the lighter note, Thomas Friedman of New York Times and the author of The World Is Flat (if you work in I.T. and for some reason want to have sleepless nights, this is the book to read) says this:

“ When I was young, my parents used to tell me, Tom eat your dinner, there are starving people in India and China who want to have your dinner. I have two young daughter, I tell them finish your homework, there are people in India and China who want your job.”

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