Becoming real estate agent on the side while having W2
Hi Everyone,
I am having a W2 job that pays well and I am happy with the work. Recently, I passed RE salesperson exam and about to get a license. I did it mostly for my own deals but now I am thinking I might casually do it for my colleagues.
I am trying to figure out what is the best structure for my real estate agent activity. I have the general idea what I can deduct (car miles, fees, maybe client dinner?). What I am not clear about is whether I should create LLC, S Corp etc.?
There is probably a low probability of me making any deals the first year and earning a commision. So I want to make sure I can deduct my real estate agent expenses against my W2 income. At the same time, most likely my expenses wouldn't be that high, so cost overhead of creating LLC probably be important.
I am also open to idea that if I get lucky and make bunch of deals, my initial structure should be reconsidered.
Thanks a lot guys! Learning so much here.
Most Popular Reply
Everyone I know that had a w2 and now full time all crossed 70% of their w2 income in RE and then went full time. I also know others who have 50- 200 home rentals and still keep their w2. As a small business owner ( I own a full service sign company also last 12 years) if you do not have 1 year of operating expenses saved up, keep the day job.
You can easily market as if you were full time. Think about it 5 good posts per week is not that hard find what suites you.