Hey all,Just wanted to give a frame of reference for those who are thinking about being a real estate agent, whether it is to do "retail" sales or investing here are some of the cost associated to being an agent:I am located in Tulsa, OK each region/brokerage/style is going to be differentP.S. other realtors feel free to chime inGreater Tulsa Association of Realtors (access to MLS): 663/year (paid quarterly)National Association of Realtor fees: 685/year (paid in full upfront per year)Monthly Desk Fees: 990/year(HUGE range depending on style of broker)Continuing Education/Renewing License: 150/year (Just an estimate on the high side, new license last 1 year, then 3 years after, may want to upgrade to broker's etc.)Bare Bones: 200-250/mo or 2400-3000/yearNot that bad if you ask me, but there are a ton of other cost that you may not of thought about:On the "retail side":Advertising Costs, Marketing Materials, Coaching, Health Insurance - 1000/mo (doesn't include my health insurance)I am pretty conservative in my marketing also: 1250-1500/mo or 15000-18000/yearBREAK EVEN POINT:Here are more costs when you do make money:Taxes - 1099, there are a ton of things you can write off, but you are still responsible to pay the 7.5% that most companies pay off the top*Commission Split - most start at 50/50 some go to 100%, depending on how you start this could be even lower than 50/50*Splits, franchise fees, and commission vary a tonREALTOR BREAK EVEN:Let's just assume that our break even point is 1000/mo, I advertise more than a newbie (I know most of the things I mentioned are tax write-offs, so I wont include that in our calculations)1000x2(commission split of 50/50) = 20002000/.93(franchise fee of 7%) = 21502150/.03(commission off sale) = 71,666 (price point of house needed to be sold)71,666x12 = 859,992You need to sell almost 900,000/yr or 71,666/mo to break even in this industry... 

MattHi There Matt,Good to see you on BP.I've done a lot of these BRRR's or refi's for clients and myself and yes appraisers tend to be very very conservative on refinances.Reason being, on purchases, a new contract signed between buyer and seller assuming no distress is considered "market value," so appraisers are able to stretch an appraisal around 10-15% in some cases when conducting appraisals on purchases.This is a stark difference from refinances where they go out to the market and generally look at:- comps with 1/4 quarter mile (1/2, 3/4, and 1 full mile if no comps within 1/4, 1/2, etc distances)- most recent sold properties are used only and pending sales (not completed yet) is given 2nd class consideration- consideration is given to properties of the same title size, lot size, square footage, condition of the property and otherI've often seen that upgrades and rehabs dont always give you the adjustment you (as in buyers) often want so when judging if you should do the work to improve the property its important to look at "value," through the lense of an appraiser.I've spent 80k before and got 100k more in appraisal and at the same time I've also spent 65k and got 30k.

“The prospects for growth in that business are huge,” Chairman and Chief Executive Officer Steve Schwarzman said on the company’s first-quarter earnings conference call in April.

Mgmt costs expensed.So, to answer your question, your brother receives some preferred quarterly return on his capital.  

If I pay the county to serve all documents, spend $20 for a court date, etc, you can do it yourself for a quarter of the price.This is liberating for a small time investor

I want to only be personally responsible for a quarter of the down payment (25% of 25%), while my friend pays the remaining 75% of the down payment.

Receive and market to Quarterly Inherited Lists from USLEADLIST.I have contacted my local county tax office try and obtain the delinquent tax list but have had ZERO success.

If the rent is instead paid quarterly, etc. the notice period will be different too.

I'd put another 20% into a  hard money loans fund like Broadmark ( instant  diversification into hundreds of notes,  quarterly redemptions after a one-year lock up).  

If you are accredited, there are deals that target that type of CoC return each year, paying you distributions quarterly along the way and w/some upside in refinancing and sales down the road that could get you in the high teens to 20% IRR over 5 year type hold periods.