All Forum Posts by: Sean Abrahamsen

Sean Abrahamsen has started 2 posts and replied 8 times.

Originally posted by @Ali Boone:

Are you focusing as well on learning about properties and what makes for a good investment? If you don't learn that, an accountant and LLC or not-LLC won't do you any good. But to your question- accountants aren't that hard to find. Can ask random investors for referrals. For the LLC, to me it's putting the cart long before the horse. Here's why I decided not to go the LLC route for myself though, if you're really wanting to focus on that before the property itself-
https://www.biggerpockets.com/...

Hi Ali,

I have invested almost all of my time learning about properties and the math behind what makes a good investment, which is why I am curious about the other smaller things that I have not done any research about.. ie. the accountant and LLC. After the last few days of researching LLCs, I will most likely not plan on using a LLC. Thank you for your blog post as well.

Thanks,

Sean

0 Votes

Originally posted by @Kristin Kiddy:

I disagree. I like the idea of charging a small fee up front ($200 to $300). There are too many people who want all the expert advice and then drop the agent like a rock as soon as they get their answers/info. My broker has 30 years of experience in real estate investment, commercial real estate, and rental management. He can provide market analysis and real estate investment planning for his customers that is tailored to their specific needs and goals. He is thinking about charging a small fee upfront to be credited back to the buyer/or seller at time of closing. This shows that the customer is committed to him and prepared to actually move forward with their investment. And if they don't buy or sell anything, then they got an amazing education at a very cheap price. (I feel very lucky to be working with him. I'm learning a ton every day).

Thank you for your perspective Kristin. I understand the idea behind charging an upfront fee to make sure the customer is committed but how do I know that this agent will not just take my money and I will never hear from him again. I just haven't heard of anyone charging an upfront fee, but I am new to this game so I wanted to understand where this was coming from.

0 Votes

Originally posted by @Mindy Jensen:

@Sean Abrahamsen, agency agreement is standard. What is the $300 for? I don't know any agents who charge to work with them. I'd find another agent, personally.

Hi Mindy,

It is a "buyers exclusive agency contract" that is stating that this realtor will work with me for 6 months and is requesting additional compensation of $300 upon signing of this agreement for his time and expenses during those 6 months.

0 Votes

Originally posted by @Mike Cumbie:

The "agency agreement" (If it is like NY), simply states who they are working for at that moment (Not a contract for future work). It is required for us so that I can say I represent you while we talk (state mandated so that if I really work for the seller you know it), you are not locked into me though.

Now an "Exclusive right to represent" is different, that usually says "Hey you are hiring me for 6 months" or some such. As far as the cash upfront, I don't and don't know an agent that does, however San Diego it could be common practice.

good Luck!

Hi Mike,

Thanks for the info. This is an out of state realtor in Missouri. I took a closer look and it is a "buyers exclusive agency contract" that is stating that this realtor will work with me for 6 months and is requesting additional compensation of $300 upon signing of this agreement for his time and expenses during those 6 months.

From what it sounds like, I should not need to pay any money for a realtor and should avoid this guy.

2 Votes

Hi Everyone,

I am fairly new to real estate still but I am on the hunt for my first rental property. I have been in contact with some real estate agents.

I have one real estate agent that has asked me to sign an agency agreement and $300 in order for me to work with him. I am wondering if that is a normal thing or is this a red flag.

Any thoughts on this would be much appreciated.

Thanks,

Sean

1 Vote

Originally posted by @Corby Goade:

Welcome! Those are great questions, but probably better suited for the accountant and attorney you end up working with. Depending on how you structure your business, it's likely that the owner of the property (either you or your LLC) will not impact the tax benefits in any way. Entity structure at the level you are talking about is really a way to legally separate your personal assets from your business assets.

Beyond that, I'm happy to help you get the ball rolling in any way you need. Feel free to reach out. Best of luck!

Hi Corby, thank you for the info, that was helpful. My biggest struggle right now is finding the right location to buy a rental property. California is way too expensive, so I have been looking out of state!

1 Vote

Originally posted by @Jeremy Goodman:

Welcome @Sean Abrahamsen!

Have you read How to Invest in Real Estate? It will help you figure out Question 2. And are you already working with an accountant in your area? I only ask because they may have additional recommendations for Question 2.

Hi Jeremy, I have not read that book. I will look into it! Thanks for your recommendation. I am not currently working with an accountant. I called a couple last week to get the ball rolling on finding the right accountant. I plan on calling a few more this week.

Would it be best to find an accountant before I buy a property?

0 Votes

Hi Everyone,

I wanted to finally introduce myself to the bigger pockets community. I am a mechanical engineer working in San Diego and looking to buy my first long term buy and hold rental property to get some cash flow! Looking for a simple property to force myself in the game and learn the initial process before getting into possibly more complicated deals. I have been doing research for months and decided to make a goal to buy a property by the end of the year. So I have my work cut out for me!

Things I would love help with and/or if anyone has someone they would recommend:

1) Looking for an accountant

2) Buying the house under an LLC or my name for tax purposes.

Thanks for taking the time to read this! I would love to connect with all of you!

-Sean

1 Vote

All Forum Posts by: Sean Abrahamsen

Sean Abrahamsen has started 2 posts and replied 8 times.

Post: Buying my first rental property

Post: Real Estate Agent asking for money

Post: Real Estate Agent asking for money

Post: Real Estate Agent asking for money

Post: Real Estate Agent asking for money

Post: Buying my first rental property

Post: Buying my first rental property

Post: Buying my first rental property