Real estate brokers or agents license? GO!

[William Fields]

If per se you had to be either which choice would be the best and why ? Are the tax laws different from either or ? If said agent/broker was working really closely with an investor what benefits could be expected ? Pros and cons ?

[Jason Wray]

The way this market is going and the most recent lawsuits against Rmax and other brokers Nationwide I may have to say neither. There is a lot of talk through the grapevine that there are some new income laws coming into play that will hurt brokers/agents income. When they go the W2 route like they did to loan officers the realtor market will freeze up and look like ghost town.

If agents have to go W2 instead of LLC/1099 its an income crushing event and will scare off the masses. 1099 is great you can earn 100% and write off all your goodies through the roof but not on W2. W2 is a whole different ball game and you get hit in the pocket on every paycheck leaving behind 60-65% of that payday. Selling just 1-2 homes a month is not going to allow most realtors to live that luxury lifestyle.

Brokers are not going to take the majority hit so it will trickle down to the agents who already feel over worked showing multiple homes. I am already seeing a lot of agents who I have known personally quit and go find a salary job or work remote. There is already a bill in front of congress and with NAR getting some bad publicity lately it may not be able to save the day.

The positive side of this is there are far too many realtors in the market so it may be helpful to the seasoned vets who crush it regardless, less is more theory.