Buyers Agent Represents Self

[Jessica S.]

If you are a licensed agent and looking to build rental portfolio, assuming you represent yourself... what do you elect to do with buyer side commission? 
1) Get paid as if agent

2) Try to Reduce closing costs

3) Reduce purchase price amount?

[Chris Mason]

Realtor commission checks are taxable income.

Seller credits towards "closing costs" are not taxable as income.

So $10k in seller credits towards "closing costs" is better than a $10k commission check, obviously. Go pay a CPA $300/hr to tell you the same thing, I'm not a tax pro, so this can't possibly be tax advice, please do your own due diligence. 

From the seller's perspective, swapping out a 3% commission for a 3% seller credit towards "closing costs" is a wash come tax time.

The solution thus far is obvious, however...

Fannie Mae is going to get in the way, because on investment properties seller credits towards "closing costs" are capped at 2%.

I believe that should give you some tools to work with. :)

First time homebuyers, as always, work with a Realtor. A real one. Once you have 4 or 7 transactions under your belt, then and only then should this be a tree you bark up.