All Forum Posts by: Elvin William

I think you will find that very little will change and the Seller will still pay the commission for both agents in the vast majority of transactions. Listing Agents will just not be allowed to advertise the co-broke that they are offering in the MLS, but they will still offer it most of the time, it just won't be advertised in the MLS. However, when they don't offer it or they offer something that is less than the Buyer's agent charges then the Buyer can just write in the offer that the Seller is to pay "x commission" to the buyer's agent. I have already seen the new forms/addendums that will be used here in Arizona, the common one for this will be the Seller Compensation Addendum.

The one thing that might happen in your discount buyer agent scenario is you might get a buyers agent who agrees to a lower commission and then the listing agent is offering a co-broke that is higher than he agreed to, well now that buyers agent will only be able to get paid the lower amount he agreed to and the listing agent will keep the remainder, so listing agents could end up getting paid more.

As far as your question on what to pay an agent, I view it similarly to hiring an attorney, there are discount attorney's and they might be okay for some people in some circumstances, or if you know the proper procedures and deadlines then maybe you do it on your own without an attorney. Or just hire the best and have the other side pay their fees for you.

Thanks for the update. I will keep that in mind. I mean, if I'm paying that much money, I'm hoping for deal on a house. I'm going to make you work for that commission.

0 Votes

Sacramento, California

Thanks for the feedback. There are few realtor I talked to say, we charge this amount and said, I wont get a discount on houses we look at. So the bottom line is from this realtor is, don't waste my time. Bid the house what ever the house price is at. Don't under bid. If you do that, your wasting my time. I was really surprised about that. The realtor wants 3% of house price.

0 Votes

Sacramento, California

Hello, I think aug 7th, everything is going to change for buying a home. We are paying for commission for agents instead for sellers paying that. Now the main question is what is a good price for agents? Do we have a minimum or a set rate for a agent? 3% is to much to pay for agents for a house over $500,000. $15,000 to pay a agent for $500,000. There is no fix rate like $5000 for a commission? I know you pay what you get. But now it's getting more expensive to buy a house now. Any feedback back is appreciated.

2 Votes

Sacramento, California

So they are in the lowest tax bracket. Hire them to help them out. They will be W2. They won't have any tax strategy.

0 Votes

Quote from @Jason Watson:

You are getting into a lot of what-if's and "it depends." Talk to a qualified tax pro... you might be heading for trouble otherwise.

Thanks..I have a appointment with one in a week.

0 Votes

Quote from @Jason Watson:

Are your in-laws contractors? Or are they going to be helping out here and there?

Certainly paying them a wage or fee reduces your rental income... but then they have to recognize that income (perhaps at a lower tax rate?).

What specifically will they be doing? What do they do now? Are they expecting to pick up an income tax liability from your payments?

Thanks for commenting. My in law will help with my business, question is with what. I need them to babysit my kids while I continue doing my rental property, like buying and looking at cost to rehab and other stuff. What does my in law have to do to like work wise to be my employee? I'm very new to this. I have LLC. I heard that, if I hire my in law, I will get tax benefits and they pay lower bracket. What paperwork should I file or filled up to start doing this?

0 Votes

Hello, I'm looking at hiring my in laws for my LLC rental property business. Question is, how can I take the step and how do I do that? Also, do I really get tax benefits for hiring my family member. Can I do write off on that income as business expenses? What's the pro and cons on doing this? Is this smart doing this? Thanks.

0 Votes

Quote from @Bob Stevens:

I just today got $900 for a 1 BR in the hood, (7-unit building, all in 34k per unit) this is why I like the lower end areas!!

Wow. You going to rent long term section 8?

0 Votes

Quote from @Lisa Jones:

I rented to section 8 tenants for 10 years. It will test you. It helped me realize the hard way that location really does matter. My biggest challenge was finding an effective property manager as I was not able to manage it myself. I have posted over the years on this topic. Spoiler alert: in 10 years I never found one. In my experience, D class neighborhoods attract D class property managers. A class property managers will opt for better neighborhoods. The caliber of managers willing to go to those neighborhoods was low. Again just my experience. In retrospect, it’s best to be hands on if you can and manage these types of properties yourself. It’s better to have a presence at the property and I have found the tenants to be a lot more high maintenance. They are also hard on your properties and require extensive repairs. I’m happy to share more of my experience if you’d like to DM me. One positive to note, during Covid when tenants stopped paying their rent ( and the government supported them in doing so) it was great to have section 8/ at least I got the minimum amount to pay the mortgage!

That was a great information. The property management I have is so great to me and my property. I have 2 property is D class and 2 in C+ or B- area. And the property management does the same job. For them, they treat people right. I have one section 8 that has issues, like not putting trash can back where they should be at. Toilet leaks, some stuff like that. I like issues like that, that I can fix and don't worry about it in the future. If you have section 8 not telling you the issue, than in long run, you going to have a bigger issue. All my property are under $40,000 and rents are like $950 to $1112 a month. If I can cash flow $500 to $600 each, I should be fine.

0 Votes

Quote from @Bob Stevens:

Quote from @Elvin William:

Quote from @Bob Stevens:

Quote from @Elvin William:

Quote from @Bob Stevens:

Quote from @Elvin William:

Hello, I want to know if anyone is investing in D class Midwest neighborhood. How are you guys doing with D class. I'm more into section 8. Is anyone having positive experience? Thanks. I have 2 sfh in D class. $37,500 and $30,000 another one. Rent is $950 and other is $900. They pay all the utilities. My monthly mortgage is $300 each with 20% down.

Yes, for about 10 years, Pricing has doubled, tripled or much more in those areas. Buying as much as we can in certain D areas. 35k for a fully renovated prop, you must be in an F area. Even in the worst areas of my market you are not getting a fully renovated prop for under 50k- 60k. What market you in ?

Toledo area. 43608 and 43609 area. Got two houses for $30,000 each. So putting another $30,000 to rehab.

Ok so all in 60k, ARV? Rent I assume ( 3 brs ) 1300- 1500 ?)

I wish. In that area, it's around $900 to $950 a month. And after fixing, I'm all in at $67,000. This is my first ever property I bought. I live and learn experience.

All in fully renovated for 70k with 925 is not bad. I know the taxes are low. We get 1400- 1600 for 3 brs all in 70- 90k :) Duplex all in 90- 110k, rents from 1800- 2k :)

All the best

Hey congrats man, thats a good deal for your 1st, Keep on going

Where do you buy your property?

0 Votes

All Forum Posts by: Elvin William

Elvin William has started 10 posts and replied 39 times.

Post: What is best price to pay for a realtor?

Post: What is best price to pay for a realtor?

Post: What is best price to pay for a realtor?

Post: Help with hiring family members tax benefits

Post: Help with hiring family members tax benefits

Post: Help with hiring family members tax benefits

Post: Help with hiring family members tax benefits

Post: Any one has rental in D class neighborhood.

Post: Any one has rental in D class neighborhood.

Post: Any one has rental in D class neighborhood.