Those folks in Real Estate must be making a killing.

[Essex502]

With the explosion of housing prices in the last coupla' years don't you think the realtors and agents must be making a killing? It seems everyone I talk to that has sold a house recently had the listing only a coupla' days or weeks at the longest. So the market is still pretty much on fire and has been for a while. Figure that the agents percentage doesn't change when prices go up and certainly the house's time on the market seems to be shortening so that SEEMS to indicate that realtors and agents have pretty much doubled their income (or more in some locales) in the last few years.
Ya' think?

[al cole'holic]

...let's just say the last 2 years have been alot nicer than the 4 before that :D

[Bre]

I think:D

[HavasuDreamin']

Two problems for the working RE agent. There is an over abundance of competition..........and everybody and their brother knows someone who is an agent, thus the working man has to still work very hard to make a good living.

[al cole'holic]

Originally posted by HavasuDreamin'
Two problems for the working RE agent. There is an over abundance of competition..........and everybody and their brother knows someone who is an agent, thus the working man has to still work very hard to make a good living.
...yeah, um right...1 solution for the RE agent, get off your ass and hustle :p

[Froggystyle]

Originally posted by al cole'holic
...yeah, um right...1 solution for the RE agent, get off your ass and hustle :p
Exactly.
The good ones are making a killing. The ones that actually feel like earning the amount you are paying them.
I think of the work that I have done in the past for $7000 and it blows my mind how little an agent feels that they need to do for it.
I ride my agents super hard. They earn every penny. That MF'er works for me, and best represent my best interests, or I will (and have) fired them like Trump. I have given an agent his walking papers two days before close before for doing flaky shtuff.
As soon as your commission becomes more important than my purchase, you are outta here. And word travels.
My new agent understands this, treats everyone with respect and attention and is absolutely killing it right now. He personally owns 20+ income properties, a sick house on a golf course, a big ass DCB, a million sand toys and all of the other BS that goes with being a nice rich guy.
Good for him. He works hard and has earned it.
Anyone who is an agent sitting on their thumbs right now isn't trying very hard.

[HavasuDreamin']

Well So. Cal is a completely different market. :p Have you ever tried this business? I didn't think so. :rolleyes:

[al cole'holic]

Originally posted by HavasuDreamin'
Well So. Cal is a completely different market. :p Have you ever tried this business? I didn't think so. :rolleyes:
...personally I don't, but umm my WIFE does. I call HER my "six figa nigga" ;)

[Froggystyle]

My wife is a realtor too. Work hard, represent your clients well, make killing...

[HavasuDreamin']

Not in the midwest. My wife is a RE agent out here. She works her a** off and deals with dumba**es all day long who think they know more than she does. It is a sh*tty business out here. Must be nice out there. :cool:

[al cole'holic]

Originally posted by Froggystyle
My wife is a realtor too. Work hard, represent your clients well, make killing...
..shit Froggy, no wonder you spent the last couple of years ****ing around with this boat thing :D
Good to know now, my wife has sent a few good referrals down south...I should get Audrey's info from you :D

[al cole'holic]

Originally posted by HavasuDreamin'
Not in the midwest. My wife is a RE agent out here. She works her a** off and deals with dumba**es all day long who think they know more than she does. It is a sh*tty business out here. Must be nice out there. :cool:
...that ain't a midwest thing, all clients think they know more :D

[cdog]

It's not quite as easy as it looks. Everyone's perception is that anyone could do it and every realtor is rich. Your average realtor most likely knocks out around 8-10 deals a year and just hardley scrapes by. Imagine working today to make a paycheck two months from now. 8 out of 10 people that get their license don't renew it.
The market is changing drasticly with the rise in interest rates. Check this out.
The inventory continues to rise. It seems that we have gone from a 21 day inventory to 4 months overnight. Homes continue to sell BUT only the homes that are priced right. Cyclically, the end of July is when we start to see the market cool a little as we approach school. Sellers have until Halloween to sell their homes (that is just 3 months away). After Halloween we will be moving into an even slower cyclical "holiday market."
Current Actives, Pendings (Last 30 Days), Market Time (In Months), 2-Weeks Ago
Anaheim Hills 250, 50 ,5.00 ,3.03
Aliso Viejo 433, 78 ,5.55, 5.49
Coto De Caza 124 ,19, 6.53, 8.43
Corona Del Mar 110 ,22 ,5.00 ,5.76
Costa Mesa 213, 62 ,3.44, 2.99
Dana Point 212, 58, 3.66 ,3.92
Foothill Ranch 79, 18, 4.39, 3.88
Fountain Valley 165 ,49, 3.37, 2.64
Huntington Beach 584, 176, 3.32 ,2.83
Irvine 951, 150, 6.34, 4.64
Ladera Ranch 182, 21, 8.67, 5.56
Laguna Hills 194, 30, 6.47, 4.86
Laguna Beach 207, 22 ,9.41, 5.03
Lake Forest 448, 95, 4.72, 3.50
Laguna Niguel 471, 85 ,5.54, 4.60
Mission Viejo 499, 122, 4.09 ,3.45
Newport Beach 334, 56, 5.96, 4.96
Orange 428 ,129, 3.32, 2.75
Portola Hills 52, 12 ,4.33, 3.57
Rancho Santa Marg. 597, 79, 7.56, 5.57
San Clemente 330 ,50, 6.60, 4.40
San Juan 175, 51, 3.43 ,3.02
Villa Park 31, 4 ,7.75 ,7.50
Yorba Linda 280, 52 ,5.38, 3.90
All of O.C. 10422, 2582, 4.04, 3.27
I hope it helps!
By the way, if you know anyone buying or selling pass along my name i'd be glad to help out.

[HavasuDreamin']

Originally posted by cdog
It's not quite as easy as it looks. Everyone's perception is that anyone could do it and every realtor is rich. Your average realtor most likely knocks out around 8-10 deals a year and just hardley scrapes by. Imagine working today to make a paycheck two months from now.
Exactly.....and an easy job it is not. You need to scrape by for at least 2 -3 years before the referral base starts to kick in. Even when that happens, you still end up working every night, and every weekend if you want to make decent money.
Originally posted by cdog
8 out of 10 people that get their license don't renew it.
There is a reason for that. It is tough to make money, and you deal with idiots all day long.
"Why aren't you selling my house?" ...........um even the best agent can't sell an overpriced home..........the MLS is usually what sells the house and because you wouldn't listen to the facts and had to price your home above market, all agents searching for their clients see that your home is overpriced compared to the rest of the market and look else where.
"Yeah but so and so just down the street has their home listed at the same price." ............and so and so's home is 600 square feet larger and has been on the market for 90 days and still hasn't sold.
If I had a nickle for every time my wife has come home with these stories, I would retire. ;)

[al cole'holic]

More inventory is allowing the market to relax, which is a good thing. You don't have homes in the same neighborhood upping the asking price by 50k every other day. I don't think there will be any negatives anytime soon :D

[HavasuDreamin']

Originally posted by al cole'holic
More inventory is allowing the market to relax, which is a good thing. You don't have homes in the same neighborhood upping the asking price by 50k every other day. I don't think there will be any negatives anytime soon :D
Stay in so. cal........you have a good thing going. It doesn't work like that anywhere else........well maybe NY and SF.

[cdog]

Don't get me wrong I love my job. It sounds like your wife needs a Transaction Cordinator. They help drasticly.

[BUSTI]

Froggy is right! All though I m sure he not only applies those standards just to RE agents. I apply them also to boat builders and attorneys also, even doctors! I for one who has been in the Real Estate biz since 1979 firmly believe that if you are in business for yourself, and RE agents are, you can never forget these ten principles of being self employed:
1) Never forget the harder you work the more money you make (thats usually not true in most jobs).
2) Don't expect to get paid for when you don't work but never work for free.
3) Remember when you do whats right for your customer and you ALWAYS do whats right for your company and yourself.
4) ALWAYS TELL THE TRUTH!!!!!!!!!!!!!!!!! SAY WHAT YOU MEAN AND DO WHAT YOU SAY!!!!!!!!!!!!!!!!!!!!!
5) Just approach sales as if your goal is to find friends. Appreciate the business and mean it. Your customers can go any where treat them like it.
6) Like in every business you can beat 80 percent of the competition just by showing up every day, you beat another 10 percent of the competition by working like hell, and prepared to be in a dog fight to beat the last ten percent!!!!!!
7) Be prepared to be similiar. Meaning find an already successful person and be like them. Learn their secrets and have the humility to be like them and over time personalize their plan and change it slowly to fit your style.
8) Be creative.............use reason and common sense to drive your imagination.
9) See your future and go for it!
10) Use the above principles to destroy the competition, remember in business if you are broke or fail shame shame on you and nobody else!
RE agents that operate like this earn every dime they make. Remember the sales commision you pay is just not for the sales listing or the service of putting the house on the MLS. Most of the commission is earned by the broker or sales agents for taking the risks of transaction cooridation, state mandated legal disclosures, and the liability you have to the buyer, which can get you sued for millions in this state, whether you use an agent or not.

[Essex502]

Originally posted by cdog
[B]It's not quite as easy as it looks. Everyone's perception is that anyone could do it and every realtor is rich. Your average realtor most likely knocks out around 8-10 deals a year and just hardley scrapes by. Imagine working today to make a paycheck two months from now. 8 out of 10 people that get their license don't renew it.
Hmmmm....8 deals @ 6% (no commision split) average house price in CA = to $376, 260 (June 25th) translates to $180K per year...I'd call that "hardly scraping by"!

[Froggystyle]

Originally posted by BUSTI
...you can never forget these ten principles of being self employed:
1) Never forget the harder you work the more money you make (thats usually not true in most jobs).
2) Don't expect to get paid for when you don't work but never work for free.
3) Remember when you do whats right for your customer and you ALWAYS do whats right for your company and yourself.
4) ALWAYS TELL THE TRUTH!!!!!!!!!!!!!!!!! SAY WHAT YOU MEAN AND DO WHAT YOU SAY!!!!!!!!!!!!!!!!!!!!!
5) Just approach sales as if your goal is to find friends. Appreciate the business and mean it. Your customers can go any where treat them like it.
6) Like in every business you can beat 80 percent of the competition just by showing up every day, you beat another 10 percent of the competition by working like hell, and prepared to be in a dog fight to beat the last ten percent!!!!!!
7) Be prepared to be similiar. Meaning find an already successful person and be like them. Learn their secrets and have the humility to be like them and over time personalize their plan and change it slowly to fit your style.
8) Be creative.............use reason and common sense to drive your imagination.
9) See your future and go for it!
10) Use the above principles to destroy the competition, remember in business if you are broke or fail shame shame on you and nobody else!
RE agents that operate like this earn every dime they make. Remember the sales commision you pay is just not for the sales listing or the service of putting the house on the MLS. Most of the commission is earned by the broker or sales agents for taking the risks of transaction cooridation, state mandated legal disclosures, and the liability you have to the buyer, which can get you sued for millions in this state, whether you use an agent or not.
Quote of the week...
The other thing is, I see a lot of agents make enough money, and be fine with it. One deal at a time.
Audrey works in commercial real estate development, and does all of our own investment purchases, but is not active in the home market.
Al... check your PM's.

[HavasuDreamin']

I agree with you guys for the most part, but the Indiana RE market sucks. :( My wife works 16 hour days most of the week and is scraping by. She is not lazy, is always factual, and has been in sales for more than 10 years. She is very professional. She is the second best agent (next to her boss in her office - boss's words). By the way, she is doing this pregnant - yes 16 hour days. Safe to say, she knows what she is doing and she has made what I consider to be decent money for her first year. Unfortuantely she is working three times as hard as her old job, and making half of her old income.
She raddled off some statistics to me the other day. Indiana has the third lowest appreciation percentage out of all 50 states. Something like 2.8% statewide (probably lower in central Indiana). Why? Demographics are not keeping up with the complete saturation of new home building in our market. That equals more supply than demand. That equals a buyers market. She has found that picking up buyers is not easy. Everybody has a brother, uncle, friend that they give the buying transactions to.
Selling and Financing in our market...........everybody and their brother out here puts $0 money down on their home. In 1-3 years they decide they want to move. Hey our home has appreciated 10% - 20% right? We hear that CA and FL homes are appreciating at 15%. Sorry guys.......your home here in Indiana is lucky to have appreciated at all. Now my wife has to sell a home that has appreciated very little while incorporating a minimum 5% RE agent fee. This is if the people didn't take out a 125% second on their home. :rolleyes: All this equates to people being upside down on their homes. Try selling an overpriced commodity in a market where supply is saturated. :eek:
By the way........the two states with lower appreciation rates that Indiana..........TX and Utah.
Moral of the story........don't plan on going into real estate if you move to any of these areas (or other low appreication areas).
HD :cool:

[572Daytona]

Originally posted by Essex502
Hmmmm....8 deals @ 6% (no commision split) average house price in CA = to $376, 260 (June 25th) translates to $180K per year...I'd call that "hardly scraping by"!
Most deals are commission split, at least around here. Also keep in mind that an RE agent is self employed, that 180K is not a salary. Out of that the broker takes their cut, either through a percentage of the commission or via monthly office fees, you have to pay you own social security and unemployement, no contributions from your employer. All of your expenses including insurance, advertising, etc also come out of that. I don't have my tax returns in front of me but I figure my wife loses about 40% of what she makes in taxes and another 30% in expenses.
Also be sure to factor in all of the deals that you worked your ass off and earned the commission just to have it fall apart before closing due to circumstances beyond your control. A lot of people thinks it is easy money, but only a small percentage of agents actually make enough to be the sole family wage earner from it. Hard work isn't the only thing that makes an agent successful, altough plan to give up most of your weekends if you do decide to be a residential agent. You also have to be a good sales person/people person and having a large circle of friends/acquaintences doesn't hurt either.

[cdog]

Originally posted by Essex502
Hmmmm....8 deals @ 6% (no commision split) average house price in CA = to $376, 260 (June 25th) translates to $180K per year...I'd call that "hardly scraping by"!
Don't take this the wrong way but your comment is totaly false.
Average commision is about 2-2.5% Because of desperate agents who will work for less and the fact that homes were (past tense) selling so fast.
You forgot about your broker split. Broker 35% Agent 55% Company 10%
I'm a RE/MAX agent I pay 1k a month for office fee's and they take 6% of each Commision check.
Add about 1k a month for Advertising.
And if your representing your Seller clients corectly you probably will sell one of your listings a year based on 12 sales a year.
Average listing at 400k at 2.5% =10k not bad - 600 for office =9400x 9 a year= 84k- 12k for advertising- 12k for office fee's- 5k worth of expense's=55k a year- tax=40k a year.
These are all averages. Not that great of a living!

[HavasuDreamin']

Essex502.............no commission split? Representing the buyers and sellers? Usually doesn't happen. Wack that $180K salary in half. $90K then factor in a broker cut. Yes, being a real esate agent in So. Cal. has probably been good the last 2-3 years. Try that in another state, or when Interst rates go back up over 7%.
HD

[totenhosen]

Actually I just read an article that states 10% of all R/E agents make over $100k, 10% make under $100k but more than $50K and the rest make less than $50k.

[totenhosen]

Originally posted by HavasuDreamin'
Selling and Financing in our market...........everybody and their brother out here puts $0 money down on their home. In 1-3 years they decide they want to move. Hey our home has appreciated 10% - 20% right? We hear that CA and FL homes are appreciating at 15%. Sorry guys.......your home here in Indiana is lucky to have appreciated at all. Now my wife has to sell a home that has appreciated very little while incorporating a minimum 5% RE agent fee. This is if the people didn't take out a 125% second on their home. :rolleyes: All this equates to people being upside down on their homes. Try selling an overpriced commodity in a market where supply is saturated. :eek:
Moral of the story........don't plan on going into real estate if you move to any of these areas (or other low appreication areas).
HD :cool:
Hell, I'd tell your wife to hook up with a developer than if so many people are buying new homes. Secondly I'd tell her to do R/E loans as well. There is good money to be made in sub-prime lending.

[Froggystyle]

I don't want to sound stupid here, but the thread was about people in Real Estate making a killing.
I am willing to bet that your wife (HD) is making more than the people not working as hard as she is right now.
Doing ANY business in a soft market is harder, and less profitable. Try selling shares in United Airlines right now. Point is, she got into the RE market in a soft area, in fact, by your account the softest in the nation, with the slowest growth percentage and a huge new inventory, that I assume is being sold by the developer.
Yeah... that is going to be tough!
I think what the author of the thread means is that in these big appreciation areas, RE agents should be killin it. My response is, the good ones are.
Lyle Caddell, our agent we use for purchasing is killing it. 8-10 a year? Yeah... Lyle and his wife Grace were in escrow on 16 deals last I checked in with him. With all of this business, I still get a call from Lyle every couple of months letting me know what the new comps are in my area, and letting me know that he has a buyer looking to get something like my house in my area.
That is hustling. He knows I have no interest in selling, but still phones regularly. He has transaction coordinators, assistants, younger agents etc... all doing footwork for him. That is who I would follow around like a puppy if I were getting into the business.
Anyway, I think that for the most part, the California agents that are not making any money right now are either not in a good area, or not working as hard/smart as the guy who is making money.
cdog... Lyle is a RE/MAX agent too. You probably know him...

[al cole'holic]

Originally posted by cdog
Don't take this the wrong way but your comment is totaly false.
Average commision is about 2-2.5% Because of desperate agents who will work for less and the fact that homes were (past tense) selling so fast.
You forgot about your broker split. Broker 35% Agent 55% Company 10%
I'm a RE/MAX agent I pay 1k a month for office fee's and they take 6% of each Commision check.
Add about 1k a month for Advertising.
And if your representing your Seller clients corectly you probably will sell one of your listings a year based on 12 sales a year.
Average listing at 400k at 2.5% =10k not bad - 600 for office =9400x 9 a year= 84k- 12k for advertising- 12k for office fee's- 5k worth of expense's=55k a year- tax=40k a year.
These are all averages. Not that great of a living!
:eek: dude you need to find a new office!

[HavasuDreamin']

Originally posted by Froggystyle
I am willing to bet that your wife (HD) is making more than the people not working as hard as she is right now.
True.......she is, but you can say that about any industry. She is not however making a killing. Far from it.
Originally posted by Froggystyle
Point is, she got into the RE market in a soft area, in fact, by your account the softest in the nation, with the slowest growth percentage and a huge new inventory, that I assume is being sold by the developer.
Correct. She was intrigued and made the plunge after having a couple of conversations that started out as this thread started out..........ie: Real Estate agents make a very good living. She found out that the good living is not directly correlated with how hard you work. The market has a tremendous amount to do with it. You know what they say about real estate.........the three most important aspects are.........Location, Location, Location.
Originally posted by Froggystyle
I think what the author of the thread means is that in these big appreciation areas, RE agents should be killin it. My response is, the good ones are.
I agree with you. In so. cal. you should make a nice living if you bust tail. Same as in SF and NY if you work hard and hustle. My point was similar to Cdog's. The perception from the outside is that all real estate agents are rich and this is an easy industry (slightly exagerated, but you get my point). This is vastly different from reality for most (not all) real estate agents.
Originally posted by Froggystyle
Anyway, I think that for the most part, the California agents that are not making any money right now are either not in a good area, or not working as hard/smart as the guy who is making money.
I would agree with that.
To anybody looking to get into this industry. Talk to people who have been in it for a while and do your homework.

[totenhosen]

Originally posted by al cole'holic
:eek: dude you need to find a new office!
Yup!

[cdog]

Originally posted by al cole'holic
:eek: dude you need to find a new office!
I was using all that as a law of averages.
My office fees are pretty damm good considering Tarbell, Prudential and First Team charge 10% off the top and then they charge a minumim of 20% per transaction to high producers.
If you are a average agent you could expect 10-12 deals at about 100k a year at about a 35% split to the office + the office fee of 10%. These are the going rates for OC offices.
RE/MAX agents pay a monthly fee and a small 6% transaction fee to the office, witch if your a producer, it puts more money in your pocket.
If anyone is looking for an agent choose RE/MAX agents. They typicaly have more experience and they truely are small buisness owners that understand what it takes to run a buisness.
Prudential,Coldwell,Tarbell and First Team are all meat market companys. A new agent walks in sells homes to their friends and family and then starts to go broke do to them buying all of the overpriced company advertising and massive %'s givin to the broker.
I'm 3rd generation in this buisness and have seen many come and go. The market is like a rollercoaster, it's been hot for a while and is now due to take a dip.

[mmered8299]

Who needs them. Iv'e bought and sold over 5 houses in my life without them. I discount the house price 3% without a broker and add 3% if they want to bring their broker in on the deal. Buyers love discounts. Realtors make it sound so complicated.

[Froggystyle]

Originally posted by mmered8299
Who needs them. Iv'e bought and sold over 5 houses in my life without them. I discount the house price 3% without a broker and add 3% if they want to bring their broker in on the deal. Buyers love discounts. Realtors make it sound so complicated.
The problem is marketing. Agents are certainly not going to show anything that isn't in the MLS. They aren't going to try to raise the price just to pay their bill. Makes it seem like more somehow. ;) So, without the agents, you are restricted big time on exposure and the network that currently exists to sell homes.
With a nice enough house, and good exposure through the paper, trader and flyers, you could do well selling your house.
MLS is bombproof though. If your price is right, you will sell your house.

[wantacat]

Originally posted by cdog
Don't take this the wrong way but your comment is totaly false.
Average commision is about 2-2.5% Because of desperate agents who will work for less and the fact that homes were (past tense) selling so fast.
You forgot about your broker split. Broker 35% Agent 55% Company 10%
I'm a RE/MAX agent I pay 1k a month for office fee's and they take 6% of each Commision check.
Add about 1k a month for Advertising.
And if your representing your Seller clients corectly you probably will sell one of your listings a year based on 12 sales a year.
Average listing at 400k at 2.5% =10k not bad - 600 for office =9400x 9 a year= 84k- 12k for advertising- 12k for office fee's- 5k worth of expense's=55k a year- tax=40k a year.
These are all averages. Not that great of a living!
Just like the others said, you need to find yourself a new office. Im a new agent, my split with my broker is a 70/30 and only 1% of my commission goes to the office for supplies etc. w/no monthly office fees.

[cdog]

Not to mention all of the lawsuit's,disclosures,inspections and legal problems you can run into with out the proper representation.
Having a good Realtor in today's market is kinda like having insurance. Just incase you enter into a transaction with a person who has a chip on their shoulder you'll have the proper paperwork to keep everything legal and as long as you did everything right you wont loose your ass.
If you got a DUI, you would'nt try to represent yourself and risk going to jail. What do they cost to defend you? 5k to 10k.
Realtors handle probably your most important asset in your life.
When you put it into perspective you actualy get alot for what you pay for.

[cdog]

Originally posted by wantacat
Just like the others said, you need to find yourself a new office. Im a new agent, my split with my broker is a 70/30 and only 1% of my commission goes to the office for supplies etc. w/no monthly office fees.
Your take home on 10k. 10k-1%=9,900-30%=6,930
My take home on 10k. 10k-5.9%=9,410
I also have a 1k monthly office fee.
At that point I still have $8,410 and you have $6,930

[NashvilleBound]

$57k in RE agents commissions on our last house. Totally rediculous for the work they do.:yuk: :yuk: :yuk: and that was a reduced rate from both sides!!!!!!!

[totenhosen]

Originally posted by mmered8299
Who needs them. Iv'e bought and sold over 5 houses in my life without them. I discount the house price 3% without a broker and add 3% if they want to bring their broker in on the deal. Buyers love discounts. Realtors make it sound so complicated.
You are also forgetting that the majority of people do not trust FSBO. So you are eliminating a large majority of prospective buyers. Plus a good agent will more than make up the difference in the commissions you pay.

[cdog]

Originally posted by totenhosen
You are also forgetting that the majority of people do not trust FSBO. So you are eliminating a large majority of prospective buyers. Plus a good agent will more than make up the difference in the commissions you pay.
Hey now theres a smart man!

[bigq]

Originally posted by totenhosen
You are also forgetting that the majority of people do not trust FSBO. So you are eliminating a large majority of prospective buyers. Plus a good agent will more than make up the difference in the commissions you pay.
Maybe you missed the part that said he has sold 5 without REA. I think your points might fall on deaf ears.;)

[al cole'holic]

Originally posted by cdog
Your take home on 10k. 10k-1%=9,900-30%=6,930
My take home on 10k. 10k-5.9%=9,410
I also have a 1k monthly office fee.
At that point I still have $8,410 and you have $6,930
..maybe the problem isn't your office, it's your math skills :confused:

[cdog]

Originally posted by al cole'holic
..maybe the problem isn't your office, it's your math skills :confused:
Do you need a calculator? Don't speaka no english? How can i make that anymore clear?:confused:

[locogringo]

Real estate and mortgage officers/brokers have done well over the years.
My wife doesn't do RE but is a mortgage broker and she seems to fair okay.
There are a lot of "lazy" people out there though!

[Ivan Dan]

I wasn't going to get in on this thread because honestly some of you guys talk a lot of shit (no fingers pointed at anyone in particular) but don't know the first thing about it but I couldn't resist throwing my 2 cents out there. A lot of people have this notion that realtors don't do anything and make a ton of cash. Its a proven fact that a good real estate agent can sell the average home for over 10% higher than Mr. Smith property seller can by himself. Not to mention a lot of people don't realize how much liability you have on your shoulders as a seller of a property. Real Estate companies carry millions and millions of dollars worth of insurance to protect clients in case of a mishap.
The way the housing market has been for the last 2 years or so has made people have an even worse opinion of realtors because the market was so hot that the homes were literally selling themselves. Since I got into the business 4 years ago I have watched the prices over double themselves in Orange County and probably triple themselves in San Bernardino and Riverside Counties. When I first started selling homes the average commission % for listing a home was 6%. If I had to guess I would say the average nowadays is more around 4-4.5%. Obviously, this means we are now making 2 or 2.25% on a sale now instead of 3%. I know some of you will argue that prices are way up so that makes up the difference but we are still doing the same amount work and have the same amount of stress but are making almost 1% less. I don't think most people know the stress that a real estate agent (that does a decent amount of business) goes through from beginning to end of a real estate transaction. I can't tell you how many times I have had clients not show up for appointments. I can't tell you how many times I've driven clients around for 6 weekends in a row all day long looking at homes and then they buy through another agent and say, "it all just happened so fast and before we knew it we signed a contract and bought the house, sorry! I can't tell you how many times I've had clients tell me straight to my face that I am their agent and then list their home with someone else. I can't tell you how many times I've had clients go into escrow on a home, tell me how much they love the house and then back out of escrow 5 days before we are supposed to close because it just isn't "the right one sorry". Do you know what we as real estate agents get paid when these incidents happen? NOTHING! YA YA I know...poor me but my main point is most people don't see this side of the business. They see the part where they are paying an agent 5% to sell thier home and that means $20k out of his pocket.
A lot of people have jobs that they show up to and do their work and when 5pm comes around they are gone no matter if the job is done or not and collect their paychecks week in and week out. As mentioned by someone already a good agent is working days, nights and weekends and busting their butts to sell something in hopes to make a commission 30,45,60 or 90 days down the line IF the buyer or seller doesn't decide to back out of the deal.
If you were not aware the market is changing and as some have pointed out already inventory is WAY up from just a month or two ago. This is going to drive the commission %'s back up (I hope) because it puts the burden back on us agents to do our job, advertise the home properly for maximum exposure and find a qualified buyer in a timely fashion.
I think a lot of people don't have any idea what it is like to work day in and day out, nights and weekends without any guarantee of getting paid. I also think realtors get a bad rap because most people don't know all the work and stress stress a realtor goes through on a daily basis. As Froggy pointed out I ride my agents super hard. They earn every penny. That MF'er works for me, and best represent my best interests, or I will (and have) fired them like Trump. I have given an agent his walking papers two days before close before for doing flaky shtuff. Having 16 deals in escrow at one time is insane but so is the $$. I've had 9 or 10 going at one time and it is VERY stressful and hard to keep up with. Having a good supporting cast around you is essential to keep your sanity when doing this much business.
Sorry for going on and on and rambling at some points I just had to vent. My main reason for writing this is as I think as someone pointed out earlier in this thread that the agents that work hard and keep their clients best interest in mind first and foremost earn the commissions they are paid and make decent $$.

[NashvilleBound]

OK, I feel a finger pointing at me so let me clarify my post too. We were going to list our house in the mid 800's but Sandy Hadley (Our RE agent) said it should be in the mid 900's.... well, we ended up at $1.1 million and some change.... It was just a small amount of details I left out.:rolleyes: So I guess that makes up for the charges...I guess.

[mmered8299]

What are these potential mishaps when buying/selling a home without a realtor? I provide a discloser statment and bring in home inspector. The rest is up to the title company. Its really not that tuff. Unless I'm missing something?

[FREIND OF AA AND TA]

Yes we can earn some good $$ Yes some agents are jerks. The ones that are getting paid are the good ones. Just like a good cpa or lawyer
Most of the time I get paid for what I know not what I do.
My client base is over 95% refferals. Must be doing something right. They all say I take the stress out of the whole process and sleep at night. The last few years have been tuff too. The inventory has been so low nobody can find houses. I talk to so many people I can still manage to sell 100+ per year. Never been in a law suit either. Most agents cant say that.
If you need a house in Santa Clarita call me. I will prove that I am at your service and care about you more than a pay check!:)

[Essex502]

Originally posted by cdog
Don't take this the wrong way but your comment is totaly false.
Average commision is about 2-2.5% Because of desperate agents who will work for less and the fact that homes were (past tense) selling so fast.
You forgot about your broker split. Broker 35% Agent 55% Company 10%
I'm a RE/MAX agent I pay 1k a month for office fee's and they take 6% of each Commision check.
Add about 1k a month for Advertising.
And if your representing your Seller clients corectly you probably will sell one of your listings a year based on 12 sales a year.
Average listing at 400k at 2.5% =10k not bad - 600 for office =9400x 9 a year= 84k- 12k for advertising- 12k for office fee's- 5k worth of expense's=55k a year- tax=40k a year.
These are all averages. Not that great of a living!
cdog...
My calcs were for the measly 8 sales for a year...some in SoCal are making quite a few more than 8 sales in a year. Count all the Lexus', Hummers, Navigators, Caddies, Mercs and such...can't be too bad a ride! Plus the perc that those nice vehicles are tax deductable for the self employed...up to $100K per year! Another nice perc.
Don't get me wrong...A good agent/realtor is required in my opinion.

[totenhosen]

Originally posted by mmered8299
What are these potential mishaps when buying/selling a home without a realtor? I provide a discloser statment and bring in home inspector. The rest is up to the title company. Its really not that tuff. Unless I'm missing something?
Just one disclosure statement? I think I typically have no less than 10 plus a property report. Your biggest threat is going to be a lawsuit for something that you consider minute but technically failed to disclose.
In your disclosure statement do you mention mold, fire, earthquake, flooding, airports, sex offender, furnance/heating, etc?

[Essex502]

Originally posted by Ivan Dan
Having 16 deals in escrow at one time is insane but so is the $$. I've had 9 or 10 going at one time and it is VERY stressful and hard to keep up with. Having a good supporting cast around you is essential to keep your sanity when doing this much business.
Sounds like a lot more than 8 deals in a year, huh?
Okay..9 deals on average in OC of $500k, let's say...2.5% commision...all 9 deals close in a 90 day period....$112K for 3 months work...not bad....Yes that's gross but everyone has taxes and your expenses are tax deductable.

[cdog]

Originally posted by Essex502
cdog...
My calcs were for the measly 8 sales for a year...some in SoCal are making quite a few more than 8 sales in a year. Count all the Lexus', Hummers, Navigators, Caddies, Mercs and such...can't be too bad a ride! Plus the perc that those nice vehicles are tax deductable for the self employed...up to $100K per year! Another nice perc.
Don't get me wrong...A good agent/realtor is required in my opinion.
Yes, I too own a 3/4 tom suburban and wrote it off. I imagine that at only 8 deals a year you would even have more problems making it. But the average is 8-10. Fact's are it's a tough buisness and that's all I was trying to convey. Would you take a realtor serious who drove a nissan sentra? The first thing most people would say is " he must not be making a lot of money". The law on wrighting off you vehical say's it must be over a certian tonage and you can only write off up to 45k a year. Still not bad. A nice vehical is pure image of sucess. It's only image most of the time.

[bigq]

Originally posted by Ivan Dan
I wasn't going to get in on this thread because honestly some of you guys talk a lot of shit (no fingers pointed at anyone in particular) but don't know the first thing about it but I couldn't resist throwing my 2 cents out there. A lot of people have this notion that realtors don't do anything and make a ton of cash. Its a proven fact that a good real estate agent can sell the average home for over 10% higher than Mr. Smith property seller can by himself. Not to mention a lot of people don't realize how much liability you have on your shoulders as a seller of a property. Real Estate companies carry millions and millions of dollars worth of insurance to protect clients in case of a mishap.
The way the housing market has been for the last 2 years or so has made people have an even worse opinion of realtors because the market was so hot that the homes were literally selling themselves. Since I got into the business 4 years ago I have watched the prices over double themselves in Orange County and probably triple themselves in San Bernardino and Riverside Counties. When I first started selling homes the average commission % for listing a home was 6%. If I had to guess I would say the average nowadays is more around 4-4.5%. Obviously, this means we are now making 2 or 2.25% on a sale now instead of 3%. I know some of you will argue that prices are way up so that makes up the difference but we are still doing the same amount work and have the same amount of stress but are making almost 1% less. I don't think most people know the stress that a real estate agent (that does a decent amount of business) goes through from beginning to end of a real estate transaction. I can't tell you how many times I have had clients not show up for appointments. I can't tell you how many times I've driven clients around for 6 weekends in a row all day long looking at homes and then they buy through another agent and say, "it all just happened so fast and before we knew it we signed a contract and bought the house, sorry! I can't tell you how many times I've had clients tell me straight to my face that I am their agent and then list their home with someone else. I can't tell you how many times I've had clients go into escrow on a home, tell me how much they love the house and then back out of escrow 5 days before we are supposed to close because it just isn't "the right one sorry". Do you know what we as real estate agents get paid when these incidents happen? NOTHING! YA YA I know...poor me but my main point is most people don't see this side of the business. They see the part where they are paying an agent 5% to sell thier home and that means $20k out of his pocket.
A lot of people have jobs that they show up to and do their work and when 5pm comes around they are gone no matter if the job is done or not and collect their paychecks week in and week out. As mentioned by someone already a good agent is working days, nights and weekends and busting their butts to sell something in hopes to make a commission 30,45,60 or 90 days down the line IF the buyer or seller doesn't decide to back out of the deal.
If you were not aware the market is changing and as some have pointed out already inventory is WAY up from just a month or two ago. This is going to drive the commission %'s back up (I hope) because it puts the burden back on us agents to do our job, advertise the home properly for maximum exposure and find a qualified buyer in a timely fashion.
I think a lot of people don't have any idea what it is like to work day in and day out, nights and weekends without any guarantee of getting paid. I also think realtors get a bad rap because most people don't know all the work and stress stress a realtor goes through on a daily basis. As Froggy pointed out Having 16 deals in escrow at one time is insane but so is the $$. I've had 9 or 10 going at one time and it is VERY stressful and hard to keep up with. Having a good supporting cast around you is essential to keep your sanity when doing this much business.
Sorry for going on and on and rambling at some points I just had to vent. My main reason for writing this is as I think as someone pointed out earlier in this thread that the agents that work hard and keep their clients best interest in mind first and foremost earn the commissions they are paid and make decent $$.
That is sales man, the stress is self inflicted. I have worked on a deal for 6 months and in the end they end up with someone else, even though I had the better offer (or soI thought)

[HavasuDreamin']

Originally posted by Essex502
Okay..9 deals on average in OC of $500k, let's say...2.5% commision...all 9 deals close in a 90 day period....$112K for 3 months work...not bad....Yes that's gross but everyone has taxes and your expenses are tax deductable.
How about the broker cut their chief...........minimum of 30%.......most likely 35% - 40%. Now your $112K salary is at best $78,400 gross.
If you can sell three $500K homes per month, you are doing damn good! Very few agents do that.

[cdog]

Originally posted by HavasuDreamin'
How about the broker cut their chief...........minimum of 30%.......most likely 35% - 40%. Now your $112K salary is at best $78,400 gross.
If you can sell three $500K homes per month, you are doing damn good! Very few agents do that.
My point exactly. Every realtor on this board is saying that's it's not as easy as it looks. We are not complaining , it's just the truth.

[HavasuDreamin']

Originally posted by Essex502
cdog...
Count all the Lexus', Hummers, Navigators, Caddies, Mercs and such...can't be too bad a ride!
Looks can be decieving. I see a lot of people driving escalades, etc. and then pull into their garage. Car is worth 50% of what their home is worth.
There are also leases. Cheap pmt = good car that you never own.
Then there are those whose husbands, or wives make good livings and afford the spouse the opportunity to get started in the business.
My point.........just because he or she (RE Agent) is driving a nice car, it does not necessarily mean he or she is making a killing as an agent.
HD

[cdog]

You remember what they say about assuming, Don't you.

[bigq]

well the next 4-5 years should weed out the competition I would think. The good agents I assume have been piling up the dough for any rough times they have through the years.
That is one thing people need to think about, even if they make a "killing" now it aint easy when the market gets tight so it all evens out.;)

[plaster dave]

It's not quite as easy as it looks. Everyone's perception is that anyone could do it and every realtor is rich. Your average realtor most likely knocks out around 8-10 deals a year and just hardley scrapes by. Imagine working today to make a paycheck two months from now. 8 out of 10 people that get their license don't renew it.
Look i work in constrution and have been selfemployed for almost 5 years now. I do work now to get paid in 4 weeks to 8 weeks depending on the person or company that is over seeing the project.
But i do think realtors are making a killing right now. Dont tell me u guys aren't buying properties and fliping them under other peoples names or a company that u set up so u can do more than allowed by the law, I dont realy care cause i still do the work for u guys but dont say it's not a good time for the last 4 years. I hope it keeps up cause I've done good with it also.:D

[wantacat]

Originally posted by Ivan Dan
.
The way the housing market has been for the last 2 years or so has made people have an even worse opinion of realtors because the market was so hot that the homes were literally selling themselves. Since I got into the business 4 years ago I have watched the prices over double themselves in Orange County and probably triple themselves in San Bernardino and Riverside Counties. When I first started selling homes the average commission % for listing a home was 6%. If I had to guess I would say the average nowadays is more around 4-4.5%. Obviously, this means we are now making 2 or 2.25% on a sale now instead of 3%. I know some of you will argue that prices are way up so that makes up the difference but we are still doing the same amount work and have the same amount of stress but are making almost 1% less. I don't think most people know the stress that a real estate agent (that does a decent amount of business) goes through from beginning to end of a real estate transaction. I can't tell you how many times I have had clients not show up for appointments. I can't tell you how many times I've driven clients around for 6 weekends in a row all day long looking at homes and then they buy through another agent and say, "it all just happened so fast and before we knew it we signed a contract and bought the house, sorry! I can't tell you how many times I've had clients tell me straight to my face that I am their agent and then list their home with someone else. I can't tell you how many times I've had clients go into escrow on a home, tell me how much they love the house and then back out of escrow 5 days before we are supposed to close because it just isn't "the right one sorry". Do you know what we as real estate agents get paid when these incidents happen? NOTHING! YA YA I know...poor me but my main point is most people don't see this side of the business. They see the part where they are paying an agent 5% to sell thier home and that means $20k out of his pocket.
buyers are liars:D:D

[al cole'holic]

Originally posted by cdog
Do you need a calculator? Don't speaka no english? How can i make that anymore clear?:confused:
...based on the info you stated previously, you are at a whopping 55% split (:( ). At 10k in your example you take 5500, subtract the 6% (cough..bullshit) you said is taken out of each comission check brings you to 5170...and if that's your only deal for the month take out the 2k in office/advertising fees and you are at the 3170 mark for the month, well on your way to the $40k per year track. And no, I don't speaka english...:D

[Essex502]

Originally posted by HavasuDreamin'
How about the broker cut their chief...........minimum of 30%.......most likely 35% - 40%. Now your $112K salary is at best $78,400 gross.
If you can sell three $500K homes per month, you are doing damn good! Very few agents do that.
The response was to the post that said he had 9 homes in escrow simultaneously.

[Essex502]

Originally posted by cdog
The law on wrighting off you vehical say's it must be over a certian tonage and you can only write off up to 45k a year. Still not bad. A nice vehical is pure image of sucess. It's only image most of the time.
I believe the number is actually $100K year. It is a law intended to help small business owners to acquire capital equipment and NOT have to depreciate it....see section 179.

[Essex502]

Originally posted by HavasuDreamin'
Looks can be decieving. I see a lot of people driving escalades, etc. and then pull into their garage. Car is worth 50% of what their home is worth.
There are also leases. Cheap pmt = good car that you never own.
Then there are those whose husbands, or wives make good livings and afford the spouse the opportunity to get started in the business.
My point.........just because he or she (RE Agent) is driving a nice car, it does not necessarily mean he or she is making a killing as an agent.
HD
My point was that the cost of these large, expensive vehicles is tax deductable expense which is a nice perk.

[cdog]

Originally posted by al cole'holic
...based on the info you stated previously, you are at a whopping 55% split (:( ). At 10k in your example you take 5500, subtract the 6% (cough..bullshit) you said is taken out of each comission check brings you to 5170...and if that's your only deal for the month take out the 2k in office/advertising fees and you are at the 3170 mark for the month, well on your way to the $40k per year track. And no, I don't speaka english...:D
The 55% commision split is an example of a realtor working for the meat market company's "joe average realtor". I see now where you mis understood what I said. My split a remax is 5.9%. And a 1k office fee. That's it.
The thing is remax won't usualy hire new agent's because for their system to be profitable you have to be consistant with listings and sales. I guess I average 1.8 per month and while I am not rich I do make a decent living.
I hope you did'nt take the no speaka no english thing to heart. I was just trying to lighten up the subject.:)

[Essex502]

1.8/month = 21/year (dropping the .6 house).
OC average price = $500K
2.5% commission (someone said this low)
$262,500 gross commission before expenses, splits, whatever...pretty decent. :D
And that's if you only sell the MEDIAN priced houses.

[cdog]

Originally posted by Essex502
1.8/month = 21/year (dropping the .6 house).
OC average price = $500K
2.5% commission (someone said this low)
$262,500 gross commission before expenses, splits, whatever...pretty decent. :D
And that's if you only sell the MEDIAN priced houses.
Price range's from 200k to 700k mostly. I mostly deal with condo's. 300-400k. Most realtors only offer 2% on average lately.
Somehow it ends up around 7k most of the time. Subtract fee's tax's, advertising budget and building a buisness. Yes it's a good living and I like what I do. But it's definatly but for everyone. If I did'nt have the money to invest to get everything started a couple years ago I would have never made it this far.

[Essex502]

I guess it might be a good business to go into when I retire! :D

[No Regrets]

As an agent for over 14 years-thru foreclosures to 30 % annual appreciation- I welcome anybody who would like to go get their license and dive right into the business.
You all are in control of your own careers.
A good realtor is an advisor to his client. As said before- You hire an agent not for what they do- but for what they know and how they protect you.
Anybody can sell a home in a hot market, but that doesnt mean its goin to close escrow.
There are so many variables about each persons individual transaction that there's not enough room on this server to explain examples.
For those of you who think we as realtors have no worth, I'd rather not work with you. There are plenty of good referring clients out there that have experienced good service & representation and will refer and continue to refer appreciative clients.
Thats the cool thing about this business- we can also pick who WE want to represent.
But as I said b4, its not that tough to get a license, jump on in.
PS. Times are a changin.- inventory in So Cal has tripled in the last 120 days

[cdog]

Originally posted by Essex502
I guess it might be a good business to go into when I retire! :D
I hope you have lot's of hair!:D But if your self motivated and work hard, it's amazing what you can do.
Another note: Make your buisness about service and taking care of your customer's. If it's a get rich quick sceam you'll never last.

[cdog]

No Regrets
Very well said.

[BUSTI]

For those of you that think all real estate agents make a killing let me clue you in. Yes many of us make alot of money compared to the average lunch bucket regular American worker. And yes many of us are rich. that being said let me enlighten you a little about the real numbers and then you decide if you think the real estate business is such easy pickens.
In Orange County California there are 13,750 licensed real estate agents living here. Last month at the county recorder the county recorded 5,120 sales transactions. That included new subdivision as well and FSBO's and all other transfers such as divorce sales facilitated by refi's. Assuming each sale was one per agent, which it wasn't, that means around 8,600 agents didn't sell shit!
Now lets look at the mortgage business. Did you you know that there are more business's selling mortgages in Orange County than there is in the entire state of Texas?
For every real estate agent in Orange County that makes 100k per year there are 100 that don't make squat! Real estate is not a "get rich quick" scheme! It takes alot of hard work and sticktuitivness to make it. ya there are alot of flash in pan guys who made it big during refi mania and selling homes over the last few years but now that the market has slowed and interest rates have gone up they are either out of the business or soon will be.
My company is a boutique brokerage........we sell all over SoCal and we do sales and loans. Right now most of our business is private sourced or hard money loans from 150k to 2.5 million. I have been doing this business since 1979 and trust me its harder now for the newbies than ever before. i'm lucky both my wife an I have an existing book of biz that just keeps on chugging through good and bad times.
If any body on the outside looking in thinks its easy get a license jump in the pool into the deep end! With out a regular paycheck every week try it and see where you are next year!
Ya thats what I thoought! Not to many takers uh?

[Essex502]

Originally posted by BUSTI
If any body on the outside looking in thinks its easy get a license jump in the pool into the deep end!
Busti....a question....
How tough is it really to get the license...not to make money with it but just to get it? I have a coupla' friends as well as my Dad who passed away a few year's ago...all were/are dumber than dirt and passed the tests.

[FREIND OF AA AND TA]

You guys are still forgeting to mention overhead in all these great calculations. My overhead is 30-40% Most of my freinds are over 50% Lets talk about Taxes too. Let the poor Realtors do there jobs. I have houses to sell.:D
visit [url]www.SantaClaritaRealEstate.com
Sorry I dont know how to post the right link:confused:

[FREIND OF AA AND TA]

Originally posted by Essex502
Busti....a question....
How tough is it really to get the license...not to make money with it but just to get it? I have a coupla' friends as well as my Dad who passed away a few year's ago...all were/are dumber than dirt and passed the tests.
Any monkey can get it. You never even use what you learn in the class. Its realy dumb.

[No Regrets]

[ Its realy dumb. [/B]
You dont even have to know how to spell:D

[572Daytona]

I've got another full time job but I recently got my license in GA so that I could help my wife out and it wasn't very difficult at all. Most of the focus is on CYA type shit to cover the broker's and real estate board's ass such as fair housing laws, dual agency, etc.
I want to know more about writing off the vehicles, how does that work when your vehicle is used both for work/personal? Only certain heavy vehicles qualify for the full write off, right. I know hummers are heavy enough and it sounds like 3/4 ton burbs, how about regular 1/2 ton burbs? Also if you depreciate it all down to write it off and then sell it in a year or 2, don't you then have to claim a gain on the proceeds of the sale?

[cdog]

I passed my test the firts time around. Now I am going after my Brokers. One more class to take. No the test was not that hard. But i'm 3rd generation in the buisness and bought my first home at 19 so i've been around real estate all my life. Remember 8 out of 10 don't renew their 18 month license. Got to be a damm good reason to give up all of that big time easy money.

[FREIND OF AA AND TA]

Originally posted by No Regrets
You dont even have to know how to spell:D
:yuk: see ya at Channel Islands

[No Regrets]

Got to be a damm good reason to give up all of that big time easy money. [/B]
Nice-LMAO

[cdog]

Originally posted by 572Daytona
I've got another full time job but I recently got my license in GA so that I could help my wife out and it wasn't very difficult at all. Most of the focus is on CYA type shit to cover the broker's and real estate board's ass such as fair housing laws, dual agency, etc.
I want to know more about writing off the vehicles, how does that work when your vehicle is used both for work/personal? Only certain heavy vehicles qualify for the full write off, right. I know hummers are heavy enough and it sounds like 3/4 ton burbs, how about regular 1/2 ton burbs? Also if you depreciate it all down to write it off and then sell it in a year or 2, don't you then have to claim a gain on the proceeds of the sale?
I was told that there is a limit to how much you can write off, some where in the mid 40k's. I do belive it has to be a 3/4 ton and yes a h2 qualifies. I want to get one but am waiting untill they come out with the duramax in one. I've never heard about the depreciation and have never asked. Remember"It's only for Buisness".........

[Essex502]

Originally posted by FREIND OF AA AND TA
Lets talk about Taxes too.
ANd the rest of us don't pay taxes? Can you say AMT? :(

[Essex502]

Originally posted by 572Daytona
I've got another full time job but I recently got my license in GA so that I could help my wife out and it wasn't very difficult at all. Most of the focus is on CYA type shit to cover the broker's and real estate board's ass such as fair housing laws, dual agency, etc.
I want to know more about writing off the vehicles, how does that work when your vehicle is used both for work/personal? Only certain heavy vehicles qualify for the full write off, right. I know hummers are heavy enough and it sounds like 3/4 ton burbs, how about regular 1/2 ton burbs? Also if you depreciate it all down to write it off and then sell it in a year or 2, don't you then have to claim a gain on the proceeds of the sale?
For More Info on Tax Write-off on Vehicles (http://www.smartmoney.com/tax/workbusiness/index.cfm?story=equipment&adSection=smallbusiness&nav=smallbusiness)

[Essex502]

Originally posted by cdog
I passed my test the firts time around. Now I am going after my Brokers. One more class to take. No the test was not that hard. But i'm 3rd generation in the buisness and bought my first home at 19 so i've been around real estate all my life. Remember 8 out of 10 don't renew their 18 month license. Got to be a damm good reason to give up all of that big time easy money.
Easy money...the 2-1/2 hour daily commute (round trip) and the 9-1/2 hour days? Putting up with all the stupid users I support for their software apps?
Real Estate would be like retiring! :D

[FREIND OF AA AND TA]

Originally posted by Essex502
ANd the rest of us don't pay taxes? Can you say AMT? :(
Just part of the calculations guy. Dont get irked:D

[FREIND OF AA AND TA]

Originally posted by Essex502
Real Estate would be like retiring! :D [/B]
Try it:D

[cdog]

Originally posted by Essex502
For More Info on Tax Write-off on Vehicles (http://www.smartmoney.com/tax/workbusiness/index.cfm?story=equipment&adSection=smallbusiness&nav=smallbusiness)
Great link. It's not about what you make ,it's about what you keep!

[cdog]

Essex502,
Let me know when your up aand running. I'll send you refferals.:)

[Essex502]

Originally posted by FREIND OF AA AND TA
Just part of the calculations guy. Dont get irked:D
No irk, here...but we all have taxes so the introduction of that into the equation is useless. Things that matter are expenses BEFORE taxes that are in actuality tax deductions. Your net tax rate after expenses as calculated against your gross is probably less than mine. I can't write off my Hummer/Suburban/1 ton Dually, not my suits, office rental, etc.

[FREIND OF AA AND TA]

Originally posted by Essex502
No irk, here...but we all have taxes so the introduction of that into the equation is useless. Things that matter are expenses BEFORE taxes that are in actuality tax deductions. Your net tax rate after expenses as calculated against your gross is probably less than mine. I can't write off my Hummer/Suburban/1 ton Dually, not my suits, office rental, etc.
OK I got it, It sounds like a job change is in order for you. Stop that crazy commute and jump into real estate so you can buy that Hummer and write off those suits. You forgot to metion the other tax deductions you will have. 2 boats, 11 rentals, trailer, motorhome, and house in Havasu.:D

[Essex502]

Originally posted by FREIND OF AA AND TA
OK I got it, It sounds like a job change is in order for you. Stop that crazy commute and jump into real estate so you can buy that Hummer and write off those suits. You forgot to metion the other tax deductions you will have. 2 boats, 11 rentals, trailer, motorhome, and house in Havasu.:D
Nope..not quite right...
today...1 house in SoCal, 1 in LHC, second house soon to be converted to rental in LHC, 2 cars, 1 truck, 1 boat, no suits (well there are a 1/2 dozen in the closet gathering dust)...

[FREIND OF AA AND TA]

Originally posted by Essex502
Nope..not quite right...
today...1 house in SoCal, 1 in LHC, second house soon to be converted to rental in LHC, 2 cars, 1 truck, 1 boat, no suits (well there are a 1/2 dozen in the closet gathering dust)...
Good boy you're on your way. Now just take your test and retire.
See ya at the river:D

[572Daytona]

Originally posted by cdog
Great link. It's not about what you make ,it's about what you keep!
Of course they don't mention anything about the tax consequences when you dispose of said vehicle. I did a little more research and it looks like any profit that you make from the sale would be recaptured on form 4797 (and if you depreciated 100% of the vehicle your basis would be zero therfore the entire sale price would have to be reported as profit to your business)
I got burned by something similar with the home office deduction, I thought it would be a great thing and started using it on my last home only to find out when I sold that house, if I had said that 20% of my house is used for business then I would have to pay capital gains on 20% of the profit from the sale :eek!: That was way more than any benefit I had gotten from the deduction so I had to go pack and amend previous returns to remove the home office deduction.
Some of these tax benefits look great on paper but you have to consider future tax consequences to see the entire picture. I would also have a problem justifying 100% of my suburban being for business use since we use it for vacations, pulling the boats and you name it. I have trouble just making stuff up for tax purposes, maybe I need to higher Heniz-Kerry's accountant.

[BUSTI]

State lic through the DRE is the biggest joke in the business today. It assures nothing with regard to competency. It is merely just a way for the state to control business and collect fees. Getting a license to sell real estate and being successful financially has no more to do with making money as a cdl has to do with driving a car or truck safely.

[plaster dave]

You guys are still forgeting to mention overhead in all these great calculations. My overhead is 30-40% Most of my freinds are over 50% Lets talk about Taxes too. Let the poor Realtors do there jobs. I have houses to sell.
visit [url]www.SantaClaritaRealEstate.com
Sorry I dont know how to post the right link
if your over head was really that much you wouldn't be boating let alone doing much of anything else. Come on not what you report to the irs lol :D

[mmered8299]

Originally posted by totenhosen
Just one disclosure statement? I think I typically have no less than 10 plus a property report. Your biggest threat is going to be a lawsuit for something that you consider minute but technically failed to disclose.
In your disclosure statement do you mention mold, fire, earthquake, flooding, airports, sex offender, furnance/heating, etc?
LOL. I try to leave out the sex offender part! So the buyer can sue me because I didn't tell him that the next door neighbor is a sex offender? Jeze. How bout the other neighbors dog likes to shit on the front lawn. Will I get sued for not disclosing that?:rolleyes:

[FREIND OF AA AND TA]

if your over head was really that much you wouldn't be boating let alone doing much of anything else. Come on not what you report to the irs lol :D [/B][/QUOTE]
Dude its ruff!
I borrow Bling's gas card, I stay in Alfonzos trailer, 3do feeds me and the family, Boat floatin gives us drinks, Bre makes my clothes, I ride in BF's cart, and No bling gives me a ride up there.:D

[totenhosen]

Originally posted by mmered8299
LOL. I try to leave out the sex offender part! So the buyer can sue me because I didn't tell him that the next door neighbor is a sex offender? Jeze. How bout the other neighbors dog likes to shit on the front lawn. Will I get sued for not disclosing that?:rolleyes:
Obviously someone has been sued and lost bigtime for the sex offender part otherwise they wouldn't have a form for it. So you can be the smartass all you like because my insurance will cover me and my clients.

[mmered8299]

Sorry for being a smart ass. People will sue you for anything. Why do you think you have to sit in escrow for hours signing all those papers. I remember one saying if the escrow people get your name wrong on the form you can't sue them. I had to sign that and they typed my name wrong too. LOL:rolleyes:

[totenhosen]

Originally posted by mmered8299
Sorry for being a smart ass. People will sue you for anything. Why do you think you have to sit in escrow for hours signing all those papers. I remember one saying if the escrow people get your name wrong on the form you can't sue them. I had to sign that and they typed my name wrong too. LOL:rolleyes:
No worries. Just too damn many lawyers and greedy people that sue for stupid reasons. But it's people that have $ and assets that have to protectr themselves from these types of people