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The exception to this is when you are using a self directed IRA (or similar source). In that case, the IRA is the damaging party and can be taken. Then they go after you and your other assets because you own and make decisions for your IRA.

Mohamed,

It sounds like you need a new agent for future deals.

Did you sign any kind of exclusive agent agreement with her (technically, with her broker)?

If so, then you need to talk to her broker to find an agent in their office who is more compatable with your style. If you can't do that, talk the broker into releasing you from the agreement. Most brokers will, just to keep from getting a bad rep.

Look for a new realtor at a local real estate investment club. Chances are the realtors there get it.

Any time there is a realtor involved, you are paying a commission (OK, the seller pays but the buyer pays indirectly). For this extra cost, the seller gets to be represented by an agent. You have the opportunity, here, to be represented by an agent for free.

If you interview and find a good agent, then they become a valuable member of your team.

Jay,

It'll cost a little bit more but check out Lease Purchase (first check Florida Law, I heard a rumor that there are limits on LP in Florida). That way, you can set a property's future purchase price now, keep cash reserves, and buy the proerty in 1-3 years if your business does well.

This is also a good way for a newbee to learn a territory and make some money to fund their startup.

Also, learning the values of the properties in your territory and leaning how to value a property are all valueable to a new investor.

Too bad Orange County, California is mostly taken (except for three war zones). I'd be tempted.

Mohamed,

Ethically, since you got the lead from her, you should go through her. If she actually gets in your way or damages your ability to make the deal, I would then inform her that I had to move on to another agent (or use that to try to get her to learn something).

If she's a good source that you don't want to lose but don't think that you can train, you can put an offer directly to a listing agent (listing your agent as the selling agent so she gets her half of the commission). This all depends on the listing agent and if your agent's broker has a problem with that. Remember that your agent's broker is responsible for everything she does as an agent. That includes things done in her name.

I don't know the rules of Rohde Island but in general, I believe so.

There are so many costs that they can add on, however, that you'll likely never see any of it.

I think this and other factors are going to limit the opportunites in REOs. Neither the banks nor the Feds want to see a fire sale for houses.

I hope I'm wrong though.

Thank you Jon and Mohamed.

Do you pay self employment tax on the money you put into the SEP? I assume not.

If not, do you pay self employment tax when you pay the income tax to convert the SEP to a Roth-IRA?

That's good to hear.

I thought that it was strange but since the guy who siad it was a GA resident and had been in the business a while, I figured he should know.