Thread: Investing as a Realtor through an LLC?

Originally Posted by HHI Investing

Greetings,

I'm a licensed Realtor in SC. I've been studing various techniques of investing for about 8 months now and i'm quite familiar with many techniques and now it's time to TAKE ACTION! Just about all my ducks are in a row but.......

My question is this......

As a Realtor, if my LLC or Roth IRA is purchasing a property, do I have to pay a commission split with my broker? I thought it is it's own entity/principle in the transaction.

I realize that if I'M buying a property in my own name, I'M MY OWN BUYERS AGENT and therefore have to pay the appropriate commission split to my broker.

I've already left one Broker (who was less than supportive about me being an investor) to go to another more "investor friendly" brokerage.

I appreciate any feedback from the forum.

Darin
HHI Investing, LLC

If you earn a commission of any sort on the transaction you will have to pay a split with your broker.

Maybe I should clarify a little more.

If my LLC or my Roth IRA purchases a FSBO, wouldn't this be a private transaction between to private parties?

I understand that if a property is listed on the MLS for sale that I'm obligated to pay the commission.

Originally Posted by HHI Investing

Maybe I should clarify a little more.

If my LLC or my Roth IRA purchases a FSBO, wouldn't this be a private transaction between to private parties?

I understand that if a property is listed on the MLS for sale that I'm obligated to pay the commission.

Yes, if a commission is paid on the sale you will have to have it go through the broker. If no commission was paid at all and it was a private transaction then in many states it would not have to be processed by your brokers firm. It is national law that a real estate agent may only recieve payment from their broker.

You will also have other difficulties investing in real estate as a license holder. You will have to disclose to every party in the transaction that you are a real estate agent. You will also have to disclose the current market value of any property you purchase to the seller. Holding a license and investing in property has alot of added liability for you and your broker. That is why it is best to not hold a license as an investor.

The answer to your question will be in your independent contractors agreement you have with your broker. We can only speculate as to what your broker will do.