Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

User Stats

2
Posts
0
Votes
Robert Gerrard
  • Glen Mills, PA
0
Votes |
2
Posts

how should a buyer broker commission be handled in an LLC

Robert Gerrard
  • Glen Mills, PA
Posted

So I'm fairly new in this game.  

I'm a partner in an LLC with two very close friends. I'm a licensed Realtor, they are both unlicensed contractors.

We recently bought a Fannie Mae property and I was compensated 1% commission as the buyer's agent.

What is the right thing to do? Should I funnel that commission back through the LLC as part of the over deal? Or should I keep that commission as personal income? I'd like to do the right thing and I'm just curious how this topic is handled in most cases? It was a nominal amount of 729$...but for the sake of being fair I'm trying to gauge what the collective response would be.

I agreed on listing the property for no fee (on the listing side) after repairs but ultimately my partners feel that the money from the buyers commission should be treated as profit to the LLC. After some thought, I agree with them.

Thanks,

Rob

  • Robert Gerrard
  • Loading replies...