Don’t waste your commission

Are you struggling to find the funds to cover your next property investment?

Most agents forget that when they do a down payment (typically, 20-25%), 3% is covered by the commission on the deal that they are buying.

That 3% of commission can be repurposed as a funding source for your investments, as long as you represent yourself on the deal.

For example, at 23 years old, I was working full time and also had a weekend job. I got my license in May 2009 for the sole purpose of using the commission as a funding source for my investments.

Here were the costs of a duplex I house hacked:

Purchase price: $196,000

FHA down payment: $5880

Closing costs: seller paid

Commission: $5880

As you can see, the down payment was the same as the commission I earned representing myself on the deal. I didn’t use a single penny of my own money.

Here is the property: a duplex.

Of course, in order to get the loan, I had to live on the property for a year. But here is what the property is worth now:

2022 value: $600,000

Equity: $440,000

Rents: $2475

Fair Market rents: $3600

The tenants have been paying down the mortgage for the past 13 years, and the property nets me $10,000+ per year every year since I’ve owned it.

I seized the opportunity to turn a one-time 3% of the commission into a profitable source of lifetime cash flow.

Go to our to see what other agents are doing to get under contract on deals!

Will 2022 be the year you take the leap and start investing?

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