Loading...
Answers
MenuIf I have an online process that helps apartments lease their units, should I have a real estate license to accept the referral fees?
I've read that federal law requires a person receiving a referral fee to have a real estate license. My process will simply match people to specific apartments for free and be listed as the referring entity. I know other companies do this already, but I’m not sure what rules they follow. I''m in Ga...
Answers
I'm a licensed real estate agent and multifamily unit rental property investor in Georgia, as well as an internet entrepreneur. You're correct; you must hold a real estate license to collect a referral fee. However, this isn't the only way to monetize your website. You could select from a wide variety of monetization methods, such as CPM or CPC advertising, charge a flat fee per listing, or use the site as a lead generator for webinars, seminars or premium material. In short, there are many ways to create revenue streams from your site that go beyond simply collecting a referral fee. (Bear in mind also that referral fees on rentals work differently than referral fees on buy/sell arrangements). If you'd like to discuss these ideas in greater detail, I'd be happy to speak with you by phone. Thanks!
Great question and so there is the legal answer and the practical answer.
The legal answer is that unless it is your own property, you must be a licensed agent to receive compensation for acting as a leasing agent if you are doing it as your own business. i.e., if you are calling landlords and telling them you can fill their apartment vacancies and you would receive a fee each time you find a qualified candidate who ends up renting, then you do have to be licensed from the legal perspective. If you are on the payroll of a leasing company however, then you are paid as an hourly employee with commission based compensation.
The practical part of this as you know is that real estate agents & associations only care about Listings, Buyers, and Sellers of Property because that is where the largest commissions are. You will likely be able to be paid under the table for every vacancy you fill in an apartment and no one would ever know. You will want to avoid dealing with any realtors or agents (unless you know them to be cool) and essentially build your business by finding "Supply", i.e., landlords who have a lot of apartments to rent.
Once you have the supply, you then simply list them on Craiglist and your phone will ring off the hook.
Prior to my current business, I ran my own property management and leasing company and rented 85 apartments in a year, so I know this business well and rentals are simply not high up on the list of areas where local associations or government agencies try to crack down on, unless of course people are getting ripped off by people flat out lying about their connection with properties and getting their security deposits stolen.
In other words, if you act with integrity, you can make a good business renting apartments. If you want to schedule a call with me as well, I can give you my business model in a consultation if you want pointed advice.
Every state has different rules and regulations. Typically were the line is blurred is if you actually engage in the showing, promoting , leasing or doing any work for the landlord that would require a license
If you are exclusively going to do marketing than do not call it a referral, but a simple marketing fee that would be due only if the marketing you launched ended in the unit being rented.
The minute you start executing services that would require a real estate license, such as drawing up contract, taking applications, showing units etc., then you are in RE Agent territory.
Keep it simple and keep it clear and draw a very strict line on what you offer and you should be ok.
Looks like you have some good replies and some gray answers on this thread. If you have a business model that will fill vacancies as an app or website then pricing can be structured to not violate state laws.
However if you're trying to be the leasing agent then yes you might have some issues. I will warn you that property management and leasing are very much on the radar of state regulators in California. So understanding your services and how you will be paid is critical.
I am the CEO of a large residential property management company in Southern California. I have extensive experience in this space and would be more than happy to share my experience. Best of luck!
Related Questions
-
What is the best way for a startup to draft Terms of Service and Privacy without spending thousands of dollars?
Your first point of reference should be experience. The most effective way to create your ToS is to consult with a lawyer who specializes in your industry. This also hold true for your that and any business legal document. It’s true that you can find different online services and templates to assist you, but the truth is that these documents could very well be null and void. Your business is specific and unique and your ToS should be the same way. I advise against copying your ToS or using one of the “easy to use” sites as they will almost certainly fail to include or capture everything. Read more: https://lawtrades.com/blog/protect-website-liability/ At www.lawtrades.com, we have plenty of experienced Terms of Service and Privacy policy lawyers who will complete it for you on-demand. I have seen PP and TOS prepared routinely for $599 or less, and these documents essentially serve as a “blueprint” for your business. (Full disclosure: I'm the founder/CEO). In my opinion, copying your competitors legal documents will not work for you in the long run. The odds are high that the business had their documents customized, and by copying and pasting you are claiming that your business has the same features and services which is highly unlikely. Hope this helped address some of your concerns. When you're ready, you make your request completely free at www.lawtrades.com to get a better feel for the process. Feel free to mention "clarity" for a discount :)RA
-
What are some tips for boot-strap marketing to gain awareness and website visits for a start-up?
There is a tremendous amount of buzz surrounding content marketing and its need within a brand’s overall marketing strategy. Doing content marketing is much more than publishing on your blog occasionally and posting your thoughts on social media. “Do stuff and maybe it will work” is not a strategy, it is a gamble. A risky and expensive one, at that. Even so, many brands have yet to create an effective content marketing strategy. What does such a strategy look like? Where are the examples of brands doing it well? Here, I will show you examples of an effective content marketing strategy and offer ways for you to craft your own for your business. What is Content Marketing Content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing consumer behavior. It is an ongoing process that is best integrated into your overall marketing strategy, and it focuses on owning media, not renting it. This generation of customers are taking drastic steps to avoid marketing messages. As consumers, we use DVRs to skip television ads, pay internet radio subscription fees to avoid commercials, mentally block out — or use plug-ins to avoid — internet click ads, and gloss over road-side billboards, rendering them useless and ineffective. So how are marketers supposed to combat this shift? Education. Consumers are still buying and making purchases, but the way they go about making a decision has changed. With all of the world’s information at their finger tips, savvy consumers are doing enormous amounts of learning and self-education before stepping into a showroom or talking to a salesperson. Knowing this is a huge opportunity for brands. If you know consumers are looking for information, be the source of that information. Not with sales-y content that puts your priorities before theirs, but information that the buyer really wants and needs. The Marketing and Sales Departments must align to create a buying path for this new era of consumers that provides authentic and transparent information about a product or service (the mission of Marketing) and closing the sale (the mission of Sales). Content marketing closes this gap by using brand-created educational content to satisfy the prospective buyer while helping the sales team convert anonymous visitors into buyers. Thought leaders and marketing experts from around the world, including the likes of Seth Godin and hundreds of the leading thinkers in marketing have concluded that content marketing isn’t just the future, it’s the present (see the video below on the history of content marketing): http://www.youtube.com/watch?v=9OHgMMpGLzk The key ingredient to using content to attract new customers is in the advanced planning. The strategy. What is a Content Marketing Strategy A content marketing strategy is a roadmap; a “User’s Guide” to how your brand will do the following: - Meet the customer at their specific point within their buying cycle - Align the customer’s needs with your knowledge and expertise - Use your brand’s assets to meet these objectives Business-to-Business marketers who have a documented content marketing strategy are 66% more likely to consider themselves effective compared to only 11% of those without a documented strategy. A content marketing plan helps you see the end-game before you have even started. Further, it gives a clear, articulable vision for your entire team and keeps you on track throughout the campaign. Just like New Years resolutions often fade into a foggy memory, our intentions are good – but we allow resolutions to fail. To be successful in any strategy, we need to be intentional. For proper sales and marketing alignment, and for the success of your bottom line, you must have a plan in place. How to Start Your Content Strategy The framework of a content marketing strategy is fairly straight forward: - Who are you targeting? What are their needs? - How are you going to reach them? (Attract new and nurture existing) - What content do you have now to get started? - What is your plan to develop and share more - How will you measure your efforts 1. Personas Take some time to consider who you are targeting. Are they male or female? Does it matter? Do they have a career? Children? Are they affluent? Coupon cutters? What are their goals? What happens if they do not reach them? Is their a monetary penalty for them? Will meeting this goal further their career? Will it make them happy? Clearly defining your targeted personas will save you a lot of time, energy, and money as you continue your business. With this person in mind, your content marketing strategy will begin to fall into place and you will feel that you are having a conversation with this “person”, rather than blindly throwing stuff out there. 2. Outreach Content marketing and social media are often used synonymously. This is a mistake. Content marketing is a broad method of marketing whereas social media is a tool that complements getting your content seen. Imagine your website as your online hub, where all of your brand-controlled content resides, your social media profiles are spokes that lead back to your home base. Social media has the power to reach incredible numbers of potential customers, influencers, existing customers, and even the opportunity to convert customers from competitors. Social media, in and of itself, is not content marketing. It is one of your outreach tools. 3. Available Content Next, take stock of materials you have on hand already. Many of us sit in offices filled with brochures, flyers, handouts, manuals, and documents loaded with helpful information, but we do little to extend that information to potential customers on the web. Make a list of the content available to you immediately and start identifying which persona is most aligned, where they are within their sales process, and what pain point they are currently facing. Getting started, you can use what you have on hand. But I recommend expecting this low-hanging fruit to run out. You should plan on developing your own, unique content. For a number of reasons, search engines reward fresh, unique content. Further, your prospective customers will be looking for information that is not available everywhere. Your unique perspective and “voice” (the tone in which you talk, the way you communicate, and what you share) may be the first experience a prospective customer has with you. This is the beginning of a long business relationship. 4. Schedule and Share Your Content After you have compiled your educational materials, grab a calendar. I recommend looking out 3-4 months to start. Mark holidays, special events, and milestones. Working backwards, prepare your marketing message for these campaigns. For example, one client of ours hosts 4-5 annual sales. They all surround major US holidays (New Years, President’s Day, Memorial Day, Labor Day, and Thanksgiving/Black Friday). By knowing this, it is easy for us to prepare everything from banner ads, Pinterest images, blog posts, Facebook Status, videos, and even newspaper ads (don’t shoot the messenger). Once you have those events marked, consider a “theme” of the week for those 3-4 months. With that theme, and your personas in mind, write out the following for each week: - 2 Blog Posts - 8-10 Facebook updates - 20-30 Twitter updates - 4-5 product photos for Pinterest - 3-4 Instagram ideas - 1 Video By no means is this list all-inclusive. It is a starting point to get you thinking about how to plan content. To get a specific content marketing plan designed for your brand, I need to interview you and understand your goals, personas, and timeline. 5. Analytics Finally, how are you going to measure your work? Remember when we set up our goals earlier? Were you specific in identifying how many leads you want to generate? “Get more leads” is a horrible strategy, better is “Gain 50 new leads by September 1st” or “increase from 6% conversion rate to 12% conversion rate” These types of goals are easily measured and tracked. Do you have a mechanism in place to measure, monitor, and gauge your efforts? Further, do you have the right people on your team to help you know what is working and what is not? Can you explain why certain marketing dollars are generating a return on your investment while others fall flat? Final Thoughts Just like runners know the course of the race before they start, your brand should know the route you will take to your finish line. Having a strong content marketing strategy in place will ensure your team is setup for success. I'm happy to help and provide more specifics. All the best, -ShaunSN
-
Do I have to file form 5472 for "additional paid-in capital"?
Yes you should be reporting the capital contributions. Under the old Form 5472 rules, it's true that only items that impacted taxable income would be reportable transactions. So, a capital contribution by you to the corporation would not be reportable, unless the equity contribution was somehow below or above a fair value contribution in exchange for services that you might provide for the corporation - essentially an imputed reportable transactions. When the IRS changed the Form 5472 rules to require non-U.S. owned single member LLC's, they expanded the reportable transaction definition to include virtually everything. The term “transaction” is defined in Treas. Regs. Section 1.482-1(i)(7) to include any sale, assignment, lease, license, loan, advance, contribution or other transfer of any interest in or a right to use any property or money, as well as the performance of any services for the benefit of, or on behalf of, another taxpayer. So, for example, contributions and distributions would be considered reportable transactions with respect to such entities. These amounts can be reported on Lines 12 and 25 with an explanatory footnote that clarities the amounts are capital contributions and not amounts that impact taxable income.JK
-
If I come up with a coaching methodology / formula, is it protected under Copyright?
(I'm a small biz attorney who helps people with copyright, trademark, and other IP law, and I'm answering per U.S. law.) As soon as you take your idea and put it into a tangible format (write it down, create an infographic, record a video), then that writing/infographic/video is automatically protected by copyright law. You can record the copyright on it too, which makes it easier to protect and get damages from other people taking it. But the formula itself would be probably protected under trade secret law or patent law. Patent law obviously takes a bit more effort, because you have to apply for the patent and get your application examined by the USPTO, which takes years and $$$. Keeping it protected under trade secret law means you have to make an effort to keep it secret (which may not work if you are disclosing it as part of your marketing efforts), such as keeping it confidential and requiring NDAs. As someone else said, the other terms you use might be protected under trademark law. If a member of the public would use those terms to link your products/services with the source of the product/service (aka, your company), then they could be trademark-able. There are some state law protections for trademarks, and you can also file to register the trademark with the USPTO and get more protection. Hope that gets your started!EP
-
How do I write an NDA with the right jurisdiction/governing law?
From a legal standpoint: an NDA is an agreement - something contractual, and therefore is not limited (by law) to any specific jurisdiction. So, you can select Delaware or California, or India for that matter. From the business aspect, the best jurisdiction to select would depend on: 1. Jurisdictions that are known to be 'friendly' to your type of business. 2. Jurisdictions in which your lawyer is licensed to practice / the cost of lawyers isn't too expensive. 3. Somewhere not to far from where you are physically located - in case you actually have to go to court. Lastly, best to add a required arbitration or mediation clause if you don't have one. Good luckAB
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.