All Forum Posts by: Damian S.

@Nick Doria I'm most comfortable with NW side of the city but will look for deals in pockets of Ukrainian village and humbold park.

@Lumi Ispas Yes the market picked up and am looking forward to learning it more. I will go with a home study program for $500..should be done with it in a week hopefully. I noticed you mentioned IRA deals in you profile. Do you know all the ins and outs and do you find many clients wanting to do those? I have five years of institutional experience so would want to specifically market myself to that niche market.

I enjoy working with real estate and have made a decision to obtain my broker license. I have over five years of experience working in operations for an alternative investments custodian (hedge funds, private stock offerings, real estate, notes). Hope to connect with local professionals.

You have to figure out what kind of a return you would make if you leveraged up with a non recourse loan for the IRA, typically you need at least 30% down. Also, you will have to file 990-T every year that you are collecting rent on the portion of rent after expenses attributed to the debt...look up UDFI but you need a tax guy for that as there is a formula.

Send me the MLS# and I will take a look at this. I've seen places for the same amount in much better physical and financial condition.

Check out this arni realtors out of Des Plaines. I spoke to Bill who is the Managing Broker and it seems like a good fit for me so far. I saw someone else recommend this firm and thought I would give them a call as I am in the same situation.

@Nicole R.

That's what I thought, thank you Nicole! I spoke to a managing broker and my attorney - the broker is set up with an S Corp and my attorney also recommended it. Even with electing to be taxed as an S Corp I think going the LLC route is cost prohibitive since you get similar benefits. Unless you have any other thoughts on this.

I'll have to explore the S Corp option (skipping the LLC process due to additional costs) more after speaking to an accountant. E&O covers you up to the set limit but your personal assets would not be protected. I would be more interested in building my own brand irrespective of the managing broker I go with. The reason for this is that I would mainly deal with investment properties.

Thank you for the input @John Weidner however if the commissions can be paid to a corporation then I should be able to set up an LLC. I agree with the license being issued in an individual agent's name but I would want it registered under an entity. I found the following on the IDFPR but have only seen managing brokers so far structuring their business in this manner.

http://www.idfpr.com/faq/dpr/realestatefaqs.pdf

I am not a fan of Checkbook IRA's as you really have to pay attention in order to make sure that personal funds are not being commingled with IRA monies. That's one of the ways to have your whole IRA disqualified.

Also, it looks like UBIT was not fully explained. When real estate transactions come into play and debt is used it triggers UDFI or unrelated debt financed income tax. (UBIT is a tax on unrelated transactions to the main purpose of the entity). UDFI is also assessed on the portion of debt and I advise that a potential investor always speaks to a qualified tax specialist.

I am fairly new here but have not yet had a chance for a proper introduction. For now I enjoy reading everything as it's full of great advice thanks to everyone's input. I do however have a question whether it's feasible for a new licensee to hold a Illinois real estate broker license in an LLC. I would elect to be taxed as an S corp and am mainly interested in the limited liability aspect and eventually having the LLC hold my managing broker license. Any thoughts on this from local brokers is appreciated!