Posted by Soraya on May 06, 2000 at 18:26:45:
True, but you also will not have to pay as much property tax either. (In California, property tax is determined by sale price.
Soraya
One Benefit of Becoming a RE Agent/Investor - Posted by Steve C., Houston-Remax
Posted by Steve C., Houston-Remax on May 05, 2000 at 10:49:10:
Among the pros and cons of becoming a real estate agent who invests, one benefit that I haven’t seen mentioned is:
If you’re buying, your commission (paid by the seller) can be used as part of your down payment or towards closing costs and prepaids. If it’s 3%, that can be a pretty good start. Consult your tax advisor on the tax ramafications of doing this.
No Tax Ramification on 3% commission!!! - Posted by Soraya
Posted by Soraya on May 05, 2000 at 11:22:07:
According to my attorney, There will not be a tax ramafications if your offer reads:
Due to the fact that the Buyer/Broker is purchasing property on his own behalf and therefore not expecting compensation as Selling Agent, the purchase price has been being adjusted downward by 3%.
Soraya
Re: No Tax Ramification on 3% commission!!! - Posted by Rick V
Posted by Rick V on May 05, 2000 at 22:40:37:
True, but you also will not receive any credit towards the downpayment.