All Forum Posts by: Sawsan Abubaker

If you work with a realtor it does not mean you were handed the property easily. You will need to take your contractor to evaluate the property and give you a repair estimate. Then you will work with the realtor to evaluate comps, days on market and ARV. You basically work as a team. You do need a power team. I work with flippers and I am there finding the properties, evaluating comps, walking thru with the client and contractor and then working with the investor to formulate the best possible deal for them and taking into account a cushion for the unexpected. Look at it as you need a power team.

Hi Matthew,

I am real estate agent in Illinois and have seen and dealt with such an issue. First, as you have stated you need the permission from your broker. The broker will usually say you can do whatever you want with your share of the commission but not theirs.

Usually when it comes to lowering commission to help the seller, the idea to lower commissions comes from the selling broker and the buying broker can agree to lower their share of the commission to share the decrease with the selling broker or refuse. The selling broker can not lower any commission percentages for the buying agent without approval.

What you are referring to seems more like you want to give your buyer a rebate. This would be entirely a decision for you to make if you feel that is the only way to save the deal. The rebate of course will be given after you receive your share of the commission, so you will also need to see if the buyer has enough funds to cover the closing costs you are looking to rebate.

As real estate agents we are not in the business of giving up our commission after working hard on a deal to close; however, there are certain situations that warrant it. I usually offer rebates to clients that sell and buy through me. I then give the rebate after the last deal closes for that specific client.

For one client, I was on the sell side on a deal and I had somewhat of a difficult seller, so in order to make a deal work, and since she was going to buy through me as well, I offered to share the closing cost credit she was going to give the buyer of her townhouse. I was not going to cut the buying agent's commission because it was not their fault I had a difficult seller. The rebate for the closing costs was going to be given after we closed on the house she purchased after the sale.

A lot of these commission rebates and decreases come into play based on the relationship with the client. For example, I have an investor in Illinois that flips properties. She is a fairly new investor and we have an agreement that after she buys and sells a certain number of properties with me, I will work with her on the commission % from the sell side.

Sorry this response is longer than expected. Hope this helps though. 

Hey Benjamin Cohen , I am realtor in the south suburbs by Orland Park, Tinley Park and other surrounding areas. You need to look at areas like these with good schools and high demand. If you would like to discuss more send me a private message. I work with flippers and I do comps, research school, days on market and so on.

I am a tax professional in Illinois. Here is a brief explanation of Passive activity loss: Passive Activity Loss Rules: A set of rules that prohibits using passive losses to offset earned or ordinary income. Passive activity loss rules prevent investors from using losses incurred from income-producing activities in which they are not materially involved. Being materially involved with earned or ordinary income-producing activities means the income is active income and may not be reduced by passive losses. Passive losses can be used only to offset passive income. The key issue with passive activity loss rules is material participation. If the taxpayer does not materially participate in the activity that is producing the passive losses, then those losses can only be declared against passive income. If there is no passive income, then no loss can be deducted. Passive activity losses can only be carried forward; they cannot be carried back.

Thank you @Michael S.

Hello,

When you sign up for a webinar where do you to join it? I signed up for a webinar that just started and I do not know where to go to join. I did not even receive an email about it.

Hello Dan,

It is best for you to talk to an attorney and your accountant before you purchase another property under your name. You need to form the LLC and then purchase the the property in the name of the LLC.

I would suggest you speak with Thomas Lynch he is a real estate attorney and he was an agent for the IRS. I am a real estate agent and enrolled agent and have worked with Thomas Lynch from both aspects. He can guide you. You can tell him Susan sent you. I send all my investor clients to him as well. 

Here is a link to his website http://www.thomaswlynchpc.com/about-us/attorney-thomas-w-lynch/

Hope this helps.

Sawsan

Hello Jason,

1. This would apply mostly for FHA loans since they do have stricter guidelines. Unless the buyer is applying for a FHA 203k renovation loan and then that may not be an issue. Conventional loans may have a little less stringent rules on this matter, but each lender is different.

2. A buyer can request any repairs that they would like the seller to make, but it is up to the seller if they want to accept to such requests. Various factors will come into play here such as how long the property has been on the market and how motivated the seller is to move. The sellers usually will not replace anything that is nearing the end of its useful life since they are moving and will not be using it personally. As long as everything is functioning and in working order.

3. This would depend on the list price of the property, the value and prices of similar comparable properties, the condition of the listed property and also how long the property has been sitting on the market. The whole idea here is not to offend the seller to keep the lines of communication open. It is usually advised to stay within 90% if the list price to be reasonable, unless there some valid reason to offer less and provide substantiation.

From my experience, all real estate deals are guided by the personalities, attitudes and emotional attachments to the property. If a buyer goes in thinking I am going to squeeze the seller for every penny and go about it the wrong way, the outcome will not be favorable for the buyer. 

I would be interested in attending. Would love to hear Tony Robbins in person. I went to a RE seminar in Vegas and some of the presenters included Dave Seymour and Pete, Damon Lines, Mike Baird, Doug Hopkins and Christina El Moussa. 

It was a three day event and it is great learning from those with a lot of experience. They were selling programs and products as well, but you can just listen and ignore that part.

Hello Nikit,

Congrats on your passing!! I am an agent in Illinois as well. I am with Baird & Warner, but I have heard that Classic Realty charges a fee but the commission is 100% to the Real Estate Agent. You can check them out.

Sawsan