Real Estate

Earn back buyer's real estate agent commission - Become an Agent. New Humber College Course is now live!

  • Last Updated:
  • Dec 4th, 2019 3:53 pm
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[OP]
Deal Guru
Aug 2, 2010
14506 posts
4283 upvotes
Here 'n There
krysim wrote:
Nov 3rd, 2019 9:29 am
I am writing my last exam this month. In addition to buying/selling homes for friends and family, I want to represent myself in the purchase of my own home. I want to be an agent part time and my marginal tax bracket is at 48-52% from my full time job.

If I am successful in an offer on a $2 million home and I represent myself on the buy side, I keep the 2.5% buyer agent fee so I have to report the $50,000 as income. Not only do I have to do the work being my own representative, with a 48% marginal bracket after taxes I only take home $26,000, even less if at 52% which gets me $24,000. And then I have to pay brokerage fees on the deal, etc. So less than 1.2-1.3% after taxes.

For the purchase of my own home, isn't it better for me just to find another agent that will give me 1-1.5% cashback and bank $20,000-$30,000 instead? As I understand, for a client's primary residence, the rebate is not taxable.
No
Newbie
Aug 11, 2019
68 posts
54 upvotes
Toronto
My strategy so far has been to read the text books as a whole, and then do passit for a week before the exam.

I’m on my 5th course now (The Commercial Real Estate Transaction), and I want to try minicram.

If anyone has minicram for this course, would they mind sharing?

Thanks!
Deal Fanatic
User avatar
Dec 11, 2005
6904 posts
660 upvotes
TO
Dayravi wrote:
Nov 5th, 2019 10:34 am
My strategy so far has been to read the text books as a whole, and then do passit for a week before the exam.

I’m on my 5th course now (The Commercial Real Estate Transaction), and I want to try minicram.

If anyone has minicram for this course, would they mind sharing?

Thanks!
Hi Dayravi I assume you're registered via the earlier Orea method and not Humber correct?
Achieva Financial /KOHO / STACK (0% FX Fee) /Tangerine / EQ Bank member / I use Plastiq for paying bills with my CC ;)

"You can’t soar with the eagles if you’re hanging with the turkeys.”Gary Kent
Newbie
Aug 11, 2019
68 posts
54 upvotes
Toronto
TorontoEh wrote:
Nov 5th, 2019 11:44 pm
Hi Dayravi I assume you're registered via the earlier Orea method and not Humber correct?
Yes, thru OREA.
Member
Oct 10, 2010
459 posts
261 upvotes
Hi,

Bit confused on when I can really join a brokerage and start doing sales. Is it after 4 courses or afer 3a/3b course (that exam)?

Thanks!
Sr. Member
Sep 16, 2010
741 posts
246 upvotes
Mississauga
nik707 wrote:
Nov 10th, 2019 6:40 pm
Hi,

Bit confused on when I can really join a brokerage and start doing sales. Is it after 4 courses or afer 3a/3b course (that exam)?

Thanks!
After Course 5.
Newbie
Jun 21, 2018
6 posts
Hi there.

I was also curious about the minicram as I am writing my second test in December and have been using passit.

Does anyone here have minicram for the second course (Land, Structures and Real Estate Trading) and would be kind enough to share it?

I am registered under the old OREA curriculum.

thank you in advance.
Jr. Member
Mar 21, 2006
161 posts
14 upvotes
Curious if anyone has enrolled into the Brokers course?

If so which elective course did you end up taking?
Deal Fanatic
User avatar
Dec 11, 2005
6904 posts
660 upvotes
TO
Anyone recently enrolled into the Humber program and can advise on if a lot has changed in terms of books etc from orea program? Do you buy books after enrolling in each course?
Achieva Financial /KOHO / STACK (0% FX Fee) /Tangerine / EQ Bank member / I use Plastiq for paying bills with my CC ;)

"You can’t soar with the eagles if you’re hanging with the turkeys.”Gary Kent
Newbie
Apr 18, 2009
32 posts
13 upvotes
Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
Member
Feb 19, 2019
427 posts
350 upvotes
Stouffville ON
rammar wrote:
Nov 20th, 2019 9:05 am
Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
It is not a big deal, and even lesser of a deal since the new TOSI rules introduced few years ago regarding dividends etc. It will be similar to other professions who already can incorporate. Similarly to other professional corporations if the agent gets sued for malpractice, corporation will not protect them, there will be protection from creditors, the biggest benefit will be tax deferral. For most agents it won’t make sense to incorporate, it may make sense for the agents who make good money and don’t spend it all.
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[OP]
Deal Guru
Aug 2, 2010
14506 posts
4283 upvotes
Here 'n There
rammar wrote:
Nov 20th, 2019 9:05 am
Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
Not really as the CRA rules on the deduction of expenses are exactly the same whether you are incorporated or not. However, it will provide limited liability, but then your RECO insurance covers that except for insanely narrow situations. Keeping your earnings in the corporation for 10+ years and receiving a positive return will result in marginal tax savings but then who keeps $ in a corp that long? Almost no one, especially on an real estate salesperson's income. So, basically incorporating is a non-event and will just increase your cost of operating due to filing requirements, cost of preparing financial statements and corp tax returns and the like, etc.
Newbie
User avatar
Apr 11, 2019
16 posts
13 upvotes
Question on the same note - can one add "real estate agent" activity to existing corporation? (Federal corporation)
Deal Fanatic
User avatar
Dec 11, 2005
6904 posts
660 upvotes
TO
rammar wrote:
Nov 20th, 2019 9:05 am
Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
I was surprised myself it wasn't allowed for that long. Aren't there agents who do few deals a year and work out of their home office?
Achieva Financial /KOHO / STACK (0% FX Fee) /Tangerine / EQ Bank member / I use Plastiq for paying bills with my CC ;)

"You can’t soar with the eagles if you’re hanging with the turkeys.”Gary Kent
Member
Feb 19, 2019
427 posts
350 upvotes
Stouffville ON
gospodar wrote:
Nov 20th, 2019 12:23 pm
Question on the same note - can one add "real estate agent" activity to existing corporation? (Federal corporation)
Not likely, it will most likely be done via professional corporation. The link below describes differences between professional corporation and other corporations.
https://www.liveca.ca/what-is-a-profess ... -practice/
Full Time and Full Service Cash Back Realtor

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