Real Estate

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

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  • Jan 10th, 2020 11:40 am
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Newbie
Feb 25, 2019
3 posts
1 upvote
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
This is misleading, a bill was introduced. It has not received Royal Assent to become law. Bills like this have been introduced 3 times over the past several years and failed. Granted, this one is actually sponsored by the MGS so it might pass, but it is not law.
https://www.ola.org/en/legislative-busi ... 145/status
eonibm wrote:
Nov 20th, 2019 10:43 am
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.
For part timers it will be good. You draw T4 income from your day job and assuming you don't need income from being an agent it can be sheltered in the corp until you are in a lower marginal bracket. Same with good agents, they can use it to tax plan.
[OP]
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Aug 2, 2010
14799 posts
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krysim wrote:
Nov 21st, 2019 11:16 pm
This is misleading, a bill was introduced. It has not received Royal Assent to become law. Bills like this have been introduced 3 times over the past several years and failed. Granted, this one is actually sponsored by the MGS so it might pass, but it is not law.
https://www.ola.org/en/legislative-busi ... 145/status



For part timers it will be good. You draw T4 income from your day job and assuming you don't need income from being an agent it can be sheltered in the corp until you are in a lower marginal bracket. Same with good agents, they can use it to tax plan.
That's a lot of if's, not to mention they are offset by the fact you'll be paying $1.5K-$2K per year for financial statements, filings and corp tax returns on your meagre part-time real estate salesperson's income. That's really going to eat into any savings which are far from assured as you may not be in a lower tax bracket in the future, not to mention you should hope that is not the case. Also, remember that if you have an RRSP you are forced forced to withdraw rising sums of money each year after a certain age whether you like it or not.
Einstein: Imagination is more important than knowledge.

Economists have predicted 18 of the last 4 recessions

S&P500 Annual Returns (not inflation adj'd, divs reinvested) by Yr/%: 5/11.29, 10/13.31, 15/8.89, 20/6.06, 30/9.90, 40/11.69, 50/10.5
Newbie
Feb 25, 2019
3 posts
1 upvote
eonibm wrote:
Nov 23rd, 2019 3:27 pm
That's a lot of if's, not to mention they are offset by the fact you'll be paying $1.5K-$2K per year for financial statements, filings and corp tax returns on your meagre part-time real estate salesperson's income. That's really going to eat into any savings which are far from assured as you may not be in a lower tax bracket in the future, not to mention you should hope that is not the case. Also, remember that if you have an RRSP you are forced forced to withdraw rising sums of money each year after a certain age whether you like it or not.
Sorry to hear that it seems like you won't find it of benefit. But OREA and Realtors have been advocating it for years, so maybe they know something you don't.
For more information on the benefits of a PREC (and the 5 other parts of the changes), OREA has a site on this topic: https://www.rebbareform.ca/
[OP]
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Aug 2, 2010
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krysim wrote:
Nov 24th, 2019 1:08 am
Sorry to hear that it seems like you won't find it of benefit. But OREA and Realtors have been advocating it for years, so maybe they know something you don't.
For more information on the benefits of a PREC (and the 5 other parts of the changes), OREA has a site on this topic: https://www.rebbareform.ca/
No they don't know something I don't. For the average agent who is working for themselves without staff they pay, which is mostly all agents, it is not a benefit. For the infinitesimally small number of agents and support staff that could work for one corporation as a team it could help depending on how it is structured and how the funds are paid out. For those agents it could allow more working capital within the corp due to the favourable tax treatment. It is by far the exception not the rule and does not apply agents who work part time or work on their own, which is pretty well everyone who became an agent as a result of my thread.

So for most agents being able to incorporate is not a huge deal by any stretch of the imagination.
Einstein: Imagination is more important than knowledge.

Economists have predicted 18 of the last 4 recessions

S&P500 Annual Returns (not inflation adj'd, divs reinvested) by Yr/%: 5/11.29, 10/13.31, 15/8.89, 20/6.06, 30/9.90, 40/11.69, 50/10.5
Newbie
Mar 17, 2015
17 posts
3 upvotes
Toronto
davisml wrote:
Dec 4th, 2019 3:53 pm
I just finished my last exam and looking to join a brokerage part time. I am thinking of Right at Home realty since they cater best for part time agents. I think they offer something like $300 in credit if an agent gets someone new to join the brokerage.
Is anyone interested in referring me?
Yes right at home is a good place both for p/t and f/t agents. I was with centuey 21 before, but Switched to RAH shortly.
Newbie
Nov 2, 2018
37 posts
17 upvotes
goJays wrote:
Sep 5th, 2019 3:59 pm
I am choosing the Investment Analysis articling course. Anyone have notes on this? Passit doesn't have this course :(
Am planning to take realestate investment analysis. Did you get any preparation material ?
Newbie
Jun 21, 2018
7 posts
Does anyone have copies of the orea courses number 3 to 6?

As far as I know the only way to get a copy is by registering for an orea exam date. I would like to get started on reading the material before confirming a date to write the exam. In the past I had to move my date as I wasn't ready to write it. This off course had to be done for a $50 fee. And then I really had to scramble to meet the new date.

If anyone has, or knows where I can grab a copy of the books (pdf format would be the best) I would owe you a coffee at the very least!

Thank you in advance.
Newbie
Dec 17, 2019
1 posts
This is a wonderful thread!

I have been contemplating something similar. However, I live in Manitoba. Apparently, you can not be a part time realtor in Manitoba. This makes me wonder if there are any work around. Could I become a realtor in Ontario, work part time for an Ontario broker and make deals in Manitoba?

Very curious if someone has experienced the same problem...
Jr. Member
Nov 14, 2016
105 posts
59 upvotes
Toronto
cptdigits wrote:
Dec 18th, 2019 5:27 pm
This is a wonderful thread!

I have been contemplating something similar. However, I live in Manitoba. Apparently, you can not be a part time realtor in Manitoba. This makes me wonder if there are any work around. Could I become a realtor in Ontario, work part time for an Ontario broker and make deals in Manitoba?

Very curious if someone has experienced the same problem...
As far as i know, if you are a realtor registered in Ontario, you can only make deals in ontario.
Jr. Member
Nov 14, 2016
105 posts
59 upvotes
Toronto
BMC wrote:
Nov 14th, 2019 4:03 pm
Curious if anyone has enrolled into the Brokers course?

If so which elective course did you end up taking?
I am thinking about enrolling for the broker course. Just accepted the contract on the orea site as they are still providing the broker courses for a few more months. There aren't many choices left for electives as you would have already done some of those courses. You basically take a course that you haven't already taken when you became sales person. In my case i have a choice between Property managment and investment analysis.
Member
Jun 15, 2009
295 posts
37 upvotes
Nepean
Just curios, if you are doing it part time, are there any advantages of becoming broker over a salesperson? I understand, if you want to open your own brokerage.
toradian wrote:
Dec 19th, 2019 11:57 am
I am thinking about enrolling for the broker course. Just accepted the contract on the orea site as they are still providing the broker courses for a few more months. There aren't many choices left for electives as you would have already done some of those courses. You basically take a course that you haven't already taken when you became sales person. In my case i have a choice between Property managment and investment analysis.
Deal Addict
Mar 27, 2004
3455 posts
909 upvotes
Toronto
i dont see any advantage in being a broker besides being able to call yourself a broker. and the fact you are doing this part time. imo the key to success in re is being able to build relationships, being available and accessible, and following through with everything you say you will do. naturally you will get more referrals.
Full-time Realtor
Award Winning Realtor.
[OP]
Deal Guru
User avatar
Aug 2, 2010
14799 posts
4415 upvotes
Here 'n There
Being able to also call yourself a broker does have some cache with some clients, as misplaced as you think that might be. It's just like some buyers think that if a home is listed with a so-called 'high-end' brokerage it has more cache and is worth more and of course that is ludicrous. The buyer should not care if Elise Kalles listed the house or Joe Schmo Jr.

I've found doing real estate deals part-time allows one to focus on the client more and give them exceptional service compared to full-time agents who try to juggle multiple clients constantly as it's their only source of income.
Einstein: Imagination is more important than knowledge.

Economists have predicted 18 of the last 4 recessions

S&P500 Annual Returns (not inflation adj'd, divs reinvested) by Yr/%: 5/11.29, 10/13.31, 15/8.89, 20/6.06, 30/9.90, 40/11.69, 50/10.5
Member
User avatar
May 8, 2017
219 posts
101 upvotes
Is there any change in credentials if the course is done through Humber instead of OREA?
Any kind of limitation / restriction if done through Humber?
Deal Guru
Jan 15, 2006
13074 posts
9594 upvotes
Richmond Hill
eonibm wrote:
Dec 21st, 2019 8:38 am
Being able to also call yourself a broker does have some cache with some clients, as misplaced as you think that might be. It's just like some buyers think that if a home is listed with a so-called 'high-end' brokerage it has more cache and is worth more and of course that is ludicrous. The buyer should not care if Elise Kalles listed the house or Joe Schmo Jr.

I've found doing real estate deals part-time allows one to focus on the client more and give them exceptional service compared to full-time agents who try to juggle multiple clients constantly as it's their only source of income.
I've also been on the flipside of this where the part time agent is impossible to get a hold of during business hours because they are at "work". That is really doing a disservice to the client. Can't say I've had any positive dealings with part time agents thus far. But I do get what you're saying about juggling multiple clients at the same time. Some can do it better than others. But a part time agent where their priorities is their full time job is neither here nor there.

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