How to get deals done outside of the state you are licensed in?

For instance, I have a client that has property in Louisiana but I am licensed in Texas. I assume I would need to get a license in that state to receive a commission, correct?
In Selling Property - Asked by Michael E. - Jun 9, 2011
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Answer(s)

Chris F.
Broker/Agent
Salem, OR

Best thing to probably do is refer the business to a trusted broker in the area and get a referral fee. Depending on the states laws, you might also be able to co-broker the deal with a broker in the area you know. While it can depend greatly on the property type, this is usually the best solution as a local broker will have a much greater understanding of the local market.

Jun 10, 2011
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Gregory G.
Broker/Agent
San Francisco, CA

Michael,
Find a co-operating broker that is licensed in that state and give him 10 or 15 percent.
.
.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
greg@nnnbrokersusa.com
Web Reference: http://www.gregorygarver.com

Jun 11, 2011
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Rob B.
Chandler, AZ

Michael....
You will end up cooperating with an in-state broker in one way or another. It will depend on the licensing rules in both states as to any restrictions on receiving payment for your work.
If you are representing a buyer in your state that is buying in another state, you may not have any problem collecting the buying side commission in your state.
If you are representing a property owner in another state, you will both practically and I believe legally have to have an in-state broker take the listing. This will probably require you limiting your fee to a small referral portion of the commission. (Limited by state laws again).

However, if a listing in another state has a commission that is large enough for the instate agent to take his or her more normal 50% listing side commission for representation and marketing, and will still allow the necessary incentive for a buyer's representative in your state, as well as payment for your participation, you may actually have a three way split.
For example, if the commission were 4% overall, the listing representative would take 2%, you would take 1% and the agent actually providing the buyer would take 1%. Would this be enough? It is always a matter of who is doing to work and what is the value of the listing and the buyer in a transaction!
Do seek appropriate legal advice in your state before entering into an out-of-state transaction if you expect to earn a portion of the commission.
Onward and upward... Rob Baird

Jun 14, 2011
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